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8300.0
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2015-07-26 00:00:00 UTC
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Airline Investors Don't Know What's Good for Them
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AAL
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https://www.nasdaq.com/articles/airline-investors-dont-know-whats-good-them-2015-07-26
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nan
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nan
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Most airline stocks have underperformed the market this year, even as the airlines have been posting record profits. The cause of airline stocks' woes was encapsulated in the responses to a recent question posed by Morgan Stanley to investors (i.e., its clients).
The analysts asked the following question : "What do you prefer: (A) low oil, limited capacity discipline, and higher profits, or (B) high oil, increased capacity discipline, and lower profits?" More than three-quarters of respondents picked option B.
This decision is completely irrational. Frankly, it shows that airline investors don't know what's good for them. Investors should want any company they invest in to maximize profit and grow over the long run. This irrationality is a key reason long-term-oriented investors continue to have great investment opportunities in the airline sector.
A sad but unsurprising result
While it's unfortunate that so many investors still get distracted by factors other than long-term profit growth, the survey results weren't a big shock. Airline analyst Jamie Baker commented a few months ago that he was getting constant calls from investors about his unit revenue expectations, but not one question about his (bullish) profit margin and cash flow projections.
Meanwhile, another analyst had foreshadowed these survey results in May, when he said that investors should " pray for higher oil " -- even though that would lead to lower earnings -- because it would encourage the airlines to halt their growth and raise fares.
JetBlue Airways has been by far the best-performing U.S. airline stock this year for a similar reason: It has been the only airline to keep growing unit revenue consistently.
Airline YTD share performance, data by YCharts
While shares of Delta Air Lines , American Airlines , and United Continental have all declined year to date, JetBlue stock is up nearly 50%. Delta, American, and United are all posting strong earnings growth this year, but they're being punished for mid-high-single-digit unit revenue declines that haven't moderated yet.
The idea behind this misguided notion
As is often the case, there is a nugget of insight behind airline investors' irrational obsession with unit revenue growth and capacity discipline over profit.
These investors probably reason that the current cheap oil environment won't last forever. If oil prices start to rise again and unit revenue doesn't follow in a hurry, the airlines' profitability could collapse again. And the more capacity that airlines deploy, the harder it will be for them to raise fares. So these investors would prefer that oil prices had remained high all along.
However, all three big legacy carriers -- Delta Air Lines, American Airlines, and United Continental -- have shown in the past that they can move quickly to pare back capacity and raise fares when conditions warrant it.
In the present low-fuel-cost environment, they don't need to -- they are all earning record profits despite falling unit revenue. In fact, cutting capacity would be self-defeating. Smaller carriers including JetBlue are already growing rapidly . More "capacity discipline" by the legacy carriers would just create even bigger opportunities for these upstarts, encouraging them to grow faster.
In the long run, the total amount of industry capacity might not be all that different. But it would be a much more fragmented industry. That would be even worse for airline stocks.
What it means for investors
In the short run, just about anything can affect stock prices. In this case, it appears that unit revenue is the key metric determining airline stocks' fates, driving JetBlue shares higher while sinking shares of Delta, American, and United.
In the long run, it's all about earnings. There's no good reason for investors to prefer a high-fuel economic climate where airlines are earning less money now, because that wouldn't necessarily lead to better earnings further down the road.
Savvy long-term investors can potentially profit from this widespread irrational behavior by investing in legacy carrier stocks, which are all extremely cheap, with single-digit earnings multiples. In the long run, as long as their profits remain stable or growing, investors will be well rewarded, regardless of what happens in between.
Furthermore, Delta, American, and United are all buying back lots of stock to take advantage of their artificially depressed stock prices. Delta announced a new $5 billion buyback in May, and United just added $3 billion to its buyback plan on Thursday. Not to be left out, American Airlines doubled its repurchase plan to $4 billion on Friday.
The longer their stock prices stay depressed while profits stay high, the more shares Delta, American, and United will be able to repurchase. That means greater long-term EPS growth. And in the long run, that will lead to superior results for long-term investors.
Find this article informative?
The Motley Fool's mission is to help the world invest, better. We have done this over the past 20 years by thinking long term and outside the box -- even if that means turning Wall Street on its head. To learn more about what The Motley Fool thinks about current investment trends, and receive a special free report about what might be the next big industry to come out of Silicon Valley, just click here now .
The article Airline Investors Don't Know What's Good for Them originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of United Continental Holdings, and is long January 2017 $17 calls on JetBlue Airways, long November 2015 $40 calls on American Airlines Group, and long January 2017 $40 calls on Delta Air Lines, 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 .
Copyright © 1995 - 2015 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 analyst Jamie Baker commented a few months ago that he was getting constant calls from investors about his unit revenue expectations, but not one question about his (bullish) profit margin and cash flow projections. Meanwhile, another analyst had foreshadowed these survey results in May, when he said that investors should " pray for higher oil " -- even though that would lead to lower earnings -- because it would encourage the airlines to halt their growth and raise fares. However, all three big legacy carriers -- Delta Air Lines, American Airlines, and United Continental -- have shown in the past that they can move quickly to pare back capacity and raise fares when conditions warrant it.
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However, all three big legacy carriers -- Delta Air Lines, American Airlines, and United Continental -- have shown in the past that they can move quickly to pare back capacity and raise fares when conditions warrant it. The longer their stock prices stay depressed while profits stay high, the more shares Delta, American, and United will be able to repurchase. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long January 2017 $17 calls on JetBlue Airways, long November 2015 $40 calls on American Airlines Group, and long January 2017 $40 calls on Delta Air Lines, The Motley Fool has no position in any of the stocks mentioned.
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Airline YTD share performance, data by YCharts While shares of Delta Air Lines , American Airlines , and United Continental have all declined year to date, JetBlue stock is up nearly 50%. The idea behind this misguided notion As is often the case, there is a nugget of insight behind airline investors' irrational obsession with unit revenue growth and capacity discipline over profit. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long January 2017 $17 calls on JetBlue Airways, long November 2015 $40 calls on American Airlines Group, and long January 2017 $40 calls on Delta Air Lines, The Motley Fool has no position in any of the stocks mentioned.
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Investors should want any company they invest in to maximize profit and grow over the long run. In the long run, it's all about earnings. There's no good reason for investors to prefer a high-fuel economic climate where airlines are earning less money now, because that wouldn't necessarily lead to better earnings further down the road.
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8301.0
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2015-07-24 00:00:00 UTC
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American Airlines Group (AAL) Beats on Q2 Earnings - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-beats-on-q2-earnings-tale-of-the-tape-2015-07-24
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nan
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nan
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Airlines Group (AAL) 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 1.58%.
Zacks Rank: Currently, American Airlines Group has a Zacks Rank #4 (Sell), 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 $2.62, beating than the Zacks Consensus Estimate by $0.03.
Revenue: Revenues of $10.83 billion were 4.6% below the year-ago figure. Quarterly revenues were short of the Zacks Consensus Estimate of $10.93 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 bought back shares worth in excess of $750 million and declared quarterly dividend of $0.10 per share. Moreover, the board of directors authorized an additional $2 billion share buyback program. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments.
Stock Price: The earnings beat pleased the investors. Shares of the company were up 2.09% in pre-market trading at the time of writing.
Check back later for our full write up on this American Airlines Group earnings report later!
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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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Airlines Group (AAL) 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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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Airlines Group (AAL) came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. 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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Airlines Group (AAL) 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 #4 (Sell), but that could change following the company's earnings report which was just released.
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Airlines Group (AAL) 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. Adjusted earnings per share came in at $2.62, beating than the Zacks Consensus Estimate by $0.03.
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8302.0
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2015-07-24 00:00:00 UTC
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American Airlines Group Inc. Earnings: Still Flying Higher
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-earnings-still-flying-higher-2015-07-24
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nan
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nan
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American Airlines , the largest airline in the world, reported on Friday that it earned yet another record profit last quarter. Like peers Delta Air Lines and United Continental , American Airlines has been benefiting from low oil prices while simultaneously facing revenue pressure in multiple regions of the world.
American Airlines earned another record profit in Q2. Photo: American Airlines
In fact, American Airlines has been the hardest hit by unit revenue declines in recent quarters. But it has also seen the biggest fuel cost benefit, thanks to CEO Doug Parker's savvy move to stop its fuel-hedging program.
American's quarter, by the numbers
American Airlines' revenue last quarter fell 4.6% year over year to $10.83 billion. This just missed the analyst consensus of $10.86 billion.
The company's adjusted pre-tax margin increased by 4.4 percentage points year over year -- thanks to a 37% year-over-year decline in the average fuel price paid -- reaching a new record of 17.2%. This led to a record adjusted profit of $1.85 billion, good for EPS of $2.62. That edged in just ahead of the average analyst estimate of $2.60.
But American Airlines had been expecting an even better performance at the beginning of the quarter. In April, it had projected that its pre-tax adjusted margin would reach 18%-20%. At that time, analysts expected that EPS would hit $3.20. Weakening unit revenue trends and an increase in fuel prices during the quarter accounted for the discrepancy.
Passenger unit revenue, or PRASM, declined 6.9% last quarter. That was worse than the 4%-6% decline that American had originally projected, but right in the middle of its updated forecast for a 6%-8% decline. In the Pacific and Latin America regions, PRASM fell by double digits.
More of the same
American Airlines posted better results than top competitors Delta and United last quarter. Delta Air Lines had the lowest PRASM decline, at 4.6%, but it also faced the biggest fuel hedging losses . As a result, its pre-tax margin only increased by 1.8 percentage points.
Meanwhile, PRASM declined 5.6% at United Continental , putting it between its two rivals. Its pre-tax margin expanded by 3.8 percentage points year over year as its fuel hedging losses were smaller than Delta's.
American's performance last quarter shows just how important its decision to drop fuel hedging was. Despite having a weaker revenue performance than Delta or United, it delivered the most margin expansion and earned the highest profit margin among them.
Looking ahead
American Airlines still faces patches of demand weakness across the world, as well as increased price competition in the U.S. As a result, it expects PRASM to decline 6%-8% again this quarter. Nevertheless, it expects to earn another record quarterly profit, especially as fuel prices have started to fall again. For Q3, American forecasts a pre-tax margin of 16%-18%, up from 11% a year earlier.
The revenue picture could start to improve this fall as American Airlines plans to complete the biggest step of its merger integration -- moving to a single reservation system -- in October. This will allow the company to start fine-tuning schedules and capacity levels of the combined airline to maximize revenue. The biggest share of the resulting synergies will come in 2016, though.
In the meantime, American Airlines plans to continue buying back stock at a breakneck pace, as its stock remains extremely cheap. The company spent $753 million on buybacks last quarter, and on Friday the board added another $2 billion to the $2 billion repurchase program it authorized in January. It plans to complete the whole $4 billion buyback by the end of 2016, representing another lever for EPS growth.
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The article American Airlines Group Inc. Earnings: Still Flying Higher originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. 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 .
Copyright © 1995 - 2015 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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Like peers Delta Air Lines and United Continental , American Airlines has been benefiting from low oil prices while simultaneously facing revenue pressure in multiple regions of the world. Looking ahead American Airlines still faces patches of demand weakness across the world, as well as increased price competition in the U.S. As a result, it expects PRASM to decline 6%-8% again this quarter. The revenue picture could start to improve this fall as American Airlines plans to complete the biggest step of its merger integration -- moving to a single reservation system -- in October.
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Like peers Delta Air Lines and United Continental , American Airlines has been benefiting from low oil prices while simultaneously facing revenue pressure in multiple regions of the world. The company's adjusted pre-tax margin increased by 4.4 percentage points year over year -- thanks to a 37% year-over-year decline in the average fuel price paid -- reaching a new record of 17.2%. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines.
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American Airlines , the largest airline in the world, reported on Friday that it earned yet another record profit last quarter. Photo: American Airlines In fact, American Airlines has been the hardest hit by unit revenue declines in recent quarters. American's quarter, by the numbers American Airlines' revenue last quarter fell 4.6% year over year to $10.83 billion.
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American's quarter, by the numbers American Airlines' revenue last quarter fell 4.6% year over year to $10.83 billion. The revenue picture could start to improve this fall as American Airlines plans to complete the biggest step of its merger integration -- moving to a single reservation system -- in October. 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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8303.0
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2015-07-24 00:00:00 UTC
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Midday Update: Stocks Give Up Early Gains Tied to Amazon Earnings
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AAL
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https://www.nasdaq.com/articles/midday-update-stocks-give-early-gains-tied-amazon-earnings-2015-07-24
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nan
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nan
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Stocks were lower for the fourth day in a row on Friday, with energy complex weakness and lingering worries the Federal Reserve will raise interest rates in two months upstaging upbeat earnings from Amazon ( AMZN ) and Dow component stock Visa ( V ) as well as another multi-billion dollar merger in the healthcare sector.
After the Dow Jones Industrial Average yesterday closed below its 200-day moving average, overwhelmingly bearish technicals were keeping mostly positive Q2 earnings from resuscitating Wall Street today and leaving equities poised to finish the week in the red.
Q2 financial results continued to pour in last night and today, including an unexpected Q2 profit by Amazon driving Nasdaq futures higher before today's opening bell. In addition to Amazon, Starbucks ( SBUX ), American Airlines ( AAL ) and Visa all reported upbeat results, while TripAdvisor ( TRIP ) missed both earnings and revenue estimates.
In other corporate news, Anthem (ANTM) made a $48 billion offer for Cigna (CI) in a deal that would create the U.S.'s largest health care insurer as measured by its 53 million subscribing customers.
Today's economic data was mixed, with the July purchasing manager's index flash reading increasing to a slightly better-than-expected 53.8, up from a 53.6 reading during June.
New home sales, however, slumped 6.8% last month, falling to an annualized rate of 482,000 units, marking a seven-month low and missing consensus estimates expecting a 1% rise to a 550,000 annualized pace. May figures also were revised down to a seasonally adjusted annual rate of 517,000 from the 546,000 sale initially reported.
European markets all closed lower after sluggish manufacturing data overnight from China.
Crude oil was down 15 cents to $48.30 per barrel. Natural gas was down 2 cents to $2.80 per 1 million BTU. Gold was down $10 to $1,1084.20 per ounce while silver was down 21 cents today to $14.50 per ounce. Copper was up a penny to $2.39 per pound.
Among energy ETFs, the United States Oil Fund was down 0.74% to $16.02 with the United States Natural Gas Fund was down 0.87% to $13.42. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 2.57% to $13.27 while SPDR Gold Shares were down 0.35% to $103.98. The iShares Silver Trust was down 0.86% to $13.88.
Here's where the U.S. markets stood at mid-day:
NYSE Composite Index down 75.10 (-0.69%) to 10,765.63
Dow Jones Industrial Average down 109.30 ( -0.62%) to 17,622.62
S&P 500 down 12.92 (-0.61%) to 2,089.23
Nasdaq Composite Index down 18.18 (-0.35%) to 5,128.23
GLOBAL SENTIMENT
Nikkei 225 Index down 0.67%
Hang Seng Index down 1.06%
Shanghai China Composite Index down 1.29%
FTSE 100 Index down 1.13%
CAC 40 down 0.58%
DAX down 1.43%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 1.68%
NYSE Financial Sector Index down 0.45%
NYSE Healthcare Sector Index down 0.66%
UPSIDE MOVERS
(+) AMDA (+24.00%) Signs OEM letter of intent with unnamed orthopedic device design co
(+) MKTO (+22.88%) Posts narrower than expected Q2 loss, Q3 EPS guidance tops street
(+) P (+15.35%) Q2 results beat expectations
(+) AMZN (+14.97%) Reported better-than-expected Q2 results
(+) ITEK (+12.67%) Extending Thursday's near 200% rally
(+) V (+4.39%) Fiscal Q3 results better-than-expected
DOWNSIDE MOVERS
(-) TRUE (-35.96%) Issued a weak forecast for Q2 and FY15
(-) SPNC (-32.54%) Q2 revenue misses estimates, cuts FY15 revenue outlook
(-) BIIB (-18.40%) Beat earnings forecast, but missed on revenue and lowered FY15 forecast
(-) TRIP (-12.16%) Reported weaker-than-expected Q2 results
(-) ABGB (-11.38%) High-yield investors sold bonds after company said its convertible and exchangeable bonds will carry the same guarantee
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 addition to Amazon, Starbucks ( SBUX ), American Airlines ( AAL ) and Visa all reported upbeat results, while TripAdvisor ( TRIP ) missed both earnings and revenue estimates. Stocks were lower for the fourth day in a row on Friday, with energy complex weakness and lingering worries the Federal Reserve will raise interest rates in two months upstaging upbeat earnings from Amazon ( AMZN ) and Dow component stock Visa ( V ) as well as another multi-billion dollar merger in the healthcare sector. In other corporate news, Anthem (ANTM) made a $48 billion offer for Cigna (CI) in a deal that would create the U.S.'s largest health care insurer as measured by its 53 million subscribing customers.
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In addition to Amazon, Starbucks ( SBUX ), American Airlines ( AAL ) and Visa all reported upbeat results, while TripAdvisor ( TRIP ) missed both earnings and revenue estimates. NYSE Energy Sector Index down 1.68% NYSE Financial Sector Index down 0.45% NYSE Healthcare Sector Index down 0.66% (+) AMDA (+24.00%) Signs OEM letter of intent with unnamed orthopedic device design co (+) MKTO (+22.88%) Posts narrower than expected Q2 loss, Q3 EPS guidance tops street (+) P (+15.35%) Q2 results beat expectations (+) AMZN (+14.97%) Reported better-than-expected Q2 results (+) ITEK (+12.67%) Extending Thursday's near 200% rally (+) V (+4.39%) Fiscal Q3 results better-than-expected
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In addition to Amazon, Starbucks ( SBUX ), American Airlines ( AAL ) and Visa all reported upbeat results, while TripAdvisor ( TRIP ) missed both earnings and revenue estimates. Stocks were lower for the fourth day in a row on Friday, with energy complex weakness and lingering worries the Federal Reserve will raise interest rates in two months upstaging upbeat earnings from Amazon ( AMZN ) and Dow component stock Visa ( V ) as well as another multi-billion dollar merger in the healthcare sector. NYSE Energy Sector Index down 1.68% NYSE Financial Sector Index down 0.45% NYSE Healthcare Sector Index down 0.66%
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In addition to Amazon, Starbucks ( SBUX ), American Airlines ( AAL ) and Visa all reported upbeat results, while TripAdvisor ( TRIP ) missed both earnings and revenue estimates. Stocks were lower for the fourth day in a row on Friday, with energy complex weakness and lingering worries the Federal Reserve will raise interest rates in two months upstaging upbeat earnings from Amazon ( AMZN ) and Dow component stock Visa ( V ) as well as another multi-billion dollar merger in the healthcare sector. Gold was down $10 to $1,1084.20 per ounce while silver was down 21 cents today to $14.50 per ounce.
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8304.0
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2015-07-24 00:00:00 UTC
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Daily Dividend Report: SPG, K, SWK, BAC, CMCSA, SCHW, RTN, AAL, BHI
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AAL
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https://www.nasdaq.com/articles/daily-dividend-report-spg-k-swk-bac-cmcsa-schw-rtn-aal-bhi-2015-07-24
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nan
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nan
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Simon declared a quarterly common stock dividend of $1.55 per share. This is a 19.2% increase year-over-year and an increase of $0.05 or 3.3% from the previous quarter. The dividend will be payable on August 31, 2015 to stockholders of record on August 17, 2015.
Kellogg Company ( K ) declared a dividend of $0.50 per share on the common stock of the Company. As the company previously announced in April, this reflects a two percent increase to the quarterly dividend. The dividend is payable on September 15, 2015, to shareowners of record at the close of business on September 1, 2015. The ex-dividend date is August 28, 2015.
Stanley Black & Decker ( SWK ) approved a $0.03 increase of its quarterly cash dividend to $0.55 per common share. This marks the 48th consecutive annual dividend increase for the company. The dividend is payable on Tuesday, September 22, 2015 to shareholders of record as of the close of business on Friday, September 4, 2015.
Bank of America declared a regular quarterly cash dividend on Bank of America common stock of $0.05 per share, payable September 25 to shareholders of record as of September 4.
Comcast Corporation ( CMCSA ) declared a quarterly dividend of $0.25 a share on the company's common stock. The quarterly dividend is payable on October 28, 2015 to shareholders of record as of the close of business on October 7, 2015.
The Charles Schwab Corporation has declared a regular quarterly cash dividend of $0.06 per common share. The dividend is payable August 21, 2015 to stockholders of record as of the close of business on August 7, 2015.
Raytheon Company ( RTN ) has declared a quarterly cash dividend of $0.67 per outstanding share of common stock. The cash dividend is payable on Nov. 12, 2015, to shareholders of record as of the close of business on Oct. 7, 2015.
American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015.
Baker Hughes (BHI) declared the regular quarterly cash dividend of $0.17 per share of common stock payable September 23, 2015 to holders of record on September 2, 2015.
VIDEO: Daily Dividend Report: SPG, K, SWK, BAC, CMCSA, SCHW, RTN, AAL, BHI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015. VIDEO: Daily Dividend Report: SPG, K, SWK, BAC, CMCSA, SCHW, RTN, AAL, BHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Stanley Black & Decker ( SWK ) approved a $0.03 increase of its quarterly cash dividend to $0.55 per common share.
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VIDEO: Daily Dividend Report: SPG, K, SWK, BAC, CMCSA, SCHW, RTN, AAL, BHI 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 ( AAL ) declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015. Bank of America declared a regular quarterly cash dividend on Bank of America common stock of $0.05 per share, payable September 25 to shareholders of record as of September 4.
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American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015. VIDEO: Daily Dividend Report: SPG, K, SWK, BAC, CMCSA, SCHW, RTN, AAL, BHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Bank of America declared a regular quarterly cash dividend on Bank of America common stock of $0.05 per share, payable September 25 to shareholders of record as of September 4.
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American Airlines Group ( AAL ) declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015. VIDEO: Daily Dividend Report: SPG, K, SWK, BAC, CMCSA, SCHW, RTN, AAL, BHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Kellogg Company ( K ) declared a dividend of $0.50 per share on the common stock of the Company.
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8305.0
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2015-07-24 00:00:00 UTC
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US Probing Airline Price Gouging After Amtrak Crash - Stocks in the News
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AAL
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https://www.nasdaq.com/articles/us-probing-airline-price-gouging-after-amtrak-crash-stocks-news-2015-07-24
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nan
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nan
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Authorities are launching an official investigation into possible price gouging by major US airlines Delta ( DAL ), Southwest ( LUV ), American Airlines ( AAL ), and Jetblue ( JBLU ). According to reports, the companies are accused of hiking ticket prices in the Northeast Corridor to unusual levels while train service was suspended following a deadly Amtrak crash in May.
Transportation Secretary Anthony Foxx said the investigation would begin this morning, after concerns were originally brought to the attention of the administration by Democratic Senator Chris Murphy of Connecticut. "There were a flurry of concerns raised in the wake of the accident in Philadelphia," Foxx said.
The train derailment killed eight people and injured more than 200. All Amtrak service between Washington DC and New York City was suspended for six days. Josh Freed, spokesman for American Airlines, claims the company is guilty of no wrongdoing. "In response to the Amtrak derailment, we added capacity and our fare structure remained the same," Freed added.
This probe is in addition to an investigation the Justice Department announced earlier this month, focusing on whether airlines illegally collaborated to manipulate fare prices by signaling plans to limit flights.
Delta and Jetblue currently have a Zacks Rank #3 (Hold), while American Airlines has a Zacks Rank #4 (Sell) and Southwest is sporting a Zacks Rank #5 (Strong Sell). The airline industry has been volatile recently, and all four companies have seen share prices drop today following the announcement of the investigation.
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
AMER AIRLINES (AAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): 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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Authorities are launching an official investigation into possible price gouging by major US airlines Delta ( DAL ), Southwest ( LUV ), American Airlines ( AAL ), and Jetblue ( JBLU ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. According to reports, the companies are accused of hiking ticket prices in the Northeast Corridor to unusual levels while train service was suspended following a deadly Amtrak crash in May.
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Authorities are launching an official investigation into possible price gouging by major US airlines Delta ( DAL ), Southwest ( LUV ), American Airlines ( AAL ), and Jetblue ( JBLU ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Delta and Jetblue currently have a Zacks Rank #3 (Hold), while American Airlines has a Zacks Rank #4 (Sell) and Southwest is sporting a Zacks Rank #5 (Strong Sell).
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Authorities are launching an official investigation into possible price gouging by major US airlines Delta ( DAL ), Southwest ( LUV ), American Airlines ( AAL ), and Jetblue ( JBLU ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Delta and Jetblue currently have a Zacks Rank #3 (Hold), while American Airlines has a Zacks Rank #4 (Sell) and Southwest is sporting a Zacks Rank #5 (Strong Sell).
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Authorities are launching an official investigation into possible price gouging by major US airlines Delta ( DAL ), Southwest ( LUV ), American Airlines ( AAL ), and Jetblue ( JBLU ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. All Amtrak service between Washington DC and New York City was suspended for six days.
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8306.0
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2015-07-24 00:00:00 UTC
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Futures Snap Back, Buoyed by Earnings and Cigna, Anthem Pact
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AAL
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https://www.nasdaq.com/articles/futures-snap-back-buoyed-earnings-and-cigna-anthem-pact-2015-07-24
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nan
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nan
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Stock futures were modestly higher in Friday's open, poised to snap a three-day losing streak in the wake of a multi-billion dollar merger in the healthcare sector along with upbeat quarterly results from Amazon ( AMZN ), American Airlines ( AAL ), Starbucks ( SBUX ) and Dow component stock Visa ( V ), cushioning any negative fallout from disappointing manufacturing data from China and the European Union.
Dow futures were 50 points above fair value (+0.07%), with S&P futures up 0.10% and the Nasdaq outperforming with a 0.16% gain.
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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Stock futures were modestly higher in Friday's open, poised to snap a three-day losing streak in the wake of a multi-billion dollar merger in the healthcare sector along with upbeat quarterly results from Amazon ( AMZN ), American Airlines ( AAL ), Starbucks ( SBUX ) and Dow component stock Visa ( V ), cushioning any negative fallout from disappointing manufacturing data from China and the European Union. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Unauthorized reproduction is strictly prohibited.
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Stock futures were modestly higher in Friday's open, poised to snap a three-day losing streak in the wake of a multi-billion dollar merger in the healthcare sector along with upbeat quarterly results from Amazon ( AMZN ), American Airlines ( AAL ), Starbucks ( SBUX ) and Dow component stock Visa ( V ), cushioning any negative fallout from disappointing manufacturing data from China and the European Union. The views and 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 futures were modestly higher in Friday's open, poised to snap a three-day losing streak in the wake of a multi-billion dollar merger in the healthcare sector along with upbeat quarterly results from Amazon ( AMZN ), American Airlines ( AAL ), Starbucks ( SBUX ) and Dow component stock Visa ( V ), cushioning any negative fallout from disappointing manufacturing data from China and the European Union. The views and 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 futures were modestly higher in Friday's open, poised to snap a three-day losing streak in the wake of a multi-billion dollar merger in the healthcare sector along with upbeat quarterly results from Amazon ( AMZN ), American Airlines ( AAL ), Starbucks ( SBUX ) and Dow component stock Visa ( V ), cushioning any negative fallout from disappointing manufacturing data from China and the European Union. Dow futures were 50 points above fair value (+0.07%), with S&P futures up 0.10% and the Nasdaq outperforming with a 0.16% gain. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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8307.0
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2015-07-23 00:00:00 UTC
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United Continental Beats Q2 Earnings, PRASM Woes Stay - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/united-continental-beats-q2-earnings-prasm-woes-stay-analyst-blog-2015-07-23
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nan
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nan
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United Continental Holdings Inc.UAL posted adjusted earnings of $3.31 per share in the second quarter of 2015, ahead of the Zacks Consensus Estimate of $3.29. Earnings were up 41.5% on a year-over-year basis. The bottom line was aided by low fuel costs. The earnings beat pleased investors. Consequently, the stock gained in early trading.
United Continental Holdings Inc. - Earnings Surprise | FindTheBest
Operating revenues of $9.9 billion fell short of the Zacks Consensus Estimate of $10.02 billion. Revenues also declined 4% on a year-over-year basis. Passenger revenues declined 3.4% to $8.68 billion. Cargo revenues and other revenues declined 1.3% and 9.6%, respectively, in the second quarter of 2015.
During the reported quarter, airline traffic, measured in revenue passenger miles, increased a mere 0.7% year over year while capacity (or available seat miles) grew 2.3%, leading to a 140 basis point decline in load factor (percentage of seats filled with passengers) to 83.9%. Consolidated passenger revenue per available seat miles (PRASM or unit revenue) declined 5.6% year over year. Yield on a consolidated basis declined 4.1% compared with the second quarter of 2014.
Total operating expenses, excluding special items, declined 9.1% year over year. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses and special items, increased 0.3% year over year to 9.34 cents. Aircraft fuel expense declined over 32% to $2.1 billion.
As of Jun 30, 2015, United Continental had $6.3 billion of unrestricted liquidity, out of which $1.35 billion was invested in revolving credit facilities. The carrier has generated $474 million of free cash flow in the quarter under review. Driven by the company's solid financial health, the board of directors authorized a new share buyback plan worth $3 billion. The scheme is expected to be completed by Dec 31, 2017.
Outlook
The company stated that consolidated PRASM is expected to decline in the range of 5% to 7% in the third quarter. Capacity for 2015 is expected to grow in the range of 1% to 1.5%.
Upcoming Releases
Other major carriers like American Airlines Group AAL and Spirit Airlines SAVE are slated to unveil their second quarter financial numbers on Jul 24.
Zacks Rank
Currently, United Continental has a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Alaska Air Group ALK 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
UNITED CONT HLD (UAL): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Upcoming Releases Other major carriers like American Airlines Group AAL and Spirit Airlines SAVE are slated to unveil their second quarter financial numbers on Jul 24. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings Inc.UAL posted adjusted earnings of $3.31 per share in the second quarter of 2015, ahead of the Zacks Consensus Estimate of $3.29.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Other major carriers like American Airlines Group AAL and Spirit Airlines SAVE are slated to unveil their second quarter financial numbers on Jul 24. Consolidated passenger revenue per available seat miles (PRASM or unit revenue) declined 5.6% year over year.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Other major carriers like American Airlines Group AAL and Spirit Airlines SAVE are slated to unveil their second quarter financial numbers on Jul 24. During the reported quarter, airline traffic, measured in revenue passenger miles, increased a mere 0.7% year over year while capacity (or available seat miles) grew 2.3%, leading to a 140 basis point decline in load factor (percentage of seats filled with passengers) to 83.9%.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Other major carriers like American Airlines Group AAL and Spirit Airlines SAVE are slated to unveil their second quarter financial numbers on Jul 24. Consolidated passenger revenue per available seat miles (PRASM or unit revenue) declined 5.6% year over year.
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8308.0
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2015-07-23 00:00:00 UTC
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New Strong Sell Stocks for July 23rd - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-july-23rd-tale-of-the-tape-2015-07-23
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
American Airlines Group Inc. ( AAL )
Badger Meter Inc. ( BMI )
Brookfield Canada Office Properties ( BOXC )
Century Aluminum Co. ( CENX )
ChipMOS TECHNOLOGIES (Bermuda) LTD. ( IMOS )
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
AMER AIRLINES (AAL): Free Stock Analysis Report
BADGER METER (BMI): Free Stock Analysis Report
BROOKFLD CDA OP (BOXC): Free Stock Analysis Report
CENTURY ALUM CO (CENX): Free Stock Analysis Report
CHIPMOS TEC LTD (IMOS): 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 ) Badger Meter Inc. ( BMI ) Brookfield Canada Office Properties ( BOXC ) Century Aluminum Co. ( CENX ) ChipMOS TECHNOLOGIES (Bermuda) LTD. ( IMOS ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BADGER METER (BMI): Free Stock Analysis Report BROOKFLD CDA OP (BOXC): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report CHIPMOS TEC LTD (IMOS): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc. ( AAL ) Badger Meter Inc. ( BMI ) Brookfield Canada Office Properties ( BOXC ) Century Aluminum Co. ( CENX ) ChipMOS TECHNOLOGIES (Bermuda) LTD. ( IMOS ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BADGER METER (BMI): Free Stock Analysis Report BROOKFLD CDA OP (BOXC): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report CHIPMOS TEC LTD (IMOS): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc. ( AAL ) Badger Meter Inc. ( BMI ) Brookfield Canada Office Properties ( BOXC ) Century Aluminum Co. ( CENX ) ChipMOS TECHNOLOGIES (Bermuda) LTD. ( IMOS ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BADGER METER (BMI): Free Stock Analysis Report BROOKFLD CDA OP (BOXC): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report CHIPMOS TEC LTD (IMOS): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc. ( AAL ) Badger Meter Inc. ( BMI ) Brookfield Canada Office Properties ( BOXC ) Century Aluminum Co. ( CENX ) ChipMOS TECHNOLOGIES (Bermuda) LTD. ( IMOS ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BADGER METER (BMI): Free Stock Analysis Report BROOKFLD CDA OP (BOXC): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report CHIPMOS TEC LTD (IMOS): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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8309.0
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2015-07-22 00:00:00 UTC
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American Airlines Group (AAL) Q2 Earnings: What's in Store? - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-q2-earnings%3A-whats-in-store-analyst-blog-2015-07-22
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nan
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nan
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American Airlines Group Inc.AAL is slated to release its second-quarter 2015 results before the market opens on Jul 24.
Last quarter, American Airlines Group delivered a positive earnings surprise of 1.76%. Moreover, the company's earnings have surpassed the Zacks Consensus Estimate in all the prior four quarters, with an average beat of 1.58%. Let's see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
We believe continuous expansion of routes, increased flight frequencies and augmented travel demand should boost the to-be-reported quarter's performance. Further, declining oil prices coupled with the ongoing integration of U.S. Airways should benefit the company in the upcoming quarters.
Notably, American Airlines Group reported impressive traffic numbers for June 2015. The company saw its June air traffic move up 2.8% year over year on a 2.4% rise in capacity. American Airlines Group also trimmed its 2015 capacity growth view to 1% (earlier estimated at 2%). This action came close on the heels of the news of a probe by the Department of Justice on the possibility of unlawful co-ordination to limit the availability of seats, with the objective of keeping airfares high.
However, the disappointing PRASM forecast for the second quarter comes as a dampener. The metric is expected to decline in the range of 6% and 8% in the quarter. Further, stiff competition from low-cost carriers as well as from major airlines that have cut fares in order to attract customers may impact the company's profits. Additionally, the ongoing dispute with the Gulf carriers is another cause for concern and may weigh on the airline's quarterly performance.
Earnings Whispers
Our proven model does not conclusively show that American Airlines Group is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP : American Airlines Group has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are poised at $2.59.
Zacks Rank : American Airlines Group has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
United Continental Holdings, Inc. UAL has an earnings ESP of +0.91% and a Zacks Rank #3.
United Parcel Service, Inc. UPS has an earnings ESP of +0.79% and a Zacks Rank #3.
Ryder System, Inc. R has an earnings ESP of +0.62% and a Zacks Rank #3.
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
UTD PARCEL SRVC (UPS): Free Stock Analysis Report
RYDER SYS (R): 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 is slated to release its second-quarter 2015 results before the market opens on Jul 24. Click to get this free report UTD PARCEL SRVC (UPS): Free Stock Analysis Report RYDER SYS (R): 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 action came close on the heels of the news of a probe by the Department of Justice on the possibility of unlawful co-ordination to limit the availability of seats, with the objective of keeping airfares high.
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Click to get this free report UTD PARCEL SRVC (UPS): Free Stock Analysis Report RYDER SYS (R): 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 is slated to release its second-quarter 2015 results before the market opens on Jul 24. Stocks to Consider Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter: United Continental Holdings, Inc. UAL has an earnings ESP of +0.91% and a Zacks Rank #3.
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Click to get this free report UTD PARCEL SRVC (UPS): Free Stock Analysis Report RYDER SYS (R): 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 is slated to release its second-quarter 2015 results before the market opens on Jul 24. Earnings Whispers Our proven model does not conclusively show that American Airlines Group is likely to beat the Zacks Consensus Estimate this quarter.
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American Airlines Group Inc.AAL is slated to release its second-quarter 2015 results before the market opens on Jul 24. Click to get this free report UTD PARCEL SRVC (UPS): Free Stock Analysis Report RYDER SYS (R): 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 also trimmed its 2015 capacity growth view to 1% (earlier estimated at 2%).
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8310.0
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2015-07-21 00:00:00 UTC
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QLD, ALXN, AAL, AMGN: ETF Outflow Alert
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AAL
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https://www.nasdaq.com/articles/qld-alxn-aal-amgn-etf-outflow-alert-2015-07-21
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $33.1 million dollar outflow -- that's a 3.0% decrease week over week (from 13,400,000 to 13,000,000). Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is off about 1.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.5%, and Amgen Inc (Symbol: AMGN) is lower by about 0.7%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average:
Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $83.26 as the 52 week high point - that compares with a last trade of $82.46. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is off about 1.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.5%, and Amgen Inc (Symbol: AMGN) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $33.1 million dollar outflow -- that's a 3.0% decrease week over week (from 13,400,000 to 13,000,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is off about 1.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.5%, and Amgen Inc (Symbol: AMGN) is lower by about 0.7%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $83.26 as the 52 week high point - that compares with a last trade of $82.46. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is off about 1.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.5%, and Amgen Inc (Symbol: AMGN) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $33.1 million dollar outflow -- that's a 3.0% decrease week over week (from 13,400,000 to 13,000,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $83.26 as the 52 week high point - that compares with a last trade of $82.46.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is off about 1.1%, American Airlines Group Inc (Symbol: AAL) is up about 1.5%, and Amgen Inc (Symbol: AMGN) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $33.1 million dollar outflow -- that's a 3.0% decrease week over week (from 13,400,000 to 13,000,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $83.26 as the 52 week high point - that compares with a last trade of $82.46.
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8311.0
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2015-07-21 00:00:00 UTC
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Strategy To YieldBoost American Airlines Group From 1% To 4.6% Using Options
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AAL
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https://www.nasdaq.com/articles/strategy-yieldboost-american-airlines-group-1-46-using-options-2015-07-21
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nan
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nan
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2017 covered call at the $57.50 strike and collect the premium based on the $2.23 bid, which annualizes to an additional 3.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.6% annualized rate in the scenario where the stock is not called away. Any upside above $57.50 would be lost if the stock rises there and is called away, but AAL shares would have to climb 40.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 46.1% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of American Airlines Group Inc, looking at the dividend history chart for AAL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1% annualized dividend yield.
Below is a chart showing AAL's trailing twelve month trading history, with the $57.50 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2017 covered call at the $57.50 strike gives good reward for the risk of having given away the upside beyond $57.50. ( Do most options expire worthless? This and six other common options myths debunked ). We calculate the trailing twelve month volatility for American Airlines Group Inc (considering the last 252 trading day closing values as well as today's price of $40.94) to be 41%. For other call options contract ideas at the various different available expirations, visit the AAL Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 727,041 contracts, with call volume at 1.29M, for a put:call ratio of 0.56 so far for the day. Compared to the long-term median put:call ratio of .65, that represents high call volume relative to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out which 15 call and put options traders are talking about today .
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a chart showing AAL's trailing twelve month trading history, with the $57.50 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2017 covered call at the $57.50 strike gives good reward for the risk of having given away the upside beyond $57.50. Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2017 covered call at the $57.50 strike and collect the premium based on the $2.23 bid, which annualizes to an additional 3.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.6% annualized rate in the scenario where the stock is not called away. Any upside above $57.50 would be lost if the stock rises there and is called away, but AAL shares would have to climb 40.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 46.1% return from this trading level, in addition to any dividends collected before the stock was called.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2017 covered call at the $57.50 strike and collect the premium based on the $2.23 bid, which annualizes to an additional 3.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.6% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAL's trailing twelve month trading history, with the $57.50 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2017 covered call at the $57.50 strike gives good reward for the risk of having given away the upside beyond $57.50. Any upside above $57.50 would be lost if the stock rises there and is called away, but AAL shares would have to climb 40.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 46.1% return from this trading level, in addition to any dividends collected before the stock was called.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2017 covered call at the $57.50 strike and collect the premium based on the $2.23 bid, which annualizes to an additional 3.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.6% annualized rate in the scenario where the stock is not called away. Any upside above $57.50 would be lost if the stock rises there and is called away, but AAL shares would have to climb 40.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 46.1% return from this trading level, in addition to any dividends collected before the stock was called. 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% annualized dividend yield.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2017 covered call at the $57.50 strike and collect the premium based on the $2.23 bid, which annualizes to an additional 3.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.6% annualized rate in the scenario where the stock is not called away. For other call options contract ideas at the various different available expirations, visit the AAL Stock Options page of StockOptionsChannel.com. Any upside above $57.50 would be lost if the stock rises there and is called away, but AAL shares would have to climb 40.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 46.1% return from this trading level, in addition to any dividends collected before the stock was called.
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8312.0
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2015-07-20 00:00:00 UTC
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New Strong Sell Stocks for July 20th - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-july-20th-tale-of-the-tape-2015-07-20
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
American Airlines Group Inc ( AAL )
Covanta Holding Corp ( CVA )
Emerson Electric Co ( EMR )
FBR & Co ( FBRC )
Haemonetics Corporation ( HAE )
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
AMER AIRLINES (AAL): Free Stock Analysis Report
COVANTA HOLDING (CVA): Free Stock Analysis Report
EMERSON ELEC CO (EMR): Free Stock Analysis Report
FBR & CO (FBRC): Free Stock Analysis Report
HAEMONETICS CP (HAE): 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 ) Covanta Holding Corp ( CVA ) Emerson Electric Co ( EMR ) FBR & Co ( FBRC ) Haemonetics Corporation ( HAE ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report COVANTA HOLDING (CVA): Free Stock Analysis Report EMERSON ELEC CO (EMR): Free Stock Analysis Report FBR & CO (FBRC): Free Stock Analysis Report HAEMONETICS CP (HAE): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc ( AAL ) Covanta Holding Corp ( CVA ) Emerson Electric Co ( EMR ) FBR & Co ( FBRC ) Haemonetics Corporation ( HAE ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report COVANTA HOLDING (CVA): Free Stock Analysis Report EMERSON ELEC CO (EMR): Free Stock Analysis Report FBR & CO (FBRC): Free Stock Analysis Report HAEMONETICS CP (HAE): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc ( AAL ) Covanta Holding Corp ( CVA ) Emerson Electric Co ( EMR ) FBR & Co ( FBRC ) Haemonetics Corporation ( HAE ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report COVANTA HOLDING (CVA): Free Stock Analysis Report EMERSON ELEC CO (EMR): Free Stock Analysis Report FBR & CO (FBRC): Free Stock Analysis Report HAEMONETICS CP (HAE): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc ( AAL ) Covanta Holding Corp ( CVA ) Emerson Electric Co ( EMR ) FBR & Co ( FBRC ) Haemonetics Corporation ( HAE ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report COVANTA HOLDING (CVA): Free Stock Analysis Report EMERSON ELEC CO (EMR): Free Stock Analysis Report FBR & CO (FBRC): Free Stock Analysis Report HAEMONETICS CP (HAE): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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8313.0
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2015-07-20 00:00:00 UTC
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United Continental Trims US Capacity Growth View, Stock Up - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/united-continental-trims-us-capacity-growth-view-stock-up-analyst-blog-2015-07-20
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nan
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nan
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Shares of Chicago, IL-based United Continental Holdings, Inc.UAL inched up 0.75% to $55.39 on Jul 17, following a reduced 2015 domestic capacity growth outlook provided by the company.
John Rainey, the carrier's Chief Financial Officer, in an interview on CNBC, said that the carrier now expects domestic capacity in 2015 to grow in the range of 0% to 1%. The earlier forecast in April had called for growth of 0.2% to 1.2% in the metric.
We note that United Continental is the third major American carrier to reduce its capacity growth outlook this month. Fort Worth, TX-based American Airlines Group AAL adopted a similar stance earlier in the month, trimming its expansion plans to match the weak demand for travel. The carrier now expects U.S. capacity for 2015 to grow in the range of 1% and 2% (previous guidance: 2% to 3%).
In the same lines, Delta Air Lines DAL expressed its intention to trim capacity on the international front by 3.5% (earlier projection had called for a 3% cut) in the fourth quarter of 2015. The carrier intends to suspend services to Moscow during the winter season. Taking into account the 2% domestic growth, Delta's overall capacity growth in the fourth quarter is expected to be flat.
United Continental's announcement to scale back its capacity growth projection comes close on the heels of the news of a probe by the Department of Justice (DOJ) earlier in the month, on the possibility of unlawful co-ordination by some carriers to limit the availability of seats, with the objective of keeping airfares high. Apart from the three carriers mentioned above, Southwest Airlines LUV has also confirmed the receipt of written communication from the DOJ seeking information. A series of lawsuits have been filed by passengers against the said carriers since the news surfaced.
In fact, capacity and pricing worries have been hampering airline stocks since May ever since Southwest Airlines announced its plans to expand 2015 capacity by 7% to 8%. Southwest's projection wreaked havoc among investors who feared that the increased capacity expansion would lead to an oversupplied market even as fuel costs remain weak.
Investors were naturally concerned that oversupply would result in lower fares and adversely impact profit. Subsequently, the carrier scaled back its projection to 7%. Amid such capacity-related worries, it is only natural that United Continental's decision to scale back its capacity growth projection finds favor with investors.
Zacks Rank
Currently, United Continental Holdings has a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Deutsche Lufthansa Aktiengesellschaft DLAKY 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
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): 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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Fort Worth, TX-based American Airlines Group AAL adopted a similar stance earlier in the month, trimming its expansion plans to match the weak demand for travel. 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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental's announcement to scale back its capacity growth projection comes close on the heels of the news of a probe by the Department of Justice (DOJ) earlier in the month, on the possibility of unlawful co-ordination by some carriers to limit the availability of seats, with the objective of keeping airfares high.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Fort Worth, TX-based American Airlines Group AAL adopted a similar stance earlier in the month, trimming its expansion plans to match the weak demand for travel. In the same lines, Delta Air Lines DAL expressed its intention to trim capacity on the international front by 3.5% (earlier projection had called for a 3% cut) in the fourth quarter of 2015.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Fort Worth, TX-based American Airlines Group AAL adopted a similar stance earlier in the month, trimming its expansion plans to match the weak demand for travel. United Continental's announcement to scale back its capacity growth projection comes close on the heels of the news of a probe by the Department of Justice (DOJ) earlier in the month, on the possibility of unlawful co-ordination by some carriers to limit the availability of seats, with the objective of keeping airfares high.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Fort Worth, TX-based American Airlines Group AAL adopted a similar stance earlier in the month, trimming its expansion plans to match the weak demand for travel. Taking into account the 2% domestic growth, Delta's overall capacity growth in the fourth quarter is expected to be flat.
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8314.0
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2015-07-15 00:00:00 UTC
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Nasdaq 100 Movers: AAL, CELG
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-celg-2015-07-15
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nan
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nan
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In early trading on Wednesday, shares of Celgene ( CELG ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 9.4%. Year to date, Celgene registers a 20.1% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. American Airlines Group is lower by about 24.1% looking at the year to date performance.
Two other components making moves today are Wynn Resorts ( WYNN ), trading down 2.6%, and Vertex Pharmaceuticals ( VRTX ), trading up 4.2% on the day.
VIDEO: Nasdaq 100 Movers: AAL, CELG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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, CELG 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 24.1% 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 3.3%. VIDEO: Nasdaq 100 Movers: AAL, CELG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and 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, CELG 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 Celgene ( CELG ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 9.4%.
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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, CELG 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 24.1% looking at the year to date performance.
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8315.0
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2015-07-15 00:00:00 UTC
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Delta Air Lines, Inc. Earnings: The Worst Is Over
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-inc-earnings-worst-over-2015-07-15
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nan
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nan
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After two years of nearly flawless execution -- which sent its stock price from single-digit territory to the $50 level -- Delta Air Lines has stumbled in 2015. Aggressive fuel hedging has prevented it from reaping the full benefit of lower oil prices , while the low-fuel-price environment has contributed to unit revenue pressure.
While these issues continued to impact Delta in Q2, the company still reported double-digit earnings growth. More importantly, the worst appears to be over, setting the stage for stronger stock performance going forward.
Delta's quarter by the numbers
In Q2, Delta's revenue rose 0.8%, to $10.71 billion, slightly exceeding the average analyst estimate of $10.65 billion. Delta's adjusted EPS hit $1.27, up from $1.04 in the prior-year quarter. That beat the consensus estimate of $1.21 -- but still fell well short of the $1.36 in EPS that analysts had expected at the beginning of the quarter.
Delta delivered solid earnings growth in Q2.
Delta's revenue and EPS gains came in spite of a 4.6% decline in passenger-unit revenue, or PRASM. PRASM declined in all regions of the world, but the drop was far more severe on international routes than in the domestic market.
Domestic mainline PRASM fell 1.1% year over year, while regional PRASM fell 1.4%. By contrast, PRASM fell 11.5% in the Atlantic region, 8.5% in the Pacific region, and 7.8% in Latin America, due to a combination of the strong dollar, lower fuel surcharges, and spotty economic growth.
Delta managed to post solid EPS growth despite this unit revenue weakness due to a double-digit reduction in its unit costs. This consisted of a nearly 1% decline in adjusted CASM -- which excludes volatile items like fuel, profit-sharing, and special items -- an 18% decline in the average fuel price paid, and fewer special items.
Delta vs. the competition
While Delta's 4.6% PRASM decline last quarter was nothing to write home about, it was actually better than what its two main competitors -- American Airlines and United Continental -- are expected to report. American Airlines has projected that PRASM fell 6%-8% last quarter, while United Continental expects a decline of 5.25%-5.75%.
However, there's one key difference between Delta's situation and those of American and United. While Delta had aggressively hedged its Q2 fuel costs, American Airlines does not hedge at all, and United Continental has been reducing its hedge exposure. As a result, American and United paid significantly less for fuel last quarter than Delta's all-in cost of $2.40/gallon.
The outlook for Q3 and beyond
In the short run, Delta doesn't expect its unit revenue declines to subside. The company expects PRASM to fall 4.5%-6.5% year over year in Q3, as all of the pressures it faced in the first half of 2015 remain in place.
However, Delta has much lower fuel-hedging exposure in the second half of 2015. Delta expects to pay just $1.90-$1.95/gallon for fuel in Q3, and $1.90-$2.00/gallon for the full second half of the year, compared to an average of $2.65 in the first half of 2015.
This will allow it to post better than 30% year-over-year EPS growth this quarter, according to CEO Richard Anderson. Based on Delta's guidance for a Q3 operating margin of 19%-21%, the average analyst EPS estimate of $1.64 appears to be right on target.
The outlook for Q4 is even brighter. Delta announced in April that it will implement deep capacity cuts in underperforming markets -- including Africa, India, the Middle East, Russia, Brazil, and Japan -- during the off-peak season. As a result, total system capacity will be roughly flat in Q4, with international capacity down.
That would be in stark contrast to last quarter, when capacity was up 3.4% year over year, with capacity growth of 5% or more in the Atlantic and Latin America regions. Delta's efforts to bring supply back in line with demand should drive much better unit revenue performance in Q4 and throughout 2016.
While Delta shares originally rallied after the earnings announcement, the stock was down nearly 3% by 9:15 a.m. in pre-market trade. However, with Delta stock trading for just 10 times projected 2015 earnings and eight times projected 2016 earnings, solid execution should be enough to drive the stock higher in the next year or so.
Find this article informative?
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The article Delta Air Lines, Inc. Earnings: The Worst Is Over originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines, 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 .
Copyright © 1995 - 2015 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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Aggressive fuel hedging has prevented it from reaping the full benefit of lower oil prices , while the low-fuel-price environment has contributed to unit revenue pressure. Delta announced in April that it will implement deep capacity cuts in underperforming markets -- including Africa, India, the Middle East, Russia, Brazil, and Japan -- during the off-peak season. To learn more about what The Motley Fool thinks about current investment trends, and receive a special free report about what might be the next big industry to come out of Silicon Valley, just click here now .
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American Airlines has projected that PRASM fell 6%-8% last quarter, while United Continental expects a decline of 5.25%-5.75%. However, with Delta stock trading for just 10 times projected 2015 earnings and eight times projected 2016 earnings, solid execution should be enough to drive the stock higher in the next year or so. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines, The Motley Fool has no position in any of the stocks mentioned.
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Delta's quarter by the numbers In Q2, Delta's revenue rose 0.8%, to $10.71 billion, slightly exceeding the average analyst estimate of $10.65 billion. Delta vs. the competition While Delta's 4.6% PRASM decline last quarter was nothing to write home about, it was actually better than what its two main competitors -- American Airlines and United Continental -- are expected to report. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines, The Motley Fool has no position in any of the stocks mentioned.
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American Airlines has projected that PRASM fell 6%-8% last quarter, while United Continental expects a decline of 5.25%-5.75%. The article Delta Air Lines, Inc. Earnings: The Worst Is Over originally appeared on Fool.com. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines, The Motley Fool has no position in any of the stocks mentioned.
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8316.0
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2015-07-14 00:00:00 UTC
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Nasdaq 100 Movers: AAL, MU
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-mu-2015-07-14
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nan
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nan
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In early trading on Tuesday, shares of Micron Technology ( MU ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 10.4%. Year to date, Micron Technology has lost about 44.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.9%. American Airlines Group is lower by about 22.4% looking at the year to date performance.
Two other components making moves today are Fastenal ( FAST ), trading down 1.8%, and SanDisk Corp. ( SNDK ), trading up 4.2% on the day.
VIDEO: Nasdaq 100 Movers: AAL, MU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 1.9%. VIDEO: Nasdaq 100 Movers: AAL, MU 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 22.4% 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 1.9%. VIDEO: Nasdaq 100 Movers: AAL, MU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and 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 1.9%. VIDEO: Nasdaq 100 Movers: AAL, MU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Micron Technology ( MU ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 10.4%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.9%. VIDEO: Nasdaq 100 Movers: AAL, MU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Micron Technology ( MU ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 10.4%.
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8317.0
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2015-07-14 00:00:00 UTC
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Stock Market News for July 14, 2015 - Market News
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-july-14-2015-market-news-2015-07-14
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nan
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nan
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Benchmarks ended higher on Monday after Greece and its creditors struck a deal for a bailout program. Eurozone leaders agreed on a bailout deal for the debt-laden country in return for tougher policy overhauls and pension reforms. While all three indexes gained for the third straight trading day, the blue-chip index added more than 200 points for the second session in a row.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) gained 1.2% or 217.27 points to close at 17,977.68. The Standard & Poor's 500 (S&P 500) advanced 1.1% to 2,099.60. The tech-laden Nasdaq Composite Index closed at 5,071.51; increasing 1.5%. The fear-gauge CBOE Volatility Index (VIX) tanked 17.4% to settle at 13.90. A total of about 5.9 billion shares were traded on Monday, lower than this month's average of 6.9 billion. Advancers outpaced declining stocks on the NYSE. For 71% stocks that advanced, 26% declined.
Benchmarks gained over 1% on Monday after Greece reached an agreement with its lenders on a bailout deal for the cash-strapped country. To seal "Greekment", Greece needs to broaden its tax structure, improve long-term sustainability of pension schemes, adopt code of civil procedure, apply the EU Bank Recovery and Resolution Directive, increase privatization, strengthen the financial sector, improve labor market conditions and modernize the Greek administrative system.
Eurozone leaders said that Greece's reform policies must be "seriously strengthened to take into account the strongly deteriorated economic and fiscal position of the country during the last year". Eurozone leaders agreed to give Greece new bailout aid of about 86 billion euros, provided Greece implements such austerity measures. The deal needs to be approved by national parliaments including Greek parliament ahead of the formal negotiations on financial aid through the European Stability Mechanism.
Eurogroup head Jeroen Dijsselbloem also said that Eurozone finance ministers will discuss ways to help Greece meet its short term financial requirements. He said a fund of around 50 billion euros needs to be set up, half of which will be required to recapitalize the banks. He added: "50% of the remaining funds will be used to bring down debt even more" and the rest can be invested in the debt-laden country by the Greek government. Meanwhile, Greece's banks and stock exchanges remained closed until Monday.
The tentative deal to bailout Greece boosted European equity markets. In addition to the European markets, China's stock market also advanced for the third straight day. The benchmark Shanghai Composite Index gained 2.4% on Monday. Chinese stocks rose after China's trade surplus narrowed in June. China's exports increased by 2.8% in June after it had declined 2.5% in May. Imports on the other hand were down 6.1% in June, narrower than May's decline of 17.6%. Gains in Chinese stocks eventually boosted investor sentiment.
Separately, gains in biotech stocks had a positive impact on the Nasdaq. Biotech stocks such as Gilead Sciences Inc. ( GILD ), Biogen Inc. ( BIIB ), Amgen Inc. ( AMGN ) and Celgene Corporation ( CELG ) increased 0.7%, 0.8%, 1.1% and 1.7%, respectively. The iShares Nasdaq Biotechnology (IBB) gained 1.7%, while the broader Health Care Select Sector SPDR (XLV) advanced 0.9%.
Airline stocks also advanced due to fall in oil prices . Oil prices fell on concern of fallout in Iranian deal, stronger dollar and rise in production levels by OPEC. The prices of WTI crude oil and Brent crude oil decreased 1% and 1.5% to $52.20 per barrel and $57.85 a barrel, respectively. Airline stocks including American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ), JetBlue Airways Corporation ( JBLU ) and Alaska Air Group, Inc. ( ALK ) gained 2.9%, 1.6%, 1.2% and 2.4%, respectively.
Monday's gains were broad based with all 10 sectors of the S&P 500 ending in the green. The Technology Select Sector SPDR (XLK) gained 1.5%, the highest among the S&P 500 sectors. Key holdings from the sector including Intel Corporation ( INTC ), Apple Inc. ( AAPL ), Microsoft Corporation ( MSFT ), AT&T Inc. ( T ), Google Inc ( GOOGL ) and International Business Machines Corporation ( IBM ) increased 1.9%, 1.9%, 2.1%, 0.6%, 2.8% and 1.5%, respectively.
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GILEAD SCIENCES (GILD): Free Stock Analysis Report
BIOGEN INC (BIIB): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
CELGENE CORP (CELG): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report
INTL BUS MACH (IBM): 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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Airline stocks including American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ), JetBlue Airways Corporation ( JBLU ) and Alaska Air Group, Inc. ( ALK ) gained 2.9%, 1.6%, 1.2% and 2.4%, respectively. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report To read this article on Zacks.com click here. For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article The Dow Jones Industrial Average (DJI) gained 1.2% or 217.27 points to close at 17,977.68.
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Airline stocks including American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ), JetBlue Airways Corporation ( JBLU ) and Alaska Air Group, Inc. ( ALK ) gained 2.9%, 1.6%, 1.2% and 2.4%, respectively. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report To read this article on Zacks.com click here. Biotech stocks such as Gilead Sciences Inc. ( GILD ), Biogen Inc. ( BIIB ), Amgen Inc. ( AMGN ) and Celgene Corporation ( CELG ) increased 0.7%, 0.8%, 1.1% and 1.7%, respectively.
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Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report To read this article on Zacks.com click here. Airline stocks including American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ), JetBlue Airways Corporation ( JBLU ) and Alaska Air Group, Inc. ( ALK ) gained 2.9%, 1.6%, 1.2% and 2.4%, respectively. Benchmarks gained over 1% on Monday after Greece reached an agreement with its lenders on a bailout deal for the cash-strapped country.
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Airline stocks including American Airlines Group Inc. ( AAL ), United Continental Holdings, Inc. ( UAL ), JetBlue Airways Corporation ( JBLU ) and Alaska Air Group, Inc. ( ALK ) gained 2.9%, 1.6%, 1.2% and 2.4%, respectively. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report BIOGEN INC (BIIB): Free Stock Analysis Report AMGEN INC (AMGN): Free Stock Analysis Report CELGENE CORP (CELG): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report MICROSOFT CORP (MSFT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report To read this article on Zacks.com click here. The tentative deal to bailout Greece boosted European equity markets.
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8318.0
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2015-07-14 00:00:00 UTC
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New Strong Sell Stocks for July 14th - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-july-14th-tale-of-the-tape-2015-07-14
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
American Airlines Group Inc ( AAL )
American Midstream Partners LP ( AMID )
American Residential Properties Inc ( ARPI )
ARRIS Group, Inc. ( ARRS )
Boise Cascade Co ( BCC )
View the entire Zacks Rank #5 List .
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AMER AIRLINES (AAL): Free Stock Analysis Report
AMER MIDSTREAM (AMID): Free Stock Analysis Report
AMERICAN RES PR (ARPI): Free Stock Analysis Report
ARRIS GROUP INC (ARRS): Free Stock Analysis Report
BOISE CASCADE (BCC): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc ( AAL ) American Midstream Partners LP ( AMID ) American Residential Properties Inc ( ARPI ) ARRIS Group, Inc. ( ARRS ) Boise Cascade Co ( BCC ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report AMERICAN RES PR (ARPI): Free Stock Analysis Report ARRIS GROUP INC (ARRS): Free Stock Analysis Report BOISE CASCADE (BCC): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc ( AAL ) American Midstream Partners LP ( AMID ) American Residential Properties Inc ( ARPI ) ARRIS Group, Inc. ( ARRS ) Boise Cascade Co ( BCC ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report AMERICAN RES PR (ARPI): Free Stock Analysis Report ARRIS GROUP INC (ARRS): Free Stock Analysis Report BOISE CASCADE (BCC): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc ( AAL ) American Midstream Partners LP ( AMID ) American Residential Properties Inc ( ARPI ) ARRIS Group, Inc. ( ARRS ) Boise Cascade Co ( BCC ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report AMERICAN RES PR (ARPI): Free Stock Analysis Report ARRIS GROUP INC (ARRS): Free Stock Analysis Report BOISE CASCADE (BCC): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc ( AAL ) American Midstream Partners LP ( AMID ) American Residential Properties Inc ( ARPI ) ARRIS Group, Inc. ( ARRS ) Boise Cascade Co ( BCC ) View the entire Zacks Rank #5 List . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report AMER MIDSTREAM (AMID): Free Stock Analysis Report AMERICAN RES PR (ARPI): Free Stock Analysis Report ARRIS GROUP INC (ARRS): Free Stock Analysis Report BOISE CASCADE (BCC): 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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8319.0
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2015-07-14 00:00:00 UTC
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Southwest, American, Delta, and United Hit With a Frivolous Class Action Lawsuit
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AAL
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https://www.nasdaq.com/articles/southwest-american-delta-and-united-hit-frivolous-class-action-lawsuit-2015-07-14
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nan
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nan
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Since a series of recent mergers, the U.S. airline industry has been dominated by four carriers: American Airlines , Delta Air Lines , Southwest Airlines , and United Continental . Earlier this month, reports leaked that the U.S. Department of Justice was investigating all four for collusion to restrain capacity growth and thus keep fares high.
The DOJ is only at the investigation stage -- no charges have been filed yet. Given that domestic airline capacity has been rising in 2015 at a rate not seen since before the Great Recession, while airfares have been falling, the investigation doesn't seem like a very serious threat to the airlines.
Delta is among the targets of a DOJ investigation and a class action lawsuit.
Nevertheless, American Airlines, Delta Air Lines, Southwest Airlines, and United Continental all got hit by a class action lawsuit last week. The lawsuit, filed on behalf of several Dallas-Fort Worth-area consumers, alleges that the four big airlines conspired to restrict capacity and raise fares .
Not a coincidence
Based on the timing of the lawsuit and the content of the allegations, it seems very unlikely that it is a coincidence that the suit was filed just a week after the DOJ investigation became public.
Indeed, there isn't much to distinguish the plaintiffs' claims from the subject of the DOJ investigation -- other than that the DOJ itself isn't rushing to judgment. Both the lawsuit and the investigation center on whether American, Delta, Southwest, and United "conspired to restrict capacity by limiting routes and the number of available seats in order to charge artificially high prices," as a press release announcing the class action antitrust lawsuit stated.
No evidence to support the claims
Not surprisingly, the airlines don't believe that they have broken the law. American Airlines CEO Doug Parker recently sent employees a letter asserting that the airline has done nothing wrong, according to the Los Angeles Times .
American Airlines CEO Doug Parker recently struck back at allegations of collusion. Image source: American Airlines
Given the acceleration in U.S. airline capacity growth in 2015 and the corresponding decline in fares, Parker's denial appears to be justified. But in the Dallas-Fort-Worth area -- the subject of the lawsuit -- the idea that the airlines are colluding is even more preposterous.
First, the Dallas-Fort Worth area has experienced rapid capacity growth since Dallas Love Field was opened to long-haul flights last fall. At the beginning of October 2014, Southwest Airlines operated 118 daily departures from Love Field. By next month, Southwest hopes to offer 180 daily departures there: a more than 50% increase. It is also bringing in larger planes and operating longer flights, enhancing its growth.
Meanwhile, American Airlines -- which operates a hub nearby at Dallas-Fort Worth International Airport -- has stated that it will not cut capacity on the routes where Southwest is growing. In fact, American Airlines President Scott Kirby told analysts in April that the carrier is more likely to put larger planes on those routes, as lower fares are stimulating travel demand.
Second, it is clear that all of this capacity growth is driving down airfares. Every airline with major operations in the Dallas-Fort Worth area has noted that a weak pricing environment there is hurting unit revenue. Simply put, Dallas-Fort Worth is one of the best places to get a great deal on air travel right now.
Growth by Southwest Airlines is driving down fares in the Dallas-Fort Worth area.
Third, even before the recent fare war, fliers in Dallas-Fort Worth had it pretty good. According to Department of Transportation data, the average domestic airfare at Dallas-Fort Worth International Airport declined 7.7% from 2000 to 2014. In real terms, the 2014 average airfare at DFW was 31.6% below the level of 2000.
Lies, damned lies, and statistics If there is such clear-cut evidence demonstrating that airfares have been falling in the Dallas-Fort Worth area (especially in real terms), how did the plaintiffs' attorneys manage to compile a plausible complaint?
The answer hearkens back to an old saying associated with Mark Twain -- though not invented by him -- "There are three kinds of lies: lies, damned lies, and statistics." Based on the press release provided by the law firm behind this case, the argument that American, Delta, Southwest, and United colluded to raise fares is based on shoddy statistics.
For example, the press release alleges that "airlines paid at least $1.50 per gallon less for jet fuel in 2014 compared to 2013" and that fares should therefore have declined. And it's true that by the last week of 2014, the price of Gulf Coast jet fuel had dropped as low as $1.55 per gallon after rising as high as $3.30 per gallon in early 2013.
However, the fuel price drop didn't really accelerate until the last few months of 2014. Thus, for the full year, American Airlines paid just $0.17 per gallon less than in 2013.
The press release also claims that airline fares rose an inflation-adjusted 13% from 2009 to 2014. It contrasts this to the recent drop in jet fuel prices. Yet it conveniently fails to mention that the price of jet fuel approximately doubled between early 2009 and early 2014.
It's unlikely that the Department of Justice will marshal enough evidence to create problems for American Airlines, Delta Air Lines, Southwest Airlines, and United Continental through its investigation. And investors can be even more confident that this new Dallas-focused class action lawsuit will go nowhere. Airline competition is stronger than ever in the Dallas-Fort Worth area.
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The article Southwest, American, Delta, and United Hit With a Frivolous Class Action Lawsuit originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines, 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 .
Copyright © 1995 - 2015 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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Meanwhile, American Airlines -- which operates a hub nearby at Dallas-Fort Worth International Airport -- has stated that it will not cut capacity on the routes where Southwest is growing. In fact, American Airlines President Scott Kirby told analysts in April that the carrier is more likely to put larger planes on those routes, as lower fares are stimulating travel demand. To learn more about what The Motley Fool thinks about current investment trends, and receive a special free report about what might be the next big industry to come out of Silicon Valley, just click here now .
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Since a series of recent mergers, the U.S. airline industry has been dominated by four carriers: American Airlines , Delta Air Lines , Southwest Airlines , and United Continental . Nevertheless, American Airlines, Delta Air Lines, Southwest Airlines, and United Continental all got hit by a class action lawsuit last week. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long November 2015 $40 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines, The Motley Fool has no position in any of the stocks mentioned.
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Since a series of recent mergers, the U.S. airline industry has been dominated by four carriers: American Airlines , Delta Air Lines , Southwest Airlines , and United Continental . Nevertheless, American Airlines, Delta Air Lines, Southwest Airlines, and United Continental all got hit by a class action lawsuit last week. It's unlikely that the Department of Justice will marshal enough evidence to create problems for American Airlines, Delta Air Lines, Southwest Airlines, and United Continental through its investigation.
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Growth by Southwest Airlines is driving down fares in the Dallas-Fort Worth area. For example, the press release alleges that "airlines paid at least $1.50 per gallon less for jet fuel in 2014 compared to 2013" and that fares should therefore have declined. However, the fuel price drop didn't really accelerate until the last few months of 2014.
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8320.0
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2015-07-13 00:00:00 UTC
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American Airlines Group Up on Trimmed Capacity Growth View - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-up-on-trimmed-capacity-growth-view-analyst-blog-2015-07-13
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nan
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nan
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Shares of Fort Worth, TX-based American Airlines Group Inc. AAL climbed 3.88% to $41.21 on Jul 10, following the trimmed 2015 capacity growth outlook provided by the company.
The carrier provided the revised outlook along with its traffic results for Jun 2015. The numbers for June were impressive with traffic increasing 2.8% on a 2.4% year-over-year growth in capacity. Another important metric, load factor (% of seats filled with passengers), climbed 40 basis points to 85.4% in the month.
More than the traffic data, it was, however, the carrier's projection regarding capacity growth that caught the attention of investors. The company said that it now expects its systemwide capacity to grow 1% in 2015 (prior guidance had called for a 2% growth). In what brings further good news for investors, the carrier now expects 2015 capacity growth in the U.S. in the band of 1% and 2% as opposed to the earlier projected range of 2% to 3% growth. Capacity growth on the international front is still expected to be approximately 1%.
American Airlines' announcement to scale back its capacity growth projections comes close on the heels of the news of a probe by the Department of Justice (DOJ) last week, on the possibility of unlawful co-ordination by some carriers to limit the availability of seats with the objective of keeping airfares high. Apart from American Airlines Group, Delta Air Lines DAL , United Continental Holdings UAL and Southwest Airlines LUV have confirmed the receipt of written communication from the DOJ seeking information. A series of lawsuits have been filed by passengers against the said carriers since the news surfaced.
In fact, capacity and pricing worries have hurt airline stocks since May due to Southwest Airlines' plans to expand 2015 capacity by 7% to 8%. Southwest's projection wreaked havoc among investors who feared that the increased capacity expansion would lead to an oversupplied market even as fuel costs remain weak. Investors were naturally concerned that oversupply would result in lower fares and hamper profit. Subsequently, the carrier scaled back its projection to 7%. Amid such capacity-related worries, it is natural that American Airlines Group's decision to scale back its capacity growth projection finds favor with investors.
Apart from the capacity growth forecast, American Airlines Group said that it now expects second quarter average fuel price in the band of $1.88 to $1.93 per gallon (old guidance: $1.86 to $1.91 per gallon). The carrier still projects a 6% to 8% drop in passenger revenue per available seat mile for second-quarter 2015.
Integration Process Almost Complete
American Airlines Group, formed following the Dec 2013 merger between AMR (American Airlines' parent group, founded in 1934) and US Airways, was also in news with the announcement that the final flights under the US Airways brand name are scheduled to take off on Oct 16. The integration process will be completed with the US Airways brand ceasing to exist from Oct 17. From that day, there will be a single website and reservations system (all under the American Airlines brand). The flights departing on Oct 16 evening from San Francisco to Philadelphia and from Phoenix to Denver will be the final flights under the US airways brand.
The carrier announced that all reservations made for US Airways flights from Jul 17 will be transferred gradually to the American Airlines system. The process will be completed 3 months after its starting date. The 3- month window for the transfer is aimed at avoiding technical glitches.
We remind investors that the integration process took a giant step forward in April this year when the Federal Aviation Administration granted a single operating certificate to American Airlines. Moreover, the clubbing of US Airways' Dividend Miles frequent flyer plan with American Airlines' AAdvantage loyalty program earlier in the year also marked a step toward the successful integration of the entities.
Zacks Rank
American Airlines Group currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Deutsche Lufthansa Aktiengesellschaft DLAKY 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
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): 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 Fort Worth, TX-based American Airlines Group Inc. AAL climbed 3.88% to $41.21 on Jul 10, following the trimmed 2015 capacity growth outlook provided by the company. 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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines' announcement to scale back its capacity growth projections comes close on the heels of the news of a probe by the Department of Justice (DOJ) last week, on the possibility of unlawful co-ordination by some carriers to limit the availability of seats with the objective of keeping airfares high.
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Shares of Fort Worth, TX-based American Airlines Group Inc. AAL climbed 3.88% to $41.21 on Jul 10, following the trimmed 2015 capacity growth outlook provided by the company. 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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from American Airlines Group, Delta Air Lines DAL , United Continental Holdings UAL and Southwest Airlines LUV have confirmed the receipt of written communication from the DOJ seeking information.
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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 LUFTHANSA -ADR (DLAKY): 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 Group Inc. AAL climbed 3.88% to $41.21 on Jul 10, following the trimmed 2015 capacity growth outlook provided by the company. American Airlines' announcement to scale back its capacity growth projections comes close on the heels of the news of a probe by the Department of Justice (DOJ) last week, on the possibility of unlawful co-ordination by some carriers to limit the availability of seats with the objective of keeping airfares high.
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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 LUFTHANSA -ADR (DLAKY): 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 Group Inc. AAL climbed 3.88% to $41.21 on Jul 10, following the trimmed 2015 capacity growth outlook provided by the company. In what brings further good news for investors, the carrier now expects 2015 capacity growth in the U.S. in the band of 1% and 2% as opposed to the earlier projected range of 2% to 3% growth.
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8321.0
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2015-07-10 00:00:00 UTC
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Nasdaq 100 Movers: BIIB, WBA
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-biib-wba-2015-07-10
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nan
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nan
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In early trading on Friday, shares of Walgreens Boots Alliance ( WBA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. Year to date, Walgreens Boots Alliance registers a 22.7% gain.
And the worst performing Nasdaq 100 component thus far on the day is Biogen ( BIIB ), trading down 3.8%. Biogen is showing a gain of 13.2% looking at the year to date performance.
Two other components making moves today are Autodesk ( ADSK ), trading down 0.8%, and American Airlines Group ( AAL ), trading up 4.1% on the day.
VIDEO: Nasdaq 100 Movers: BIIB, WBA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 Autodesk ( ADSK ), trading down 0.8%, and American Airlines Group ( AAL ), trading up 4.1% on the day. In early trading on Friday, shares of Walgreens Boots Alliance ( WBA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. Year to date, Walgreens Boots Alliance registers a 22.7% gain.
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Two other components making moves today are Autodesk ( ADSK ), trading down 0.8%, and American Airlines Group ( AAL ), trading up 4.1% on the day. In early trading on Friday, shares of Walgreens Boots Alliance ( WBA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. Year to date, Walgreens Boots Alliance registers a 22.7% gain.
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Two other components making moves today are Autodesk ( ADSK ), trading down 0.8%, and American Airlines Group ( AAL ), trading up 4.1% on the day. In early trading on Friday, shares of Walgreens Boots Alliance ( WBA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. VIDEO: Nasdaq 100 Movers: BIIB, WBA The views and 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 Autodesk ( ADSK ), trading down 0.8%, and American Airlines Group ( AAL ), trading up 4.1% on the day. In early trading on Friday, shares of Walgreens Boots Alliance ( WBA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. And the worst performing Nasdaq 100 component thus far on the day is Biogen ( BIIB ), trading down 3.8%.
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8322.0
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2015-07-09 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, Alaska Air Group, United Continental Holdings, Southwest Airlines and American Airlines Group - Press Releases
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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-united-continental
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nan
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For Immediate Release
Chicago, IL - July 09, 2015 - 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 the Delta Air Lines ( DAL ), Alaska Air Group ( ALK ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) 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
There were quite a few updates last week in the airline space; however, all that was overshadowed by the report of a probe by the Department of Justice (DOJ) on the possibility of unlawful coordination between certain U.S. carriers to keep airfares high.
Apart from the news of the probe, which sent airline stocks crashing, June traffic updates from Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ) were the other major highlights of the week that was a day short of trading owing to the Fourth of July holiday. Furthermore, American carriers failed to perform vis-à-vis global peers as per the June on-time performance data unveiled by data provider FlightView.
On the price front, the NYSE ARCA Airline index declined 0.18% over the past week despite oil prices sinking to their lowest levels in two and a half months. Clearly, the negative effect of the DOJ probe outweighed the benefit accrued from tumbling oil prices.
(Read the last Airline Stock Roundup for July 1, 2015 )
Recap of the Past Week's Most Important Stories
1. Airline stocks are presently under the scanner as the government antitrust investigation intends to find out whether carriers illegally coordinated and expanded at a slower pace to limit the availability of seats with the objective of keeping airfares high. The fact that domestic capacity was almost flat in the 2010-2014 period even though the U.S. economy expanded, adds weight to the allegations.
Apart from Delta, United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) have confirmed the receipt of written communication from the DOJ seeking information (read more: Are Airline Majors in US Colluding? DOJ Probes ).
2. Delta posted healthy air traffic numbers in the month of June. However, PRASM woes persisted with the key metric declining 4.5% in June. Delta expects second-quarter 2015 average fuel price per gallon in the range of $2.40 to $2.45 (read more: Delta's June Traffic Up, PRASM Hit by Currency Woes ).
3. Alaska Air Group unveiled impressive traffic results for June 2015. Traffic - measured in revenue passenger miles (RPMs) - came in at 2.92 billion on a consolidated basis, reflecting a year-over-year improvement of 6.9%. Consolidated capacity (or available seat miles/ASMs) improved 7.2% to 3.37 billion (read more: Alaska Air Group June Traffic Increases Y/Y, Stock Up ).
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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 .
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DELTA AIR LINES (DAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): 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
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 the Delta Air Lines ( DAL ), Alaska Air Group ( ALK ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ). Apart from Delta, United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) have confirmed the receipt of written communication from the DOJ seeking information (read more: Are Airline Majors in US Colluding? Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 To read this article on Zacks.com click here.
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Stocks recently featured in the blog include the Delta Air Lines ( DAL ), Alaska Air Group ( ALK ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ). Apart from Delta, United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) have confirmed the receipt of written communication from the DOJ seeking information (read more: Are Airline Majors in US Colluding? Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 To read this article on Zacks.com click here.
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Stocks recently featured in the blog include the Delta Air Lines ( DAL ), Alaska Air Group ( ALK ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) 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 UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Delta, United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) have confirmed the receipt of written communication from the DOJ seeking information (read more: Are Airline Majors in US Colluding?
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Stocks recently featured in the blog include the Delta Air Lines ( DAL ), Alaska Air Group ( ALK ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ). Apart from Delta, United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) have confirmed the receipt of written communication from the DOJ seeking information (read more: Are Airline Majors in US Colluding? Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 To read this article on Zacks.com click here.
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8323.0
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2015-07-09 00:00:00 UTC
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Southwest Airlines (LUV) June Traffic Grows on Packed Flights - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv-june-traffic-grows-on-packed-flights-analyst-blog-2015-07-09
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nan
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Dallas, TX-based Southwest Airlines Co.LUV posted a healthy rise in traffic for June 2015. Traffic - measured in revenue passenger miles (RPMs) - came in at 10.8 billion, up 6.9% on a year-over-year basis.
Capacity (or available seat miles/ASMs) increased 6.7% to 12.5 billion in the month. The greater increase in traffic compared to capacity resulted in the load factor (% of seats filled with passengers) rising. The metric inched up 10 basis points (bps) to 86.2%, making it the highest recorded so far in the month of June.
In the first half of 2015, Southwest Airlines generated RPMs of 56.7 billion (up 7.5% year over year) and ASMs of 68.8 billion (up 6.5%), leading to a load factor of 82.5% (up 80 bps). The carrier however, stated that it still expects second-quarter 2015 passenger revenue per ASM (PRASM: a measure of unit revenue) to decease in the band of 4% to 5% on a year-over-year basis.
Preliminary traffic data for the second quarter, detailed results of which will be announced on Jul 23, revealed a 7.9% increase in traffic on a 7% rise in capacity with load factor climbing 70 bps to 84.6%.
Lawsuit Filed
Southwest Airlines also grabbed attention, albeit for the wrong reasons, when a group of airline customers filed a federal class-action lawsuit in Dallas. Customers alleged that the carrier, along with Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL , have conspired to limit capacity in order to boost profitability, thus keeping air fares high. Similar lawsuits have been filed by passengers in New York, Chicago, San Francisco and Washington, D.C. following the announcement of a probe on the same issue by the U.S. Department of Justice.
Zacks Rank
Southwest Airlines presently carries a Zacks Rank #5 (Strong Sell). A better-ranked stock in the airline space is Deutsche Lufthansa Aktiengesellschaft DLAKY 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
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): 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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Customers alleged that the carrier, along with Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL , have conspired to limit capacity in order to boost profitability, thus keeping air fares high. 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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The greater increase in traffic compared to capacity resulted in the load factor (% of seats filled with passengers) rising.
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Customers alleged that the carrier, along with Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL , have conspired to limit capacity in order to boost profitability, thus keeping air fares high. 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 LUFTHANSA -ADR (DLAKY): 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 SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Customers alleged that the carrier, along with Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL , have conspired to limit capacity in order to boost profitability, thus keeping air fares high. In the first half of 2015, Southwest Airlines generated RPMs of 56.7 billion (up 7.5% year over year) and ASMs of 68.8 billion (up 6.5%), leading to a load factor of 82.5% (up 80 bps).
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Customers alleged that the carrier, along with Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL , have conspired to limit capacity in order to boost profitability, thus keeping air fares high. Capacity (or available seat miles/ASMs) increased 6.7% to 12.5 billion in the month.
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8324.0
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2015-07-09 00:00:00 UTC
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Software Glitch Grounds United Airlines Flights Again - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/software-glitch-grounds-united-airlines-flights-again-analyst-blog-2015-07-09
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nan
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nan
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Shares of United Airlines' parent company, United Continental Holdings , Inc. UAL , fell 2.74% to $52.82 on July 8 after a software glitch briefly grounded all United Airlines flights across the globe. Apart from the passenger harassment that resulted due to the grounding, what was more alarming was the fact that this was the second successive month of a computer glitch interrupting the carrier's schedule.
According to msnbc, the technical problem resulted in about 3,500 flights being delayed. The sole consolation for the carrier was, however, that there was no evidence of external threat/hacking behind the problem, according to a report appearing in the Associated Press.
According to United Airlines, a network connectivity issue was responsible for the disruption. The glitch prompted the Federal Aviation Administration to issue an advisory notice pertaining to a "ground stop" for United Airlines flights (mainline). The advisory was, however, lifted after approximately 2 hours as flights of the Chicago, IL-based carrier resumed regular operations after the software issue was fixed. The timing of the disruption also couldn't have been worse, throwing the carrier's schedule haywire in the middle of the busy summer season.
We remind investors that flights operated by United Airlines had been grounded last month as well owing to a software glitch that caused the airline's dispatching system to malfunction. However, the duration of the ground stop this time was much more compared to last month. In fact, technical issues have been hurting United Continental, formed through the merger of Continental Airlines and UAL Corp. in 2010, for quite some time now. The company has faced issues regarding the shift to a passenger information computer system previously used by Continental Airlines.
Adding to the woes, United Airlines has earned a bad name for itself with regard to punctuality of its services. It fared the worst among major U.S. carriers with respect to on-time arrival, according to data unveiled by data provider FlightView for June 2015. Only 66.5% of United Airlines flights were on time during the month.
We remind investors that earlier in the year, passengers of another major American carrier, American Airlines Group AAL , had faced undue harassments following significant flight delays caused by pilots' iPads crashing abruptly.
Zacks Rank
United Continental Holdings presently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include SkyWest SKYW and Deutsche Lufthansa Aktiengesellschaft DLAKY . Both the stocks carry 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
UNITED CONT HLD (UAL): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): 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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We remind investors that earlier in the year, passengers of another major American carrier, American Airlines Group AAL , had faced undue harassments following significant flight delays caused by pilots' iPads crashing abruptly. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from the passenger harassment that resulted due to the grounding, what was more alarming was the fact that this was the second successive month of a computer glitch interrupting the carrier's schedule.
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We remind investors that earlier in the year, passengers of another major American carrier, American Airlines Group AAL , had faced undue harassments following significant flight delays caused by pilots' iPads crashing abruptly. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank United Continental Holdings presently carries a Zacks Rank #3 (Hold).
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that earlier in the year, passengers of another major American carrier, American Airlines Group AAL , had faced undue harassments following significant flight delays caused by pilots' iPads crashing abruptly. Shares of United Airlines' parent company, United Continental Holdings , Inc. UAL , fell 2.74% to $52.82 on July 8 after a software glitch briefly grounded all United Airlines flights across the globe.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that earlier in the year, passengers of another major American carrier, American Airlines Group AAL , had faced undue harassments following significant flight delays caused by pilots' iPads crashing abruptly. We remind investors that flights operated by United Airlines had been grounded last month as well owing to a software glitch that caused the airline's dispatching system to malfunction.
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8325.0
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2015-07-07 00:00:00 UTC
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On-time Flying Suffers in US in June, Delta Betters the Rest - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/on-time-flying-suffers-in-us-in-june-delta-betters-the-rest-analyst-blog-2015-07-07
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According to the on-time arrival performance data unveiled by data provider FlightView for the month of June, Atlanta-based Delta Air Lines DAL continues to fly high. According to the report, Delta continues to rule the roost among the major U.S. carriers with 78.8% of its flights arriving on time in the month.
Although, the percentage of flights arriving on-time was the best for Delta among the major U.S. carriers, it lagged its own tally of 84.7% recorded in May 2014. It was the same story for all the major American carriers.
In fact, according to the June on-time performance report for airports across the globe, the picture was dismal for U.S. airports with less than 70% flights arriving within 15 minutes of its scheduled arrival time. The comparable figures were 74.2% and 73.6% in May and April respectively.
Southwest Airlines Slips, Bad Weather Blamed
While Delta continues to lead the league, another major carrier, Southwest Airlines LUV , moved a notch down in rankings. The Dallas-based carrier had been just behind Delta on the list for on-time arrival performance for May 2015.
However, the carrier fared worse in June, coming in third behind Delta and American Airlines, which is owned by the American Airlines Group AAL . According to Flight View's data, 71.8% of Southwest's flights arrived on time compared with 71.9% for American Airlines. In comparison, the same figured at 78.3% and 75.2% for Southwest and American Airlines respectively, for the month of May.
However, Southwest Airlines did not seem too perturbed about its slip on the rankings and stated that the on-time performance of its flights for the month had primarily been hampered by severe storms.
United Airlines' Poor Show
United Airlines, the wholly owned subsidiary of United Continental Holdings UAL , fared the worst with respect to the metric in the month of June among the major US carriers. Only 66.5% of United Airlines flights were on time as opposed to 75% recorded in May.
Like Southwest, United Airlines too blamed inclement weather for its poor show. The company stated that the month witnessed the highest rate of weather-related flight delays/cancellations at United Airlines since Dec 2008. Spirit Airlines SAVE was the last on the list (among US carriers), according to the report. Only 50.6% of its flights were on time during the month.
Conclusion
The FlightView on-time performance data for U.S. carriers in June 2015 presents a sorry picture. Only 3 airlines, including Virgin America VA , managed to sneak into the top 100 carriers (globally) with respect to on-time arrival performance for the month.
However, we believe that the dismal performance is not here to stay over the long haul. This is because the month's performance was mainly impacted by poor weather as opposed to any fundamental shortcoming.
In fact, Airlines for America predicts a busy summer for carriers while International Air Transport Association projects higher profitability for 2015 with North America leading the way. The projections lend weight to the view that U.S. carriers are slated to witness good times going ahead.
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
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
VIRGIN AMERICA (VA): 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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However, the carrier fared worse in June, coming in third behind Delta and American Airlines, which is owned by the American Airlines Group AAL . 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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Although, the percentage of flights arriving on-time was the best for Delta among the major U.S. carriers, it lagged its own tally of 84.7% recorded in May 2014.
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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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. However, the carrier fared worse in June, coming in third behind Delta and American Airlines, which is owned by the American Airlines Group AAL . According to the on-time arrival performance data unveiled by data provider FlightView for the month of June, Atlanta-based Delta Air Lines DAL continues to fly high.
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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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. However, the carrier fared worse in June, coming in third behind Delta and American Airlines, which is owned by the American Airlines Group AAL . According to Flight View's data, 71.8% of Southwest's flights arrived on time compared with 71.9% for American Airlines.
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However, the carrier fared worse in June, coming in third behind Delta and American Airlines, which is owned by the American Airlines Group AAL . 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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. According to the report, Delta continues to rule the roost among the major U.S. carriers with 78.8% of its flights arriving on time in the month.
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8326.0
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2015-07-07 00:00:00 UTC
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Southwest Airlines to Ink Deal With Flight Attendants. Will Profits Crash?
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-ink-deal-flight-attendants-will-profits-crash-2015-07-07
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nan
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Wage data courtesy of Glassdoor.com .
Indeed, according to the company's filings, Southwest devoted 33.2% of its operating costs to "salaries, wages, and benefits" last year -- a number that grew nearly 8% in comparison to 2013 compensation. That compares to American's labor costs of "approximately 25% of our operating expenses," and Delta's devotion of 24.1% of its operating expenditures to "salaries and related costs" and "profit sharing" in 2014. Once again, we see here concrete evidence that Southwest is paying as much as a third more than the competition to secure top talent in the flight-attendant sphere.
It pays to hire the very best
And that's OK. You see, according to data from S&P Capital IQ , even after paying its princely salaries, Southwest manages to outclass both American and Delta in profitability. Operating profit margins at Southwest totaled 15.3% over the past 12 months, versus 14.7% at Delta, and just 14.1% at American Airlines. Assuming Southwest didn't "give away the store" -- and Southwest Chief Operating Officer Mike Van de Ven confirms that even with concessions, the agreement "supports Southwest's low-cost structure and positions the Company to be competitive in the years to come" -- it seems likely the company will be able to retain a profitability advantage over its larger, "legacy airline" rivals.
And with the best-paid, and presumably happiest flight attendants in the U.S., it's just as likely Southwest will retain its position as one of the favorite airlines for Americans to fly .
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Gee, somebody sure looks happy. And with a new contract securing wage gains through 2019 -- who can blame her? Image source: Southwest Image Library .
The article Southwest Airlines to Ink Deal With Flight Attendants. Will Profits Crash? originally appeared on Fool.com.
Rich Smith does not own shares of, nor is he short, any company named above. Neither does, or is, The Motley Fool. You can find Rich on Motley Fool CAPS, publicly posting his stock picks and pans under the handle TMFDitty , where he's currently ranked No. 317 out of more than 75,000 rated members.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 - 2015 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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Indeed, according to the company's filings, Southwest devoted 33.2% of its operating costs to "salaries, wages, and benefits" last year -- a number that grew nearly 8% in comparison to 2013 compensation. This $19 trillion industry could destroy the Internet One bleeding-edge technology is about to put the World Wide Web to bed. You can find Rich on Motley Fool CAPS, publicly posting his stock picks and pans under the handle TMFDitty , where he's currently ranked No.
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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. Indeed, according to the company's filings, Southwest devoted 33.2% of its operating costs to "salaries, wages, and benefits" last year -- a number that grew nearly 8% in comparison to 2013 compensation.
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That compares to American's labor costs of "approximately 25% of our operating expenses," and Delta's devotion of 24.1% of its operating expenditures to "salaries and related costs" and "profit sharing" in 2014. It pays to hire the very best And that's OK. You see, according to data from S&P Capital IQ , even after paying its princely salaries, Southwest manages to outclass both American and Delta in profitability. Assuming Southwest didn't "give away the store" -- and Southwest Chief Operating Officer Mike Van de Ven confirms that even with concessions, the agreement "supports Southwest's low-cost structure and positions the Company to be competitive in the years to come" -- it seems likely the company will be able to retain a profitability advantage over its larger, "legacy airline" rivals.
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It pays to hire the very best And that's OK. You see, according to data from S&P Capital IQ , even after paying its princely salaries, Southwest manages to outclass both American and Delta in profitability. Operating profit margins at Southwest totaled 15.3% over the past 12 months, versus 14.7% at Delta, and just 14.1% at American Airlines. 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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8327.0
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2015-07-06 00:00:00 UTC
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Nasdaq 100 Movers: BIDU, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-bidu-aal-2015-07-06
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nan
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In early trading on Monday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. Year to date, American Airlines Group has lost about 26.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Baidu ( BIDU ), trading down 3.6%. Baidu is lower by about 16.7% looking at the year to date performance.
Two other components making moves today are Western Digital ( WDC ), trading down 2.8%, and Amgen ( AMGN ), trading up 0.9% on the day.
VIDEO: Nasdaq 100 Movers: BIDU, 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 Monday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. VIDEO: Nasdaq 100 Movers: BIDU, 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 Baidu ( BIDU ), trading down 3.6%.
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In early trading on Monday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. VIDEO: Nasdaq 100 Movers: BIDU, 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 26.4% of its value.
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In early trading on Monday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. VIDEO: Nasdaq 100 Movers: BIDU, 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 Baidu ( BIDU ), trading down 3.6%.
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In early trading on Monday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. VIDEO: Nasdaq 100 Movers: BIDU, 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 Baidu ( BIDU ), trading down 3.6%.
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8328.0
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2015-07-02 00:00:00 UTC
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Are Airline Majors in US Colluding? DOJ Probes - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/are-airline-majors-in-us-colluding-doj-probes-analyst-blog-2015-07-02
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nan
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nan
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Shares of major airlines stocks like Delta Air Lines DAL , United Continental Holdings UAL , American Airlines Group AAL , Southwest Airlines LUV , JetBlue Airways Corporation JBLU and Virgin America VA took a battering on the first day of July following a report appearing in the Associated Press of a probe by the Department of Justice (DOJ) on the possibility of unlawful co-ordination by some carriers. With airline stocks plummeting on the news, the NYSE ARCA Airline index declined 1.53% to $92.55 on Jul 1.
DOJ Concern
Airline stocks are under the scanner as the government antitrust investigation intends to find out whether carriers illegally coordinated and consequently expanded at a slower pace to limit the availability of seats with the objective of keeping airfares high. The fact that domestic capacity was almost flat in the 2010-2014 period even though the US economy expanded adds weight to the allegations.
Moreover, the average domestic airfare (inflation adjusted) climbed well over 10 percent in the 2009-2014 period. An argument in favor of the airlines is that there has been a decline in domestic airfares in 2015 according to data released by the U.S. Transportation Department.
As part of the probe, the DOJ has asked the carriers to furnish detailed documents pertaining to the communications between them apart from information on their passenger-carrying capacity since Jan 2010. Even though The DOJ has not revealed the identity of the carriers being probed for the alleged collusion, according to a report appearing in the Wall Street Journal carriers like Delta, United Continental, Southwest and American Airlines have confirmed the receipt of written communications from the DOJ asking for the above information.
Are Mergers Responsible?
The antitrust probe also intends to investigate whether the allegations have stemmed from the plethora of mergers which have characterized the airline industry since 2008. Mergers have limited the competition in the space as a result of which big players like Delta , United Continental, Southwest and American Airlines currently control in excess of 80% of the domestic air travel market.
As a result of their excessive clout, the carriers are alleged to have eliminated unproductive routes to control capacity. No wonder, "the Big 4" are part of the DOJ investigations. However, they have stated that they are complying fully with the investigations.
Even though the mergers have received government clearance, we note that the DOJ had initially opposed the merger between American Airlines and US Airways leading to the formation of American Airlines Group. However, the merger was ultimately cleared by the department following some concessions.
Investigation Not a Bolt from the Blue
The ongoing DOJ probe does not come as a surprise as the stage for an investigation had already been set. For example, late last year, Senator Charles Schumer had asked the DOJ and the Department of Transportation (DOT) to investigate as to why air tickets continued to be expensive despite plummeting crude prices. Furthermore, Senator Richard Blumenthal had also called for an enquiry last month.
Mergers have stifled competition in the airline space. Furthermore, low oil prices have resulted in huge profits for the major carriers. Additionally, these companies have further augmented their revenues by means of other charges like bag fees and reservation-change fees.
Low Oil Prices: Huge Boost to Airline Profitability
Lower jet fuel prices have been a boon for the airline industry given the inversely proportional relation between crude prices and aviation stocks. Weak oil prices have resulted in tremendous savings for carriers. For example, Delta has projected savings in excess of $2 billion in 2015 due to low fuel costs. In the same vein, American Airlines Group expects its fuel expense to reduce by over $4 billion in 2015.
In view of such favorable conditions, airfares should have declined substantially to provide relief to fliers. However, the case has not been so, which eventually has prompted the investigations.
Probe Follows Airline Sell-off
Even though conditions look favorable as highlighted above, the airline space has also seen some troubled times lately. The industry saw a major sell-off in May this year due to capacity and pricing worries. The trigger was Southwest Airlines' announcement that it plans to increase its capacity in the band of 7% to 8% in 2015 as opposed to the earlier projection of a 7% increase.
Southwest's projection wreaked havoc among investors who feared that the increased capacity expansion would lead to an oversupplied market even as fuel costs remain weak. Investors were naturally concerned that oversupply could result in lower fares and hamper profit. The DOJ probe comes close on the heels such concerns. It is being feared by some market watchers that carriers might be reluctant to trim capacity in the wake of the probe.
Another concern confronting the U.S. airline industry is the ongoing dispute between leading U.S. carriers and their Gulf counterparts. Earlier in the year, Delta, American Airlines and United Continental complained to the Obama administration that the massive subsidies and other benefits enjoyed by the three state-owned carriers - Qatar Airways, Etihad Airways and Emirates - were rather unfair in nature as they denied a level playing field to the American carriers.
Conclusion
Even though news of the probe caused airline stocks to plummet, we do not expect any drastic change to take place in the industry following the results of the investigations. With the major carriers in solid financial health, they would be easily able to withstand any fines that may emanate from the probe.
Moreover, Airlines for America predicts a busy summer for airlines while International Air Transport Association projects higher profitability for 2015. This lends weight to the view that airlines will experience good times going ahead. Nevertheless, we expect investors to remain focused on the outcome of the DOJ probe.
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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
VIRGIN AMERICA (VA): 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 major airlines stocks like Delta Air Lines DAL , United Continental Holdings UAL , American Airlines Group AAL , Southwest Airlines LUV , JetBlue Airways Corporation JBLU and Virgin America VA took a battering on the first day of July following a report appearing in the Associated Press of a probe by the Department of Justice (DOJ) on the possibility of unlawful co-ordination by some carriers. 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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. DOJ Concern Airline stocks are under the scanner as the government antitrust investigation intends to find out whether carriers illegally coordinated and consequently expanded at a slower pace to limit the availability of seats with the objective of keeping airfares high.
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Shares of major airlines stocks like Delta Air Lines DAL , United Continental Holdings UAL , American Airlines Group AAL , Southwest Airlines LUV , JetBlue Airways Corporation JBLU and Virgin America VA took a battering on the first day of July following a report appearing in the Associated Press of a probe by the Department of Justice (DOJ) on the possibility of unlawful co-ordination by some carriers. 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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Mergers have limited the competition in the space as a result of which big players like Delta , United Continental, Southwest and American Airlines currently control in excess of 80% of the domestic air travel market.
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Shares of major airlines stocks like Delta Air Lines DAL , United Continental Holdings UAL , American Airlines Group AAL , Southwest Airlines LUV , JetBlue Airways Corporation JBLU and Virgin America VA took a battering on the first day of July following a report appearing in the Associated Press of a probe by the Department of Justice (DOJ) on the possibility of unlawful co-ordination by some carriers. 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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Even though The DOJ has not revealed the identity of the carriers being probed for the alleged collusion, according to a report appearing in the Wall Street Journal carriers like Delta, United Continental, Southwest and American Airlines have confirmed the receipt of written communications from the DOJ asking for the above information.
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Shares of major airlines stocks like Delta Air Lines DAL , United Continental Holdings UAL , American Airlines Group AAL , Southwest Airlines LUV , JetBlue Airways Corporation JBLU and Virgin America VA took a battering on the first day of July following a report appearing in the Associated Press of a probe by the Department of Justice (DOJ) on the possibility of unlawful co-ordination by some carriers. 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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. An argument in favor of the airlines is that there has been a decline in domestic airfares in 2015 according to data released by the U.S. Transportation Department.
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8329.0
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2015-06-30 00:00:00 UTC
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Delta Air Lines to Revamp Transcontinental Service from JFK - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-to-revamp-transcontinental-service-from-jfk-analyst-blog-2015-06-30
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nan
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nan
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Airline behemoth Delta Air Lines, Inc.DAL is constantly adding to its services in a bid to improve customer satisfaction. In its latest move, Delta has decided to upgrade its operations between New York's John F. Kennedy (JFK) International Airport and prime destinations in the West Coast viz. Los Angeles (LAX) and San Francisco (SFO).
The Atlanta GA-based carrier stated it will add one daily service to its current operational number of nine flights on the JFK-LAX route from Nov 2015.
Delta further said that while four flights will be operated using Boeing 767 wide-body aircraft, refurbished Boeing 757 planes will be utilized for the remaining six flights on the route. These planes, equipped with modern user-friendly facilities, should further boost customer satisfaction for fliers on this popular route.
Moreover, Delta stated that it intends to utilize Boeing 767 wide-body aircraft for three of the eight daily flights it operates on the JFK-SFO route, from November. In the event of the move materializing, Delta will be the sole carrier to provide wide-body aircraft service on the two key domestic routes.
The move to boost transcontinental capacity from JFK using wide-body planes will see Delta offering more seats than any other carrier on the said key routes. We note that Delta has already made significant investments at the JFK and LAX airports to improve its service. The current announcements to upgrade coast-to-coast service are in line with the above objective. It will be interesting to see whether rivals like American Airlines Group AAL follow suite post Delta's announcement to boost capacity at JFK.
Meanwhile, Delta was also in the news recently when its row with Southwest Airlines LUV over gates at the Dallas Love Field airport was settled, albeit temporarily. Southwest has agreed to let Delta operate out of the airport for the time being. However, a long-term solution to the problem is awaited.
Zacks Rank
Delta currently carries a Zacks Rank #3 (Hold). A stock worth considering in the airline space is Deutsche Lufthansa Aktiengesellschaft DLAKY with 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
DELTA AIR LINES (DAL): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): 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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It will be interesting to see whether rivals like American Airlines Group AAL follow suite post Delta's announcement to boost capacity at JFK. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In its latest move, Delta has decided to upgrade its operations between New York's John F. Kennedy (JFK) International Airport and prime destinations in the West Coast viz.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. It will be interesting to see whether rivals like American Airlines Group AAL follow suite post Delta's announcement to boost capacity at JFK. Delta further said that while four flights will be operated using Boeing 767 wide-body aircraft, refurbished Boeing 757 planes will be utilized for the remaining six flights on the route.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. It will be interesting to see whether rivals like American Airlines Group AAL follow suite post Delta's announcement to boost capacity at JFK. Delta further said that while four flights will be operated using Boeing 767 wide-body aircraft, refurbished Boeing 757 planes will be utilized for the remaining six flights on the route.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. It will be interesting to see whether rivals like American Airlines Group AAL follow suite post Delta's announcement to boost capacity at JFK. The move to boost transcontinental capacity from JFK using wide-body planes will see Delta offering more seats than any other carrier on the said key routes.
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8330.0
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2015-06-26 00:00:00 UTC
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Bear of the Day: American Airlines (AAL) - Bear of the Day
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AAL
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https://www.nasdaq.com/articles/bear-day-american-airlines-aal-bear-day-2015-06-26
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nan
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nan
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Thanks to crumbling oil prices and soaring consumer confidence, it was pretty tough to beat airline stocks to end 2014. The space was among the best performers in the final quarter of 2014, and there were high hopes for more growth in 2015 as well.
However, recent trading has been less than stellar for the space, and concerns are starting to crop up for airline stocks. Many are flooding the market with capacity, while the prospect of higher oil prices isn't helping matters either.
While a number of airline stocks have been hit by this trend, one that could be especially weak right now is American Airlines ( AAL ). Not only has the stock fallen by over 15% in the last three months, but the outlook is quite poor as well.
AAL in Focus
American is a Texas-based company that is by many measures the world's largest airline. They are best known for their hubs at Dallas-Fort Worth, Miami, Charlotte, and Chicago O'Hare, just to name a few.
The company has recently taken part in the consolidation wave-recently swallowing up US Airways-and has been expanding in order to better compete in this cutthroat market. However, a number of other airlines have been increasing their capacity as of late and there are now questions over AAL's near term outlook, and its ability to live up to current earnings expectations.
AAL Outlook
Analysts have been slashing their estimates for AAL earnings pretty much across the board lately and you will have a tough time finding a covering analyst who has raised estimates for American in the past two months. In Fact, we have seen ten estimates go lower in the past 30 days for the current quarter and 11 estimates go lower for the current year in the same time frame.
The magnitude of these cuts has been pretty horrendous too, as it appears as though analysts have little confidence in AAL right now. The EPS consensus estimate for the current quarter has fallen from $3.11/share 60 days ago to just $2.66/share today, meanwhile the current year figure has fallen from $10.38/share to $9.20/share in the same time period.
Clearly, analysts are becoming very bearish regarding AAL's earnings prospects in the near term, and the stock has even earned itself a momentum grade of 'F' too. And with these kind of stats, it shouldn't be surprising to note that we have assigned American Airlines a Zacks Rank #5 (Strong Sell) and are looking for more turbulence in its trading ahead.
Other Picks
As you might guess given some of the initial commentary in this article, the broader airline segment isn't very favorably ranked right now. In fact, its Zacks Industry Rank is in the bottom half, which is generally a sign of underperformance. However, there are a few gems in the segment still, including Skywest ( SKYW ).
Skywest is a Zacks Rank #1 (Strong Buy) stock, and unlike AAL, it has been seeing rising earnings estimates as of late. The company has also absolutely destroyed earnings estimates as of late including a 1,000% beat for the most recent quarter!
So if you are looking for an airline pick in this rocky market, make sure to consider SKYW over AAL. It appears better positioned to take advantage of current conditions, and could be a higher quality addition to your portfolio right now.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SKYWEST INC (SKYW): 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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However, a number of other airlines have been increasing their capacity as of late and there are now questions over AAL's near term outlook, and its ability to live up to current earnings expectations. While a number of airline stocks have been hit by this trend, one that could be especially weak right now is American Airlines ( AAL ). AAL in Focus American is a Texas-based company that is by many measures the world's largest airline.
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Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. While a number of airline stocks have been hit by this trend, one that could be especially weak right now is American Airlines ( AAL ). AAL in Focus American is a Texas-based company that is by many measures the world's largest airline.
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AAL Outlook Analysts have been slashing their estimates for AAL earnings pretty much across the board lately and you will have a tough time finding a covering analyst who has raised estimates for American in the past two months. Skywest is a Zacks Rank #1 (Strong Buy) stock, and unlike AAL, it has been seeing rising earnings estimates as of late. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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AAL Outlook Analysts have been slashing their estimates for AAL earnings pretty much across the board lately and you will have a tough time finding a covering analyst who has raised estimates for American in the past two months. Skywest is a Zacks Rank #1 (Strong Buy) stock, and unlike AAL, it has been seeing rising earnings estimates as of late. While a number of airline stocks have been hit by this trend, one that could be especially weak right now is American Airlines ( AAL ).
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8331.0
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2015-06-25 00:00:00 UTC
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New Strong Sell Stocks for June 25th - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-june-25th-tale-of-the-tape-2015-06-25
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
Abengoa Yield PLC ( ABY )
American Airlines Group Inc ( AAL )
Corrections Corp Of America ( CXW )
Fiat Chrysler Automobiles NV ( FCAU )
Genesee & Wyoming Inc ( GWR )
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
ABENGOA YIELD (ABY): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
CORRECTIONS CRP (CXW): Free Stock Analysis Report
FIAT CHRYSLER (FCAU): Free Stock Analysis Report
GENESEE & WYO (GWR): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Abengoa Yield PLC ( ABY ) American Airlines Group Inc ( AAL ) Corrections Corp Of America ( CXW ) Fiat Chrysler Automobiles NV ( FCAU ) Genesee & Wyoming Inc ( GWR ) View the entire Zacks Rank #5 List . Click to get this free report ABENGOA YIELD (ABY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CORRECTIONS CRP (CXW): Free Stock Analysis Report FIAT CHRYSLER (FCAU): Free Stock Analysis Report GENESEE & WYO (GWR): 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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Abengoa Yield PLC ( ABY ) American Airlines Group Inc ( AAL ) Corrections Corp Of America ( CXW ) Fiat Chrysler Automobiles NV ( FCAU ) Genesee & Wyoming Inc ( GWR ) View the entire Zacks Rank #5 List . Click to get this free report ABENGOA YIELD (ABY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CORRECTIONS CRP (CXW): Free Stock Analysis Report FIAT CHRYSLER (FCAU): Free Stock Analysis Report GENESEE & WYO (GWR): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Abengoa Yield PLC ( ABY ) American Airlines Group Inc ( AAL ) Corrections Corp Of America ( CXW ) Fiat Chrysler Automobiles NV ( FCAU ) Genesee & Wyoming Inc ( GWR ) View the entire Zacks Rank #5 List . Click to get this free report ABENGOA YIELD (ABY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CORRECTIONS CRP (CXW): Free Stock Analysis Report FIAT CHRYSLER (FCAU): Free Stock Analysis Report GENESEE & WYO (GWR): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: Abengoa Yield PLC ( ABY ) American Airlines Group Inc ( AAL ) Corrections Corp Of America ( CXW ) Fiat Chrysler Automobiles NV ( FCAU ) Genesee & Wyoming Inc ( GWR ) View the entire Zacks Rank #5 List . Click to get this free report ABENGOA YIELD (ABY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CORRECTIONS CRP (CXW): Free Stock Analysis Report FIAT CHRYSLER (FCAU): Free Stock Analysis Report GENESEE & WYO (GWR): 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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8332.0
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2015-06-25 00:00:00 UTC
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Nasdaq 100 Movers: NFLX, MNST
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-nflx-mnst-2015-06-25
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nan
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nan
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In early trading on Thursday, shares of Monster Beverage ( MNST ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. Year to date, Monster Beverage registers a 25.4% gain.
And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 2.8%. Netflix is showing a gain of 93.1% looking at the year to date performance.
Two other components making moves today are Keurig Green Mountain ( GMCR ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.1% on the day.
VIDEO: Nasdaq 100 Movers: NFLX, MNST
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 Keurig Green Mountain ( GMCR ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.1% on the day. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 2.8%. VIDEO: Nasdaq 100 Movers: NFLX, MNST The views and 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 Keurig Green Mountain ( GMCR ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.1% on the day. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 2.8%. VIDEO: Nasdaq 100 Movers: NFLX, MNST The views and 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 Keurig Green Mountain ( GMCR ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.1% on the day. In early trading on Thursday, shares of Monster Beverage ( MNST ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. VIDEO: Nasdaq 100 Movers: NFLX, MNST The views and 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 Keurig Green Mountain ( GMCR ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.1% on the day. In early trading on Thursday, shares of Monster Beverage ( MNST ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 2.8%.
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8333.0
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2015-06-25 00:00:00 UTC
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S&P 500 Movers: WAT, LLY
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-wat-lly-2015-06-25
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nan
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nan
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In early trading on Thursday, shares of Eli Lilly & Co. ( LLY ) topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. Year to date, Eli Lilly & Co. registers a 24.7% gain.
And the worst performing S&P 500 component thus far on the day is Waters Corp. ( WAT ), trading down 3.0%. Waters Corp. is showing a gain of 15.6% looking at the year to date performance.
Two other components making moves today are CenturyLink ( CTL ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.7% on the day.
VIDEO: S&P 500 Movers: WAT, LLY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 CenturyLink ( CTL ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.7% on the day. Year to date, Eli Lilly & Co. registers a 24.7% gain. And the worst performing S&P 500 component thus far on the day is Waters Corp. ( WAT ), trading down 3.0%.
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Two other components making moves today are CenturyLink ( CTL ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.7% on the day. And the worst performing S&P 500 component thus far on the day is Waters Corp. ( WAT ), trading down 3.0%. VIDEO: S&P 500 Movers: WAT, LLY The views and 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 CenturyLink ( CTL ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.7% on the day. In early trading on Thursday, shares of Eli Lilly & Co. ( LLY ) topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. VIDEO: S&P 500 Movers: WAT, LLY The views and 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 CenturyLink ( CTL ), trading down 2.8%, and American Airlines Group ( AAL ), trading up 2.7% on the day. In early trading on Thursday, shares of Eli Lilly & Co. ( LLY ) topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. And the worst performing S&P 500 component thus far on the day is Waters Corp. ( WAT ), trading down 3.0%.
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8334.0
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2015-06-24 00:00:00 UTC
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Daniel Loeb Parts With Stake in Alibaba
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https://www.nasdaq.com/articles/daniel-loeb-parts-stake-alibaba-2015-06-24
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Hedge fund manager Daniel Loeb ( Trades , Portfolio ), the founder and chief executive of Third Point LLC, a New York-based hedge fund with a $14 billion portfolio, is known for his public letters that have been critical of CEOs and other investment managers. His approach to investing is event-driven and value-oriented.
While he has said he is only interested in making money for his investors, his personal portfolio activity in the first quarter shows he is also interested in making money for himself as well.
The most significant transaction Loeb made in the first quarter was the sale of his stake in Alibaba Group Holding Ltd ( BABA ), a Chinese ecommerce company. Loeb sold his 10,000,000-share stake for an average price of $90.25 per share. The sale had a -9.4% impact on Loeb's portfolio.
Alan Fournier Undervalued Stocks
Alan Fournier Top Growth Companies
Alan Fournier High Yield stocks
Louis Moore Bacon Undervalued Stocks
Louis Moore Bacon Top Growth Companies
Louis Moore Bacon High Yield stocks
Daniel Loeb Undervalued Stocks
Daniel Loeb Top Growth Companies
Daniel Loeb High Yield stocks
Alibaba has a market cap of $213.22 billion and an enterprise value of $205.93 billion. It has a P/E of 49.0, a Price/Book of 9.3 and a Price/Sales of 18.3. Frank Sands (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Chase Coleman (Trades, Portfolio), George Soros (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Griffin (Trades, Portfolio), Manning & Napier Advisors, Inc, Matthews Pacific Tiger Fund (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Ron Baron (Trades, Portfolio), Howard Marks (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio), Matthews China Fund (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), John Burbank (Trades, Portfolio), Chris Davis (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) have shares of Alibaba in their portfolios.
Alibaba plans to take down products carrying Confederate flag imagery following the mass killing at a black church in South Carolina last week.
Loeb also sold his stake in Citigroup Inc ( C ), a Manhattan-based multinational banking and financial services corporation. Loeb sold his 5,000,000-share stake for an average price of $50.92 per share. The transaction had a -2.4% impact on Loeb's portfolio.
Citigroup has a market cap of $171.82 billion and an enterprise value of $279.35 billion. It has a P/E of 22.4, a Price/Book of 0.9 and a Price/Sales of 2.3. James Barrow (Trades, Portfolio), HOTCHKIS & WILEY, Ken Fisher (Trades, Portfolio), Richard Pzena (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Steven Romick (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), Charles Brandes (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Ken Heebner (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Francis Chou (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Chris Davis (Trades, Portfolio), Manning & Napier Advisors, Inc, Jeff Auxier (Trades, Portfolio), Mohnish Pabrai (Trades, Portfolio), David Dreman (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Prem Watsa (Trades, Portfolio), John Keeley (Trades, Portfolio), Dodge & Cox and Ruane Cunniff (Trades, Portfolio) have shares of Citigroup in their portfolios.
Loeb also sold his stakes in EMC Corp ( EMC ), American Airlines Group Inc ( AAL ), CF Industries Holdings Inc ( CF ), Shire PLC ( SHPG ), Hertz Global Holdings Inc (HTZ), Allergan PLC (AGN) and four others.
Loeb made nine new buys in the first quarter, the most significant being his purchase of 15,000 shares of Yum! Brands Inc (YUM), a fast-food company based in Louisville, Kentucky. Loeb paid an average price of $75.94 per share; the purchase had a 2.41% impact on Loeb's portfolio.
Yum! Brands has a market cap of $39.75 billion and an enterprise value of $42.51 billion. It has a P/E of 41.2, a Price/Book of 23.3 and a Price/Sales of 3.2. Manning & Napier Advisors, Inc, Matthews Pacific Tiger Fund (Trades, Portfolio), George Soros (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Jana Partners (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ron Baron (Trades, Portfolio), Mark Hillman (Trades, Portfolio), Jeff Auxier (Trades, Portfolio) and John Hussman (Trades, Portfolio) have shares of Yum! Brands in their portfolios.
Loeb bought a stake in NXP Semiconductors NV (NXPI), a Dutch semiconductor manufacturer. He purchased 1,593,200 shares for an average price of $88.08 per share. That transaction had a 1.49% impact on his portfolio.
NXP has a market cap of $24 billion and an enterprise value of $27.04 billion. It has a P/E of 100.5, a Price/Book of 51.6 and a Price/Sales of 4.3. Andreas Halvorsen (Trades, Portfolio), David Tepper (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ken Heebner (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Steven Cohen (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Mariko Gordon (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and John Keeley (Trades, Portfolio) have shares of NXP in their portfolios.
Loeb's other new buys in the first quarter were FedEx Corp (FDX), McKesson Corp (MCK), JM Smucker Co (SJM), Maxim Integrated Products Inc (MXIM), Precision Castparts Corp (PCP), Clayton Williams Energy Inc (CWEI) and Energy Transfer Equity LP (ETE).
Loeb added to six existing stakes in the first quarter, the most noteworthy being Mohawk Industries Inc (MHK), a Georgia-based flooring manufacturer. Loeb bought 1,175,000 shares for an average price of $173.03 per share. The acquisition had a 2.03% impact on his portfolio.
Mohawk has a market cap of $14.13 billion and an enterprise value of $16.44 billion. It has a P/E of 30.0, a Price/Book of 3.4 and a Price/Sales of 1.8. Andreas Halvorsen (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Meridian Funds (Trades, Portfolio), John Rogers (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ron Baron (Trades, Portfolio), David Tepper (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Westport Asset Management (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) have shares of Mohawk in their portfolios.
Mohawk announced plans this week to close a yarn plant in Chatsworth, Georgia, and move 156 workers to other northwest Georgia facilities.
Loeb also added to his stakes in Delta Air Lines Inc (DAL), Roper Technologies Inc (ROP), Allergan PLC (AGN), Fleetcor Technologies, Inc. (FLT) and IAC/InterActiveCorp (IACI).
Loeb reduced seven of his stakes in the first quarter. He sold 675,000 shares of Amgen Inc (AMGN), a California-based biopharmaceutical company, for an average price of $157.49 per share. The sale had a -0.97% impact on Loeb's portfolio.
Amgen has a market cap of $122.94 billion and an enterprise value of $126.16 billion. It has a P/E of 21.9, a Price/Book of 4.6 and a Price/Sales of 6.1. PRIMECAP Management (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), Jim Simons (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Alan Fournier (Trades, Portfolio), John Buckingham (Trades, Portfolio), Dodge & Cox, Mario Gabelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Bill Frels (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Mark Hillman (Trades, Portfolio), Ray Dalio (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) have shares of Amgen in their portfolios.
Loeb sold portions of his stakes in Ally Financial Inc (ALLY), Phillips 66 (PSX), eBay Inc (EBAY), Anheuser-Busch Inbev SA (BUD), SunEdison Inc (SUNE) and Intrexon Corp (XON).
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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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Loeb also sold his stakes in EMC Corp ( EMC ), American Airlines Group Inc ( AAL ), CF Industries Holdings Inc ( CF ), Shire PLC ( SHPG ), Hertz Global Holdings Inc (HTZ), Allergan PLC (AGN) and four others. The most significant transaction Loeb made in the first quarter was the sale of his stake in Alibaba Group Holding Ltd ( BABA ), a Chinese ecommerce company. Alibaba plans to take down products carrying Confederate flag imagery following the mass killing at a black church in South Carolina last week.
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Loeb also sold his stakes in EMC Corp ( EMC ), American Airlines Group Inc ( AAL ), CF Industries Holdings Inc ( CF ), Shire PLC ( SHPG ), Hertz Global Holdings Inc (HTZ), Allergan PLC (AGN) and four others. Frank Sands (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Chase Coleman (Trades, Portfolio), George Soros (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Griffin (Trades, Portfolio), Manning & Napier Advisors, Inc, Matthews Pacific Tiger Fund (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Ron Baron (Trades, Portfolio), Howard Marks (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio), Matthews China Fund (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), John Burbank (Trades, Portfolio), Chris Davis (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) have shares of Alibaba in their portfolios. James Barrow (Trades, Portfolio), HOTCHKIS & WILEY, Ken Fisher (Trades, Portfolio), Richard Pzena (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Steven Romick (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), Charles Brandes (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Ken Heebner (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Francis Chou (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Chris Davis (Trades, Portfolio), Manning & Napier Advisors, Inc, Jeff Auxier (Trades, Portfolio), Mohnish Pabrai (Trades, Portfolio), David Dreman (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Prem Watsa (Trades, Portfolio), John Keeley (Trades, Portfolio), Dodge & Cox and Ruane Cunniff (Trades, Portfolio) have shares of Citigroup in their portfolios.
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Loeb also sold his stakes in EMC Corp ( EMC ), American Airlines Group Inc ( AAL ), CF Industries Holdings Inc ( CF ), Shire PLC ( SHPG ), Hertz Global Holdings Inc (HTZ), Allergan PLC (AGN) and four others. Frank Sands (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Chase Coleman (Trades, Portfolio), George Soros (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), John Griffin (Trades, Portfolio), Manning & Napier Advisors, Inc, Matthews Pacific Tiger Fund (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Ron Baron (Trades, Portfolio), Howard Marks (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio), Matthews China Fund (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), John Burbank (Trades, Portfolio), Chris Davis (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) have shares of Alibaba in their portfolios. James Barrow (Trades, Portfolio), HOTCHKIS & WILEY, Ken Fisher (Trades, Portfolio), Richard Pzena (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Steven Romick (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), Charles Brandes (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Ken Heebner (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Francis Chou (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Chris Davis (Trades, Portfolio), Manning & Napier Advisors, Inc, Jeff Auxier (Trades, Portfolio), Mohnish Pabrai (Trades, Portfolio), David Dreman (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Prem Watsa (Trades, Portfolio), John Keeley (Trades, Portfolio), Dodge & Cox and Ruane Cunniff (Trades, Portfolio) have shares of Citigroup in their portfolios.
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Loeb also sold his stakes in EMC Corp ( EMC ), American Airlines Group Inc ( AAL ), CF Industries Holdings Inc ( CF ), Shire PLC ( SHPG ), Hertz Global Holdings Inc (HTZ), Allergan PLC (AGN) and four others. Loeb sold his 10,000,000-share stake for an average price of $90.25 per share. Alan Fournier Undervalued Stocks Alan Fournier Top Growth Companies Alan Fournier High Yield stocks Louis Moore Bacon Undervalued Stocks Louis Moore Bacon Top Growth Companies Louis Moore Bacon High Yield stocks Daniel Loeb Undervalued Stocks Daniel Loeb Top Growth Companies Daniel Loeb High Yield stocks Alibaba has a market cap of $213.22 billion and an enterprise value of $205.93 billion.
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8335.0
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2015-06-23 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Southwest Airlines, Delta Air Lines, American Airlines Group, United Continental Holdings and JetBlue Airways - Press Releases
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-southwest-airlines-delta-air-lines-american-airlines
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For Immediate Release
Chicago, IL - June 23, 2015 - 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 the Southwest Airlines ( LUV ), Delta Air Lines ( DAL ), American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ) and JetBlue Airways Corp. ( JBLU ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Monday's Analyst Blog:
Airline Stocks Gain as Capacity Woes Dip
Stocks in the airline space finished the prior week on a positive note as concerns related to capacity growth that had gripped the industry subsided. Moreover, data released by the Bureau of Labor Statistics (BLS) last week suggested that average airfares in the U.S. for the month of May were up 5.7% on a year-over-year basis after witnessing a downturn for two successive months.
Southwest's Capacity Projection and Its Effect
Stocks in the airline space have had a dream run ever since Ebola-related fears subsided late last year. Low crude oil price was the key factor that boosted positive momentum of the stocks. However, the industry saw a major sell-off in the sector last month induced by capacity and pricing worries. The trigger was Southwest Airlines' ( LUV ) announcement that it plans to increase its capacity in the band of 7% to 8% in 2015 as opposed to the earlier projection of a 7% increase.
Southwest's projection wreaked havoc among investors who feared that the increased capacity expansion would lead to an oversupplied market even as fuel costs remain weak. Investors were naturally concerned that oversupply could result in lower fares and hamper profit. Amid such fears, the aggregate increase in airline fares in May comes as a breather. Concerns of oversupply hurting the capacity discipline of the industry will be further reduced if the trend of increasing airfares persists in the coming months as well.
Sell-Off: An Overreaction
The sell-off has been deemed an overreaction by many market watchers as fundamentals of the industry remain strong and stocks continue to benefit from weak oil prices . Though oil prices are currently higher than the lows witnessed earlier in the year, they are nowhere near the highs observed in the first half of 2014.
Weak oil prices have resulted in tremendous savings for carriers. Airline giant Delta Air Lines ( DAL ) has projected savings in excess of $2 billion in 2015 due to low fuel costs. In the same vein, American Airlines Group ( AAL ) expects its fuel expense to reduce by over $4 billion in 2015.
Since fuel costs account for a major chunk of an airline company's operating expenses, the persistent drop in oil prices has significantly boosted the bottom line of stocks in the airline space. Major companies like Delta, American Airlines Group, Southwest Airlines, United Continental Holdings, Inc. ( UAL ) and JetBlue Airways Corp. ( JBLU ) have all posted better-than-expected earnings in the first quarter of 2015, aided by low fuel costs. We expect the trend to benefit second quarter earnings, which is merely a few weeks away, as well.
Weak oil prices apart, many carriers have announced plans to cut capacity, which should help eliminate fears that capacity discipline of the industry would suffer. Following the widespread panic amongst investors, Southwest trimmed its 2015 capacity growth projection to 7% once again from the raised 7% to 8% view.
Furthermore, Delta intends to bring down its capacity in the transatlantic area by 0-2% in the fourth quarter of 2015 with the maximum reductions slated for Africa, India and the Middle-East. Moreover, the carrier intends to suspend service to Moscow during the winter season. Meanwhile, United Continental Holdings will trim its capacity in Japan by 11% in the second quarter.
Strong IATA Forecast
That airline stocks are likely to continue their healthy run through the rest of the year has been hinted at by the International Air Transport Association's (IATA) rose forecast provided earlier in June. The trade association now expects profits from the aviation industry to touch $29.3 billion in 2015 as opposed to the earlier forecast of $25 billion, thanks to weak oil prices. The bulk of the profits is expected to originate from carriers in the North American region.
The Bottom Line
Carriers should continue to see good times as oil prices are expected to remain soft going forward. Moreover, a higher demand for travel on the back of an improving labor market and consolidation should also aid carriers. Consequently, the recent dip in the fortune of airline stocks due to capacity and pricing concerns should not worry long-term investors.
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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.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include the Southwest Airlines ( LUV ), Delta Air Lines ( DAL ), American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ) and JetBlue Airways Corp. ( JBLU ). In the same vein, American Airlines Group ( AAL ) expects its fuel expense to reduce by over $4 billion in 2015. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): 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 the Southwest Airlines ( LUV ), Delta Air Lines ( DAL ), American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ) and JetBlue Airways Corp. ( JBLU ). Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. In the same vein, American Airlines Group ( AAL ) expects its fuel expense to reduce by over $4 billion in 2015.
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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 AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): 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 the Southwest Airlines ( LUV ), Delta Air Lines ( DAL ), American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ) and JetBlue Airways Corp. ( JBLU ). In the same vein, American Airlines Group ( AAL ) expects its fuel expense to reduce by over $4 billion in 2015.
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Stocks recently featured in the blog include the Southwest Airlines ( LUV ), Delta Air Lines ( DAL ), American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ) and JetBlue Airways Corp. ( JBLU ). In the same vein, American Airlines Group ( AAL ) expects its fuel expense to reduce by over $4 billion in 2015. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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8336.0
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2015-06-23 00:00:00 UTC
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Airline Stocks in Focus: 2 to Fly High and 2 to Hit Turbulence Ahead - Stocks in the News
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https://www.nasdaq.com/articles/airline-stocks-focus-2-fly-high-and-2-hit-turbulence-ahead-stocks-news-2015-06-23
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Airline stocks have had an interesting year to date, as various factors have forced investors to pay close attention to the industry recently. Relatively low oil prices have remained a consistent benefit to the airlines, but other concerns have had the market fluctuating.
As detailed in the most recent Zacks Analyst Blog , concerns over increased capacity worried investors earlier in the year. Generally speaking, concerns arise when airlines plan to expand their routes or increase the number of flights offered. As more seats are made available, ticket prices go down and can create an oversupplied market, causing damage to profits.
Some analysts are also raising questions about the uncertainty over Greece and the Eurozone. As the world waits for the crisis to be resolved, investors may have concerns about airlines with a heavy reliance on international and European travel.
However, there have been many positive signs for the industry as well. First, airlines have been saving on fuel costs, with Delta ( DAL ) reporting over $2 billion in savings, and American Airlines ( AAL ) estimating a reduction of over $4 billion in fuel costs.
Additionally, a Bureau of Labor Statistics report estimates that airfares for the month of May were up 5.7% on a year-over-year basis. The International Air Transport Association has increased profit expectations as well, suggesting that the industry could see end of the year profits of $29.3 billion, up from earlier estimates of $25 billion.
Furthermore, it seems that the concerns over capacity increases may have been overblown. In fact, some companies are now deciding to reduce their capacity, with Delta recently announcing that they would reduce flights by up to 2% in the final quarter of 2015.
With that said, Zacks has highlighted stocks on both ends of our ranking spectrum below. Investors should take note of these companies as they look to move into the airline industry and could help you position your portfolio for gains in this sector as the year goes on:
Airlines to avoid
The two airlines we highlight here share a common negative bond: strong agreement in negative earnings estimate revisions. The first, Southwest ( LUV ), actually led the charge in suggesting increased capacity earlier this year. While they've scaled back those plans, analysts are almost universally lowering their estimates for Southwest.
Southwest is a major domestic airline, notable for its low costs compared to other domestic competitors. Unlike many other airlines, Southwest still offers free baggage check and consistently boasts some of the lowest ticket prices in the industry.
Southwest currently holds a Zacks Rank #4 (Sell). According to Zacks data, 100% of 8 earnings revisions are down for Q1, and 100% of 11 revisions for the remainder of the year are down. Overall, yearly estimates are down 13 cents from 60 days ago.
The other airline to highlight here is United Continental Holdings ( UAL ), which operates both United and Continental Airlines. United operates by separating the business into two segments: Mainline and Regional. The company is then managed like an integrated network, spreading its assets out across the segments. With their headquarters in Chicago, United flies out of main hubs throughout the US, with flights all around the world.
Again, we see strong agreement with negative revisions. 100% of 7 revisions are down for Q1, and 100% of 9 yearly earnings estimate revisions are down. UAL currently holds a Zacks Rank #4 (Sell) as well.
Zacks considers this agreement as a strong indication that share prices will face trouble in the near future. Investors should take note of these trends and avoid airlines who can't hit their marks in a competitive industry.
Airlines taking off
Just as Southwest and United share a negative trait, Skywest ( SKYW ) and Lufthansa ( DLAKY ) share a positive trait: value.
Headquartered in Utah, Skywest is technically considered a regional airline. Even still, they fly into 180 cities across 43 states. The company also flies internationally, with destinations to Canada, Mexico, and the Bahamas. Skywest has joint marketing agreements with Delta, even providing Delta connections in Skywest markets.
SKYW currently has a Zacks Rank #1 (Strong Buy). This stock should be noted for its value and ability to exceed expectations. In the first quarter of 2015, Skywest beat earnings estimates by 1,000%. The company has beaten estimates by an average of 293.4% over the past year. These numbers, supported by Style Score grades of "B" in growth and "A" in value, indicate that Zacks sees Skywest as a strong buy for investors.
Meanwhile, Lufthansa is a German airline that operates in 78 countries worldwide. The airline is the largest one in Europe, both in fleet size and number of passengers. DLAKY has a Zacks Rank #1 (Strong Buy), and the stock seems to be a great value buy for investors. With "A" grades in all of our Style Score categories, Zacks sees a lot of positive market value in Lufthansa. DLAKY also has a Forward P/E of 6.08, well below the market average.
Bottom Line
Dependent on many factors, airline stock can be a good way for savvy investors to benefit from a worldwide market. While some signs indicate positive growth in the industry, investors should tread carefully and invest wisely. But by using our Zacks rankings to avoid companies with negative earnings estimate revisions and instead focusing on those with positive revisions and strong value traits, investors may see their portfolios takeoff by investing in this competitive sector.
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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
UNITED CONT HLD (UAL): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): 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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First, airlines have been saving on fuel costs, with Delta ( DAL ) reporting over $2 billion in savings, and American Airlines ( AAL ) estimating a reduction of over $4 billion in fuel costs. 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 UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report To read this article on Zacks.com click here. Airline stocks have had an interesting year to date, as various factors have forced investors to pay close attention to the industry recently.
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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 UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report To read this article on Zacks.com click here. First, airlines have been saving on fuel costs, with Delta ( DAL ) reporting over $2 billion in savings, and American Airlines ( AAL ) estimating a reduction of over $4 billion in fuel costs. The International Air Transport Association has increased profit expectations as well, suggesting that the industry could see end of the year profits of $29.3 billion, up from earlier estimates of $25 billion.
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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 UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report To read this article on Zacks.com click here. First, airlines have been saving on fuel costs, with Delta ( DAL ) reporting over $2 billion in savings, and American Airlines ( AAL ) estimating a reduction of over $4 billion in fuel costs. Investors should take note of these companies as they look to move into the airline industry and could help you position your portfolio for gains in this sector as the year goes on: Airlines to avoid The two airlines we highlight here share a common negative bond: strong agreement in negative earnings estimate revisions.
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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 UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report To read this article on Zacks.com click here. First, airlines have been saving on fuel costs, with Delta ( DAL ) reporting over $2 billion in savings, and American Airlines ( AAL ) estimating a reduction of over $4 billion in fuel costs. Investors should take note of these companies as they look to move into the airline industry and could help you position your portfolio for gains in this sector as the year goes on: Airlines to avoid The two airlines we highlight here share a common negative bond: strong agreement in negative earnings estimate revisions.
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8337.0
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2015-06-22 00:00:00 UTC
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Airline Stocks Gain as Capacity Woes Dip, May Airfares Rise - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/airline-stocks-gain-as-capacity-woes-dip-may-airfares-rise-analyst-blog-2015-06-22
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nan
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Stocks in the airline space finished the prior week on a positive note as concerns related to capacity growth that had gripped the industry subsided. Moreover, data released by the Bureau of Labor Statistics (BLS) last week suggested that average airfares in the U.S. for the month of May were up 5.7% on a year-over-year basis after witnessing a downturn for two successive months.
Southwest's Capacity Projection and Its Effect
Stocks in the airline space have had a dream run ever since Ebola-related fears subsided late last year. Low crude oil price was the key factor that boosted positive momentum of the stocks. However, the industry saw a major sell-off in the sector last month induced by capacity and pricing worries. The trigger was Southwest Airlines' LUV announcement that it plans to increase its capacity in the band of 7% to 8% in 2015 as opposed to the earlier projection of a 7% increase.
Southwest's projection wreaked havoc among investors who feared that the increased capacity expansion would lead to an oversupplied market even as fuel costs remain weak. Investors were naturally concerned that oversupply could result in lower fares and hamper profit. Amid such fears, the aggregate increase in airline fares in May comes as a breather. Concerns of oversupply hurting the capacity discipline of the industry will be further reduced if the trend of increasing airfares persists in the coming months as well.
Sell-Off: An Overreaction
The sell-off has been deemed an overreaction by many market watchers as fundamentals of the industry remain strong and stocks continue to benefit from weak oil prices . Though oil prices are currently higher than the lows witnessed earlier in the year, they are nowhere near the highs observed in the first half of 2014.
Weak oil prices have resulted in tremendous savings for carriers. Airline giant Delta Air Lines DAL has projected savings in excess of $2 billion in 2015 due to low fuel costs. In the same vein, American Airlines Group AAL expects its fuel expense to reduce by over $4 billion in 2015.
Since fuel costs account for a major chunk of an airline company's operating expenses, the persistent drop in oil prices has significantly boosted the bottom line of stocks in the airline space. Major companies like Delta, American Airlines Group, Southwest Airlines, United Continental Holdings, Inc. UAL , JetBlue Airways Corp. JBLU and Alaska Air Group, Inc. ALK have all posted better-than-expected earnings in the first quarter of 2015, aided by low fuel costs. We expect the trend to benefit second quarter earnings, which is merely a few weeks away, as well.
Weak oil prices apart, many carriers have announced plans to cut capacity, which should help eliminate fears that capacity discipline of the industry would suffer. Following the widespread panic amongst investors, Southwest trimmed its 2015 capacity growth projection to 7% once again from the raised 7% to 8% view.
Furthermore, Delta intends to bring down its capacity in the transatlantic area by 0-2% in the fourth quarter of 2015 with the maximum reductions slated for Africa, India and the Middle-East. Moreover, the carrier intends to suspend service to Moscow during the winter season. Meanwhile, United Continental Holdings will trim its capacity in Japan by 11% in the second quarter.
Strong IATA Forecast
That airline stocks are likely to continue their healthy run through the rest of the year has been hinted at by the International Air Transport Association's (IATA) rose forecast provided earlier in June. The trade association now expects profits from the aviation industry to touch $29.3 billion in 2015 as opposed to the earlier forecast of $25 billion, thanks to weak oil prices. The bulk of the profits is expected to originate from carriers in the North American region.
The Bottom Line
Carriers should continue to see good times as oil prices are expected to remain soft going forward. Moreover, a higher demand for travel on the back of an improving labor market and consolidation should also aid carriers. Consequently, the recent dip in the fortune of airline stocks due to capacity and pricing concerns should not worry long-term 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 >>
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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
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the same vein, American Airlines Group AAL expects its fuel expense to reduce by over $4 billion in 2015. 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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks in the airline space finished the prior week on a positive note as concerns related to capacity growth that had gripped the industry subsided.
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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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. In the same vein, American Airlines Group AAL expects its fuel expense to reduce by over $4 billion in 2015. Airline giant Delta Air Lines DAL has projected savings in excess of $2 billion in 2015 due to low fuel costs.
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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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. In the same vein, American Airlines Group AAL expects its fuel expense to reduce by over $4 billion in 2015. Since fuel costs account for a major chunk of an airline company's operating expenses, the persistent drop in oil prices has significantly boosted the bottom line of stocks in the airline space.
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In the same vein, American Airlines Group AAL expects its fuel expense to reduce by over $4 billion in 2015. 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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Concerns of oversupply hurting the capacity discipline of the industry will be further reduced if the trend of increasing airfares persists in the coming months as well.
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8338.0
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2015-06-22 00:00:00 UTC
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American Airlines to Get Seattle-Haneda Slots Post Delta Exit - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-get-seattle-haneda-slots-post-delta-exit-analyst-blog-2015-06-22
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nan
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nan
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After vying for over a year, premier passenger carrier American Airlines Group Inc.AAL is geared up to launch its services between Tokyo Haneda Airport and Los Angeles International Airport route starting Oct 2015.
At present, Delta Air Lines Inc. DAL operates seasonal flights between these airports. However, lack of demand and stringent government regulations have compelled the carrier to hand over the slots to the U.S. Department of Transport (DOT). Delta will terminate operations on this route by the end of Sep 30, 2015.
Easy connectivity to downtown Tokyo has made the Haneda airport more convenient for most business travelers as compared to the Narita International airport. Meanwhile, after the signing of U.S.-Japan bilateral agreements in 2010, three U.S. carriers were given access to Haneda airport and were allowed to operate only four flights daily.
U.S. carriers, namely, Delta, United Airlines - the wholly owned subsidiary of United Continental Holdings Inc. UAL and Hawaiian Airlines, Inc. - a subsidiary of Hawaiian Holdings, Inc. HA won the four allotted slots. Out of the four, Delta operates two while United Airlines and Hawaiian Airlines got permits for the other two routes connecting San Francisco and Honolulu.
However, the underutilization of the Seattle-to-Haneda network by Delta has prompted American Airlines to file a complaint with the DOT in October, last year. American Airlines also requested the regulatory body for a reallocation of the routes.
On failing to keep up with DOT's flight operation standards, Delta has been ordered to hand over the slots which will now be given to American Airlines.
We believe that the new network will not only boost American Airlines' presence in Asia but will also drive traffic to a considerable extent.
American Airlines currently 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
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): 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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After vying for over a year, premier passenger carrier American Airlines Group Inc.AAL is geared up to launch its services between Tokyo Haneda Airport and Los Angeles International Airport route starting Oct 2015. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, lack of demand and stringent government regulations have compelled the carrier to hand over the slots to the U.S. Department of Transport (DOT).
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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 HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. After vying for over a year, premier passenger carrier American Airlines Group Inc.AAL is geared up to launch its services between Tokyo Haneda Airport and Los Angeles International Airport route starting Oct 2015. U.S. carriers, namely, Delta, United Airlines - the wholly owned subsidiary of United Continental Holdings Inc. UAL and Hawaiian Airlines, Inc. - a subsidiary of Hawaiian Holdings, Inc. HA won the four allotted slots.
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After vying for over a year, premier passenger carrier American Airlines Group Inc.AAL is geared up to launch its services between Tokyo Haneda Airport and Los Angeles International Airport route starting Oct 2015. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. U.S. carriers, namely, Delta, United Airlines - the wholly owned subsidiary of United Continental Holdings Inc. UAL and Hawaiian Airlines, Inc. - a subsidiary of Hawaiian Holdings, Inc. HA won the four allotted slots.
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After vying for over a year, premier passenger carrier American Airlines Group Inc.AAL is geared up to launch its services between Tokyo Haneda Airport and Los Angeles International Airport route starting Oct 2015. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, after the signing of U.S.-Japan bilateral agreements in 2010, three U.S. carriers were given access to Haneda airport and were allowed to operate only four flights daily.
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8339.0
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2015-06-21 00:00:00 UTC
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Weighing The Week Ahead: What Does The Greek Crisis Mean For Financial Markets?
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AAL
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https://www.nasdaq.com/articles/weighing-week-ahead-what-does-greek-crisis-mean-financial-markets-2015-06-21
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By Jeff Miller :
The calendar shows a fair amount of economic data in the coming week, but attention is likely to be focused abroad. After many years (some would say decades) of percolating, the issue of Greece and the Eurozone is coming to a conclusion. I expect this week's theme to be:
What does the Greek crisis mean for financial markets?
Prior Theme Recap
In my last WTWA, I predicted that market participants would be focused on the Fed, wondering if they had heard the message from the markets. Some readers commented that Greece was likely to take center stage. They were right at the start of the week, and also at the end when even the most voluble pundits were running out of comments about a predictable Fed meeting. Doug Short's excellent five-day summary always captures the story in one great chart.
Feel free to join in my exercise in thinking about the upcoming theme. We would all like to know the direction of the market in advance. Good luck with that! Second best is planning what to look for and how to react. That is the purpose of considering possible themes for the week ahead.
This Week's Theme
The Greece story has been high on the list of worries for several years. Some observers suggest that the underlying problems are better measured in decades.
This week features a solid data calendar, but nothing really dominates. The Greek story is both timely and compelling, with the market effects uncertain. It is a perfect paradise for pundits. I expect market observers to be asking:
What does the Greek Crisis mean for financial markets?
The Viewpoints
(click to enlarge)
Last Week's Data
Each week, I break down events into good and bad. Often there is "ugly" and on rare occasion something really good. My working definition of "good" has two components:
The news is market-friendly. Our personal policy preferences are not relevant for this test. And especially - no politics.
It is better than expectations.
The Good
There was plenty of good economic news.
Initial Jobless claims were only 267K. Here is the look from Bespoke :
Building permits are now at the highest pace since 2007. Some of this is multi-family building, but from an economic perspective that is OK.
Core CPI is well-contained. I am mystified by those who regard this as bad news. While the Fed is not hitting its inflation "target," we should be happy to see restrained inflation in the context of better economic growth. CPI per se is not a growth measure.
The Fed satisfied the markets. It might not have been a surprise. There were plenty of critics. Despite this, the continuing assurance that the path of rate hikes will be gradual is the key takeaway. Tim Duy , the leading Fed observer, summarized the meeting as follows:
Leading indicators once again surprised with a gain of 0.7% versus expectations of 0.4%. Steven Hansen at GEI has a complete analysis and critique, including this chart:
(click to enlarge)
Investor sentiment has turned negative. This is a contrarian indicator, so it is good news. Ryan Detrick analyzes several different indicators and notes the protests from those who previously embraced the same measures. If you are going to be fair about an indicator, you need to accept the result when it changes direction. So many sources trumpet this when bulls seem to be "all in "and then fall silent when it changes.
The Bad
There was also some negative data last week, partly on the policy front.
Trade legislation is still mired in Congress. The political lines are shifting, but the fate is uncertain. As I have consistently noted, opinions may vary about worker protection, but this legislation meets our "market-friendly" test. ( The Hill )
A new government shutdown looming? Here is the early read. ( The Hill ).
Putin. Playing a nuclear card? The contemplated additions to inventory are small, and within the existing agreements, but why? ( Brookings ).
Industrial production declined by 0.2%.
Housing starts registered a big decline. This was mixed news, given the revisions and the prior month gains. Calculated Risk actually called it a "decent report," although the headline number was certainly disappointing.
The Ugly
Charleston. So bad, so sad, in so many different ways, overshadowing other issues. I expect the story to dominate the Sunday news shows while everyone tries to sort out the implications.
The Silver Bullet
I occasionally give the Silver Bullet award to someone who takes up an unpopular or thankless cause, doing the real work to demonstrate the facts. Think of The Lone Ranger.
This week's award goes to Pierre Lapointe, who takes on the crowd that has been worrying about profit margins. ( Via BI ) This concern has been expensive for many investors. This chart summarizes the argument that it can take many years for declining margins to impact stock prices. (Here is my take from more than three years ago. This argument never dies!)
(click to enlarge)
Noteworthy
This is an amazing list, particularly when we note that they are business passwords. Even the relatively modern requirement to include some numbers and symbols cannot slow down the creatively lazy! (Statista via GEI )
(click to enlarge)
Quant Corner
Whether a trader or an investor, you need to understand risk. I monitor many quantitative reports and highlight the best methods in this weekly update. For more information on each source, check here .
Recent Expert Commentary on Recession Odds and Market Trends
Bob Dieli does a monthly update (subscription required) after the employment report and also a monthly overview analysis. He follows many concurrent indicators to supplement our featured "C Score."
RecessionAlert : A variety of strong quantitative indicators for both economic and market analysis. While we feature the recession analysis, Dwaine also has a number of interesting market indicators. He recently noted an increase in his combined measure of economic stress , although the levels are still not yet worrisome.
Georg Vrba : has developed an array of interesting systems. Check out his site for the full story. We especially like his unemployment rate recession indicator , confirming that there is no recession signal. He gets a similar result from the Business Cycle Indicator (featured below). Georg continues to develop new tools for market analysis and timing, including a combination of models to do gradual shifting to and from the S&P 500.
(click to enlarge)
Doug Short : An update of the regular ECRI analysis with a good history, commentary, detailed analysis and charts. If you are still listening to the ECRI (3½ years after their recession call), you should be reading this carefully. Recently the ECRI finally admitted to the error in their forecast, but still claims the best overall record. This is simply not true. I rejected their approach in real time during 2011 and also highlighted competing methods that were stronger. Until we know what is inside the black box (I suspect excessive reliance on commodity prices and insistence on unrevised data), we will be unable to evaluate their approach. Doug is more sympathetic in his last update. While I disagree, it will require a longer post to elaborate.
In this week's update, Doug notes the ECRI claim of lower growth and more frequent recessions. The two do not necessarily coincide. Recessions do not generally begin with "stalls" but rather with business cycle peaks. Some readers have suggested that I retire this line of discussion from WTWA. I would happily do so if more media sources did a better job with the recession discussion. Until then, it provides an important reminder.
Doug's Big Four summary of key indicators watched by the NBER in recession dating shows no evidence of a business cycle peak. Only industrial production shows some weakness.
(click to enlarge)
The Week Ahead
We have a modest week for new data.
The "A List" includes the following:
New home sales (( T )). An important read on an important sector.
Durable goods. Volatile May data, but important for a good read on GDP.
Personal Income and spending (Th). Key read on overall economic strength.
Michigan sentiment (( F )). Great concurrent indicator on spending and employment, with some leading character.
PCE prices (Th). This is the Fed's favorite inflation indicator, with less emphasis on housing. Well worth watching!
Initial jobless claims (Th). The best concurrent news on employment trends, with emphasis on job losses.
The "B List" includes the following:
Existing home sales (( M )). Less important than new sales (above) but still an interesting read on the sector.
FHFA home prices. Covering a wide range of homes, but not followed as widely as other measures.
GDP Q1 third estimate (( W )). Old news, but it provides a baseline.
Crude oil inventories. Current interest in energy keeps this on the list of items to watch.
There is a smidgen of FedSpeak, but it is not very important this week. Anything about Greece will command attention.
How to Use the Weekly Data Updates
In the WTWA series, I try to share what I am thinking as I prepare for the coming week. I write each post as if I were speaking directly to one of my clients. Each client is different, so I have five different programs ranging from very conservative bond ladders to very aggressive trading programs. It is not a "one size fits all" approach.
To get the maximum benefit from my updates, you need to have a self-assessment of your objectives. Are you most interested in preserving wealth? Or like most of us, do you still need to create wealth? How much risk is right for your temperament and circumstances?
My weekly insights often suggest a different course of action depending upon your objectives and time frames. They also accurately describe what I am doing in the programs I manage.
Insight for Traders
Felix continued a neutral stance for the three-week market forecast. The confidence in the forecast is very low with the continuing extremely high percentage of sectors in the penalty box. Despite the overall market verdict, Felix has generally been fully invested in three top sectors, including some foreign exposure. For more information, I have posted a further description - Meet Felix and Oscar . You can sign up for Felix's weekly ratings updates via email to etf at newarc dot com. Felix appears almost every day at Scutify (follow him here ).
While trading is not gambling, there are some valid lessons. Trade Ciety consults a top gambler and identifies some common amateur mistakes. Have you ever engaged in "revenge trading?"
Insight for Investors
I review the themes here each week and refresh when needed. For investors, as we would expect, the key ideas may stay on the list longer than the updates for traders. Major market declines occur after business cycle peaks, sparked by severely declining earnings. Our methods are focused on limiting this risk. Start with our Tips for Individual Investors and follow the links.
We also have a page summarizing many of the current investor fears . If you read something scary, this is a good place to do some fact checking. Please also check out part one of my new series on risk. Early reactions were good, and more comments are welcome. At least three more installments are planned.
Other Advice
Here is our collection of great investor advice for this week.
If I had to pick a single most important post, it would be this assessment of market prospects by Jeff Reeves . He is bullish on the summer prospects for stocks, mostly because of errors in a list of nine popular worries that have weighed on the market. I especially like this one:
Stock Ideas
Barron's has a cover story on airlines , suggesting that some could rise by 50% in the coming year. The basic argument is that the expansion of capacity has been controlled and RASM (revenue per available seat mile) strong. While several of the big names are cheap, their favorite is American ( AAL ).
Brian Gilmartin provides a great lesson in how to use cash flow to compare dividend stocks . Merck Vs. Pfizer: From A Dividend And Free-Cash-Flow Perspective analyzes two popular stocks, provides ideas about the sector, and helps investors to learn a key element of stock picking. The six best sectors for the rest of the year. Mark Hulbert makes the case for manufacturing and finance. Good here!
Personal Finance
Professional investors and traders have been making Abnormal Returns a daily stop for over ten years. The average investor should make time (even if not able to read every day as I do) for a weekly trip on Wednesday. Tadas always has first-rate links for investors in this special edition . I especially liked this WSJ link about emotions and investing - a topic at the top of the list in conferences with new clients.
Energy
Is Exxon Mobil the best dividend stock? Tim McAleenan Jr. makes an interesting case with a good list of reasons, including noting "all weather flexibility" as the company makes profits in a tough environment.
Thinking about Bonds
Watch out for bond ETFs that sound good, but have a high bid-ask spread. The most liquid ETFs are fine, but some spreads are in the 0.8% range, writes Chris Dieterich in Barron's .
Market Outlook
Has there been a "sideways correction?" ( Ben Levisohn in the popular Barron's Streetwise column).
Final Thought
This section is where I share my own conclusion. I try to add some insight to the evidence. Last week, there was some discussion, starting with a complaint from a reader (who obviously had only recently tuned in) that I did not offer specific advice. I hope that the regular audience for WTWA knows that the series is designed with several objectives:
Identify the most important issues
Focus attention on those most relevant for the week ahead
Provide interesting arguments for various perspectives
Explain how your analysis might differ depending upon your time frame
Share my own conclusions, often different for traders and investors - and I have programs doing both!
Anyone expecting a one-size-fits-all, spoon-fed approach has come to the wrong place!
How does this apply to Greece? The Greek crisis is a good example of a type of market risk (part of the series I am working on - Part One here ). It is an example of something viewed as a binary outcome with a known and certain date for the conclusion. The framework for analysis includes three topics:
The probability of each outcome.
The likely consequences of each outcome.
Market expectations (what is already reflected in market prices).
There is always the chance that the deadline will somehow be extended. Outcomes may also be less binary than they seem. The negotiating parties frequently find creative avenues for compromise as well as delay.
With that background, here is how I am using the framework to think about this risk. My conclusions are based upon a wide variety of sources. In WTWA, I do not make an argument for my own viewpoint, but I usually share it.
I rate the chance of a default as quite high. The Greek leadership, encouraged by its constituency, seems unwilling to make concessions. European leaders seem to have reached their limit. Reports from those close to the negotiations have not been encouraging.
I expect the ultimate consequences to be limited, but only after a period of uncertainty. While contagion is unlikely, markets hate uncertainty.
It is always difficult to know what is reflected in current market prices. My conclusion is based upon nearly thirty years of observation of daily trading. My sense is that the Greece effect has (so far) been pretty minor. Most market participants have been trained to expect an eleventh-hour resolution. (Dr. Brett ).
The average investor should not over-react to this, going "all out" of the market for a temporary effect. A trader might try to capture the reaction. We did a little of this in our accounts.
As always, the right trade depends upon your time frame and your agility.
See also Signs The U.S. Recovery Is Solid on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 several of the big names are cheap, their favorite is American ( AAL ). Steven Hansen at GEI has a complete analysis and critique, including this chart: (click to enlarge) Investor sentiment has turned negative. Until we know what is inside the black box (I suspect excessive reliance on commodity prices and insistence on unrevised data), we will be unable to evaluate their approach.
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While several of the big names are cheap, their favorite is American ( AAL ). Tim Duy , the leading Fed observer, summarized the meeting as follows: Leading indicators once again surprised with a gain of 0.7% versus expectations of 0.4%. (click to enlarge) Doug Short : An update of the regular ECRI analysis with a good history, commentary, detailed analysis and charts.
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While several of the big names are cheap, their favorite is American ( AAL ). The Viewpoints (click to enlarge) Last Week's Data Each week, I break down events into good and bad. I hope that the regular audience for WTWA knows that the series is designed with several objectives: Identify the most important issues Focus attention on those most relevant for the week ahead Provide interesting arguments for various perspectives Explain how your analysis might differ depending upon your time frame Share my own conclusions, often different for traders and investors - and I have programs doing both!
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While several of the big names are cheap, their favorite is American ( AAL ). This Week's Theme The Greece story has been high on the list of worries for several years. The Good There was plenty of good economic news.
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8340.0
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2015-06-19 00:00:00 UTC
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Nasdaq 100 Movers: VIP, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-vip-aal-2015-06-19
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nan
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nan
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.4%. Year to date, American Airlines Group has lost about 22.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is VimpelCom ( VIP ), trading down 1.9%. VimpelCom is showing a gain of 30.0% looking at the year to date performance.
Two other components making moves today are Xilinx ( XLNX ), trading down 1.8%, and Fiserv ( FISV ), trading up 2.8% on the day.
VIDEO: Nasdaq 100 Movers: VIP, 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 Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.4%. VIDEO: Nasdaq 100 Movers: VIP, 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 VimpelCom ( VIP ), trading down 1.9%.
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.4%. VIDEO: Nasdaq 100 Movers: VIP, 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 22.9% of its value.
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.4%. VIDEO: Nasdaq 100 Movers: VIP, 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 VimpelCom ( VIP ), trading down 1.9%.
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.4%. VIDEO: Nasdaq 100 Movers: VIP, 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 VimpelCom ( VIP ), trading down 1.9%.
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8341.0
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2015-06-19 00:00:00 UTC
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S&P 500 Movers: MAC, CAG
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-mac-cag-2015-06-19
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nan
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nan
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In early trading on Friday, shares of ConAgra Foods ( CAG ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.1%. Year to date, ConAgra Foods registers a 16.6% gain.
And the worst performing S&P 500 component thus far on the day is Macerich ( MAC ), trading down 6.2%. Macerich is lower by about 7.3% looking at the year to date performance.
Two other components making moves today are Carmax ( KMX ), trading down 3.5%, and American Airlines Group ( AAL ), trading up 3.0% on the day.
VIDEO: S&P 500 Movers: MAC, CAG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 Carmax ( KMX ), trading down 3.5%, and American Airlines Group ( AAL ), trading up 3.0% on the day. In early trading on Friday, shares of ConAgra Foods ( CAG ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.1%. Year to date, ConAgra Foods registers a 16.6% gain.
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Two other components making moves today are Carmax ( KMX ), trading down 3.5%, and American Airlines Group ( AAL ), trading up 3.0% on the day. Year to date, ConAgra Foods registers a 16.6% gain. VIDEO: S&P 500 Movers: MAC, CAG The views and 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 Carmax ( KMX ), trading down 3.5%, and American Airlines Group ( AAL ), trading up 3.0% on the day. In early trading on Friday, shares of ConAgra Foods ( CAG ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.1%. VIDEO: S&P 500 Movers: MAC, CAG The views and 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 Carmax ( KMX ), trading down 3.5%, and American Airlines Group ( AAL ), trading up 3.0% on the day. In early trading on Friday, shares of ConAgra Foods ( CAG ) topped the list of the day's best performing components of the S&P 500 index, trading up 8.1%. And the worst performing S&P 500 component thus far on the day is Macerich ( MAC ), trading down 6.2%.
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8342.0
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2015-06-19 00:00:00 UTC
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Southwest-Delta in Love Field Gate Feud, Virgin America Joins - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/southwest-delta-in-love-field-gate-feud-virgin-america-joins-analyst-blog-2015-06-19
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nan
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nan
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The fight between Delta Air Lines DAL and Southwest Airlines LUV over gates at the Dallas Love Field airport saw a new entrant in the form of California-based Virgin America VA . The CEO of the low-cost carrier David Cush spoke in support of Southwest Airlines at the Small Business Forum hosted by the Dallas Regional Chamber.
Whats the Controversy About?
Southwest Airlines is a major operator at Dallas Love Field and owns 18 of the 20 gates at the city-owned airport. Atlanta, GA-based Delta Air Lines currently operates five of its daily flights to Atlanta using one of these gates, as per an agreement with Southwest.
However, the dispute has emanated with the agreement set to expire on July 6, 2015. The post-July 6 scenario at Love Field presently represents a gray area as Southwest is in no mood to accommodate Delta, while the latter has backing from the Department of Transportation (DOT) to continue operating at Love Field. In fact, Delta wants to operate eight more flights from the airport.
The DOT stated in its letter that Delta has every right to continue operating at Love Field under federal law. The DOT further said that the city is obliged to accommodate Delta's request for additional flights at the airport since slots were readily available when Delta placed its request.
Southwest Aided by Wright Amendment Expiry
The Wright Amendment, established in 1979, originally governed traffic at Dallas Love Field and restricted non-stop flights from Love Field to destinations only in Texas and the neighboring states. The expiry of the amendment in Oct 2014 aided carriers, particularly Southwest.
Following the expiration, traffic naturally increased at the airport and to cope with the increased demand the Dallas-based carrier added new routes at Love Field. Southwest intends to strengthen its presence at Dallas Love Field further and is aiming to add more flights from August this year. This forms the basis of their argument that Delta should exit Dallas Love Field after July 6.
City Seeks Court Intervention
With the DOT clearly in favor of Delta continuing with its operations at Love Field even after the original agreement ends and Southwest not eager to give in, the city of Dallas filed a lawsuit with the district court in Dallas earlier this week to sort out the mess. In its lawsuit, the city has sued the DOT, the Federal Aviation Administration and the carriers which either operate currently or have functioned previously at the airport.
The carriers mentioned in the lawsuit include American Airlines Group AAL , United Continental Holdings' UAL subsidiary United Airlines, Seaport Airlines apart from Delta, Southwest and Virgin America. The city believes has filed the lawsuit to avoid the chaos at the airport which would result once the agreement expires.
Southwest Gets Virgin America Backing
Yesterday, Southwest received a pleasant surprise as it won support from Virgin America in the controversy. Ironically, Virgin America is Southwest's primary competitor at Love Field. Virgin America operates quite a few flights from two gates at the airport. Virgin America took over the two gates under the U.S. Department of Justice's order as a pre-condition for American Airlines' merger with U.S. Airways. American Airlines, however, requested Dallas in April this year to allow it to operate four flights a day at Love Field.
Cush, while stating that Southwest has the freedom to decide whatever it feels right as it is the owner of the gates, hinted at further expansion of Virgin America's operations at the airport. The company, which is also a low cost airline like Southwest, is clearly not in favor of Delta enlisting the government to do its bidding.
The Bottom Line
Even though the city of Dallas has sought intervention from the court to resolve the dispute, we believe the controversy might not be resolved before July 6, which is only a few days away. If the issue lingers further, we fear the situation at Love Field may become potentially chaotic.
In the event of Delta ultimately managing to keep its operations intact at Love Field, Southwest will have to scale back its expansion plans at Dallas Love Field. On the other hand, if Southwest manages to keep Delta out, it may raise its current extremely low fares at Love Field. Consequently, we expect investors to remain glued to updates on the issue, 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
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
VIRGIN AMERICA (VA): 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 carriers mentioned in the lawsuit include American Airlines Group AAL , United Continental Holdings' UAL subsidiary United Airlines, Seaport Airlines apart from Delta, Southwest and Virgin America. 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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. The fight between Delta Air Lines DAL and Southwest Airlines LUV over gates at the Dallas Love Field airport saw a new entrant in the form of California-based Virgin America VA .
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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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. The carriers mentioned in the lawsuit include American Airlines Group AAL , United Continental Holdings' UAL subsidiary United Airlines, Seaport Airlines apart from Delta, Southwest and Virgin America. The fight between Delta Air Lines DAL and Southwest Airlines LUV over gates at the Dallas Love Field airport saw a new entrant in the form of California-based Virgin America VA .
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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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. The carriers mentioned in the lawsuit include American Airlines Group AAL , United Continental Holdings' UAL subsidiary United Airlines, Seaport Airlines apart from Delta, Southwest and Virgin America. The fight between Delta Air Lines DAL and Southwest Airlines LUV over gates at the Dallas Love Field airport saw a new entrant in the form of California-based Virgin America VA .
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The carriers mentioned in the lawsuit include American Airlines Group AAL , United Continental Holdings' UAL subsidiary United Airlines, Seaport Airlines apart from Delta, Southwest and Virgin America. 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 VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. The fight between Delta Air Lines DAL and Southwest Airlines LUV over gates at the Dallas Love Field airport saw a new entrant in the form of California-based Virgin America VA .
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8343.0
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2015-06-18 00:00:00 UTC
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The Zacks Analyst Blog Highlights: JetBlue Airways, Southwest Airlines, American Airlines Group, Virgin America and Delta Air Lines - Press Releases
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-jetblue-airways-southwest-airlines-american-airlines
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nan
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For Immediate Release
Chicago, IL - June 18, 2015 - 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 the JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co. ( LUV ), American Airlines Group ( AAL ), Virgin America ( VA ) and Delta Air Lines Inc. ( DAL ).
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 turned out to be a busy one for stocks in the airline space with many carriers reporting their traffic data for the month of May. Long Island City-based low cost carrier JetBlue Airways Corporation ( JBLU ) emerged the best of the lot. All key metrics, namely revenue passenger miles (RPMs: a measure of air traffic), available seat miles (ASMs: a measure of capacity) and load factor (% of seats filled with passengers) displayed year-over-year improvements.
Low cost carrier Southwest Airlines Co. ( LUV ) also revealed impressive traffic data for the month; however its key metric - passenger revenue per available seat mile (PRASM) - fell 6% from May 2014. Going forward, the carrier expects second quarter PRASM to decline in the band of 4% to 5%.
On the other hand, May traffic data at American Airlines Group ( AAL ) and Virgin America ( VA ) were low-key. Apart from the traffic updates, a significant piece of news that caught attention in last week was the $4 billion agreement between Delta Air Lines Inc. ( DAL ) and The Boeing Co. whereby the former decided to buy 60 single-aisle Boeing and Embraer aircraft.
On the price front, the NYSE ARCA Airline index gained a mere 0.96% over the past week as oil prices showed an upward trend.
(Read the last Airline Stock Roundup for June 9, 2015 )
Recap of the Past Week's Most Important Stories
1. Following the ratification of a tentative agreement from more than 12,000 Delta pilots, Delta awarded The Boeing Company a $4 billion contract involving 60 single-aisle Boeing and Embraer aircraft. Delta has adopted a three-pronged approach to improve margins. Under the strategy, the company has decided to gradually dispose ageing carriers by 2017 in a bid to boost profitability (read more: Delta Awards $4 Billion Contract to Boeing ).
2. JetBlue Airways reported healthy traffic numbers for May. Traffic climbed 8.4% on a 7.8% rise in capacity. The higher increase in traffic compared with capacity led to a 50 basis point increase in load factor to 85.7%. (read more: JetBlue's May Traffic Up on New Flights, Low Fares ).
In a bid to strengthen its presence in the Caribbean, JetBlue Airways has introduced two direct flights on a weekly basis to Grenada from New York's John F. Kennedy International Airport (read more: JetBlue to Fly to Grenada, Boost Caribbean Network ).
3. Traffic at American Airlines Group inched up 0.7% in May 2015 on a 2.1% increase in capacity. Load factor declined 120 basis points to 82.8% as the increase in capacity was more than the rise in traffic (read more: American Airlines May Traffic Up on Favorable Factors ).
4. Traffic at Southwest Airlines climbed 8.5% in May 2015 from the figure recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) increased 7.6% to 12.1 billion. Meanwhile, the load factor increased to 84.4% from 83.7% a year ago (read more: Southwest Airlines May Traffic Up on New Flights, Price Cut ).
5. Virgin America, which went public late last year, reported disappointing traffic numbers for May. Traffic decreased 0.3% with capacity remaining flat. Load factor was also marginally down to 84.2% (read more: Virgin America's May Traffic Down, Capacity Flat ).
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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 .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
VIRGIN AMERICA (VA): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 the JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co. ( LUV ), American Airlines Group ( AAL ), Virgin America ( VA ) and Delta Air Lines Inc. ( DAL ). On the other hand, May traffic data at American Airlines Group ( AAL ) and Virgin America ( VA ) were low-key. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include the JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co. ( LUV ), American Airlines Group ( AAL ), Virgin America ( VA ) and Delta Air Lines Inc. ( DAL ). Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. On the other hand, May traffic data at American Airlines Group ( AAL ) and Virgin America ( VA ) were low-key.
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include the JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co. ( LUV ), American Airlines Group ( AAL ), Virgin America ( VA ) and Delta Air Lines Inc. ( DAL ). On the other hand, May traffic data at American Airlines Group ( AAL ) and Virgin America ( VA ) were low-key.
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Stocks recently featured in the blog include the JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co. ( LUV ), American Airlines Group ( AAL ), Virgin America ( VA ) and Delta Air Lines Inc. ( DAL ). On the other hand, May traffic data at American Airlines Group ( AAL ) and Virgin America ( VA ) were low-key. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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8344.0
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2015-06-17 00:00:00 UTC
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3 Good Stocks to Buy for Their Earnings Growth
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AAL
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https://www.nasdaq.com/articles/3-good-stocks-buy-their-earnings-growth-2015-06-17
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nan
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By John Kilhefner, InvestorPlace Contributor
Everyone’s a pessimist on Wall Street these days. Earnings season is fading in the rear view, and while the results aren’t negative as some feared, they’re only better than last year’s earnings by roughly 2%.
The key takeaway here is weak earnings make stocks more expensive. The S&P 500 now trades at 22 times net profits (17 times operating income) for the last year, significantly higher than the historical average of 15.5%.
Nevertheless, that doesn’t necessarily mean take your profits and run. There are still a few gems out there that are gaining revenue, beating earnings estimates by several times analysts expectations and have considerably more growth in the pipeline.
PLUS: Expert Picks: 10 Top Stocks That EVERY Investor Needs to Know
These three stocks are increasing earnings, have excellent cash flow and minimal debt to keep a growth or value portfolio strong:
American Airlines (AAL)
Price-to-earnings ratio: 8.9
Forward P/E: 5.7
American Airlines (AAL) recently beat the Street’s earnings estimate by 2 cents, recording $1.73 a share when analysts were expecting $1.71 — not a huge earnings beat, but a beat nonetheless.
The real growth will begin in the current quarter, as American is slated to grow a whopping 46% followed by 77% in the quarter following.
Sure, airline stocks are taking a beating now and AAL stock is down nearly 25% this year, but that doesn’t mean jump out of the fray. Jim Corridor, and airline equity analyst for S&P Capital IQ, believes energy prices are the main factor to blame for the pullback in airline stocks.
Take jet fuel, for example; this was the biggest expense for airlines, but the price of fuel fell by a third since August. While some airline executives using their savings to reduce debt and put cash back in shareholders’ pockets, other airlines are using those savings to fund growth.
American Airlines is one of those companies.
As Southwest Airlines (LUV), one of AAL’s biggest competitors, increases its capacity, AAL management is responding in kind. Analysts believe this will hurt the airlines’ revenue performance in the near term but it won’t be a death knell to financial stability over the long term.
AAL’s underlying business is still solid and it’s only a matter of time before airlines return to profits. For the full year, AAL growth expectations are a massive 146%. Take into account that AAL generates $3.60 per share in operating cash and there’s more money in this company than investors may realize.
Those gains are from reports of a record summer for airlines, which expects 2.4 million passengers a day from June to August.
I’m not hesitant at all to say that dip in price puts AAL among the good stocks to buy now.
Gilead Sciences (GILD)
P/E: 13.4
Forward P/E: 10.7
Gilead Sciences (GILD) is absolutely killing it in both earnings and revenue. To top it off, GILD stock performs like a growth stock but trades for a value. GILD stock is up 47% in the last year and its price to earnings is well below the S&P 500 average of 15.
But of course we have to acknowledge the lackluster HCV sales that put a hurting on GILD. Even declining sales, however, don’t look like they’ll even dent GILD’s estimated $12 billion for the current quarter.
And when it comes to cash, GILD has a plenty to throw around.
Gilead has more than $10 billion in cash, $5.7 billion in current liabilities, and generates $3.88 per share in operating cash flow — more than GILD’s most recent quarterly earnings of $2.94, which obliterated the consensus by almost 30%. Analysts are increasingly bullish on the stock, too, and EPS for the current year continues trending up from $9.53 to $10.78 in three months’ time.
If we look at quarterly growth year on year, GILD grew earnings by 95%, and this year GILD will grow 34% more.
This isn’t pure speculation. GILD has some major promising drugs in the pipeline, such as GS-5745, a treatment for ulcerative colitis and gastric cancer; JAK inhibitor, a drug for pancreatic cancer now in Phase 3 studies; and Zydelig for tumors and blood cancers.
A similar drug, Imbruvica, by a competitor is worth $40 billion in the market, and if Gilead can effectively diffuse safety concerns over its own product, it’s easy to imagine Zydelig could fetch as much in the market.
The icing on the cake is Gilead’s dividend yield of 1.5%. Sure, it’s not huge by any means, but it’s added value to a stock that I suspect will perform remarkably over the next year or so.
Marathon Petroleum (MPC)
P/E: 9.1
Forward P/E: 10.7
Marathon Petroleum (MPC) beat estimates by 12.9% with $3.24 per share. This isn’t a one-time occurrence; MPC beat earnings the last four quarters by as much as 108%, and EPS estimates for the current and next year are skyrocketing.
But let’s talk cash: MPC’s balance sheet reflects enormous growth of 33% in total cash flow, enough to keep spending at its current rate for the next four quarters. When it comes to debt, MPC’s cash and cash equivalents cover 31% of all of the company’s debt.
The outlook given by MPC management for the next quarter is also positive. While the oil industry expects a drop of 51% this year, MPC will grow by 25%. Compared to the same period a year ago, Marathon’s profits surged an incredible 300%.
The acquisition of Hess should continue powering MPC as it now has one of the largest convenience chains in the U.S., and earnings estimates have trended up from $8.95 to $11.27 for its current fiscal year.
With a high target of $145 and a low of $95, there’s plenty of wiggle room for Marathon to reach higher limits this year, and is one of the best bets you can make in the oil industry.
This article was originally published on InvestorPlace Media.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
Plus:
Should You Buy Nike Stock? Just Do It.
Kroger Earnings Preview: KR Stock Is a Strong Buy
Micron (MU) Stock Is a Screaming Bargain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PLUS: Expert Picks: 10 Top Stocks That EVERY Investor Needs to Know These three stocks are increasing earnings, have excellent cash flow and minimal debt to keep a growth or value portfolio strong: American Airlines (AAL) Price-to-earnings ratio: 8.9 Forward P/E: 5.7 American Airlines (AAL) recently beat the Street’s earnings estimate by 2 cents, recording $1.73 a share when analysts were expecting $1.71 — not a huge earnings beat, but a beat nonetheless. Sure, airline stocks are taking a beating now and AAL stock is down nearly 25% this year, but that doesn’t mean jump out of the fray. As Southwest Airlines (LUV), one of AAL’s biggest competitors, increases its capacity, AAL management is responding in kind.
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PLUS: Expert Picks: 10 Top Stocks That EVERY Investor Needs to Know These three stocks are increasing earnings, have excellent cash flow and minimal debt to keep a growth or value portfolio strong: American Airlines (AAL) Price-to-earnings ratio: 8.9 Forward P/E: 5.7 American Airlines (AAL) recently beat the Street’s earnings estimate by 2 cents, recording $1.73 a share when analysts were expecting $1.71 — not a huge earnings beat, but a beat nonetheless. Sure, airline stocks are taking a beating now and AAL stock is down nearly 25% this year, but that doesn’t mean jump out of the fray. As Southwest Airlines (LUV), one of AAL’s biggest competitors, increases its capacity, AAL management is responding in kind.
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PLUS: Expert Picks: 10 Top Stocks That EVERY Investor Needs to Know These three stocks are increasing earnings, have excellent cash flow and minimal debt to keep a growth or value portfolio strong: American Airlines (AAL) Price-to-earnings ratio: 8.9 Forward P/E: 5.7 American Airlines (AAL) recently beat the Street’s earnings estimate by 2 cents, recording $1.73 a share when analysts were expecting $1.71 — not a huge earnings beat, but a beat nonetheless. Sure, airline stocks are taking a beating now and AAL stock is down nearly 25% this year, but that doesn’t mean jump out of the fray. As Southwest Airlines (LUV), one of AAL’s biggest competitors, increases its capacity, AAL management is responding in kind.
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PLUS: Expert Picks: 10 Top Stocks That EVERY Investor Needs to Know These three stocks are increasing earnings, have excellent cash flow and minimal debt to keep a growth or value portfolio strong: American Airlines (AAL) Price-to-earnings ratio: 8.9 Forward P/E: 5.7 American Airlines (AAL) recently beat the Street’s earnings estimate by 2 cents, recording $1.73 a share when analysts were expecting $1.71 — not a huge earnings beat, but a beat nonetheless. Sure, airline stocks are taking a beating now and AAL stock is down nearly 25% this year, but that doesn’t mean jump out of the fray. As Southwest Airlines (LUV), one of AAL’s biggest competitors, increases its capacity, AAL management is responding in kind.
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8345.0
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2015-06-15 00:00:00 UTC
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The Best Airline Credit Cards
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AAL
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https://www.nasdaq.com/articles/best-airline-credit-cards-2015-06-15
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Image: The Motley Fool.
Airline credit cards are some of the most popular on the market because they give travelers lots of perks they love like free airplane tickets, free checked bags, and even access to airline clubs in the airport. But which card is right for you?
Below I'll try to navigate the benefits and find which card is (or isn't) the best fit for you.
Perks from the airlines we fly the most
When it comes to flying in the U.S., Delta , American Airlines , UnitedContinental , and Southwest are the biggest players by a long shot. And they all have big credit card platforms that provide perks for cardholders.
Below is a brief overview of their benefits, including bonus miles and free ticket costs.
Source: Company websites.
Each of these cards also offers priority boarding, which can be important if you're on a full flight. Other perks like no fees on foreign transactions, bonus miles for spending at the airline, and bonuses for using the card each year are also included on most cards.
How to pick the right airline credit card for you
Trying to decide between major airline credit cards can be tough, but a big part of your decision should center around where you live. If you're close to an airline hub you'll likely have more flight options at lower costs than you may with competitors that have fewer flights to your home city.
American Airlines would be a preferred card for those in Boston, Nashville, San Jose, and St. Louis. Delta has hubs in Chicago, Memphis, Dallas-Fort Worth, and Minneapolis. United uses Houston, Miami, and Cleveland, while Southwest has a large number of flights from Las Vegas and Phoenix. If you live in one of these cities picking an airline with a large presence there can be more valuable than picking a card based on the number of free miles you get when you sign up.
Image: The Motley Fool.
A better way to save?
While airline credit cards can be tempting, thrifty travelers may want to consider a card with points that can be used for a number of airlines or for cash back. This can allow you to shop multiple airlines for the lowest cost flight and still use points to make a purchase.
JPMorgan Chase's Sapphire Preferred card will give you 40,000 bonus points, double points on dining out and travel spending, and allows you to buy tickets with points on partner airlines. Better yet, you can get $1 per 100 points in cash back, which could save you money if the cost of an airline ticket is less than 100 times the number of points you would have to use on your airline credit card.
The downside of non-branded cards is that you don't get a free checked back or priority boarding. But there are also a lot of cards without annual fees, so if you're not a frequent traveler or you don't fly the same airline all of the time you may want to consider a card with a flexible points program.
Perks for frequent travelers
If you are a frequent traveler and use the same airline time and time again an airline credit card can be a great item to have. It can get you free checked bags, along with other perks, and if you're lucky it could even land you a first class upgrade.
They're worth a close look and keep in mind that the airlines with the most availability to you will offer more value than just the card offering the most points. After all, what are points worth if you can't use them?
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article The Best Airline Credit Cards originally appeared on Fool.com.
Travis Hoium owns shares of JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase. 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 - 2015 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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United uses Houston, Miami, and Cleveland, while Southwest has a large number of flights from Las Vegas and Phoenix. This can allow you to shop multiple airlines for the lowest cost flight and still use points to make a purchase. This $19 trillion industry could destroy the Internet One bleeding-edge technology is about to put the World Wide Web to bed.
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Airline credit cards are some of the most popular on the market because they give travelers lots of perks they love like free airplane tickets, free checked bags, and even access to airline clubs in the airport. Below is a brief overview of their benefits, including bonus miles and free ticket costs. JPMorgan Chase's Sapphire Preferred card will give you 40,000 bonus points, double points on dining out and travel spending, and allows you to buy tickets with points on partner airlines.
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Airline credit cards are some of the most popular on the market because they give travelers lots of perks they love like free airplane tickets, free checked bags, and even access to airline clubs in the airport. While airline credit cards can be tempting, thrifty travelers may want to consider a card with points that can be used for a number of airlines or for cash back. Better yet, you can get $1 per 100 points in cash back, which could save you money if the cost of an airline ticket is less than 100 times the number of points you would have to use on your airline credit card.
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But which card is right for you? JPMorgan Chase's Sapphire Preferred card will give you 40,000 bonus points, double points on dining out and travel spending, and allows you to buy tickets with points on partner airlines. Better yet, you can get $1 per 100 points in cash back, which could save you money if the cost of an airline ticket is less than 100 times the number of points you would have to use on your airline credit card.
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8346.0
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2015-06-15 00:00:00 UTC
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FedEx Corporation (FDX) Ex-Dividend Date Scheduled for June 16, 2015
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AAL
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https://www.nasdaq.com/articles/fedex-corporation-fdx-ex-dividend-date-scheduled-june-16-2015-2015-06-15
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FedEx Corporation ( FDX ) will begin trading ex-dividend on June 16, 2015. A cash dividend payment of $0.25 per share is scheduled to be paid on July 02, 2015. Shareholders who purchased FDX prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 25% increase over the prior quarter. At the current stock price of $183.63, the dividend yield is .54%.
The previous trading day's last sale of FDX was $183.63, representing a -0.84% decrease from the 52 week high of $185.19 and a 32.78% increase over the 52 week low of $138.30.
FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). FDX's current earnings per share, an indicator of a company's profitability, is $8.71. Zacks Investment Research reports FDX's forecasted earnings growth in 2015 as 32.62%, compared to an industry average of .7%.
For more information on the declaration, record and payment dates, visit the FDX Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to FDX through an Exchange Traded Fund [ETF]?
The following ETF(s) have FDX as a top-10 holding:
SPDR S&P Transportation ETF ( XTN )
PowerShares Buyback Achievers ( PKW )
iShares Transportation AverageETF ( IYT )
Guggenheim S&P 500 Equal Weight Industrials ETF ( RGI )
First Trust Industrials AlphaDEX ( FXR ).
The top-performing ETF of this group is FXR with an increase of 5.73% over the last 100 days. XTN has the highest percent weighting of FDX at 2.3%.
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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FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased FDX prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports FDX's forecasted earnings growth in 2015 as 32.62%, compared to an industry average of .7%.
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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. FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). FDX's current earnings per share, an indicator of a company's profitability, is $8.71.
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FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased FDX prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of FDX was $183.63, representing a -0.84% decrease from the 52 week high of $185.19 and a 32.78% increase over the 52 week low of $138.30.
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FDX is a part of the Transportation sector, which includes companies such as Delta Air Lines, Inc. ( DAL ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased FDX prior to the ex-dividend date are eligible for the cash dividend payment. FDX's current earnings per share, an indicator of a company's profitability, is $8.71.
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8347.0
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2015-06-11 00:00:00 UTC
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10 Most Profitable Businesses in Texas
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AAL
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https://www.nasdaq.com/articles/10-most-profitable-businesses-texas-2015-06-11
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Texas Flag. Image: Klobetime, via Wikimedia Commons
With a GSP of just over $1.4 trillion, Texas' economy is the second largest in the nation. It's so large, in fact, that it outranks most of the world's countries -- excluding the United States, only 12 other countries have economies larger than Texas'.
It's no surprise, then, that so many of the world's most profitable firms reside in Texas. Below is a list of the top 10 most profitable firms in Texas ranked by their last reported annual net income.
Energy dominates the list
Seven of the ten -- ExxonMobil, ConocoPhillips, Phillips 66, Valero Energy, Halliburton, Marathon Oil, and EGO Resources -- are energy companies primarily focused on oil and gas, which shouldn't be particularly surprising to anyone familiar with the Texan economy.
ExxonMobil tops the list, with an annual net income larger than almost all the other companies combined. ExxonMobil is among the most profitable firms in the world, a title that it has held continuously since its formation in 1999. In 2008, it reported the largest annual earnings in U.S. history, raking in just over $45 billion. That figure has yet to be beaten (though after two record quarters , Apple may come close to topping it later this year). The price of oil has fallen since then, and ExxonMobil's earnings have likewise declined, but it remains the most profitable firm in Texas.
ExxonMobil is the only integrated oil company on the list. The rest are focused on exploration and production or transportation and refining.
ConocoPhillips comes in a distant second, with Phillips 66, once one of its segments, at number four. ConocoPhillips, in an effort to become a pure-play oil and gas exploration and production company, completed the spin-off of its transportation and refinery assets in 2012, creating Phillips 66 in the process. Marathon Oil and EOG Resources also focus on exploration and production exclusively -- the former spun off its downstream assets in 2011. Like Phillips 66, Valero Energy, at number five, is another refining giant, headquartered in San Antonio.
Halliburton doesn't produce or refine oil, instead providing services to oil rigs and fields. It moved its corporate headquarters to Dubai in 2007, but still maintains a base of operations in Houston. If and when it completes its planned acquisition of rival Baker Hughes , it should jump up a few notches on this list, as Baker Hughes' last annual net income was just over $1.7 billion.
Technology and transportation
But there's more to the Texas economy than oil. AT&T, American Airlines, and Texas Instruments are all headquartered in the Dallas-Fort Worth area, and serve to highlight other important aspects of the Texas economy.
The airline industry is notorious for low profit margins and frequent bankruptcies. In fact, American Airlines was born out of a merger between the old bankrupt American Airlines and US Airways, and its net profit margin (6.8%) is the third lowest on this list. Yet the massive size and scope of its business results in significant total earnings.
Chip-maker Texas Instruments isn't the only technology firm in Texas, but it is the most profitable. It doesn't attract as much attention as the bigger, more consumer-facing technology firms, but it's been a consistent winner for shareholders, outperforming the S&P 500 over the last five years and returning a steady stream of dividends.
Telecom giant AT&T is a firm that should be familiar to most. It's a major player in the U.S. wireless industry, and a provider of high-speed Internet and television services. Notably, it's the most profitable company on the list that isn't involved in the oil industry.
Foolish thoughts
One thing from this list is clear: the Texas economy remains one of the largest and most vibrant in the world.
However, focusing strictly on a company's total net income, or even net profit margin, doesn't tell investors much. Owning shares of a highly profitable company is ideal, but there's no telling whether or not that profitability will continue in the future. Rather than use this list for buy or sell recommendations, investors interested in Texas should use it as a jumping off point for more research.
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed. And if you act quickly, you could be among the savvy investors who enjoy the profits from this stunning change. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you'll probably just call it "how I made my millions." Don't be too late to the party -- click here for one stock to own when the Web goes dark.
The article 10 Most Profitable Businesses in Texas originally appeared on Fool.com.
Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple and Halliburton. The Motley Fool owns shares of Apple, EOG Resources,, ExxonMobil, and Halliburton. 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 - 2015 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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ConocoPhillips, in an effort to become a pure-play oil and gas exploration and production company, completed the spin-off of its transportation and refinery assets in 2012, creating Phillips 66 in the process. It doesn't attract as much attention as the bigger, more consumer-facing technology firms, but it's been a consistent winner for shareholders, outperforming the S&P 500 over the last five years and returning a steady stream of dividends. Foolish thoughts One thing from this list is clear: the Texas economy remains one of the largest and most vibrant in the world.
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Energy dominates the list Seven of the ten -- ExxonMobil, ConocoPhillips, Phillips 66, Valero Energy, Halliburton, Marathon Oil, and EGO Resources -- are energy companies primarily focused on oil and gas, which shouldn't be particularly surprising to anyone familiar with the Texan economy. However, focusing strictly on a company's total net income, or even net profit margin, doesn't tell investors much. The Motley Fool owns shares of Apple, EOG Resources,, ExxonMobil, and Halliburton.
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Below is a list of the top 10 most profitable firms in Texas ranked by their last reported annual net income. Energy dominates the list Seven of the ten -- ExxonMobil, ConocoPhillips, Phillips 66, Valero Energy, Halliburton, Marathon Oil, and EGO Resources -- are energy companies primarily focused on oil and gas, which shouldn't be particularly surprising to anyone familiar with the Texan economy. Chip-maker Texas Instruments isn't the only technology firm in Texas, but it is the most profitable.
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Technology and transportation But there's more to the Texas economy than oil. Chip-maker Texas Instruments isn't the only technology firm in Texas, but it is the most profitable. However, focusing strictly on a company's total net income, or even net profit margin, doesn't tell investors much.
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8348.0
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2015-06-11 00:00:00 UTC
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JetBlue's (JBLU) May Traffic Up on New Flights, Low Fares - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/jetblues-jblu-may-traffic-up-on-new-flights-low-fares-analyst-blog-2015-06-11
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nan
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Low-cost carrier JetBlue Airways Corp.JBLU witnessed a significant improvement in air traffic in May, this year. Traffic - measured in revenue passenger miles (RPMs) - came in at 3.46 billion, up 8.4% from 3.19 billion recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) increased 7.8% to 4.04 billion. Moreover, the load factor or percentage of seats filled by passengers increased to 85.7% from 85.2% in May 2014. Similarly, PRASM (passenger revenue per available seat mile) in the month inched up 1% as compared with the last-year period.
For the first five months of 2015, JetBlue generated RPMs of 16.55 billion (up 10.1% year over year) and ASMs of 19.5 billion (up 8.6%). Further, the load factor grew 120 basis points year over year to 84.9%.
Recently, JetBlue flagged off non-stop service from Reno-Tahoe International Airport (RNO) and New York's John F. Kennedy International Airport (JFK). The carrier also strengthened its network by connecting cities like Lima, Peru and Bogota in Latin America, and Cartagena and Medellin in Colombia.
Prior to this, JetBlue had inked a deal with Cuba Travel Services to introduce 200-minute direct charter flights from John F. Kennedy International Airport to the Cuban capital of Havana.
JetBlue also plans to offer daily flight service from Fort Lauderdale-Hollywood International Airport (FLL) and Orlando International Airport (MCO) in Florida to the city of Mexico. Also, JetBlue has announced plans of launching flights between Quito - the capital of Ecuador - and Fort Lauderdale.
Meanwhile, we believe that increased flight frequencies, continuous route expansion, low fares and increased travel demand have supported the upside in JetBlue's May traffic figures.
Unlike American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL , each of which has projected a decline in PRASM for the second quarter of 2015, JetBlue expects PRASM to increase between 0.5% and 1.5% year over year in the upcoming quarter.
JetBlue currently carries a Zacks Rank #2 (Buy). Another favorably-ranked stock in the same space is SkyWest Inc. SKYW with 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
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
SKYWEST INC (SKYW): 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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Unlike American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL , each of which has projected a decline in PRASM for the second quarter of 2015, JetBlue expects PRASM to increase between 0.5% and 1.5% year over year in the upcoming quarter. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Similarly, PRASM (passenger revenue per available seat mile) in the month inched up 1% as compared with the last-year period.
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Unlike American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL , each of which has projected a decline in PRASM for the second quarter of 2015, JetBlue expects PRASM to increase between 0.5% and 1.5% year over year in the upcoming quarter. 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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Unlike American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL , each of which has projected a decline in PRASM for the second quarter of 2015, JetBlue expects PRASM to increase between 0.5% and 1.5% year over year in the upcoming quarter. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. For the first five months of 2015, JetBlue generated RPMs of 16.55 billion (up 10.1% year over year) and ASMs of 19.5 billion (up 8.6%).
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Unlike American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL , each of which has projected a decline in PRASM for the second quarter of 2015, JetBlue expects PRASM to increase between 0.5% and 1.5% year over year in the upcoming quarter. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Traffic - measured in revenue passenger miles (RPMs) - came in at 3.46 billion, up 8.4% from 3.19 billion recorded a year ago.
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2015-06-10 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, United Continental Holdings, Hawaiian Holdings and American Airlines Group - Press Releases
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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-hawaiian-0
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For Immediate Release
Chicago, IL - June 10, 2015 - 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 the Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), Hawaiian Holdings, Inc. ( HA ) 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 Tuesday's Analyst Blog:
Airline Stock Roundup
The past week was dominated by updates from the International Air Transport Association (IATA). The monthly data released by the IATA revealed a 5.9% year-over-year increase in demand for air travel across the globe for April 2015. Healthy growth in both international and domestic traffic resulted in the rise in the overall figure.
Another significant update from the trade association emerged yesterday when it raised its 2015 profitability outlook for the airline industry to $29.3 billion from the earlier forecast of $25 billion. Weak oil prices primarily drove the increase in outlook. All regions are expected to perform well in 2015 with North America expected to lead the show.
The IATA updates apart, the Atlanta, GA-based airline behemoth Delta Air Lines ( DAL ) was also in the news last week when it inked a tentative deal with regard to a new labor contract with its pilots.
Furthermore, May traffic updates from United Continental Holdings ( UAL ) and Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. ( HA ), also featured in the headlines. While announcing its traffic results, United Continental said that, owing to the strength of the U.S. dollar and the recent upward movement of oil prices, it now expects its passenger unit revenue (PRASM) - to decline in the range of 5% to 6% as opposed to the previously guided range of a 4-6% decline in the second quarter of 2015.
On the price front, the NYSE ARCA Airline index lost 3.61% over the past week as concerns of oversupply continued to grip investors. Moreover, comments attributed to American Airlines Group 's ( AAL ) Chief Executive Doug Parker, that growth in airline capacity could dampen profits, also contributed to the stocks taking a tumble.
(Read the last Airline Stock Roundup for June 3, 2015 )
Recap of the Past Week's Most Important Stories
1. At its annual meeting, the IATA predicted that the airline industry will continue to see good times through 2015, thanks to weak oil prices. IATA increased its projection for 2015 global net profit for the industry to $29.3 billion from the earlier projection of $25 billion. The comparable 2014 figure was $16.4 billion.
The bulk of the global profits ($15.7 billion) is expected to come from the North American region. Global net profit margin is expected to expand to 4% in 2015. For 2015, average jet fuel prices are expected to decline 33% to $78 per barrel. However, global revenues are expected to decline 0.7% to $727 billion mainly due to the strength of the U.S. dollar.
The IATA suggests that demand for passenger as well as cargo services will improve in 2015 from 2014 levels driven by an improving economy. According to the forecast, load factor (% of seats filled by passengers) for 2015 is expected to touch a record high of 80.2%.
During the week, IATA also released its global traffic numbers for April. Global travel demand improved 5.9% during the month. International travel demand was driven by strong performance of carriers from the Asia-Pacific, Latin America and Middle East while strong numbers from India and China resulted in a healthy increase in domestic traffic (read more: Global Air Travel Demand Up in April, North America Sluggish ).
2. Delta Air Lines announced that it has reached a tentative deal regarding a new labor contract with its pilots, represented by the Air Line Pilots Association union. The provisional agreement has been reached six months ahead of schedule, as the current contract expires only on Dec 31, 2015 (read more: Delta Inks Tentative Labor Deal with Pilots, Final Nod Awaited ).
3. Hawaiian Airlines reported healthy traffic numbers for May. Traffic climbed 5.3% on a 3.3% rise in capacity. The greater increase in traffic compared with capacity led to a 140 basis points increase in load factor to 80.5%.
4. Traffic at United Continental Holdings inched up 0.5% in May from the figure recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 2.1% to 21.74 billion. Meanwhile, the load factor or percentage of seats filled by passengers decreased to 83.9% from 85.3% a year ago. The weak PRASM forecast by the carrier for the second quarter is similar to that of many other carriers.
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 .
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
HAWAIIAN HLDGS (HA): 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 the Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), Hawaiian Holdings, Inc. ( HA ) and American Airlines Group ( AAL ). Moreover, comments attributed to American Airlines Group 's ( AAL ) Chief Executive Doug Parker, that growth in airline capacity could dampen profits, also contributed to the stocks taking a tumble. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): 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 the Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), Hawaiian Holdings, Inc. ( HA ) and American Airlines Group ( AAL ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, comments attributed to American Airlines Group 's ( AAL ) Chief Executive Doug Parker, that growth in airline capacity could dampen profits, also contributed to the stocks taking a tumble.
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Stocks recently featured in the blog include the Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), Hawaiian Holdings, Inc. ( HA ) and American Airlines Group ( AAL ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, comments attributed to American Airlines Group 's ( AAL ) Chief Executive Doug Parker, that growth in airline capacity could dampen profits, also contributed to the stocks taking a tumble.
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Stocks recently featured in the blog include the Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), Hawaiian Holdings, Inc. ( HA ) and American Airlines Group ( AAL ). Moreover, comments attributed to American Airlines Group 's ( AAL ) Chief Executive Doug Parker, that growth in airline capacity could dampen profits, also contributed to the stocks taking a tumble. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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8350.0
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2015-06-10 00:00:00 UTC
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American Airlines (AAL) May Traffic Up on Favorable Factors - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-may-traffic-up-on-favorable-factors-analyst-blog-2015-06-10
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nan
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nan
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Premier passenger carrier American Airlines Group Inc.AAL posted impressive air traffic for the month of May. Traffic - measured in revenue passenger miles (RPMs) - stood at 19.33 billion, up 0.7% from 19.20 billion recorded in the comparable month a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) increased 2.1% to stand at 23.34 billion. However, the load factor or percentage of seats filled by passengers decreased to 82.8% from 84% in May 2014.
For the first five months of 2015, American Airlines generated RPMs of 87.58 billion (down 0.7% from the corresponding period last year) and ASMs of 108.26 billion (up 0.1% year over year). Meanwhile, the load factor declined 70 basis points year over year to 80.9%.
Continuous route expansion, successful merger integrations and increased travel demand were the prime factors driving air traffic. Recently, American Airlines and Qantas Airways broadened their network by initiating new flights between the U.S. and Australia.
Meanwhile, American Airlines forecasts a 6% to 8% drop in PRASM (passenger revenue per available seat mile) for second-quarter 2015. We believe that the decline may be brought about by persistently low oil prices and foreign currency exchange rate risks. Furthermore, the carrier expects fuel price for the same period to remain in between $1.86 to $1.91 per gallon.
Stocks to Consider
American Airlines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Deutsche Lufthansa Aktiengesellschaft DLAKY , SkyWest Inc. SKYW and JetBlue Airways Corp. JBLU . JetBlue carries a Zacks Rank #2 (Buy) while the other two companies sport 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
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
LUFTHANSA -ADR (DLAKY): 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 impressive air traffic for the month of May. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Continuous route expansion, successful merger integrations and increased travel demand were the prime factors driving air traffic.
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): 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 impressive air traffic for the month of May. Better-ranked stocks in the same space include Deutsche Lufthansa Aktiengesellschaft DLAKY , SkyWest Inc. SKYW and JetBlue Airways Corp. JBLU .
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): 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 impressive air traffic for the month of May. Traffic - measured in revenue passenger miles (RPMs) - stood at 19.33 billion, up 0.7% from 19.20 billion recorded in the comparable month a year ago.
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Premier passenger carrier American Airlines Group Inc.AAL posted impressive air traffic for the month of May. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 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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8351.0
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2015-06-08 00:00:00 UTC
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Nasdaq 100 Movers: WYNN, TSLA
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-wynn-tsla-2015-06-08
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nan
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nan
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In early trading on Monday, shares of Tesla Motors ( TSLA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. Year to date, Tesla Motors registers a 15.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is Wynn Resorts ( WYNN ), trading down 4.9%. Wynn Resorts is lower by about 30.3% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 4.2%, and Vodafone Group ( VOD ), trading up 0.9% on the day.
VIDEO: Nasdaq 100 Movers: WYNN, TSLA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 4.2%, and Vodafone Group ( VOD ), trading up 0.9% on the day. In early trading on Monday, shares of Tesla Motors ( TSLA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. Year to date, Tesla Motors registers a 15.3% gain.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 4.2%, and Vodafone Group ( VOD ), trading up 0.9% on the day. And the worst performing Nasdaq 100 component thus far on the day is Wynn Resorts ( WYNN ), trading down 4.9%. VIDEO: Nasdaq 100 Movers: WYNN, TSLA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 4.2%, and Vodafone Group ( VOD ), trading up 0.9% on the day. In early trading on Monday, shares of Tesla Motors ( TSLA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. And the worst performing Nasdaq 100 component thus far on the day is Wynn Resorts ( WYNN ), trading down 4.9%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 4.2%, and Vodafone Group ( VOD ), trading up 0.9% on the day. In early trading on Monday, shares of Tesla Motors ( TSLA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. And the worst performing Nasdaq 100 component thus far on the day is Wynn Resorts ( WYNN ), trading down 4.9%.
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8352.0
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2015-06-08 00:00:00 UTC
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S&P 500 Movers: WYNN, SEE
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-wynn-see-2015-06-08
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nan
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nan
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In early trading on Monday, shares of Sealed Air ( SEE ) topped the list of the day's best performing components of the S&P 500 index, trading up 2.1%. Year to date, Sealed Air registers a 16.8% gain.
And the worst performing S&P 500 component thus far on the day is Wynn Resorts ( WYNN ), trading down 5.4%. Wynn Resorts is lower by about 30.6% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 3.5%, and Ensco ( ESV ), trading up 1.6% on the day.
VIDEO: S&P 500 Movers: WYNN, SEE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 3.5%, and Ensco ( ESV ), trading up 1.6% on the day. In early trading on Monday, shares of Sealed Air ( SEE ) topped the list of the day's best performing components of the S&P 500 index, trading up 2.1%. Year to date, Sealed Air registers a 16.8% gain.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.5%, and Ensco ( ESV ), trading up 1.6% on the day. And the worst performing S&P 500 component thus far on the day is Wynn Resorts ( WYNN ), trading down 5.4%. VIDEO: S&P 500 Movers: WYNN, SEE The views and 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 3.5%, and Ensco ( ESV ), trading up 1.6% on the day. In early trading on Monday, shares of Sealed Air ( SEE ) topped the list of the day's best performing components of the S&P 500 index, trading up 2.1%. And the worst performing S&P 500 component thus far on the day is Wynn Resorts ( WYNN ), trading down 5.4%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.5%, and Ensco ( ESV ), trading up 1.6% on the day. In early trading on Monday, shares of Sealed Air ( SEE ) topped the list of the day's best performing components of the S&P 500 index, trading up 2.1%. And the worst performing S&P 500 component thus far on the day is Wynn Resorts ( WYNN ), trading down 5.4%.
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8353.0
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2015-06-08 00:00:00 UTC
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Delta Inks Tentative Labor Deal with Pilots, Final Nod Awaited - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/delta-inks-tentative-labor-deal-with-pilots-final-nod-awaited-analyst-blog-2015-06-08
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nan
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nan
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Weak oil prices have been a boon for stocks in the airline space. Despite the recent upside, oil prices have remained significantly below the highs witnessed in the first half of 2014. Naturally, lower fuel costs have translated into massive savings for airline companies. In view of this, Atlanta, GA-based Delta Air Lines, Inc.DAL estimates fuel price in the range of $2.40-$2.45 per gallon for the second quarter of 2015. This is well below the year-ago figure of $2.93 per gallon.
Low fuel costs have aided Delta's earnings over the last few quarters and have helped rake in handsome profits. Delta aims to save over $2 billion in 2015, courtesy low fuel costs. In 2014, the carrier had shelled out more than $1 billion to its employees under its profit-sharing plan.
With most airline companies, including Delta, enjoying solid financial health, their employees are looking for higher pays. Delta, which is not unionized, announced last week that it has reached a tentative deal regarding a new contract with its pilots, represented by the Air Line Pilots Association union. The provisional agreement has been reached six months ahead of schedule, as the current contract expires only on Dec 31, 2015. The deal is currently being reviewed by the Delta Master Executive Council (MEC), the union's governing body. In the event of the tentative version being approved, it will be put to vote. As the deal has not yet been finalized, details were not revealed. However, according to media reports, the agreement might include a provision to raise the basic pay of pilots with the profit-sharing scheme being amended.
We remind investors that early this year, American Airlines Group AAL inked a 5-year contract with its pilots. The approval of the contract by the members of the Allied Pilots Association ensured a 23% pay raise for the pilots. We expect investors to keenly await whether the final version of Delta's labor deal also guarantees a pay raise for pilots.
Zacks Rank
Delta currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Deutsche Lufthansa Aktiengesellschaft DLAKY and SkyWest Inc. SKYW . Both the companies sport 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
LUFTHANSA -ADR (DLAKY): 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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We remind investors that early this year, American Airlines Group AAL inked a 5-year contract with its pilots. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In view of this, Atlanta, GA-based Delta Air Lines, Inc.DAL estimates fuel price in the range of $2.40-$2.45 per gallon for the second quarter of 2015.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that early this year, American Airlines Group AAL inked a 5-year contract with its pilots. Delta, which is not unionized, announced last week that it has reached a tentative deal regarding a new contract with its pilots, represented by the Air Line Pilots Association union.
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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 LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that early this year, American Airlines Group AAL inked a 5-year contract with its pilots. Delta, which is not unionized, announced last week that it has reached a tentative deal regarding a new contract with its pilots, represented by the Air Line Pilots Association union.
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We remind investors that early this year, American Airlines Group AAL inked a 5-year contract with its pilots. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In view of this, Atlanta, GA-based Delta Air Lines, Inc.DAL estimates fuel price in the range of $2.40-$2.45 per gallon for the second quarter of 2015.
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8354.0
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2015-06-02 00:00:00 UTC
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Call action spikes as airlines soar
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AAL
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https://www.nasdaq.com/articles/call-action-spikes-airlines-soar-2015-06-02
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nan
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nan
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Airlines had a relief rally yesterday, fueling a surge in bullish option activity.
optionMONSTER's Heat Seeker tracking program detected heavy call buying in American Airlines, Delta Air Lines, Southwest, and United Continental. Volume was more than triple average amounts in all four, with upside contracts dominating trading across the board.
AAL's Weekly 44s expiring this Friday, June 5, led the charge. Turnover of 15,000 was more than twice the previous open interest in the strike, and premiums rose from as low as $0.25 early in the morning to as high as $1.08.
That kind of leverage results from the fact that long calls cheaply lock in the price where shares can be purchased. Their low cost can also make them a safer bet than buying stock. (See our Education section)
The entire group shot higher after LUV said it would scale back plans to add capacity, easing concerns raised last month that airlines would lose the pricing discipline that made them one of the strongest groups in recent years. AAL led yesterday's gains by climbing 4.27 percent to $44.18, followed by DAL's 3.33 percent move to $44.35.
LUV's Weekly 40 calls expiring on June 12 traded almost 7,300 times, eclipsing open interest of 85 contracts while premiums rose from $0.15 to $0.40. DAL's busiest contracts were the Weekly 45s expiring this Friday and the July 45 calls, but volume was under open interest in both of those, so it was unclear whether they were opening or closing trades. Most of UAL's leading volume was below open interest as well.
UAL advanced 3.15 percent to $56.31, and LUV appreciated 2.37 percent to $37.85.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL's Weekly 44s expiring this Friday, June 5, led the charge. AAL led yesterday's gains by climbing 4.27 percent to $44.18, followed by DAL's 3.33 percent move to $44.35. optionMONSTER's Heat Seeker tracking program detected heavy call buying in American Airlines, Delta Air Lines, Southwest, and United Continental.
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AAL's Weekly 44s expiring this Friday, June 5, led the charge. AAL led yesterday's gains by climbing 4.27 percent to $44.18, followed by DAL's 3.33 percent move to $44.35. LUV's Weekly 40 calls expiring on June 12 traded almost 7,300 times, eclipsing open interest of 85 contracts while premiums rose from $0.15 to $0.40.
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AAL's Weekly 44s expiring this Friday, June 5, led the charge. AAL led yesterday's gains by climbing 4.27 percent to $44.18, followed by DAL's 3.33 percent move to $44.35. (See our Education section) The entire group shot higher after LUV said it would scale back plans to add capacity, easing concerns raised last month that airlines would lose the pricing discipline that made them one of the strongest groups in recent years.
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AAL's Weekly 44s expiring this Friday, June 5, led the charge. AAL led yesterday's gains by climbing 4.27 percent to $44.18, followed by DAL's 3.33 percent move to $44.35. LUV's Weekly 40 calls expiring on June 12 traded almost 7,300 times, eclipsing open interest of 85 contracts while premiums rose from $0.15 to $0.40.
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8355.0
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2015-05-29 00:00:00 UTC
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QLD, ALXN, AAL, ADI: ETF Outflow Alert
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AAL
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https://www.nasdaq.com/articles/qld-alxn-aal-adi-etf-outflow-alert-2015-05-29
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $35.1 million dollar outflow -- that's a 3.2% decrease week over week (from 14,000,000 to 13,550,000). Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is down about 0.4%, American Airlines Group Inc (Symbol: AAL) is off about 0.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.6%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average:
Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $78.82 as the 52 week high point - that compares with a last trade of $77.48. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is down about 0.4%, American Airlines Group Inc (Symbol: AAL) is off about 0.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $35.1 million dollar outflow -- that's a 3.2% decrease week over week (from 14,000,000 to 13,550,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is down about 0.4%, American Airlines Group Inc (Symbol: AAL) is off about 0.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.6%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $78.82 as the 52 week high point - that compares with a last trade of $77.48. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is down about 0.4%, American Airlines Group Inc (Symbol: AAL) is off about 0.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $35.1 million dollar outflow -- that's a 3.2% decrease week over week (from 14,000,000 to 13,550,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $78.82 as the 52 week high point - that compares with a last trade of $77.48.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is down about 0.4%, American Airlines Group Inc (Symbol: AAL) is off about 0.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $35.1 million dollar outflow -- that's a 3.2% decrease week over week (from 14,000,000 to 13,550,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $52.22 per share, with $78.82 as the 52 week high point - that compares with a last trade of $77.48.
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8356.0
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2015-05-28 00:00:00 UTC
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A Long Term View Suggests Recent Weakness in Airline Stocks is an Opportunity to Buy
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AAL
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https://www.nasdaq.com/articles/long-term-view-suggests-recent-weakness-airline-stocks-opportunity-buy-2015-05-28
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nan
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nan
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Despite the short-term nature of trading, trades informed by a big picture, long term view are usually the most successful. My background in forex means that most of my big picture views start with currencies, and I have made my views on that pretty clear.
As the dollar was coming down off highs, I wrote that the drop would be only temporary. The fundamental picture hadn't changed and the specter of a “Grexit” and slowing Chinese growth were still with us. The decline was a needed correction, but nothing more. That belief that the dollar would return to strength led to several other conclusions, most notably, because oil is priced in dollars, a higher dollar will inevitably snuff out and reverse the recovery in oil prices.
So far, it seems to have turned out that way as both the dollar and oil have reversed course. Looking for stocks that suffered during the dollar’s correction and oil’s bounce, but stand to benefit if the current trend is maintained, is an obvious thing to do. Airline stocks would be a good example.
Most investors love to hate the airlines. In part this is no doubt personal; who wants to invest in a company that gives you so little leg room and charges you for everything except the air you breathe? It is also logical, however. In the past the airline industry has shown a remarkable propensity for profligacy in good time that necessitated bankruptcy in the bad. That is not a way to endear yourself to stockholders. This time around, though, things look a little different.
The rise, and more importantly the durability, of the cut-price airlines such as Southwest (LUV) has provided a model that has worked for the big boys as well. Low headline fares are what matters. Stripping out anything other than a seat as optional extras may be annoying to those who remember all inclusive ticket prices, but it makes way more sense and, most importantly, it works.
Speaking of Southwest, it was their announcement of a planned marginal capacity increase (from 7% to 7-8%) that supposedly sparked the most recent selloff of airline stocks. The fact that such a minimal change of language caused such concern is an indication of how fresh the memories are among investors of the bad old days. Any hint of a return to overcapacity causes a mini panic. The drop in the major airlines’ stocks as a result, coming on top of a decline as oil prices bounced off of the lows, looks overdone and sets up a buying opportunity.
Maybe it’s just me, but a roughly 15% drop in Delta (DAL) and American (AAL) in response to a report that Southwest may be considering increasing capacity by around 10% more than already expected at some point in the future seems a little excessive. For those that agree with a long term view of renewed dollar strength and oil dropping back again to challenge $50 on the downside, but don’t see any huge threat to U.S. growth, it just represents a huge discount on already cheap stock.
In a market that is increasingly looking fully priced, value is a rare commodity so even taking into account the traditionally low forward P/Es in the industry and the airlines’ past record of disappointing investors multiples of 9.72 and 6.22 for Delta and American respectively look like a steal. As is so often the case a short term overreaction sets up a long term opportunity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Maybe it’s just me, but a roughly 15% drop in Delta (DAL) and American (AAL) in response to a report that Southwest may be considering increasing capacity by around 10% more than already expected at some point in the future seems a little excessive. The drop in the major airlines’ stocks as a result, coming on top of a decline as oil prices bounced off of the lows, looks overdone and sets up a buying opportunity. In a market that is increasingly looking fully priced, value is a rare commodity so even taking into account the traditionally low forward P/Es in the industry and the airlines’ past record of disappointing investors multiples of 9.72 and 6.22 for Delta and American respectively look like a steal.
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Maybe it’s just me, but a roughly 15% drop in Delta (DAL) and American (AAL) in response to a report that Southwest may be considering increasing capacity by around 10% more than already expected at some point in the future seems a little excessive. Despite the short-term nature of trading, trades informed by a big picture, long term view are usually the most successful. For those that agree with a long term view of renewed dollar strength and oil dropping back again to challenge $50 on the downside, but don’t see any huge threat to U.S. growth, it just represents a huge discount on already cheap stock.
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Maybe it’s just me, but a roughly 15% drop in Delta (DAL) and American (AAL) in response to a report that Southwest may be considering increasing capacity by around 10% more than already expected at some point in the future seems a little excessive. That belief that the dollar would return to strength led to several other conclusions, most notably, because oil is priced in dollars, a higher dollar will inevitably snuff out and reverse the recovery in oil prices. The drop in the major airlines’ stocks as a result, coming on top of a decline as oil prices bounced off of the lows, looks overdone and sets up a buying opportunity.
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Maybe it’s just me, but a roughly 15% drop in Delta (DAL) and American (AAL) in response to a report that Southwest may be considering increasing capacity by around 10% more than already expected at some point in the future seems a little excessive. Looking for stocks that suffered during the dollar’s correction and oil’s bounce, but stand to benefit if the current trend is maintained, is an obvious thing to do. Airline stocks would be a good example.
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8357.0
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2015-05-27 00:00:00 UTC
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Here's What This 149-Bagger Hedge Fund Has Been Buying and Selling
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AAL
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https://www.nasdaq.com/articles/heres-what-149-bagger-hedge-fund-has-been-buying-and-selling-2015-05-27
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nan
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Source: JetBlue.
We should never blindly copy any investor's moves, no matter how famous, talented, or successful the investor. Still, it can be useful to keep an eye on what smart folks are doing, and 13F forms can be great places to find intriguing candidates for our portfolios.
Appaloosa Management, founded by investing giant David Tepper, is known for investing in the debt of companies in distress. Tepper's investing history includes debt and stock in companies such as Enron and Worldcom. He made billions on bank stocks in 2009 after they had imploded and before they recovered.
Appaloosa Management's reportable stock portfolio totaled $5.7 billion in value as of March 31.
Why should you look at Appaloosa Management's moves? Well, in a July 2013 letter to shareholders, Tepper noted that if someone had invested $1 million in his hedge fund in 1993, their investment would have grown to $149 million over the next 20 years. Investing in the S&P 500 instead would have left you with $5.3 million. Appaloosa's performance reflects an average annual net gain of 28%.
So let's see what big moves Appaloosa Management made in the quarter ended March 31.
Interesting developments
Here are a few interesting details in Appaloosa Management's latest quarterly 13F filing.
The company did a lot of moving in and out of various airline stocks. For example, JetBlue Airways Corporation is a new holding, and Appaloosa increased its stake in Delta Air Lines by 45%. At the same time, Appaloosa sold out entirely of American Airlines Group Inc and trimmed its United Continental Holdings Inc position by 19%.
JetBlue is appealing as an investment , with a reasonable forward-looking P/E near 11. It's free-cash-flow positive, with rising net income and net margins. JetBlue has recently been challengingSouthwest Airlines , which now carries the most domestic passengers, by touting its low fares, more comfortable seats, and assigned seating.
Delta Air Lines, meanwhile, has also been performing well despite taking a hit due to hedged fuel costs in an environment of low oil prices . In the coming year, though, the company expects to save some $2 billion in fuel costs, and it's reducing its capacity abroad in response to weak revenue growth. Management forecasts $4 billion to $5 billion in free cash flow this year, and it has paid down some $10 billion in debt.
Appaloosa's sale of American Airlines may be due in part to its merger with US Airways, as merged companies don't always integrate seamlessly and quickly. United Continental, meanwhile, might not inspire a lot of confidence simply because it has taken last place in customer satisfaction in the industry for three years in a row.
Photo: Flickr user Kevin Stanchfield .
Micron Technology was another new position in the quarter. It looks attractively valued, with a recent P/E of 8.3 and a forward-looking P/E of 7.5, both lower than its five-year average of 14.5. Its profit margins are growing, and its acquisition of Japanese chip specialist Elpida has turned out well, giving it economies of scale and a major share of mobile DRAM chips. The company's last quarter was solid, but management issued soft near-term guidance, unnerving some investors. For those who can tolerate volatility, the company's broad product mix should offer some comfort.
Finally, Appaloosa closed its position in American Realty Capital Properties Inc . It's not the only one losing confidence in the company after an accounting scandal (featuring errors that were reportedly discovered and then covered up), a CEO departure, and an FBI investigation. The company is under new management, which aims to restore credibility and strengthen its balance sheet while diversifying its assets.
We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. Therefore 13F forms can be great places to find intriguing candidates for our portfolios.
How one Seattle couple secured a $60K Social Security bonus -- and you can too
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The article Here's What This 149-Bagger Hedge Fund Has Been Buying and Selling originally appeared on Fool.com.
Longtime Fool specialistSelena Maranjian,whom you canfollow on Twitter , owns shares of Micron Technology,. 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 .
Copyright © 1995 - 2015 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 the coming year, though, the company expects to save some $2 billion in fuel costs, and it's reducing its capacity abroad in response to weak revenue growth. Appaloosa's sale of American Airlines may be due in part to its merger with US Airways, as merged companies don't always integrate seamlessly and quickly. It's not the only one losing confidence in the company after an accounting scandal (featuring errors that were reportedly discovered and then covered up), a CEO departure, and an FBI investigation.
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Still, it can be useful to keep an eye on what smart folks are doing, and 13F forms can be great places to find intriguing candidates for our portfolios. Appaloosa Management's reportable stock portfolio totaled $5.7 billion in value as of March 31. How one Seattle couple secured a $60K Social Security bonus -- and you can too A Seattle couple recently discovered some little-known Social Security secrets that can boost many retirees' income by as much as $60,000.
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Appaloosa Management, founded by investing giant David Tepper, is known for investing in the debt of companies in distress. Appaloosa Management's reportable stock portfolio totaled $5.7 billion in value as of March 31. Management forecasts $4 billion to $5 billion in free cash flow this year, and it has paid down some $10 billion in debt.
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Why should you look at Appaloosa Management's moves? The company did a lot of moving in and out of various airline stocks. Micron Technology was another new position in the quarter.
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8358.0
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2015-05-25 00:00:00 UTC
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Airline Fares Decline Y/Y in April, Soft Oil Prices Hold Key - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/airline-fares-decline-y-y-in-april-soft-oil-prices-hold-key-analyst-blog-2015-05-25
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Data released by the Bureau of Labor Statistics (BLS) suggest that average airfares in the U.S. for the month of April declined 7.5% on a year-over-year basis. Soft oil prices over the period and increased competition were primarily responsible for the decline. The Apr 2015 figure was down 1.3% from Mar 2015 on a seasonally adjusted basis, once again reflecting the brunt of soft oil prices.
Air fares had declined in Mar 2015 as well. According to the BLS data, average airfares in the U.S. for March were down 5% on a year-over-year basis. In turn, the March figure was down 1.7% from Feb 2015 on a seasonally adjusted basis. This was again due to weak oil prices
Oil Prices Weak despite Recent Rally
Even though oil prices have been looking up in recent times, they are nowhere near the highs witnessed in the first half of 2014. Despite the recent rally, crude prices have been hovering around the $60 a barrel mark. This represents a significant decline from the approximately $105 per barrel witnessed in July last year. In fact, oil prices have been fluctuating lately after hitting a 6-year low of under $44 in Mar 2015.
In fact, crude prices have been soft over the last few months due to an over-supplied oil market, especially in the face of lackluster global demand. Since fuel costs account for a major chunk of an airline company's operating expenses, the persistent drop in oil prices has significantly boosted the bottom line of stocks in the airline space. Lower jet fuel prices have thus been a blessing for the airline industry given the inversely proportional relation between crude prices and the value of stocks. Major airline companies like Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK have all posted better-than-expected earnings in the first quarter of 2015 aided by low fuel costs.
Fares Not Down Significantly
Weak oil prices have resulted in massive savings for airline companies and the trend is expected to stay for some time ahead. Delta, for instance, has stated that it will save in excess of $2 billion in 2015 on the back of lesser fuel costs. However, airfares have not come down in the same proportion. This has propelled a long-standing issue in the U.S. aviation industry. In fact, late last year, Senator Charles Schumer had questioned the logic behind air tickets being expensive despite plummeting crude prices. In fact, according to data released by the Bureau of Transportation Statistics, the average air fare for 2014 was $391, higher than the 2013 equivalent.
Even though air fares have declined somewhat of late, as can be made out from the BLS data, the huge savings owing to weak fuel costs imply that airline stocks should continue to see good times ahead. Moreover, the rosy projection by Airlines for America ('A4A') - the trade organization for leading U.S. airlines - is another factor that looks to boost profits for carriers. A4A has forecasted that the upcoming summer season will be the busiest of all times for U.S. carriers in terms of air travel.
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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
ALASKA AIR GRP (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major airline companies like Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK have all posted better-than-expected earnings in the first quarter of 2015 aided by low fuel costs. 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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Data released by the Bureau of Labor Statistics (BLS) suggest that average airfares in the U.S. for the month of April declined 7.5% on a year-over-year basis.
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Major airline companies like Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK have all posted better-than-expected earnings in the first quarter of 2015 aided by low fuel costs. 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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. This was again due to weak oil prices Oil Prices Weak despite Recent Rally Even though oil prices have been looking up in recent times, they are nowhere near the highs witnessed in the first half of 2014.
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Major airline companies like Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK have all posted better-than-expected earnings in the first quarter of 2015 aided by low fuel costs. 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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. This was again due to weak oil prices Oil Prices Weak despite Recent Rally Even though oil prices have been looking up in recent times, they are nowhere near the highs witnessed in the first half of 2014.
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Major airline companies like Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK have all posted better-than-expected earnings in the first quarter of 2015 aided by low fuel costs. 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 ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Air fares had declined in Mar 2015 as well.
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8359.0
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2015-05-22 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Kansas City Southern, Union Pacific, Norfolk Southern, CSX and American Airlines Group - Press Releases
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-kansas-city-southern-union-pacific-norfolk-southern-csx
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nan
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For Immediate Release
Chicago, IL - May 22, 2015 - 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 the KansasCity Southern ( KSU ), Union Pacific Corp. ( UNP ), Norfolk Southern Corp. ( NSC ), CSX Corp. ( CSX ) 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:
Railroad Stocks in Trouble Over Lower Coal Shipments
It seems trouble is far from over for stocks in the railroad space. After Missouri-based Kansas City Southern ( KSU ) withdrew its 2015 revenue and volume outlook at the Bank of America Merrill Lynch 2015 transportation conference, another railroad operator Union Pacific Corp. ( UNP ) has painted a dismal picture with respect to coal shipments at the Wolfe research 8th annual global transportation conference.
Coal Shipments Suffer at Union Pacific
According to the Chief Financial Officer (Robert M. Knight Jr.) of the Omaha, NE-based company, Union Pacific coal shipments in the second quarter declined by 25% (data was considered till May 12). Even though coal shipments were expected to be weak, the magnitude of decline has added to the woes as it is much steeper than expected.
Last month, the company, while releasing its first-quarter 2015 results, had predicted coal volumes in the second quarter to decline in the mid-single-digit range. However, the performance has been worse so far in the second quarter. Union Pacific has attributed the weakness in domestic coal shipments to the softness in natural-gas prices, apart from inclement weather.
Moreover, Union Pacific is not hoping for much improvement. In fact, the company stated at the transportation conference that weak coal shipments will continue to hurt the company for the remainder of the year with no improvement in sight. Apart from the lackluster coal volumes, Union Pacific also said that volumes from its industrial products and agricultural products segments have declined 12% and 9% respectively in the second quarter till May 12.
The sole silver lining at the presentation came when Knight stated that the company's performance in the second quarter will reflect the effects of operating efficiencies despite furloughing additional employees and placing more locomotives back in storage.
Kansas CitySouthern's Warning
A week before the dismal picture revealed by Union Pacific, railroad operator Kansas City Southern had withdrawn its 2015 revenue and volume outlook at the Bank of America Merrill Lynch 2015 transportation conference. The company attributed its decision to the uncertainty shrouding energy-related markets, foreign exchange fluctuations and the volatility in U.S. fuel prices. The company stated at the conference that revenues from its energy segment have declined 50% and the number of carloads is down 38% so far in the second quarter of 2015.
The uncertainty prevailing in the energy markets also prompted the railroad operator to trim its capital spending target for 2015 to the range of $650 million to $670 million, from the earlier projected band of $700 million to $720 million.
Weak Q1 for Railroads
Weak domestic coal shipments had led railroad stocks, primarily those based in the U.S., to perform disappointingly in the first quarter of 2015. Moreover, adverse foreign currency movements characterized by the strength of the U.S. dollar, lower fuel surcharges received from customers due to declining fuel costs and slow carload growth from the energy sector have hurt railroad stocks. The challenges have resulted in below-par first quarter 2015 results from main players in the space - Kansas City Southern, Norfolk Southern Corp. ( NSC ) and CSX Corp. ( CSX ) apart from Union Pacific.
In fact, railroads have been the weak link amid the broader transportation sector as far as first quarter results are concerned. The sector has performed creditably in the first quarter of 2015 riding on strong performances of airlines, truckers and logistics providers. Stocks in the airline space have benefited the most from weak oil prices , as softness in fuel costs have resulted in massive reduction in operating expenses, thereby benefiting the bottom line.
Major airline stocks like American Airlines Group ( AAL ) have reported higher than expected earnings in the first quarter riding on low fuel costs. Reduction in fuel costs has resulted in massive savings for these companies. With oil prices unlikely to touch the highs of last year any time soon, we expect airline companies to enjoy similar savings further over the near term. For instance, Delta projects low fuel costs to result in over $2 billion in savings this year.
Weak Oil Prices Blamed for Soft Coal Exports
According to the U.S. Energy Information Administration, coal exports have declined mainly due to weak fuel prices and soft global fuel demand. Increased output from other coal-exporting nations have also played spoilsport.
Even though oil prices have been displaying an upward trend lately, prices are nowhere near the highs witnessed in the first half of 2014. Crude prices have been hovering around the $60 a barrel mark. This represents a significant decline from the approximately $105 per barrel witnessed in July last year. In fact, oil prices have been fluctuating ever since it hit a 6-year low of under $44 in Mar 2015.
The Bottom Line
With coal shipments showing no signs of improving, as emphasized by Union Pacific's comments, the U.S. railroad stocks, which have lost value significantly of late, seem to be bracing for tougher times ahead. In view of the prevalent weaknesses in the railroad space, we advise investors to avoid stocks such as Union Pacific, Kansas City Southern and Norfolk Southern Corp. at the moment, at least till the situation improves.
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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.
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KANSAS CITY SOU (KSU): Free Stock Analysis Report
UNION PAC CORP (UNP): Free Stock Analysis Report
NORFOLK SOUTHRN (NSC): Free Stock Analysis Report
CSX CORP (CSX): 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 the KansasCity Southern ( KSU ), Union Pacific Corp. ( UNP ), Norfolk Southern Corp. ( NSC ), CSX Corp. ( CSX ) and American Airlines Group ( AAL ). Major airline stocks like American Airlines Group ( AAL ) have reported higher than expected earnings in the first quarter riding on low fuel costs. Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): Free Stock Analysis Report CSX CORP (CSX): 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 the KansasCity Southern ( KSU ), Union Pacific Corp. ( UNP ), Norfolk Southern Corp. ( NSC ), CSX Corp. ( CSX ) and American Airlines Group ( AAL ). Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Major airline stocks like American Airlines Group ( AAL ) have reported higher than expected earnings in the first quarter riding on low fuel costs.
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Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): Free Stock Analysis Report CSX CORP (CSX): 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 the KansasCity Southern ( KSU ), Union Pacific Corp. ( UNP ), Norfolk Southern Corp. ( NSC ), CSX Corp. ( CSX ) and American Airlines Group ( AAL ). Major airline stocks like American Airlines Group ( AAL ) have reported higher than expected earnings in the first quarter riding on low fuel costs.
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Stocks recently featured in the blog include the KansasCity Southern ( KSU ), Union Pacific Corp. ( UNP ), Norfolk Southern Corp. ( NSC ), CSX Corp. ( CSX ) and American Airlines Group ( AAL ). Major airline stocks like American Airlines Group ( AAL ) have reported higher than expected earnings in the first quarter riding on low fuel costs. Click to get this free report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report NORFOLK SOUTHRN (NSC): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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8360.0
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2015-05-21 00:00:00 UTC
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Is Southwest Airlines' (LUV) Capacity Expansion a Spoiler? - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/is-southwest-airlines-luv-capacity-expansion-a-spoiler-analyst-blog-2015-05-21
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Recently, low-cost carrier Southwest Airlines Co.LUV announced that its airline capacity will expand by 8% in 2015 from last year mainly because of the acquisition of two airport gates at its Dallas Love Field hub. On the heels of the news, stock price of the carrier plunged 9.09% to $37.19 per share during yesterday's trading session.
Also, stocks of other major U.S. carriers like Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corporation fell 5.6%, 10.31%, 10.01% and 6.94%, respectively, owing to widespread capacity expansion by several U.S. carriers.
Growing airline capacity may lead to fare cuts by carriers which will in turn trigger intense price war. Also, increased capacity will create more empty seats which will not only result in lower fares but will also hurt profits for the overall industry. Thus, capacity expansion has raised considerable concern among investors which is well reflected on the declining share price of U.S. airline stocks.
As per estimates provided by Airlines for America ('A4A'), the U.S. airline industry is expected to face the busiest summer this year. According to the forecast, approximately 222 million passengers will avail the services of U.S. airlines this summer (Jun 1 - Aug 31) - a number which even as a projection sets a record in itself. To meet such a high level of travel demand, U.S. carriers are raising the number of available seats by 126,000 per day (4.6%).
Lower fuel cost has generated significant savings for the airline industry. Most carriers have utilized these savings to boost shareholders' wealth by means of share repurchases or hiked dividend payments. Recently, Southwest Airlines hiked its quarterly dividend by 25% and executed a $1.5 billion share buyback authorization. Moreover, many carriers have invested the savings in new planes and restructuring of existing flights.
Furthermore, higher penetration by the likes of Southwest Airlines and Spirit Airlines coupled with the expiry of the Wright Amendment Act will boost market share for such low-cost carriers. Meanwhile, increased air capacity will continue to exert pressure on air fares.
Hence, we believe that a prolonged slump in fuel prices may spell doom for premium carriers as it may lead to cut-throat price competition between legacy and low-cost carriers.
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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Also, stocks of other major U.S. carriers like Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corporation fell 5.6%, 10.31%, 10.01% and 6.94%, respectively, owing to widespread capacity expansion by several U.S. carriers. 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. Growing airline capacity may lead to fare cuts by carriers which will in turn trigger intense price war.
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Also, stocks of other major U.S. carriers like Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corporation fell 5.6%, 10.31%, 10.01% and 6.94%, respectively, owing to widespread capacity expansion by several U.S. carriers. 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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Also, stocks of other major U.S. carriers like Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corporation fell 5.6%, 10.31%, 10.01% and 6.94%, respectively, owing to widespread capacity expansion by several U.S. carriers. 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. Recently, low-cost carrier Southwest Airlines Co.LUV announced that its airline capacity will expand by 8% in 2015 from last year mainly because of the acquisition of two airport gates at its Dallas Love Field hub.
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Also, stocks of other major U.S. carriers like Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corporation fell 5.6%, 10.31%, 10.01% and 6.94%, respectively, owing to widespread capacity expansion by several U.S. carriers. 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. Recently, low-cost carrier Southwest Airlines Co.LUV announced that its airline capacity will expand by 8% in 2015 from last year mainly because of the acquisition of two airport gates at its Dallas Love Field hub.
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8361.0
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2015-05-21 00:00:00 UTC
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Weakness Seen in American Airlines (AAL): Stock Tumbles 10% - Tale of the Tape
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AAL
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https://www.nasdaq.com/articles/weakness-seen-in-american-airlines-aal%3A-stock-tumbles-10-tale-of-the-tape-2015-05-21
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American Airlines Group Inc. ( AAL ) saw a big move last session, as the company's shares fell 10% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent downtrend for AAL, as the stock is now down over 13% since May 11.
This slump shouldn't be too much of a surprise to investors, as the airlines company has seen 9 negative revisions in the past few weeks and its current year earnings consensus has moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
AAL currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
A better-ranked stock in the retail sector is SkyWest Inc. ( SKYW ), which currently carries a Zacks Rank #1 (Strong Buy).
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AMER AIRLINES (AAL): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. ( AAL ) saw a big move last session, as the company's shares fell 10% on the day. This continues the recent downtrend for AAL, as the stock is now down over 13% since May 11. AAL currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. ( AAL ) saw a big move last session, as the company's shares fell 10% on the day. This continues the recent downtrend for AAL, as the stock is now down over 13% since May 11.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. ( AAL ) saw a big move last session, as the company's shares fell 10% on the day. This continues the recent downtrend for AAL, as the stock is now down over 13% since May 11.
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American Airlines Group Inc. ( AAL ) saw a big move last session, as the company's shares fell 10% on the day. This continues the recent downtrend for AAL, as the stock is now down over 13% since May 11. AAL currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
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8362.0
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2015-05-20 00:00:00 UTC
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Nasdaq 100 Movers: AAL, ADI
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-adi-2015-05-20
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In early trading on Wednesday, shares of Analog Devices ( ADI ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%. Year to date, Analog Devices registers a 18.8% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 4.9%. American Airlines Group is lower by about 15.2% looking at the year to date performance.
Two other components making moves today are VimpelCom ( VIP ), trading down 2.3%, and Yahoo! ( YHOO ), trading up 3.1% on the day.
VIDEO: Nasdaq 100 Movers: AAL, ADI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 4.9%. VIDEO: Nasdaq 100 Movers: AAL, ADI 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 15.2% 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 4.9%. VIDEO: Nasdaq 100 Movers: AAL, ADI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and 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 4.9%. VIDEO: Nasdaq 100 Movers: AAL, ADI 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 Analog Devices ( ADI ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 4.9%. VIDEO: Nasdaq 100 Movers: AAL, ADI 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 Analog Devices ( ADI ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%.
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8363.0
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2015-05-20 00:00:00 UTC
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Airline Stocks Plummet: Delta (DAL), Southwest (LUV), and American Airlines (AAL) Affected - Stocks in the News
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AAL
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https://www.nasdaq.com/articles/airline-stocks-plummet-delta-dal-southwest-luv-and-american-airlines-aal-affected-stocks
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On Wednesday, the airline industry took a hit as major players like Delta Airlines ( DAL) , Southwest Airlines ( LUV ) and American Airlines ( AAL ) saw their stock fall steeply since market opening.
In early afternoon trading, Delta is down just over 5%; Southwest is down 7.5%; and American is down 6.12%.
It is unclear as to why these airline stocks are seeing such intense decreases.
Global oil price uncertainty and U.S. crude supplies may be a factor. Supply in this sector fell almost 2.7 million barrels last week, which marked its third consecutive week down. However, crude oil prices bounced back Wednesday after they slid over 3% on Tuesday due to a dollar rally and concerns of a building glut.
Another factor may be a possible price war between legacy and low-cost airline carriers. As Delta and American have vowed to maintain pricing power to limit the number of seats available, Southwest, along with JetBlue Airways Corp ( JBLU ) and Spirit Airlines Inc ( SAVE ) intend to add more seats and cut fares to keep flights full.
JetBlue and Spirit saw their stock fall as well on Wednesday. JetBlue is 5.43% and Spirit is down 5.1%.
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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AMER AIRLINES (AAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Wednesday, the airline industry took a hit as major players like Delta Airlines ( DAL) , Southwest Airlines ( LUV ) and American Airlines ( AAL ) saw their stock fall steeply since market opening. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. However, crude oil prices bounced back Wednesday after they slid over 3% on Tuesday due to a dollar rally and concerns of a building glut.
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On Wednesday, the airline industry took a hit as major players like Delta Airlines ( DAL) , Southwest Airlines ( LUV ) and American Airlines ( AAL ) saw their stock fall steeply since market opening. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Wednesday, the airline industry took a hit as major players like Delta Airlines ( DAL) , Southwest Airlines ( LUV ) and American Airlines ( AAL ) saw their stock fall steeply since market opening. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. As Delta and American have vowed to maintain pricing power to limit the number of seats available, Southwest, along with JetBlue Airways Corp ( JBLU ) and Spirit Airlines Inc ( SAVE ) intend to add more seats and cut fares to keep flights full.
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On Wednesday, the airline industry took a hit as major players like Delta Airlines ( DAL) , Southwest Airlines ( LUV ) and American Airlines ( AAL ) saw their stock fall steeply since market opening. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. As Delta and American have vowed to maintain pricing power to limit the number of seats available, Southwest, along with JetBlue Airways Corp ( JBLU ) and Spirit Airlines Inc ( SAVE ) intend to add more seats and cut fares to keep flights full.
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8364.0
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2015-05-20 00:00:00 UTC
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What Is the S&P 500 Index?
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AAL
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https://www.nasdaq.com/articles/what-sp-500-index-2015-05-20
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The S&P 500 Index, created by Standard and Poors, is considered the most accurate representation of the broader stock market. The S&P 500 is, unsurprisingly, made up of 500 separate U.S. stocks spanning all sectors of the economy. These stocks combine to represent roughly 80% of available market capitalization. The smallest components are required to have market caps of at least $5.3 billion. The largest, Apple , is valued at more than $700 billion.
While the Dow weights stocks by share price, the S&P 500 index weights stocks by market cap, so it's driven by the biggest companies. Stocks that no longer fit the market cap, liquidity, or domicile requirements are switched out for eligible companies.
Here's a complete list of components that currently make up the S&P 500:
Company Name Ticker Primary Industry
3M Company Industrial Conglomerates
Abbott Laboratories Healthcare Equipment
AbbVie Pharmaceuticals
Accenture plc IT Consulting and Other Services
ACE Limited Property and Casualty Insurance
Actavis plc Pharmaceuticals
Adobe Systems Incorporated Application Software
Aetna Managed Healthcare
Affiliated Managers Group Asset Management and Custody Banks
AFLAC Life and Health Insurance
Agilent Technologies Life Sciences Tools and Services
AGL Resources Gas Utilities
Air Products & Chemicals Industrial Gases
Airgas, Industrial Gases
Akamai Technologies Internet Software and Services
Alcoa Aluminum
Alexion Pharmaceuticals Biotechnology
Allegheny Technologies Steel
Allegion Plc Building Products
Alliance Data Systems Corporation Data Processing and Outsourced Services
Altera Corp. Semiconductors
Altria Group Tobacco
Amazon.com Internet Retail
Ameren Corporation Multi-Utilities
American Airlines Group Airlines
American Electric Power Co. Electric Utilities
American Express Company Consumer Finance
American International Group Multi-line Insurance
American Tower Corporation Specialized REITs
Ameriprise Financial, Asset Management and Custody Banks
AmerisourceBergen Corporation Healthcare Distributors
Ametek Electrical Components and Equipment
Amgen Biotechnology
Amphenol Corporation Electronic Components
Anadarko Petroleum Corporation Oil and Gas Exploration and Production
Analog Devices Semiconductors
Anthem Managed Healthcare
Aon plc Insurance Brokers
Apache Corp. Oil and Gas Exploration and Production
Apartment Investment and Management Company Residential REITs
Apple Technology Hardware, Storage and Peripherals
Applied Materials Semiconductor Equipment
Archer-Daniels-Midland Company Agricultural Products
Assurant Multi-line Insurance
AT&T Integrated Telecommunication Services
Autodesk Application Software
Automatic Data Processing Data Processing and Outsourced Services
AutoNation Automotive Retail
AutoZone, Automotive Retail
Avago Technologies Limited Semiconductors
Avalonbay Communities Residential REITs
Avery Dennison Corporation Paper Packaging
Baker Hughes Incorporated Oil and Gas Equipment and Services
Ball Corporation Metal and Glass Containers
Bank of America Corporation Diversified Banks
Baxter International Healthcare Equipment
BB&T Corporation Regional Banks
Becton, Dickinson and Company Healthcare Equipment
Bed Bath & Beyond Home Furnishing Retail
Berkshire Hathaway Multi-Sector Holdings
Best Buy Co. Computer and Electronics Retail
Biogen Biotechnology
BlackRock Asset Management and Custody Banks
BorgWarner Auto Parts and Equipment
Boston Properties Office REITs
Boston Scientific Corporation Healthcare Equipment
Bristol-Myers Squibb Company Pharmaceuticals
Broadcom Corp. Semiconductors
Brown-Forman Corporation Distillers and Vintners
CA Systems Software
Cablevision Systems Corporation Cable and Satellite
Cabot Oil & Gas Corporation Oil and Gas Exploration and Production
Cameron International Corporation Oil and Gas Equipment and Services
Campbell Soup Company Packaged Foods and Meats
Capital One Financial Corporation Consumer Finance
Cardinal Health Healthcare Distributors
CarMax Automotive Retail
Carnival Corporation Hotels, Resorts and Cruise Lines
Caterpillar Construction Machinery and Heavy Trucks
CBRE Group Real Estate Services
CBS Corporation Broadcasting
Celgene Corporation Biotechnology
CenterPoint Energy Multi-Utilities
CenturyLink Integrated Telecommunication Services
Cerner Corporation Health Care Technology
CF Industries Holdings Fertilizers and Agricultural Chemicals
CH Robinson Worldwide Air Freight and Logistics
Chesapeake Energy Corporation Oil and Gas Exploration and Production
Chevron Corporation Integrated Oil and Gas
Chipotle Mexican Grill Restaurants
Cigna Corp. Managed Healthcare
Cimarex Energy Co. Oil and Gas Exploration and Production
Cincinnati Financial Corp. Property and Casualty Insurance
Cintas Corporation Diversified Support Services
Cisco Systems Communications Equipment
Citigroup Diversified Banks
Citrix Systems Application Software
CME Group Specialized Finance
CMS Energy Corp. Multi-Utilities
Coach Apparel, Accessories and Luxury Goods
Coca-Cola Enterprises Soft Drinks
Cognizant Technology Solutions Corporation IT Consulting and Other Services
Colgate-Palmolive Co. Household Products
Comcast Corporation Cable and Satellite
Comerica Incorporated Diversified Banks
Computer Sciences Corporation Data Processing and Outsourced Services
ConAgra Foods Packaged Foods and Meats
ConocoPhillips Oil and Gas Exploration and Production
CONSOL Energy Coal and Consumable Fuels
Consolidated Edison Multi-Utilities
Constellation Brands Distillers and Vintners
Corning Electronic Components
Costco Wholesale Corporation Hypermarkets and Super Centers
CR Bard Healthcare Equipment
Crown Castle International Corp. Specialized REITs
CSX Corp. Railroads
Cummins Construction Machinery and Heavy Trucks
CVS Health Corporation Drug Retail
Danaher Corp. Industrial Conglomerates
Darden Restaurants Restaurants
DaVita HealthCare Partners Healthcare Services
Deere & Company Agricultural and Farm Machinery
Delphi Automotive PLC Auto Parts and Equipment
Delta Air Lines Airlines
DENTSPLY International Healthcare Supplies
Devon Energy Corporation Oil and Gas Exploration and Production
Diamond Offshore Drilling Oil and Gas Drilling
DIRECTV Cable and Satellite
Discover Financial Services Consumer Finance
Discovery Communications (Class A) Broadcasting
Discovery Communications (Class C) Broadcasting
Dollar General Corporation General Merchandise Stores
Dollar Tree General Merchandise Stores
Dominion Resources Multi-Utilities
Dover Corporation Industrial Machinery
DR Horton Homebuilding
Dr Pepper Snapple Group Soft Drinks
DTE Energy Company Multi-Utilities
Duke Energy Corporation Electric Utilities
Dun & Bradstreet Corp. Research and Consulting Services
E*TRADE Financial Corporation Investment Banking and Brokerage
E. I. du Pont de Nemours and Company Diversified Chemicals
Eastman Chemical Co. Diversified Chemicals
Eaton Corporation plc Electrical Components and Equipment
eBay Internet Software and Services
Ecolab Specialty Chemicals
Edison International Electric Utilities
Edwards Lifesciences Corp. Healthcare Equipment
Electronic Arts Home Entertainment Software
Eli Lilly and Company Pharmaceuticals
EMC Corporation Technology Hardware, Storage and Peripherals
Emerson Electric Co. Electrical Components and Equipment
Endo International plc Pharmaceuticals
Ensco plc Oil and Gas Drilling
Entergy Corporation Electric Utilities
EOG Resources Oil and Gas Exploration and Production
EQT Corporation Oil and Gas Exploration and Production
Equifax Research and Consulting Services
Equinix Internet Software and Services
Equity Residential Residential REITs
Essex Property Trust Residential REITs
Eversource Energy Electric Utilities
Exelon Corporation Electric Utilities
Expedia Internet Retail
Expeditors International of Washington Air Freight and Logistics
Express Scripts Holding Company Healthcare Services
ExxonMobil Corporation Integrated Oil and Gas
F5 Networks Communications Equipment
Facebook Internet Software and Services
Family Dollar Stores General Merchandise Stores
Fastenal Company Trading Companies and Distributors
FedEx Corporation Air Freight and Logistics
Fidelity National Information Services Data Processing and Outsourced Services
Fifth Third Bancorp Regional Banks
First Solar Semiconductors
FirstEnergy Corp. Electric Utilities
Fiserv Data Processing and Outsourced Services
FLIR Systems Electronic Equipment and Instruments
Flowserve Corp. Industrial Machinery
Fluor Corporation Construction and Engineering
FMC Corp. Diversified Chemicals
FMC Technologies Oil and Gas Equipment and Services
Ford Motor Co. Automobile Manufacturers
Fossil Group Apparel, Accessories and Luxury Goods
Franklin Resources Asset Management and Custody Banks
Freeport-McMoRan Diversified Metals and Mining
Frontier Communications Corporation Integrated Telecommunication Services
GameStop Corp. Computer and Electronics Retail
Gannett Co. Publishing
Garmin Ltd. Consumer Electronics
General Dynamics Corporation Aerospace and Defense
General Electric Company Industrial Conglomerates
General Growth Properties, Inc Retail REITs
General Mills Packaged Foods and Meats
General Motors Company Automobile Manufacturers
Genuine Parts Company Distributors
Genworth Financial Multi-line Insurance
Gilead Sciences Biotechnology
Google (Class C) Internet Software and Services
Google (Class A) Internet Software and Services
H&R Block Specialized Consumer Services
Halliburton Company Oil and Gas Equipment and Services
Hanesbrands Apparel, Accessories and Luxury Goods
Harley-Davidson, Motorcycle Manufacturers
Harman International Industries, Incorporated Consumer Electronics
Harris Corporation Communications Equipment
Hasbro Leisure Products
HCA Holdings Healthcare Facilities
HCP Healthcare REITs
Health Care REIT Healthcare REITs
Helmerich & Payne Oil and Gas Drilling
Henry Schein Healthcare Distributors
Hess Corporation Oil and Gas Exploration and Production
Hewlett-Packard Company Technology Hardware, Storage and Peripherals
Honeywell International Aerospace and Defense
Hormel Foods Corporation Packaged Foods and Meats
Hospira Pharmaceuticals
Host Hotels & Resorts Hotel and Resort REITs
Hudson City Bancorp Thrifts and Mortgage Finance
Humana Managed Healthcare
Huntington Bancshares Incorporated Regional Banks
Illinois Tool Works Industrial Machinery
Ingersoll-Rand Plc Industrial Machinery
Integrys Energy Group Multi-Utilities
Intel Corporation Semiconductors
Intercontinental Exchange Specialized Finance
International Business Machines Corporation IT Consulting and Other Services
International Flavors & Fragrances Specialty Chemicals
International Paper Company Paper Products
Intuit Application Software
Intuitive Surgical Healthcare Equipment
Invesco Ltd. Asset Management and Custody Banks
Iron Mountain Specialized REITs
Jacobs Engineering Group Construction and Engineering
Johnson & Johnson Pharmaceuticals
Johnson Controls Auto Parts and Equipment
Joy Global Construction Machinery and Heavy Trucks
JPMorgan Chase & Co. Diversified Banks
Juniper Networks Communications Equipment
Kansas City Southern Railroads
Kellogg Company Packaged Foods and Meats
Keurig Green Mountain Packaged Foods and Meats
KeyCorp. Regional Banks
Kimberly-Clark Corporation Household Products
Kimco Realty Corporation Retail REITs
Kinder Morgan Oil and Gas Storage and Transportation
KLA-Tencor Corporation Semiconductor Equipment
Kohl's Corp. Department Stores
Kraft Foods Group Packaged Foods and Meats
L Brands Apparel Retail
L-3 Communications Holdings Aerospace and Defense
Laboratory Corp. of America Holdings Healthcare Services
Lam Research Corporation Semiconductor Equipment
Legg Mason Asset Management and Custody Banks
Leggett & Platt, Incorporated Home Furnishings
Lennar Corp. Homebuilding
Leucadia National Corporation Multi-Sector Holdings
Level 3 Communications Alternative Carriers
Lincoln National Corporation Life and Health Insurance
Linear Technology Corporation Semiconductors
Lockheed Martin Corporation Aerospace and Defense
Loews Corporation Multi-line Insurance
Lorillard Tobacco
Lowe's Companies Home Improvement Retail
LyondellBasell Industries N.V. Commodity Chemicals
M&T Bank Corporation Regional Banks
Macy's Department Stores
Mallinckrodt public limited company Pharmaceuticals
Marathon Oil Corporation Oil and Gas Exploration and Production
Marathon Petroleum Corporation Oil and Gas Refining and Marketing
Marriott International Hotels, Resorts and Cruise Lines
Marsh & McLennan Companies Insurance Brokers
Martin Marietta Materials Construction Materials
Masco Corporation Building Products
MasterCard Incorporated Data Processing and Outsourced Services
Mattel Leisure Products
McCormick & Company, Incorporated Packaged Foods and Meats
McDonald's Corp. Restaurants
McGraw Hill Financial Specialized Finance
McKesson Corporation Healthcare Distributors
Mead Johnson Nutrition Company Packaged Foods and Meats
MeadWestvaco Corporation Paper Packaging
Medtronic plc Healthcare Equipment
Merck & Co. Pharmaceuticals
MetLife Life and Health Insurance
Michael Kors Holdings Limited Apparel, Accessories and Luxury Goods
Microchip Technology Semiconductors
Micron Technology Semiconductors
Microsoft Corporation Systems Software
Mohawk Industries Home Furnishings
Molson Coors Brewing Company Brewers
Mondelez International Packaged Foods and Meats
Monsanto Company Fertilizers and Agricultural Chemicals
Monster Beverage Corporation Soft Drinks
Moody's Corporation Specialized Finance
Morgan Stanley Investment Banking and Brokerage
Motorola Solutions Communications Equipment
Murphy Oil Corporation Oil and Gas Exploration and Production
Mylan N.V. Pharmaceuticals
National Oilwell Varco Oil and Gas Equipment and Services
Navient Corporation Consumer Finance
NetApp Technology Hardware, Storage and Peripherals
Netflix Internet Retail
Newell Rubbermaid Housewares and Specialties
Newfield Exploration Co. Oil and Gas Exploration and Production
Newmont Mining Corporation Gold
News Corporation Publishing
NextEra Energy Electric Utilities
Nielsen N.V. Research and Consulting Services
Nike Footwear
NiSource Multi-Utilities
Noble Corporation plc Oil and Gas Drilling
Noble Energy Oil and Gas Exploration and Production
Nordstrom Department Stores
Norfolk Southern Corporation Railroads
Northern Trust Corporation Asset Management and Custody Banks
Northrop Grumman Corporation Aerospace and Defense
NRG Energy Independent Power Producers and Energy Traders
Nucor Corporation Steel
NVIDIA Corporation Semiconductors
Occidental Petroleum Corporation Integrated Oil and Gas
Omnicom Group Advertising
ONEOK Oil and Gas Storage and Transportation
Oracle Corporation Systems Software
O'Reilly Automotive Automotive Retail
Owens-Illinois Metal and Glass Containers
PACCAR Construction Machinery and Heavy Trucks
Pall Corporation Industrial Machinery
Parker-Hannifin Corporation Industrial Machinery
Patterson Companies Healthcare Distributors
Paychex Data Processing and Outsourced Services
Pentair plc Industrial Machinery
People's United Financial Thrifts and Mortgage Finance
Pepco Holdings Electric Utilities
Pepsico Soft Drinks
PerkinElmer Life Sciences Tools and Services
Perrigo Company Public Limited Company Pharmaceuticals
Pfizer Pharmaceuticals
PG&E Corporation Multi-Utilities
Philip Morris International Tobacco
Phillips 66 Oil and Gas Refining and Marketing
Pinnacle West Capital Corporation Electric Utilities
Pioneer Natural Resources Co. Oil and Gas Exploration and Production
Pitney Bowes Office Services and Supplies
Plum Creek Timber Co. Specialized REITs
PPG Industries Specialty Chemicals
PPL Corporation Electric Utilities
Praxair Industrial Gases
Precision Castparts Corp. Aerospace and Defense
Principal Financial Group Life and Health Insurance
Progressive Corp. Property and Casualty Insurance
Prologis Industrial REITs
Prudential Financial Life and Health Insurance
Public Service Enterprise Group Multi-Utilities
Public Storage Specialized REITs
PulteGroup Homebuilding
PVH Corp. Apparel, Accessories and Luxury Goods
QEP Resources Oil and Gas Exploration and Production
QUALCOMM Incorporated Communications Equipment
Quanta Services, Construction and Engineering
Quest Diagnostics Healthcare Services
Ralph Lauren Corporation Apparel, Accessories and Luxury Goods
Range Resources Corporation Oil and Gas Exploration and Production
Raytheon Company Aerospace and Defense
Realty Income Corporation Retail REITs
Red Hat, Systems Software
Regeneron Pharmaceuticals Biotechnology
Regions Financial Corporation Regional Banks
Republic Services Environmental and Facilities Services
Reynolds American Tobacco
Robert Half International Human Resource and Employment Services
Rockwell Automation Electrical Components and Equipment
Rockwell Collins Aerospace and Defense
Roper Industries Industrial Conglomerates
Ross Stores Apparel Retail
Royal Caribbean Cruises Ltd. Hotels, Resorts and Cruise Lines
Ryder System Trucking
salesforce.com, inc. Application Software
SanDisk Corp. Technology Hardware, Storage and Peripherals
SCANA Corp. Multi-Utilities
Schlumberger Limited Oil and Gas Equipment and Services
Scripps Networks Interactive Broadcasting
Seagate Technology Public Limited Company Technology Hardware, Storage and Peripherals
Sealed Air Corporation Paper Packaging
Sempra Energy Multi-Utilities
Sigma-Aldrich Corporation Specialty Chemicals
Simon Property Group Retail REITs
Skyworks Solutions Semiconductors
SL Green Realty Corp. Office REITs
Snap-on Incorporated Industrial Machinery
Southern Company Electric Utilities
Southwest Airlines Co. Airlines
Southwestern Energy Co. Oil and Gas Exploration and Production
Spectra Energy Corp. Oil and Gas Storage and Transportation
St. Jude Medical Healthcare Equipment
Stanley Black & Decker Industrial Machinery
Staples Specialty Stores
Starbucks Corporation Restaurants
Starwood Hotels & Resorts Worldwide Hotels, Resorts and Cruise Lines
State Street Corporation Asset Management and Custody Banks
Stericycle Environmental and Facilities Services
Stryker Corporation Healthcare Equipment
SunTrust Banks Regional Banks
Symantec Corporation Systems Software
Sysco Corporation Food Distributors
T. Rowe Price Group Asset Management and Custody Banks
Target Corp. General Merchandise Stores
TE Connectivity Ltd. Electronic Manufacturing Services
TECO Energy Multi-Utilities
Tenet Healthcare Corp. Healthcare Facilities
Teradata Corporation IT Consulting and Other Services
Tesoro Corporation Oil and Gas Refining and Marketing
Texas Instruments Semiconductors
Textron Aerospace and Defense
The ADT Corporation Security and Alarm Services
The AES Corporation Independent Power Producers and Energy Traders
The Allstate Corporation Property and Casualty Insurance
The Bank of New York Mellon Corporation Asset Management and Custody Banks
The Boeing Company Aerospace and Defense
The Charles Schwab Corporation Investment Banking and Brokerage
The Chubb Corporation Property and Casualty Insurance
The Clorox Company Household Products
The Coca-Cola Company Soft Drinks
The Dow Chemical Company Diversified Chemicals
The Estée Lauder Companies Personal Products
The Gap Apparel Retail
The Goldman Sachs Group Investment Banking and Brokerage
The Goodyear Tire & Rubber Company Tires and Rubber
The Hartford Financial Services Group Multi-line Insurance
The Hershey Company Packaged Foods and Meats
The Home Depot Home Improvement Retail
The Interpublic Group of Companies Advertising
The J. M. Smucker Company Packaged Foods and Meats
The Kroger Co. Food Retail
The Macerich Company Retail REITs
The Mosaic Company Fertilizers and Agricultural Chemicals
The Nasdaq OMX Group Specialized Finance
The PNC Financial Services Group Regional Banks
The Priceline Group Internet Retail
The Procter & Gamble Company Household Products
The Sherwin-Williams Company Specialty Chemicals
The TJX Companies Apparel Retail
The Travelers Companies Property and Casualty Insurance
The Walt Disney Company Movies and Entertainment
The Western Union Company Data Processing and Outsourced Services
Thermo Fisher Scientific Life Sciences Tools and Services
Tiffany & Co. Specialty Stores
Time Warner Cable Cable and Satellite
Time Warner Movies and Entertainment
Torchmark Corporation Life and Health Insurance
Total System Services Data Processing and Outsourced Services
Tractor Supply Company Specialty Stores
Transocean Ltd. Oil and Gas Drilling
TripAdvisor Internet Retail
Twenty-First Century Fox Movies and Entertainment
Tyco International Ltd. Security and Alarm Services
Tyson Foods Packaged Foods and Meats
US Bancorp Diversified Banks
Under Armour Apparel, Accessories and Luxury Goods
Union Pacific Corporation Railroads
United Parcel Service Air Freight and Logistics
United Rentals Trading Companies and Distributors
United Technologies Corporation Aerospace and Defense
UnitedHealth Group Incorporated Managed Healthcare
Universal Health Services Healthcare Facilities
Unum Group Life and Health Insurance
Urban Outfitters Apparel Retail
V.F. Corporation Apparel, Accessories and Luxury Goods
Valero Energy Corporation Oil and Gas Refining and Marketing
Varian Medical Systems Healthcare Equipment
Ventas Healthcare REITs
VeriSign Internet Software and Services
Verizon Communications Integrated Telecommunication Services
Vertex Pharmaceuticals Incorporated Biotechnology
Viacom Movies and Entertainment
Visa Data Processing and Outsourced Services
Vornado Realty Trust Office REITs
Vulcan Materials Company Construction Materials
W.W. Grainger Trading Companies and Distributors
Walgreens Boots Alliance Drug Retail
Wal-Mart Stores Hypermarkets and Super Centers
Waste Management Environmental and Facilities Services
Waters Corporation Life Sciences Tools and Services
Wells Fargo & Company Diversified Banks
Western Digital Corporation Technology Hardware, Storage and Peripherals
Weyerhaeuser Co. Specialized REITs
Whirlpool Corp. Household Appliances
Whole Foods Market Food Retail
Williams Companies Oil and Gas Storage and Transportation
Wisconsin Energy Corp. Multi-Utilities
Wyndham Worldwide Corporation Hotels, Resorts and Cruise Lines
Wynn Resorts Ltd. Casinos and Gaming
Xcel Energy Electric Utilities
Xerox Corporation Data Processing and Outsourced Services
Xilinx Semiconductors
XL Group plc Property and Casualty Insurance
Xylem Industrial Machinery
Yahoo! Internet Software and Services
Yum! Brands Restaurants
Zimmer Holdings Healthcare Equipment
Zions Bancorporation Regional Banks
Zoetis Pharmaceuticals
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the_motley_fool has no position in any stocks mentioned. The Motley Fool recommends Accenture, Adobe Systems, Aflac, Amazon.com, American Express, American Tower, Anthem, and Apple. The Motley Fool recommends Automatic Data Processing, Bank of America, Baxter International, Bed Bath & Beyond, Berkshire Hathaway, BorgWarner, C.H. Robinson Worldwide, CarMax, Celgene, Cerner, Chevron, and Chipotle Mexican Grill. The Motley Fool recommends Cintas, Cisco Systems, Coach, Cognizant Technology Solutions, Corning, Costco Wholesale, Cummins, CVS Health, Discovery Communications, Dominion Resources, eBay, Emerson Electric, Equinix, and Express Scripts. The Motley Fool recommends Facebook, FedEx, FMC Technologies, Ford, Fossil, General Motors, Gilead Sciences, Google (A shares), Google (C shares), Halliburton, Hasbro, Health Care REIT, Illinois Tool Works, Intel, Intercontinental Exchange, Intuit, Intuitive Surgical, Johnson & Johnson, Keurig Green Mountain, Kimberly-Clark, and Kinder Morgan. The Motley Fool recommends Leucadia National, Linear Technology, Loews, MasterCard, McCormick, McKesson, Michael Kors Holdings, Monster Beverage, National Oilwell Varco, Netflix, Nike, Nordstrom, Nucor, Nvidia, Omnicom Group, and Oneok. The Motley Fool recommends Coca-Cola, Goldman Sachs, Home Depot, Priceline Group, Procter & Gamble, Sherwin-Williams, TripAdvisor, Under Armour, United Parcel Service, UnitedHealth Group, Urban Outfitters, Verizon Communications, Vertex Pharmaceuticals, Visa, Walt Disney, Wells Fargo, Whole Foods Market, Wisconsin Energy, and Yahoo. The Motley Fool owns shares of PNC Financial Services, Priceline Group, TripAdvisor, Under Armour, Varian Medical Systems,, Visa, Walt Disney, Waste Management, Wells Fargo, Western Digital., Whole Foods Market, and Yahoo. The Motley Fool owns shares of Leucadia National, MasterCard, Michael Kors Holdings, Monster Beverage, National Oilwell Varco, Netflix, Nike, NRG Energy,, Oracle, and O'Reilly Automotive. The Motley Fool recommends Paccar, PepsiCo, Precision Castparts, Progressive, Republic Services, Robert Half International, Salesforce.com, Scripps Networks Interactive, Southern Company, Spectra Energy, Starbucks, Stericycle, and Teradata. The Motley Fool owns shares of Paccar, PepsiCo, Qualcomm, Sealed Air., Skyworks Solutions, Spectra Energy, Staples, Starbucks, and Stericycle. The Motley Fool owns shares of Facebook, Fifth Third Bancorp, Fluor, Ford, Freeport-McMoRan Copper & Gold,, Gannett, General Electric Company, Gilead Sciences, Google (A shares), Google (C shares), Halliburton, Hasbro, Huntington Bancshares,, International Business Machines, Intuit, Johnson & Johnson, Johnson Controls,, JPMorgan Chase, KeyCorp, and Kinder Morgan. The Motley Fool owns shares of Citigroup Inc, Coach, Cognizant Technology Solutions, Corning, Costco Wholesale, Cummins, Devon Energy, Discovery Communications, eBay, Ecolab,, EOG Resources,, Express Scripts, and ExxonMobil. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, Capital One Financial., CarMax, and Chipotle Mexican Grill. The Motley Fool owns shares of Amazon.com, American International Group, American Tower, and Apple and has the following options: long January 2017 $80 calls on American Tower, long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. 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 .
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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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Automobile Manufacturers Fossil Group Apparel, Accessories and Luxury Goods Franklin Resources Asset Management and Custody Banks Freeport-McMoRan Diversified Metals and Mining Frontier Communications Corporation Integrated Telecommunication Services GameStop Corp. Computer and Electronics Retail Gannett Co. Publishing Garmin Ltd. Consumer Electronics General Dynamics Corporation Aerospace and Defense General Electric Company Industrial Conglomerates General Growth Properties, Inc Retail REITs General Mills Packaged Foods and Meats General Motors Company Automobile Manufacturers Genuine Parts Company Distributors Genworth Financial Multi-line Insurance Gilead Sciences Biotechnology Google (Class C) Internet Software and Services Google (Class A) Internet Software and Services H&R Block Specialized Consumer Services Halliburton Company Oil and Gas Equipment and Services Hanesbrands Apparel, Accessories and Luxury Goods Harley-Davidson, Motorcycle Manufacturers Harman International Industries, Incorporated Consumer Electronics Harris Corporation Communications Equipment Hasbro Leisure Products HCA Holdings Healthcare Facilities HCP Healthcare REITs Health Care REIT Healthcare REITs Helmerich & Payne Oil and Gas Drilling Henry Schein Healthcare Distributors Hess Corporation Oil and Gas Exploration and Production Hewlett-Packard Company Technology Hardware, Storage and Peripherals Honeywell International Aerospace and Defense Hormel Foods Corporation Packaged Foods and Meats Hospira Pharmaceuticals Host Hotels & Resorts Hotel and Resort REITs Hudson City Bancorp Thrifts and Mortgage Finance Humana Managed Healthcare Huntington Bancshares Incorporated Regional Banks Illinois Tool Works Industrial Machinery Ingersoll-Rand Plc Industrial Machinery Integrys Energy Group Multi-Utilities Intel Corporation Semiconductors Intercontinental Exchange Specialized Finance International Business Machines Corporation IT Consulting and Other Services International Flavors & Fragrances Specialty Chemicals International Paper Company Paper Products Intuit Application Software Intuitive Surgical Healthcare Equipment Invesco Ltd. Asset Management and Custody Banks Iron Mountain Specialized REITs Jacobs Engineering Group Construction and Engineering Johnson & Johnson Pharmaceuticals Johnson Controls Auto Parts and Equipment Joy Global Construction Machinery and Heavy Trucks JPMorgan Chase & Co. Diversified Banks Juniper Networks Communications Equipment Kansas City Southern Railroads Kellogg Company Packaged Foods and Meats Keurig Green Mountain Packaged Foods and Meats KeyCorp. The Motley Fool recommends Cintas, Cisco Systems, Coach, Cognizant Technology Solutions, Corning, Costco Wholesale, Cummins, CVS Health, Discovery Communications, Dominion Resources, eBay, Emerson Electric, Equinix, and Express Scripts. The Motley Fool owns shares of PNC Financial Services, Priceline Group, TripAdvisor, Under Armour, Varian Medical Systems,, Visa, Walt Disney, Waste Management, Wells Fargo, Western Digital., Whole Foods Market, and Yahoo.
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Here's a complete list of components that currently make up the S&P 500: Company Name Ticker Primary Industry 3M Company Industrial Conglomerates Abbott Laboratories Healthcare Equipment AbbVie Pharmaceuticals Accenture plc IT Consulting and Other Services ACE Limited Property and Casualty Insurance Actavis plc Pharmaceuticals Adobe Systems Incorporated Application Software Aetna Managed Healthcare Affiliated Managers Group Asset Management and Custody Banks AFLAC Life and Health Insurance Agilent Technologies Life Sciences Tools and Services AGL Resources Gas Utilities Air Products & Chemicals Industrial Gases Airgas, Industrial Gases Akamai Technologies Internet Software and Services Alcoa Aluminum Alexion Pharmaceuticals Biotechnology Allegheny Technologies Steel Allegion Plc Building Products Alliance Data Systems Corporation Data Processing and Outsourced Services Altera Corp. Semiconductors Altria Group Tobacco Amazon.com Internet Retail Ameren Corporation Multi-Utilities American Airlines Group Airlines American Electric Power Co. Electric Utilities American Express Company Consumer Finance American International Group Multi-line Insurance American Tower Corporation Specialized REITs Ameriprise Financial, Asset Management and Custody Banks AmerisourceBergen Corporation Healthcare Distributors Ametek Electrical Components and Equipment Amgen Biotechnology Amphenol Corporation Electronic Components Anadarko Petroleum Corporation Oil and Gas Exploration and Production Analog Devices Semiconductors Anthem Managed Healthcare Aon plc Insurance Brokers Apache Corp. Oil and Gas Exploration and Production Apartment Investment and Management Company Residential REITs Apple Technology Hardware, Storage and Peripherals Applied Materials Semiconductor Equipment Archer-Daniels-Midland Company Agricultural Products Assurant Multi-line Insurance AT&T Integrated Telecommunication Services Autodesk Application Software Automatic Data Processing Data Processing and Outsourced Services AutoNation Automotive Retail AutoZone, Automotive Retail Avago Technologies Limited Semiconductors Avalonbay Communities Residential REITs Avery Dennison Corporation Paper Packaging Baker Hughes Incorporated Oil and Gas Equipment and Services Ball Corporation Metal and Glass Containers Bank of America Corporation Diversified Banks Baxter International Healthcare Equipment BB&T Corporation Regional Banks Becton, Dickinson and Company Healthcare Equipment Bed Bath & Beyond Home Furnishing Retail Berkshire Hathaway Multi-Sector Holdings Best Buy Co. Computer and Electronics Retail Biogen Biotechnology BlackRock Asset Management and Custody Banks BorgWarner Auto Parts and Equipment Boston Properties Office REITs Boston Scientific Corporation Healthcare Equipment Bristol-Myers Squibb Company Pharmaceuticals Broadcom Corp. Semiconductors Brown-Forman Corporation Distillers and Vintners CA Systems Software Cablevision Systems Corporation Cable and Satellite Cabot Oil & Gas Corporation Oil and Gas Exploration and Production Cameron International Corporation Oil and Gas Equipment and Services Campbell Soup Company Packaged Foods and Meats Capital One Financial Corporation Consumer Finance Cardinal Health Healthcare Distributors CarMax Automotive Retail Carnival Corporation Hotels, Resorts and Cruise Lines Caterpillar Construction Machinery and Heavy Trucks CBRE Group Real Estate Services CBS Corporation Broadcasting Celgene Corporation Biotechnology CenterPoint Energy Multi-Utilities CenturyLink Integrated Telecommunication Services Cerner Corporation Health Care Technology CF Industries Holdings Fertilizers and Agricultural Chemicals CH Robinson Worldwide Air Freight and Logistics Chesapeake Energy Corporation Oil and Gas Exploration and Production Chevron Corporation Integrated Oil and Gas Chipotle Mexican Grill Restaurants Cigna Corp. Specialized REITs CSX Corp. Railroads Cummins Construction Machinery and Heavy Trucks CVS Health Corporation Drug Retail Danaher Corp. Industrial Conglomerates Darden Restaurants Restaurants DaVita HealthCare Partners Healthcare Services Deere & Company Agricultural and Farm Machinery Delphi Automotive PLC Auto Parts and Equipment Delta Air Lines Airlines DENTSPLY International Healthcare Supplies Devon Energy Corporation Oil and Gas Exploration and Production Diamond Offshore Drilling Oil and Gas Drilling DIRECTV Cable and Satellite Discover Financial Services Consumer Finance Discovery Communications (Class A) Broadcasting Discovery Communications (Class C) Broadcasting Dollar General Corporation General Merchandise Stores Dollar Tree General Merchandise Stores Dominion Resources Multi-Utilities Dover Corporation Industrial Machinery DR Horton Homebuilding Dr Pepper Snapple Group Soft Drinks DTE Energy Company Multi-Utilities Duke Energy Corporation Electric Utilities Dun & Bradstreet Corp. Research and Consulting Services E*TRADE Financial Corporation Investment Banking and Brokerage E. I. du Pont de Nemours and Company Diversified Chemicals Eastman Chemical Co. Diversified Chemicals Eaton Corporation plc Electrical Components and Equipment eBay Internet Software and Services Ecolab Specialty Chemicals Edison International Electric Utilities Edwards Lifesciences Corp. Healthcare Equipment Electronic Arts Home Entertainment Software Eli Lilly and Company Pharmaceuticals EMC Corporation Technology Hardware, Storage and Peripherals Emerson Electric Co. Electrical Components and Equipment Endo International plc Pharmaceuticals Ensco plc Oil and Gas Drilling Entergy Corporation Electric Utilities EOG Resources Oil and Gas Exploration and Production EQT Corporation Oil and Gas Exploration and Production Equifax Research and Consulting Services Equinix Internet Software and Services Equity Residential Residential REITs Essex Property Trust Residential REITs Eversource Energy Electric Utilities Exelon Corporation Electric Utilities Expedia Internet Retail Expeditors International of Washington Air Freight and Logistics Express Scripts Holding Company Healthcare Services ExxonMobil Corporation Integrated Oil and Gas F5 Networks Communications Equipment Facebook Internet Software and Services Family Dollar Stores General Merchandise Stores Fastenal Company Trading Companies and Distributors FedEx Corporation Air Freight and Logistics Fidelity National Information Services Data Processing and Outsourced Services Fifth Third Bancorp Regional Banks First Solar Semiconductors FirstEnergy Corp. Electric Utilities Fiserv Data Processing and Outsourced Services FLIR Systems Electronic Equipment and Instruments Flowserve Corp. Industrial Machinery Fluor Corporation Construction and Engineering FMC Corp. Diversified Chemicals FMC Technologies Oil and Gas Equipment and Services Ford Motor Co. Automobile Manufacturers Fossil Group Apparel, Accessories and Luxury Goods Franklin Resources Asset Management and Custody Banks Freeport-McMoRan Diversified Metals and Mining Frontier Communications Corporation Integrated Telecommunication Services GameStop Corp. Computer and Electronics Retail Gannett Co. Publishing Garmin Ltd. Consumer Electronics General Dynamics Corporation Aerospace and Defense General Electric Company Industrial Conglomerates General Growth Properties, Inc Retail REITs General Mills Packaged Foods and Meats General Motors Company Automobile Manufacturers Genuine Parts Company Distributors Genworth Financial Multi-line Insurance Gilead Sciences Biotechnology Google (Class C) Internet Software and Services Google (Class A) Internet Software and Services H&R Block Specialized Consumer Services Halliburton Company Oil and Gas Equipment and Services Hanesbrands Apparel, Accessories and Luxury Goods Harley-Davidson, Motorcycle Manufacturers Harman International Industries, Incorporated Consumer Electronics Harris Corporation Communications Equipment Hasbro Leisure Products HCA Holdings Healthcare Facilities HCP Healthcare REITs Health Care REIT Healthcare REITs Helmerich & Payne Oil and Gas Drilling Henry Schein Healthcare Distributors Hess Corporation Oil and Gas Exploration and Production Hewlett-Packard Company Technology Hardware, Storage and Peripherals Honeywell International Aerospace and Defense Hormel Foods Corporation Packaged Foods and Meats Hospira Pharmaceuticals Host Hotels & Resorts Hotel and Resort REITs Hudson City Bancorp Thrifts and Mortgage Finance Humana Managed Healthcare Huntington Bancshares Incorporated Regional Banks Illinois Tool Works Industrial Machinery Ingersoll-Rand Plc Industrial Machinery Integrys Energy Group Multi-Utilities Intel Corporation Semiconductors Intercontinental Exchange Specialized Finance International Business Machines Corporation IT Consulting and Other Services International Flavors & Fragrances Specialty Chemicals International Paper Company Paper Products Intuit Application Software Intuitive Surgical Healthcare Equipment Invesco Ltd. Asset Management and Custody Banks Iron Mountain Specialized REITs Jacobs Engineering Group Construction and Engineering Johnson & Johnson Pharmaceuticals Johnson Controls Auto Parts and Equipment Joy Global Construction Machinery and Heavy Trucks JPMorgan Chase & Co. Diversified Banks Juniper Networks Communications Equipment Kansas City Southern Railroads Kellogg Company Packaged Foods and Meats Keurig Green Mountain Packaged Foods and Meats KeyCorp.
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Here's a complete list of components that currently make up the S&P 500: Company Name Ticker Primary Industry 3M Company Industrial Conglomerates Abbott Laboratories Healthcare Equipment AbbVie Pharmaceuticals Accenture plc IT Consulting and Other Services ACE Limited Property and Casualty Insurance Actavis plc Pharmaceuticals Adobe Systems Incorporated Application Software Aetna Managed Healthcare Affiliated Managers Group Asset Management and Custody Banks AFLAC Life and Health Insurance Agilent Technologies Life Sciences Tools and Services AGL Resources Gas Utilities Air Products & Chemicals Industrial Gases Airgas, Industrial Gases Akamai Technologies Internet Software and Services Alcoa Aluminum Alexion Pharmaceuticals Biotechnology Allegheny Technologies Steel Allegion Plc Building Products Alliance Data Systems Corporation Data Processing and Outsourced Services Altera Corp. Semiconductors Altria Group Tobacco Amazon.com Internet Retail Ameren Corporation Multi-Utilities American Airlines Group Airlines American Electric Power Co. Electric Utilities American Express Company Consumer Finance American International Group Multi-line Insurance American Tower Corporation Specialized REITs Ameriprise Financial, Asset Management and Custody Banks AmerisourceBergen Corporation Healthcare Distributors Ametek Electrical Components and Equipment Amgen Biotechnology Amphenol Corporation Electronic Components Anadarko Petroleum Corporation Oil and Gas Exploration and Production Analog Devices Semiconductors Anthem Managed Healthcare Aon plc Insurance Brokers Apache Corp. Oil and Gas Exploration and Production Apartment Investment and Management Company Residential REITs Apple Technology Hardware, Storage and Peripherals Applied Materials Semiconductor Equipment Archer-Daniels-Midland Company Agricultural Products Assurant Multi-line Insurance AT&T Integrated Telecommunication Services Autodesk Application Software Automatic Data Processing Data Processing and Outsourced Services AutoNation Automotive Retail AutoZone, Automotive Retail Avago Technologies Limited Semiconductors Avalonbay Communities Residential REITs Avery Dennison Corporation Paper Packaging Baker Hughes Incorporated Oil and Gas Equipment and Services Ball Corporation Metal and Glass Containers Bank of America Corporation Diversified Banks Baxter International Healthcare Equipment BB&T Corporation Regional Banks Becton, Dickinson and Company Healthcare Equipment Bed Bath & Beyond Home Furnishing Retail Berkshire Hathaway Multi-Sector Holdings Best Buy Co. Computer and Electronics Retail Biogen Biotechnology BlackRock Asset Management and Custody Banks BorgWarner Auto Parts and Equipment Boston Properties Office REITs Boston Scientific Corporation Healthcare Equipment Bristol-Myers Squibb Company Pharmaceuticals Broadcom Corp. Semiconductors Brown-Forman Corporation Distillers and Vintners CA Systems Software Cablevision Systems Corporation Cable and Satellite Cabot Oil & Gas Corporation Oil and Gas Exploration and Production Cameron International Corporation Oil and Gas Equipment and Services Campbell Soup Company Packaged Foods and Meats Capital One Financial Corporation Consumer Finance Cardinal Health Healthcare Distributors CarMax Automotive Retail Carnival Corporation Hotels, Resorts and Cruise Lines Caterpillar Construction Machinery and Heavy Trucks CBRE Group Real Estate Services CBS Corporation Broadcasting Celgene Corporation Biotechnology CenterPoint Energy Multi-Utilities CenturyLink Integrated Telecommunication Services Cerner Corporation Health Care Technology CF Industries Holdings Fertilizers and Agricultural Chemicals CH Robinson Worldwide Air Freight and Logistics Chesapeake Energy Corporation Oil and Gas Exploration and Production Chevron Corporation Integrated Oil and Gas Chipotle Mexican Grill Restaurants Cigna Corp. Specialized REITs CSX Corp. Railroads Cummins Construction Machinery and Heavy Trucks CVS Health Corporation Drug Retail Danaher Corp. Industrial Conglomerates Darden Restaurants Restaurants DaVita HealthCare Partners Healthcare Services Deere & Company Agricultural and Farm Machinery Delphi Automotive PLC Auto Parts and Equipment Delta Air Lines Airlines DENTSPLY International Healthcare Supplies Devon Energy Corporation Oil and Gas Exploration and Production Diamond Offshore Drilling Oil and Gas Drilling DIRECTV Cable and Satellite Discover Financial Services Consumer Finance Discovery Communications (Class A) Broadcasting Discovery Communications (Class C) Broadcasting Dollar General Corporation General Merchandise Stores Dollar Tree General Merchandise Stores Dominion Resources Multi-Utilities Dover Corporation Industrial Machinery DR Horton Homebuilding Dr Pepper Snapple Group Soft Drinks DTE Energy Company Multi-Utilities Duke Energy Corporation Electric Utilities Dun & Bradstreet Corp. Research and Consulting Services E*TRADE Financial Corporation Investment Banking and Brokerage E. I. du Pont de Nemours and Company Diversified Chemicals Eastman Chemical Co. Diversified Chemicals Eaton Corporation plc Electrical Components and Equipment eBay Internet Software and Services Ecolab Specialty Chemicals Edison International Electric Utilities Edwards Lifesciences Corp. Healthcare Equipment Electronic Arts Home Entertainment Software Eli Lilly and Company Pharmaceuticals EMC Corporation Technology Hardware, Storage and Peripherals Emerson Electric Co. Electrical Components and Equipment Endo International plc Pharmaceuticals Ensco plc Oil and Gas Drilling Entergy Corporation Electric Utilities EOG Resources Oil and Gas Exploration and Production EQT Corporation Oil and Gas Exploration and Production Equifax Research and Consulting Services Equinix Internet Software and Services Equity Residential Residential REITs Essex Property Trust Residential REITs Eversource Energy Electric Utilities Exelon Corporation Electric Utilities Expedia Internet Retail Expeditors International of Washington Air Freight and Logistics Express Scripts Holding Company Healthcare Services ExxonMobil Corporation Integrated Oil and Gas F5 Networks Communications Equipment Facebook Internet Software and Services Family Dollar Stores General Merchandise Stores Fastenal Company Trading Companies and Distributors FedEx Corporation Air Freight and Logistics Fidelity National Information Services Data Processing and Outsourced Services Fifth Third Bancorp Regional Banks First Solar Semiconductors FirstEnergy Corp. Electric Utilities Fiserv Data Processing and Outsourced Services FLIR Systems Electronic Equipment and Instruments Flowserve Corp. Industrial Machinery Fluor Corporation Construction and Engineering FMC Corp. Diversified Chemicals FMC Technologies Oil and Gas Equipment and Services Ford Motor Co. Application Software SanDisk Corp. Technology Hardware, Storage and Peripherals SCANA Corp. Multi-Utilities Schlumberger Limited Oil and Gas Equipment and Services Scripps Networks Interactive Broadcasting Seagate Technology Public Limited Company Technology Hardware, Storage and Peripherals Sealed Air Corporation Paper Packaging Sempra Energy Multi-Utilities Sigma-Aldrich Corporation Specialty Chemicals Simon Property Group Retail REITs Skyworks Solutions Semiconductors SL Green Realty Corp. Office REITs Snap-on Incorporated Industrial Machinery Southern Company Electric Utilities Southwest Airlines Co. Airlines Southwestern Energy Co. Oil and Gas Exploration and Production Spectra Energy Corp. Oil and Gas Storage and Transportation St. Jude Medical Healthcare Equipment Stanley Black & Decker Industrial Machinery Staples Specialty Stores Starbucks Corporation Restaurants Starwood Hotels & Resorts Worldwide Hotels, Resorts and Cruise Lines State Street Corporation Asset Management and Custody Banks Stericycle Environmental and Facilities Services Stryker Corporation Healthcare Equipment SunTrust Banks Regional Banks Symantec Corporation Systems Software Sysco Corporation Food Distributors T. Rowe Price Group Asset Management and Custody Banks Target Corp. General Merchandise Stores TE Connectivity Ltd. Electronic Manufacturing Services TECO Energy Multi-Utilities Tenet Healthcare Corp. Healthcare Facilities Teradata Corporation IT Consulting and Other Services Tesoro Corporation Oil and Gas Refining and Marketing Texas Instruments Semiconductors Textron Aerospace and Defense The ADT Corporation Security and Alarm Services The AES Corporation Independent Power Producers and Energy Traders The Allstate Corporation Property and Casualty Insurance The Bank of New York Mellon Corporation Asset Management and Custody Banks The Boeing Company Aerospace and Defense The Charles Schwab Corporation Investment Banking and Brokerage The Chubb Corporation Property and Casualty Insurance The Clorox Company Household Products The Coca-Cola Company Soft Drinks The Dow Chemical Company Diversified Chemicals The Estée Lauder Companies Personal Products The Gap Apparel Retail The Goldman Sachs Group Investment Banking and Brokerage The Goodyear Tire & Rubber Company Tires and Rubber The Hartford Financial Services Group Multi-line Insurance The Hershey Company Packaged Foods and Meats The Home Depot Home Improvement Retail The Interpublic Group of Companies Advertising The J. M. Smucker Company Packaged Foods and Meats The Kroger Co. Food Retail The Macerich Company Retail REITs The Mosaic Company Fertilizers and Agricultural Chemicals The Nasdaq OMX Group Specialized Finance The PNC Financial Services Group Regional Banks The Priceline Group Internet Retail The Procter & Gamble Company Household Products The Sherwin-Williams Company Specialty Chemicals The TJX Companies Apparel Retail The Travelers Companies Property and Casualty Insurance The Walt Disney Company Movies and Entertainment The Western Union Company Data Processing and Outsourced Services Thermo Fisher Scientific Life Sciences Tools and Services Tiffany & Co.
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While the Dow weights stocks by share price, the S&P 500 index weights stocks by market cap, so it's driven by the biggest companies. Here's a complete list of components that currently make up the S&P 500: Company Name Ticker Primary Industry 3M Company Industrial Conglomerates Abbott Laboratories Healthcare Equipment AbbVie Pharmaceuticals Accenture plc IT Consulting and Other Services ACE Limited Property and Casualty Insurance Actavis plc Pharmaceuticals Adobe Systems Incorporated Application Software Aetna Managed Healthcare Affiliated Managers Group Asset Management and Custody Banks AFLAC Life and Health Insurance Agilent Technologies Life Sciences Tools and Services AGL Resources Gas Utilities Air Products & Chemicals Industrial Gases Airgas, Industrial Gases Akamai Technologies Internet Software and Services Alcoa Aluminum Alexion Pharmaceuticals Biotechnology Allegheny Technologies Steel Allegion Plc Building Products Alliance Data Systems Corporation Data Processing and Outsourced Services Altera Corp. Semiconductors Altria Group Tobacco Amazon.com Internet Retail Ameren Corporation Multi-Utilities American Airlines Group Airlines American Electric Power Co. Electric Utilities American Express Company Consumer Finance American International Group Multi-line Insurance American Tower Corporation Specialized REITs Ameriprise Financial, Asset Management and Custody Banks AmerisourceBergen Corporation Healthcare Distributors Ametek Electrical Components and Equipment Amgen Biotechnology Amphenol Corporation Electronic Components Anadarko Petroleum Corporation Oil and Gas Exploration and Production Analog Devices Semiconductors Anthem Managed Healthcare Aon plc Insurance Brokers Apache Corp. Oil and Gas Exploration and Production Apartment Investment and Management Company Residential REITs Apple Technology Hardware, Storage and Peripherals Applied Materials Semiconductor Equipment Archer-Daniels-Midland Company Agricultural Products Assurant Multi-line Insurance AT&T Integrated Telecommunication Services Autodesk Application Software Automatic Data Processing Data Processing and Outsourced Services AutoNation Automotive Retail AutoZone, Automotive Retail Avago Technologies Limited Semiconductors Avalonbay Communities Residential REITs Avery Dennison Corporation Paper Packaging Baker Hughes Incorporated Oil and Gas Equipment and Services Ball Corporation Metal and Glass Containers Bank of America Corporation Diversified Banks Baxter International Healthcare Equipment BB&T Corporation Regional Banks Becton, Dickinson and Company Healthcare Equipment Bed Bath & Beyond Home Furnishing Retail Berkshire Hathaway Multi-Sector Holdings Best Buy Co. Computer and Electronics Retail Biogen Biotechnology BlackRock Asset Management and Custody Banks BorgWarner Auto Parts and Equipment Boston Properties Office REITs Boston Scientific Corporation Healthcare Equipment Bristol-Myers Squibb Company Pharmaceuticals Broadcom Corp. Semiconductors Brown-Forman Corporation Distillers and Vintners CA Systems Software Cablevision Systems Corporation Cable and Satellite Cabot Oil & Gas Corporation Oil and Gas Exploration and Production Cameron International Corporation Oil and Gas Equipment and Services Campbell Soup Company Packaged Foods and Meats Capital One Financial Corporation Consumer Finance Cardinal Health Healthcare Distributors CarMax Automotive Retail Carnival Corporation Hotels, Resorts and Cruise Lines Caterpillar Construction Machinery and Heavy Trucks CBRE Group Real Estate Services CBS Corporation Broadcasting Celgene Corporation Biotechnology CenterPoint Energy Multi-Utilities CenturyLink Integrated Telecommunication Services Cerner Corporation Health Care Technology CF Industries Holdings Fertilizers and Agricultural Chemicals CH Robinson Worldwide Air Freight and Logistics Chesapeake Energy Corporation Oil and Gas Exploration and Production Chevron Corporation Integrated Oil and Gas Chipotle Mexican Grill Restaurants Cigna Corp. Automobile Manufacturers Fossil Group Apparel, Accessories and Luxury Goods Franklin Resources Asset Management and Custody Banks Freeport-McMoRan Diversified Metals and Mining Frontier Communications Corporation Integrated Telecommunication Services GameStop Corp. Computer and Electronics Retail Gannett Co. Publishing Garmin Ltd. Consumer Electronics General Dynamics Corporation Aerospace and Defense General Electric Company Industrial Conglomerates General Growth Properties, Inc Retail REITs General Mills Packaged Foods and Meats General Motors Company Automobile Manufacturers Genuine Parts Company Distributors Genworth Financial Multi-line Insurance Gilead Sciences Biotechnology Google (Class C) Internet Software and Services Google (Class A) Internet Software and Services H&R Block Specialized Consumer Services Halliburton Company Oil and Gas Equipment and Services Hanesbrands Apparel, Accessories and Luxury Goods Harley-Davidson, Motorcycle Manufacturers Harman International Industries, Incorporated Consumer Electronics Harris Corporation Communications Equipment Hasbro Leisure Products HCA Holdings Healthcare Facilities HCP Healthcare REITs Health Care REIT Healthcare REITs Helmerich & Payne Oil and Gas Drilling Henry Schein Healthcare Distributors Hess Corporation Oil and Gas Exploration and Production Hewlett-Packard Company Technology Hardware, Storage and Peripherals Honeywell International Aerospace and Defense Hormel Foods Corporation Packaged Foods and Meats Hospira Pharmaceuticals Host Hotels & Resorts Hotel and Resort REITs Hudson City Bancorp Thrifts and Mortgage Finance Humana Managed Healthcare Huntington Bancshares Incorporated Regional Banks Illinois Tool Works Industrial Machinery Ingersoll-Rand Plc Industrial Machinery Integrys Energy Group Multi-Utilities Intel Corporation Semiconductors Intercontinental Exchange Specialized Finance International Business Machines Corporation IT Consulting and Other Services International Flavors & Fragrances Specialty Chemicals International Paper Company Paper Products Intuit Application Software Intuitive Surgical Healthcare Equipment Invesco Ltd. Asset Management and Custody Banks Iron Mountain Specialized REITs Jacobs Engineering Group Construction and Engineering Johnson & Johnson Pharmaceuticals Johnson Controls Auto Parts and Equipment Joy Global Construction Machinery and Heavy Trucks JPMorgan Chase & Co. Diversified Banks Juniper Networks Communications Equipment Kansas City Southern Railroads Kellogg Company Packaged Foods and Meats Keurig Green Mountain Packaged Foods and Meats KeyCorp.
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8365.0
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2015-05-20 00:00:00 UTC
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American Airlines Group (AAL) Shares Cross Below 200 DMA
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-shares-cross-below-200-dma-2015-05-20
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nan
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nan
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $45.31, changing hands as low as $44.36 per share. American Airlines Group Inc shares are currently trading off about 6.5% on the day. The chart below shows the one year performance of AAL shares, versus its 200 day moving average:
Looking at the chart above, AAL's low point in its 52 week range is $28.10 per share, with $56.20 as the 52 week high point - that compares with a last trade of $44.35.
According to the ETF Finder at ETF Channel, AAL makes up 4.68% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading lower by about 1.7% on the day Wednesday.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $45.31, changing hands as low as $44.36 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $28.10 per share, with $56.20 as the 52 week high point - that compares with a last trade of $44.35. According to the ETF Finder at ETF Channel, AAL makes up 4.68% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading lower by about 1.7% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $45.31, changing hands as low as $44.36 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $28.10 per share, with $56.20 as the 52 week high point - that compares with a last trade of $44.35. According to the ETF Finder at ETF Channel, AAL makes up 4.68% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading lower by about 1.7% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $45.31, changing hands as low as $44.36 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $28.10 per share, with $56.20 as the 52 week high point - that compares with a last trade of $44.35. According to the ETF Finder at ETF Channel, AAL makes up 4.68% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading lower by about 1.7% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $45.31, changing hands as low as $44.36 per share. According to the ETF Finder at ETF Channel, AAL makes up 4.68% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading lower by about 1.7% on the day Wednesday. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $28.10 per share, with $56.20 as the 52 week high point - that compares with a last trade of $44.35.
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8366.0
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2015-05-19 00:00:00 UTC
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Top-Rated Stock Picks and Most-Read Stories at Nasdaq.com: May 10 - 16, 2015
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AAL
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https://www.nasdaq.com/articles/top-rated-stock-picks-and-most-read-stories-nasdaqcom-may-10-16-2015-2015-05-19
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nan
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nan
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Welcome to the latest installment of community stock picks and overview of the most-read stories of the week. We're taking a look at stocks chosen by members of the Nasdaq.com community from May 10 - 16.
Bullish Stocks: Here’s What You Said:
American Airlines (AAL): Past earnings and future earnings as well as upside growth by year end.
Arotech Corporation (ARTX): Great management team, highly committed to the technology.
King Digital (KING): King has awesome games, a lot of potential to grow. Good management, new games are waited for.
ZELTIQ Aesthetics (ZLTQ): Incredible market potential; explosive growth; practice support drives brand recognition as market leader.
Apple (AAPL): The new watch came out and sold out in hours. There is also talk of entering the electric vehicle market, and the iPhone is going to get a bigger screen.
Top Five Most-Read Stories on Nasdaq.com:
1. Is Tesla (TSLA) Really Worth $350 a Share?
2. 3 Energy Stocks Set to Soar When American Oil Recovers
3. US Foods Will Kill Sysco Deal if Court Delays Merger, Executive Says
4. Rival Executive Testifies on Sysco-US Foods Merger
5. Bojangles' (BOJA) IPO Is Too Good an Opportunity to Miss
Comment:
What do you think? Do you like the stock picks, or are you unconvinced? Give us your take in the comments below!
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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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Bullish Stocks: Here’s What You Said: American Airlines (AAL): Past earnings and future earnings as well as upside growth by year end. Welcome to the latest installment of community stock picks and overview of the most-read stories of the week. Arotech Corporation (ARTX): Great management team, highly committed to the technology.
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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. Bullish Stocks: Here’s What You Said: American Airlines (AAL): Past earnings and future earnings as well as upside growth by year end. Welcome to the latest installment of community stock picks and overview of the most-read stories of the week.
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Bullish Stocks: Here’s What You Said: American Airlines (AAL): Past earnings and future earnings as well as upside growth by year end. Welcome to the latest installment of community stock picks and overview of the most-read stories of the week. King Digital (KING): King has awesome games, a lot of potential to grow.
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Bullish Stocks: Here’s What You Said: American Airlines (AAL): Past earnings and future earnings as well as upside growth by year end. Welcome to the latest installment of community stock picks and overview of the most-read stories of the week. Good management, new games are waited for.
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8367.0
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2015-05-16 00:00:00 UTC
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The Single Worst Practice of the Airlines
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AAL
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https://www.nasdaq.com/articles/single-worst-practice-airlines-2015-05-16
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nan
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nan
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Americans love to hate the airlines. As airlines have transformed themselves over the past decade to become sustainably profitable, they have added bag fees, dropped meal service, reduced legroom, and adopted a litany of other fees.
All of these practices have made airline customers unhappy. Yet for the most part, these have been necessary changes to ensure that airlines are consistently profitable. While airfares have risen significantly in the past few years, they are still relatively low by historical standards, and would be higher without these changes.
Southwest Airlines is a rarity in that it doesn't charge change fees.
But one innovation is particularly hard to swallow. The single worst practice of the airlines today is the imposition of punitive change fees. Change fees are often exorbitant compared to the actual costs they impose on airlines and create a massive amount of customer anger . This drives customers to Southwest Airlines , which doesn't charge change fees.
The purpose of change fees
Most of the fees imposed by airlines in recent years have been directly tied to services that some (but not all) passengers need that are costly to provide. For example, handling checked luggage or supervising an unaccompanied minor clearly imposes costs on an airline that it wouldn't incur for an adult with no checked luggage. Thus, it's reasonable that airlines charge some level of bag fees and unaccompanied minor fees.
The basic justification for change fees is also relatively straightforward. When a passenger changes or cancels a ticket, it may no longer be feasible to resell that seat, especially if it is close to the day of travel.
This is a very real cost of doing business. Airline revenue management systems are carefully calibrated to sell just the right number of tickets at just the right time for just the right price. A sudden influx of canceled or changed tickets at the last minute will lead to lower revenue for that flight (and won't significantly reduce costs for the flight).
But change fees are excessive
That said, change fees tend to be excessive at U.S. airlines. The top three carriers, American Airlines , Delta Air Lines , and United Continental , all charge a $200 fee for changes to nonrefundable domestic tickets. Change fees can be more than twice that amount for international flights.
The biggest U.S. airlines charge change fees of $200 for domestic flights.
Most low-cost carriers have lower change fees, but these are still frequently $100 or more. Only Southwest Airlines has maintained a generous no-change-fee policy.
What makes these change fees the single worst practice of the airlines is that the fees bear no relationship to the actual cost to the airline. A fee as high as $200 might be reasonable for changing a long-haul transcontinental itinerary less than a week in advance. By that point, there isn't much time for the revenue management system to adjust in order to resell that seat.
On the other hand, a $200 fee is clearly excessive for changing a ticket months in advance -- particularly if the ticket was fairly cheap to begin with. Most airline tickets are sold within the last two months before the flight, so that leaves plenty of time for the airline to find another customer to fill the empty seat.
There's a middle ground
While almost all airlines (except Southwest) have clung to -- and even increased -- their high change fees, one jumped off the bandwagon less than two years ago.
In late 2013, Alaska Air increased its change fee from $75 (or $100 if made through a call center) to $125. But at the same time, it eliminated fees for flight changes made at least 60 days in advance, even for the cheapest tickets.
Alaska Airlines has stopped charging for ticket changes made at least two months in advance.
It's obviously not as good as Southwest Airlines' no-change-fee policy, but it's definitely a big improvement compared to the status quo. Customers can book tickets far in advance without being 100% sure of their plans. Since it doesn't cost Alaska Airlines much to change a ticket when it still has two months or more to fill the plane, it's a nice gesture to make the change for free. Meanwhile, the airline is still compensated for more-disruptive changes closer to the travel date.
Alaska's larger rivals should consider adopting this type of model, as they would likely gain some customer goodwill without giving up much revenue. In fact, waiving the fees for ticket changes made far in advance could help them gain market share, as some travelers fly Southwest because they can book flights "worry-free" without being sure of their plans.
Ideally, airlines would go beyond this and dramatically reduce (if not eliminate) fees for changes and cancellations made one to two months in advance. During that window, the airline still has a very high probability of reselling the seat. A relatively nominal fee of $25 to $50 would compensate the airline for the small risk of having the seat go empty. However, it's unrealistic to expect change fees to disappear entirely.
The single worst practice of the airlines isn't the mere act of charging change fees, but rather the excessive level of these fees and the complete disconnect to the airlines' actual costs. Alaska Airlines' compromise shows a way forward that could be good for both airlines and their customers.
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The article The Single Worst Practice of the Airlines originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of United Continental Holdings, and is long January 2017 $40 calls on Delta Air Lines. 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 .
Copyright © 1995 - 2015 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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The top three carriers, American Airlines , Delta Air Lines , and United Continental , all charge a $200 fee for changes to nonrefundable domestic tickets. In fact, waiving the fees for ticket changes made far in advance could help them gain market share, as some travelers fly Southwest because they can book flights "worry-free" without being sure of their plans. Adam Levine-Weinberg owns shares of United Continental Holdings, and is long January 2017 $40 calls on Delta Air Lines.
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Thus, it's reasonable that airlines charge some level of bag fees and unaccompanied minor fees. The top three carriers, American Airlines , Delta Air Lines , and United Continental , all charge a $200 fee for changes to nonrefundable domestic tickets. The single worst practice of the airlines isn't the mere act of charging change fees, but rather the excessive level of these fees and the complete disconnect to the airlines' actual costs.
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But change fees are excessive That said, change fees tend to be excessive at U.S. airlines. What makes these change fees the single worst practice of the airlines is that the fees bear no relationship to the actual cost to the airline. The single worst practice of the airlines isn't the mere act of charging change fees, but rather the excessive level of these fees and the complete disconnect to the airlines' actual costs.
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But at the same time, it eliminated fees for flight changes made at least 60 days in advance, even for the cheapest tickets. Alaska Airlines has stopped charging for ticket changes made at least two months in advance. The single worst practice of the airlines isn't the mere act of charging change fees, but rather the excessive level of these fees and the complete disconnect to the airlines' actual costs.
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8368.0
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2015-05-14 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines Group, Boeing, Southwest Airlines, JetBlue Airways and United Continental Holdings - Press Releases
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-boeing-southwest-airlines
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nan
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nan
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For Immediate Release
Chicago, IL - May 14, 2015 - 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 the American Airlines Group (AAL ), Boeing Company ( BA ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. (JBLU ) and United Continental Holdings, Inc. ( UAL ).
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 week that went by saw American Airlines Group (AAL ) introduce its Dreamliner 787 service between Dallas and Chicago. The company plans to soon extend the use of these jets manufactured by TheBoeing Company ( BA ) for international operations as well. The carrier said that Boeing 787-8 Dreamliners will fly effective Jun 2 between Dallas/Fort Worth International Airport and Beijing Capital International Airport.
In addition, companies like Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. (JBLU ), American Airlines Group and United Continental Holdings, Inc. ( UAL ) unveiled their traffic data for Apr 2015.
While Southwest Airlines and JetBlue Airways recorded a healthy rise in traffic for the month, data released by peers United Continental Holdings and American Airlines Group disappointed. Also, taking into account the rise in oil prices , United Continental and American Airlines hauled up their respective forecasts for fuel cost per gallon for the second quarter.
The NYSE ARCA Airline index gained a moderate 1.61% over the past five trading days.
(Read the last Airline Stock Roundup for May 6, 2015 )
Recap of the Past Week's Most Important Stories
1. In a bid to improve customer satisfaction, American Airlines Group has started offering Dreamliner 787 service between Dallas and Chicago. With features such as improved aerodynamics, advanced engine technology, fully lie-flat Business Class seats and satellite Wi-Fi capability, the jet will boost customer service and convenience for the carrier, in turn attracting more fliers (read more: American Airlines Next to Add Dreamliner 787 ).
Furthermore, American Airlines, while unveiling its traffic numbers for the month of April, stated that due to the recent upward movement in oil prices, it expects to shell out more for fuel per gallon in the second quarter of 2015 than estimated previously (read more: American Airlines Group April Traffic Dips, Fuel Cost to Rise ).
2. United Continental Holdings reported a marginal year-over-year increase in air traffic - measured in revenue passenger miles or RPMs - for April. The company too expects to pay more in fuel costs per gallon in the second quarter in view of rising oil prices (read more: United Continental April Traffic Up )
3. JetBlue Airways unveiled healthy traffic data for the month of April on the back of increased travel demand. Traffic - measured in revenue passenger miles - came in at 3.46 million, up 9% year over year. On a year-over-year basis, capacity climbed 6.6% to 4.04 million in Apr 2015. Load factor (percentage of seats filled by passengers) improved 180 basis points to 85.7% on the back of a greater increase in RPMs compared to capacity. The company registered a completion factor of 99.4%, with 80.4% of flights on schedule. We expect the carrier to deliver healthy traffic growth in the coming months as well.
4. April air traffic at Southwest Airlines improved 8.6% on a 6.7% rise in capacity. Another important metric, load factor, improved 140 basis points to 83.1%. Passenger revenue per available seat mile (a measure of unit revenue) decreased 2% for the month on a year-over-year basis (read more: Southwest Airlines Continues to Gain on April Traffic Growth ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
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.
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AMER AIRLINES (AAL): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
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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 the American Airlines Group (AAL ), Boeing Company ( BA ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. (JBLU ) and United Continental Holdings, Inc. ( UAL ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup The week that went by saw American Airlines Group (AAL ) introduce its Dreamliner 787 service between Dallas and Chicago. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): 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 the American Airlines Group (AAL ), Boeing Company ( BA ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. (JBLU ) and United Continental Holdings, Inc. ( UAL ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup The week that went by saw American Airlines Group (AAL ) introduce its Dreamliner 787 service between Dallas and Chicago.
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Stocks recently featured in the blog include the American Airlines Group (AAL ), Boeing Company ( BA ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. (JBLU ) and United Continental Holdings, Inc. ( UAL ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup The week that went by saw American Airlines Group (AAL ) introduce its Dreamliner 787 service between Dallas and Chicago.
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Stocks recently featured in the blog include the American Airlines Group (AAL ), Boeing Company ( BA ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. (JBLU ) and United Continental Holdings, Inc. ( UAL ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup The week that went by saw American Airlines Group (AAL ) introduce its Dreamliner 787 service between Dallas and Chicago. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): 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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8369.0
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2015-05-13 00:00:00 UTC
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Investing in the Online Travel Industry: Does Your Portfolio Need a Getaway?
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AAL
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https://www.nasdaq.com/articles/investing-online-travel-industry-does-your-portfolio-need-getaway-2015-05-13
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nan
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nan
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The online booking option has actually been around longer than you think. American Airlines was an innovator with travel available at your fingertips, and it was only a matter of time before the Internet caught up.
With companies like Expedia buying up the underdogs to fuel growth, one could question how it might hold up against current market leader Priceline .
A full transcript follows the video.
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Sean O'Reilly: Pack your bags, Fools! We're talking about the travel industry, on this consumer goods edition of Industry Focus.
Greetings, Fools! I am Sean O'Reilly, joining you here from Fool headquarters in beautiful Alexandria, Virginia, just south of the nation's capital in Washington D.C. And to my left is the one and only Vincent Shen. How are you today, sir?
Vincent Shen: I'm doing well, Sean.
O'Reilly: So, we're talking about the travel industry, and I have a feeling we're not talking about travel agents, are we?
Shen: Virtual travel agents.
O'Reilly: Virtual? Oh, wow. Fancy. That's very poetic. We're going to be talking about the Pricelines and the Expedias of the world, but I actually did a little research before we came down here, aided by your friend Wikipedia. I found some interesting tidbits about how all this got started. Guess when the online travel industry actually -- what decade it actually first popped up?
Shen: I'm going to guess that it came around with the advent of the Internet.
O'Reilly: You're half right.
Shen: Half right? Why's that?
O'Reilly: One of these systems -- all of this goes back to online travel booking, getting started long ago in the 1970s.
Shen: Online travel in the '70s? How is that?
O'Reilly: Hear me out. American Airlines began offering travel agencies access to their electronic reservation system that was originally internal, and it's called Sabre. It's S-A-B-R-E.
Shen: I like that name.
O'Reilly: That happened in 1978, and that eventually found its way to America Online in the 1990s.
Shen: Oh!
O'Reilly: The crazy thing is, the Priceline's and the Kayak's and everything today, Sabre is still the internal system that they use to get flight data for searches that people run.
Shen: So, that's lasted 30, 40 years.
O'Reilly: Yeah. It's a 40 year old internal -- it's kind of like the Internet started as a military type -- that's what this was. It was an internal thing for American Airlines. So, they just treated travel agents, and we still use it today to get some of our American Airlines flights through Priceline.com and stuff.
Shen: Oh, wow! That's very interesting.
O'Reilly: The more you know. Ha, ha, ha. So Vince, how big is this industry? I assume we're going to be talking about billions, with a B.
Shen: Yeah. There's some -- it depends on how you look at it. Overall, the U.S. tourism market's $96 billion a year industry.
O'Reilly: Does that include international?
Shen: I'm actually no 100% certain on that. I think that is inclusive though.
O'Reilly: Either way, it goes groceries, cars, then travel.
Shen: Yeah. So, obviously a very big industry and with that in mind, for the online travel agents -- like these Priceline, Expedia, Orbitz companies -- they're definitely going through a period of very fierce competition. Not just among themselves, but there's new players coming in. ones that I've used recently myself. Things like Airbnb, and even Amazon and Google are kind of getting into the flight booking business.
O'Reilly: So, who are the major players as things stand now?
Shen: Well, originally people would talk about the big four who controlled about 95% if the online booking market. Those being Priceline, Orbitz, Expedia, and Travelocity . But those are going to quickly become the big two due to some...
O'Reilly: Very soon. We'll get to that in a second.
Shen: Due to the fact that Expedia, in the past two months -- in January and in February -- they scooped up two of the smaller players. Those being Travelocity and Orbitz.
O'Reilly: Yeah. One of the things that sticks out to me when I look at this industry like Priceline, is the number of websites that they'll own, because when we say they'll own the majority of the market, it's not quite a monopoly situation, but they don't do it through just their namesake websites. Like, Expedia.com, and Priceline.com. For example: Expedia, this website was originally owned and created by Microsoft -- fun fact -- it was actually Microsoft's first Internet property.
They own 30 localized sites in 30 different countries. Priceline actually makes something like 60% of its net income -- don't quote me, folks -- but a big chunk of that income in Europe through all these localized sites for each of the countries. But they've kind of perfected this model, because these companies literally mint money.
Shen: Yeah. They're doing very, very well. Like you said, when we talk about an Expedia or a Priceline they have this entire umbrella of sites and brands within their holdings. So, for example: Priceline has their Priceline namesake site, but they also have Booking.com, and they also picked up Kayak...
O'Reilly: RentalCars.com, Hotels.com, they own OpenTable -- booking a little restaurant action there. They just bought Asian based site Agoda.com. So, they've got scores of these sites, and it's just...
Shen: The OpenTable deal was definitely -- I'm glad that you mentioned that. They picked that up last summer for $2.6 billion.
O'Reilly: What did you think about that? It was a little...
Shen: I think the issue is, like I said, very heightened levels of competition, combined with the fact that right now these companies hold, overall, about -- I think it was something along the lines of 45% of total travel sales in the country.
O'Reilly: Oh, wow!
Shen: The issue is that a lot of what remains of that is done through specialist business. Like booking for business travelers where they're not going to be as concerned about their rates and things along those lines. So, they're reaching this point where things are capping off. So, what we're seeing is some of this consolidation, but also companies like Priceline are trying to move into unconventional areas to boost their growth.
O'Reilly: They can certainly afford it. I just hopped over to the S&P Capital IQ earlier; guess what their return on equity was for the last five years, on average.
Shen: For Priceline?
O'Reilly: Yeah.
Shen: Ooh, I've seen these numbers before. They're pretty impressive. 30%?
O'Reilly: Yeah. It's 36.98%. They got as high into the 40s, and for comparison, Warren Buffett, one of his favorite companies -- Coke -- is in the low 30s. So, they are minting money. It is staggering how much they -- free cash flow of $2.8 billion, and all this can be had for the low, low P/E of 21.
Shen: That's really surprising more than anything, actually.
O'Reilly: Well, it's lower than the other guys, isn't it?
Shen: Keep in mind that Priceline's current share price is almost $1200 a share.
O'Reilly: Stock split.
Shen: Market cap's around $60 billion, then they grossed their -- surprisingly, in 2014 -- their gross bookings were very similar to Expedia's. Gross booking around $50 billion and I was really surprised. Considering some of the growth numbers they've been putting up for their 5 year CAGR growth rate for their revenue and earnings were about 5% for the past five years. It's impressive.
So, 21 times for expected 2015 earnings for the multiple is not bad. Just for a little bit of context, Orbitz -- which got picked up in February by Expedia -- that $12 offer per share, which was a 25% premium to the last closing price -- was about 75x expected earnings for Orbitz. So, that's a pretty rich valuation.
O'Reilly: Yeah. That's what I couldn't figure out, because you look at Priceline and Expedia from an investment standpoint and Expedia is awesome as well. They've got a market cap of $13 billion, net income of $400 million, free cash flow each year over $1 billion and you compare that to Priceline. It's like "Okay, they're smaller, but they're doing equally well." Then it kind of staggers off from there because Orbitz are not nearly as strong a business. I'm like "why are they getting acquired?"
Shen: Well, I think it's just the fact that -- for Expedia especially -- the growth avenue is shrinking. So, it's ultimately and additive. I think they're expecting $75 million in cost savings, for example. So, within the industry it works for them. It also pushes them up a little bit so their market share for overall travel is about 6% -- Priceline's about 5% -- they're the two biggest once you factor in the combined entity. Keep in mind that Expedia with Orbitz is going to have Expedia, Hotels.com, Travelocity, Hotwire, Trivago, CheapTickets; that's a lot of...
O'Reilly: I forgot about Hotwire.
Shen: That pretty much is most of the sites that I've considered using when I look up hotels, airfare, and things along that line.
O'Reilly: Yeah. I think I'm a Kayak man. I don't know.
Shen: Well, Priceline likes that then.
O'Reilly: Yeah. They own that. So, what do you think is going to happen with the industry going forward five, ten years? Is this an "Okay, in 10 years it will be a duopoly and it that will be it. Slow growth, making tons of money, paying lots of dividends." Something like that?
Shen: That's tough to say. I think there's some new entrants to the market. There always seems to be something new in the industry. That could kind of shake things up. When we were walking down here I was telling you about Google. They paid $700 million for ITA software, which provided them with the technology that they need to essentially search the web, pull routes, pull fares, for their service called Google Flight Search.
So, that launched a few years ago. I don't think it's taken off significantly, but that's the kind of thing where, if Google decided to push their resources into it...
O'Reilly: What you're saying -- you don't think they want to?
Shen: I think the reason is -- some people argue the reason why they may be reluctant is because Expedia and Priceline, I'm sure you've seen some of their commercials -- they're huge ad spenders. I think the numbers for those two companies, they make up about 5% of Google's advertising revenue.
O'Reilly: 5% of all of Google's advertising revenues.
Shen: So, the issue there being, do they really want to cannibalize, or essentially get on the bad side of...
O'Reilly: Yeah, bite the hand that feeds you.
Shen: Yeah, very substantial customers.
O'Reilly: This is -- unrelated to what we're talking about, but it's kind of interesting how Google always sites non-search engines as a competition, because -- what was it? Sergey Brin -- somebody over at Google -- noted that Amazon is actually their main competition. When you go to look at something -- what a back hat costs, or something -- you go to Amazon, and not to Google. They want you to go to Google.
Shen: Yeah, you're right.
O'Reilly: It's interesting that they can't do the flights -- because logically you should just be able to type in "D.C. to Orlando" on Google, but they might get nervous if you do that.
Shen: Well, I'm glad you mentioned Amazon, too. There's somebody else who's known for having...
O'Reilly: Oh, that's right!
Shen: ...has a reputation for when they want to get into a new venture, into a new market, they're very aggressive. They are kind of testing the waters now with something called Amazon Destination. So, this is focused on a handful of select markets. New York, L.A., Seattle, and it's also focused on the idea of getaway destinations which are basically within a reasonable travel distance of these areas.
They only have -- I'm pretty sure the only offer is hotel bookings at the moment, but if things take off for this and they decide to go to a national level, who know what else that can mean for the competition in the industry.
O'Reilly: That Bezos is pretty much a relentless competitor. I checked that out -- that completely slipped my mine -- but, yeah. I checked that out when it came out. The Amazon new business line they have there.
Shen: Destinations.
O'Reilly: Yeah, and it has a very northeastern-y feel to it.
Shen: Oh, really?
O'Reilly: Yeah. It has a lot of "coastal Maine".
Shen: Well, there you go. That may have to do with, like I said, they're focused on a few of these markets. One of them being New York.
O'Reilly: Yeah. It seems like we've got -- the [..] entry you make a website, or obviously a little bit lower where you need the technology to be able to pull all this data and everything, but yeah. Maybe the Airbnbs and the Amazons and everything could actually generate some modest competition for Priceline's properties, and Expedia and stuff.
Shen: It's definitely possible. I think overall, after this M&A activity starts coming down, you have these two big players between Priceline and Expedia; they're certainly in really good positions though. I don't want to say that their growth trajectory is not good because they're going to be in a good position to sign up more hotels for their services, negotiate good rates for customers, negotiate commissions for themselves. So, the more market share they hold the better they're going to be for any negotiations.
O'Reilly: Yeah. It seems for these companies, at the end of the day, the proof to me that they're going to have bright futures has been their ability to create local websites. The success they've had -- one of the biggest barriers to a Wal-Mart right now for example -- they can't expand outside the United States to save their lives.
Target got destroyed in Canada and these American companies like Priceline where they've been able to create these localized websites in the local language, get locals to create the websites for them, and it's worked super well for them.
Shen: Yeah. The big market for a lot of companies these days -- a lot of them being in China -- I think China is now the biggest spender for tourism and travel, but I'm pretty sure a very small percentage of their bookings in that country are done online. So, there's a huge opportunity there as that develops. I would not be surprised if people are going to be scrambling trying to pick up a piece of that pie.
O'Reilly: For sure. Well, before we go do you have any -- if you had to pick one stock in this industry which one would you pick?
Shen: I think I'd go with Priceline. I really like the valuation. Like you said, some of the RE numbers are very impressive. It's not that I don't like Expedia, it's just that they picked up Wotif last year -- the Australian travel company. They have Travelocity in January, they have Orbitz in February; that's a lot of integration that they're going to need to do.
O'Reilly: Maybe need to slow it down, yeah.
Shen: And that's just a little bit of uncertainty and risk for them. I think Priceline, where it's at, is definitely a good option.
O'Reilly: Very cool. I happen to agree with you, for sure.
Shen: Cool.
O'Reilly: Very good. Well, thanks for your thoughts, Vince.
Shen: Thank you, Sean.
O'Reilly: Before we go, listeners, I want to make everybody aware of a very special offer for all of our Industry Focus listeners. If you're looking for more Foolish stock ideas, Stock Advisor may be the service for you. It is our flagship newsletter started more than 10 years ago by Motley Fool co-founders Tom and David Gardner. We're offering the lowest price out there for all of our Industry Focus listeners. That is $98 for two a two year subscription to Stock Advisor.
You will get two stock recommendations every single month with insight from our team of analysts. Just go to focus.fool.com to take advantage of that deal. Once again that is focus.fool.com. As always, people on this program may have interests in the stocks that they talk about, and the Motley Fool may have formal recommendations for or against those stocks. So, don't buy or sell anything based solely on what you hear on this program. For Vincent Shen, I'm Sean O'Reilly. Thanks for listening, and Fool on!
The article Investing in the Online Travel Industry: Does Your Portfolio Need a Getaway? originally appeared on Fool.com.
Sean O'Reilly has no position in any stocks mentioned. Vincent Shen has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, Coca-Cola, Google (A shares), Google (C shares), and Priceline Group. The Motley Fool owns shares of Amazon.com, Apple, Google (A shares), Google (C shares), and Priceline Group and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. 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 - 2015 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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I am Sean O'Reilly, joining you here from Fool headquarters in beautiful Alexandria, Virginia, just south of the nation's capital in Washington D.C. And to my left is the one and only Vincent Shen. American Airlines began offering travel agencies access to their electronic reservation system that was originally internal, and it's called Sabre. It was a little... Shen: I think the issue is, like I said, very heightened levels of competition, combined with the fact that right now these companies hold, overall, about -- I think it was something along the lines of 45% of total travel sales in the country.
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They've got a market cap of $13 billion, net income of $400 million, free cash flow each year over $1 billion and you compare that to Priceline. The Motley Fool recommends Amazon.com, Apple, Coca-Cola, Google (A shares), Google (C shares), and Priceline Group. The Motley Fool owns shares of Amazon.com, Apple, Google (A shares), Google (C shares), and Priceline Group and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola.
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O'Reilly: The more you know. O'Reilly: What did you think about that? There's somebody else who's known for having... O'Reilly: Oh, that's right!
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Things like Airbnb, and even Amazon and Google are kind of getting into the flight booking business. Shen: For Priceline? Shen: I think I'd go with Priceline.
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8370.0
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2015-05-12 00:00:00 UTC
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American Airlines Group April Traffic Dips, Fuel Cost to Rise - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-april-traffic-dips-fuel-cost-to-rise-analyst-blog-2015-05-12
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nan
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nan
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Premier passenger carrier American Airlines Group Inc.AAL posted a slight decline in air traffic in the month of April, this year. Traffic - measured in revenue passenger miles (RPMs) - came in at 18.1 billion, down 0.3% year over year. Weakness in the Latin American and Atlantic divisions hurt results.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) increased 1.3% to 22.1 billion in Apr 2015. Load factor (percentage of seats filled by passengers), however, fell to 81.6% from 82.9% due to the increase in capacity as RPMs declined.
For the first four months of 2015, American Airlines generated RPMs of 68.25 billion (down 1.1% from the corresponding period last year) and ASMs of 84.92 billion (down 0.4% year over year). Meanwhile, the load factor declined 60 basis points year over year to 80.4%.
Fuel Cost Forecast Revised Upwards
In view of the recent upward movement in oil prices , the Fort Worth, TX-based carrier apprehends that it will have to pay more for fuel per gallon in the second quarter of 2015 than estimated previously. The carrier now projects average fuel cost of $1.94 to $1.99 for the second quarter (previous forecast: $1.84 to $1.89 per gallon).
Adjusted pre-tax margins might shrink as a result. The carrier now expects adjusted pre-tax margins for the second quarter in the range of 17% to19% (previous forecast: 18% to 20%). Passenger revenue per available seat mile (PRASM: a measure of unit revenue) for the second quarter is still projected to decline in the range of 4% to 6%.
We note that American Airlines is not the only carrier to revise its estimates for fuel costs per gallon upward. United Continental Holdings Inc. UAL also said recently that it expects to pay more for fuel per gallon in the ongoing quarter than estimated previously. The average fuel cost is now projected at $2.17 to $2.22, including the impact of fuel hedges (previous forecast: $2.10 to $2.15 per gallon).
Zacks Rank
American Airlines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include JetBlue Airways JBLU and Hawaiian Holdings HA . Both stocks carry 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
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): 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 a slight decline in air traffic in the month of April, this year. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor (percentage of seats filled by passengers), however, fell to 81.6% from 82.9% due to the increase in capacity as RPMs declined.
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): 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 a slight decline in air traffic in the month of April, this year. Zacks Rank American Airlines currently carries a Zacks Rank #3 (Hold).
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): 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 a slight decline in air traffic in the month of April, this year. For the first four months of 2015, American Airlines generated RPMs of 68.25 billion (down 1.1% from the corresponding period last year) and ASMs of 84.92 billion (down 0.4% year over year).
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Premier passenger carrier American Airlines Group Inc.AAL posted a slight decline in air traffic in the month of April, this year. Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, the load factor declined 60 basis points year over year to 80.4%.
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8371.0
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2015-05-11 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines Group, United Continental Holdings, Boeing and JetBlue Airways - Press Releases
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-united-continental-holdings-0
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nan
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nan
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For Immediate Release
Chicago, IL - May 11, 2015 - 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 the American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ), Boeing Company ( BA ) and JetBlue Airways Corp. ( JBLU ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday's Analyst Blog:
American Airlines Next to Add Dreamliner 787
In a bid to improve customer satisfaction, American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, has started offering Dreamliner 787 service between Dallas and Chicago. According to a report appearing in the Associated Press , American Airlines has become the second U.S.-based carrier after United Continental Holdings, Inc. ( UAL ) to have included The Boeing Company's ( BA ) 787 Dreamliner in its fleet.
According to American Airlines, its first flight of the Boeing 787 jet departed from the Dallas-Fort Worth International Airport to the Chicago' O'Hare International Airport on May 7. The domestic flight is likely to be followed by the use of the Dreamliner 787 jet on international routes. The carrier said that Boeing 787-8 Dreamliners will be used from Jun 2 to fly between the Dallas/Fort Worth International Airport and Beijing Capital International Airport.
We note that the above international route was launched by American Airlines on May 7, 2015. The introduction of the daily non-stop service represents the 11th route for the carrier between the U.S. and Asia. However, this is the sole service between Dallas and Beijing. The company is currently using a Boeing 777-200 aircraft for the service before Boeing 787-8 Dreamliners become operative with effect from Jun 2.
The addition of the Boeing 787 jet to American Airlines' fleet should work wonders for the airline. With features such as improved aerodynamics, advanced engine technology, fully lie-flat Business Class seats and satellite Wi-Fi capability, the jet will boost customer service and convenience, in turn attracting more fliers. Moreover, the usage of Boeing 787-8 Dreamliners will result in further fuel cost savings for the carrier.
We note that American Airlines is constantly making efforts to improve customer satisfaction. To that end, the carrier has announced that it will invest more than $2 billion to renovate airport lounges, modernize ticket counters and deploy satellite-based Internet access on its international flights. The introduction of Dreamliners is yet another initiative aimed at enhancing customer convenience.
Zacks Rank
American Airlines currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is JetBlue Airways Corp. ( JBLU ) with a Zacks Rank #2 (Buy).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
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 .
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
UNITED CONT HLD (UAL): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include the American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ), Boeing Company ( BA ) and JetBlue Airways Corp. ( JBLU ). Here are highlights from Friday's Analyst Blog: American Airlines Next to Add Dreamliner 787 In a bid to improve customer satisfaction, American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, has started offering Dreamliner 787 service between Dallas and Chicago. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report BOEING CO (BA): 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 the American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ), Boeing Company ( BA ) and JetBlue Airways Corp. ( JBLU ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Friday's Analyst Blog: American Airlines Next to Add Dreamliner 787 In a bid to improve customer satisfaction, American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, has started offering Dreamliner 787 service between Dallas and Chicago.
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Stocks recently featured in the blog include the American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ), Boeing Company ( BA ) and JetBlue Airways Corp. ( JBLU ). Here are highlights from Friday's Analyst Blog: American Airlines Next to Add Dreamliner 787 In a bid to improve customer satisfaction, American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, has started offering Dreamliner 787 service between Dallas and Chicago. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report BOEING CO (BA): 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 the American Airlines Group ( AAL ), United Continental Holdings, Inc. ( UAL ), Boeing Company ( BA ) and JetBlue Airways Corp. ( JBLU ). Here are highlights from Friday's Analyst Blog: American Airlines Next to Add Dreamliner 787 In a bid to improve customer satisfaction, American Airlines Group ( AAL ), which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, has started offering Dreamliner 787 service between Dallas and Chicago. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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8372.0
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2015-05-07 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Spirit Airlines, Virgin America, American Airlines Group, Delta Air Lines and Alaska Air Group - Press Releases
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-spirit-airlines-virgin-america-american-airlines-group
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nan
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nan
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For Immediate Release
Chicago, IL - May 07, 2015 - 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 the Spirit Airlines ( SAVE ), Virgin America (VA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ).
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: Earnings & Traffic Data Galore
Earnings continued to grab attention in the airline space over the past week. Low-cost carrier Spirit Airlines ( SAVE ) reported first-quarter 2015 earnings and revenues in line with the Zacks Consensus Estimate. However, the company's anticipation of weakness in operating revenue per available seat mile (RASM) in the second quarter hurt the stock.
Another low-cost carrier - Virgin America (VA ) - outshone the Zacks Consensus Estimate on both the top and the bottom line fronts. However, the company's guidance on capacity and passenger revenue per available seat mile (PRASM) was disappointing.
On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines Group ( AAL ). Airline behemoth Delta Air Lines ( DAL ) reported traffic data for April, which was adversely impacted by a strong dollar, as has been the case for the last few months.
Alaska Air Group ( ALK ), the parent company of Alaska Airlines, reported healthy traffic numbers for April on the back of strong demand. Another major event in the airline space in the past week was the launch of the airline ETF - the Global Jets ETF (JETS) - on Apr 30, 2015.
The NYSE ARCA Airline index declined 1.35% over the past five trading days mainly due to resurgent oil prices and Spirit Airlines' tepid guidance. The launch of the airline ETF, however, pleased investors, curbing the magnitude of the fall of the index.
(Read the last Airline Stock Roundup for April 29, 2015 )
Recap of the Past Week's Most Important Stories
1. Spirit Airlines' first-quarter 2015 earnings (excluding special items) of 96 cents per share were in line with the Zacks Consensus Estimate. Operating revenues grew 12.6% from the year-ago quarter to $493.4 million, in line with the Zacks Consensus Estimate. The budget carrier said that it expects RASM to decline in the range of 14% to 15% for the quarter ending Jun 30, 2015 (read more: Spirit Airlines Q1 Earnings in Line; Stock Down on Weak View ).
2. Delta Air Lines stated, while reporting traffic figures for the month, that its April PRASM, on a consolidated basis, declined 3.5% year over year due to foreign exchange pressure. A strong dollar negatively impacted international business.
Moreover, lower surcharges in international markets also hurt results. Airline traffic, measured in revenue passenger miles, went up 1.8% year over year to 16.87 billion on a consolidated basis. Domestic traffic climbed 2.6% in the month, while the same on the international front was up a mere 0.6%.
Consolidated capacity or available seat miles improved 3.7% to 20.29 billion. Load factor (% of seats filled with passengers) stood at 87% for domestic flights, up 0.6% year over year. However, the metric declined 360 basis points (bps) to 79.1% on international flights. Consolidated load factor was down 150 bps to 83.2%. The company registered a completion factor of 99.8%, with 86.8% of its flights on schedule.
3. Alaska Air Group saw its April air traffic (measured in revenue passenger miles or RPMs) move up 9.8% year over year on a 13.2% rise in capacity. Load factor (% of seats filled by passengers) fell 250 basis points to 83.6%, courtesy a greater rise in capacity. In Apr 2015, the carrier transported 219,000 more passengers than compared to the same month a year ago.
In the first four months of 2015, the company has generated RPMs of 10,458 million (up 9.3% from the corresponding period last year) and ASMs of 12,530 million (up 11.4%). Load factor declined 160 bps year over year to 83.5%.
4. Virgin America's first-quarter 2015 adjusted earnings of 24 cents per share substantially beat the Zacks Consensus Estimate of 14 cents. Operating revenues came in at $326.4 million surpassing the Zacks Consensus Estimate of $322 million. Revenues also improved 4.1% from the year-ago figure (read more: Virgin America Beats on Q1 Earnings, Revenues ).
5. Several flights of American Airlines Group recently experienced significant delays due to a software glitch. According to media reports, pilots' iPads crashed abruptly resulting in the delay. Incidentally, iPads are used by the airline for distributing flight plans and other relevant information to its crew (read more: American Airlines Flights Delayed by iPad app Glitch ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
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 .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
VIRGIN AMERICA (VA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): 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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Stocks recently featured in the blog include the Spirit Airlines ( SAVE ), Virgin America (VA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines Group ( AAL ). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): 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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Stocks recently featured in the blog include the Spirit Airlines ( SAVE ), Virgin America (VA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines Group ( AAL ).
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Stocks recently featured in the blog include the Spirit Airlines ( SAVE ), Virgin America (VA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines Group ( AAL ).
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Stocks recently featured in the blog include the Spirit Airlines ( SAVE ), Virgin America (VA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). Click to get this free report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines Group ( AAL ).
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8373.0
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2015-05-06 00:00:00 UTC
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Is JetBlue Airways a Value Stock?
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AAL
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https://www.nasdaq.com/articles/jetblue-airways-value-stock-2015-05-06
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nan
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nan
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In deciding whether to buy a stock, it's important to look at its valuation, especially compared with those of its peers. Here, I'll examine the valuation of JetBlue Airways (NASDAQ: JBLU) on a few key metrics and determine whether the stock is currently undervalued, fairly valued, or overvalued.
Price-to-earnings
One of the first factors to gauge airline valuations is a price-to-earnings ratio which shows how much you have to pay for each dollar of earnings. Here's how JetBlue's P/E ratio compares with that of its closest rivals:
The first thing many investors notice when looking at this table is the often significant difference between the P/E ratio and the P/E ratio excluding special items. Airlines can incur special items for a wide variety of reasons including fuel hedge gains/losses, foreign exchange gains/losses, and debt extinguishment costs among the examples. In JetBlue's case, almost all of its special items came from the sale of its LiveTV subsidiary in June 2014 and the after-tax gain of $169 million realized from the sale.
Special items are common in the airline industry and were especially pronounced in the 2014 results due to the drop in jet fuel prices causing many airlines to take special items losses on mark-to-market adjustments to the value of fuel hedges. Even though special items are common in the industry, airline valuations are still better analyzed after excluding them because special items vary in direction by quarter and year. Also, they are largely based around things airlines are trying to hedge or come from activities not tied to the airline's ongoing health and profitability. Once special items are excluded, JetBlue is shown to trade at a higher valuation than any of its competitors in the table.
But before dismissing JetBlue as overvalued, it's worth considering another key valuation metric.
Forward price-to-earnings
The forward price-to-earnings metric uses analyst estimates for future earnings and is used for developing a valuation based on where a company is headed. Since future earnings will influence price changes more than past earnings will, this metric may be even more important than trailing price-to-earnings.
The following estimates are developed using analyst estimates.
On a forward P/E basis, JetBlue has a higher valuation than the major carriers but is pretty much in line with Southwest and the smaller growing airlines. This set up is not entirely surprising. Spirit Airlines likely trades at a higher valuation because it gives Wall Street a new strategy in the historically poor-performing airline industry and Spirit's ultra-discount nature may by what these investors are looking for. On the other hand, the major legacy carriers still carry with them the negative perceptions stemming from past bankruptcies and poor historical performance.
One thing that is noticeable here is that analysts expect growth in earnings at all seven airlines with the FY 2015 P/E ratio being lower than the trailing P/E ratio, whether or not special items are excluded, in all seven cases. But what is especially notable from the table below is that JetBlue is expected to grow earnings faster than any of its listed competitors.
So although JetBlue's trailing-price-to-earnings ratio excluding special items is the highest of the group, the airline has both a competitive forward-price-to-earnings ratio and the highest earnings growth estimate of the group.
Profitability ratios
While earnings tend to grab the headlines and should not be ignored, analyzing key profitability ratios is also important in determining a company's ability to generate profits for its shareholders. The table below shows how JetBlue stacks up against competitors in four critical areas.
With these ratios, higher numbers are preferable for investors and tend to garner higher valuations. ROA and ROE are important since they show how well a company is using its assets and equity while possibly giving indications as to how much returns can be made as equity and assets grow.
In the airline industry, it's also important to look at margins since they can be compressed by any number of unforeseen factors including economic downturns resulting in fewer tickets being sold or increased competition resulting in lower fares, so higher margins are a decent sign of safety in the event of an industry downturn
The profitability ratios given show JetBlue to be most closely aligned with Southwest Airlines on all four metrics except net profit margin. Spirit Airlines and Alaska Air Group beat JetBlue by a wide margin on all four metrics signaling that these two airlines are finding better success in generating returns on what they have and turning sales into profits. On the other hand, the major legacy carrier group lags well behind in nearly all areas showing these companies still have work to do to earn valuations on par with their newer competitors.
Based on these numbers, investors should expect to purchase JetBlue shares at a similar valuation as Southwest Airlines shares, at a higher valuation than American, Delta, or United shares, and a discount to Spirit Airlines and Alaska Air Group shares.
Historical valuation
Industry valuation multiples can expand and contract over time but it's important to look at historical valuations to gauge whether a company has extended well beyond its historical range and if the reasons for this are justified. The table below shows the five year historical price-to-earnings ratio averages for JetBlue and its competitors.
Compared to its five year average, JetBlue is trading above the range. On this metric alone, JetBlue appears overvalued; however, this could be resolved if JetBlue can grow earnings making its share price justified with a lower price-to-earnings multiple.
Is it a buy?
One of the challenges of investing is reconciling all available information since not all of it points to the same conclusion. The following table shows how JetBlue performed across the discussed categories of valuation measurement.
Based on its current position, JetBlue shares appear overvalued on metrics looking backward and fairly valued or undervalued on metrics looking forward. This means that JetBlue is in a position where it will need to grow into its valuation. For those who expect JetBlue to be able to execute on its plans, the airline appears undervalued compared to competitors. However, those who are skeptical of JetBlue's ability to execute should consider shares overvalued based on the metrics described above.
The bottom line
JetBlue's valuation metrics are a conflict between rearward looking metrics and forward looking ones setting up a situation where whether an investors thinks JetBlue is overvalued or undervalued should come from their confidence in JetBlue's ability to execute its plans and deliver the earnings growth forecasted by analysts.
I am personally of the opinion that JetBlue can meet its targets based on the airline's past record, current management, and new ancillary revenue streams coming on line this year. For investors that agree with this assessment, JetBlue is well worth looking at for an investment portfolio. On the other hand, investors that disagree may be better off looking at JetBlue's rivals with lower price-to-earnings valuations.
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The article Is JetBlue Airways a Value Stock? originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, American Airlines Group and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 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 .
Copyright © 1995 - 2015 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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Here, I'll examine the valuation of JetBlue Airways (NASDAQ: JBLU) on a few key metrics and determine whether the stock is currently undervalued, fairly valued, or overvalued. Airlines can incur special items for a wide variety of reasons including fuel hedge gains/losses, foreign exchange gains/losses, and debt extinguishment costs among the examples. I am personally of the opinion that JetBlue can meet its targets based on the airline's past record, current management, and new ancillary revenue streams coming on line this year.
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So although JetBlue's trailing-price-to-earnings ratio excluding special items is the highest of the group, the airline has both a competitive forward-price-to-earnings ratio and the highest earnings growth estimate of the group. Based on these numbers, investors should expect to purchase JetBlue shares at a similar valuation as Southwest Airlines shares, at a higher valuation than American, Delta, or United shares, and a discount to Spirit Airlines and Alaska Air Group shares. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
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In the airline industry, it's also important to look at margins since they can be compressed by any number of unforeseen factors including economic downturns resulting in fewer tickets being sold or increased competition resulting in lower fares, so higher margins are a decent sign of safety in the event of an industry downturn The profitability ratios given show JetBlue to be most closely aligned with Southwest Airlines on all four metrics except net profit margin. Based on these numbers, investors should expect to purchase JetBlue shares at a similar valuation as Southwest Airlines shares, at a higher valuation than American, Delta, or United shares, and a discount to Spirit Airlines and Alaska Air Group shares. The bottom line JetBlue's valuation metrics are a conflict between rearward looking metrics and forward looking ones setting up a situation where whether an investors thinks JetBlue is overvalued or undervalued should come from their confidence in JetBlue's ability to execute its plans and deliver the earnings growth forecasted by analysts.
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One thing that is noticeable here is that analysts expect growth in earnings at all seven airlines with the FY 2015 P/E ratio being lower than the trailing P/E ratio, whether or not special items are excluded, in all seven cases. The table below shows the five year historical price-to-earnings ratio averages for JetBlue and its competitors. On this metric alone, JetBlue appears overvalued; however, this could be resolved if JetBlue can grow earnings making its share price justified with a lower price-to-earnings multiple.
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8374.0
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2015-05-06 00:00:00 UTC
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Airline Stock Roundup: In-Line Q1 Earnings at Spirit Airlines, Virgin America Tops Estimates - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-in-line-q1-earnings-at-spirit-airlines-virgin-america-tops
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nan
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Earnings continued to grab attention in the airline space over the past week. Low-cost carrier Spirit AirlinesSAVE reported first-quarter 2015 earnings and revenues in line with the Zacks Consensus Estimate. However, the company's anticipation of weakness in operating revenue per available seat mile (RASM) in the second quarter hurt the stock.
Another low-cost carrier - Virgin AmericaVA- outshone the Zacks Consensus Estimate on both the top and the bottom line fronts. However, the company's guidance on capacity and passenger revenue per available seat mile (PRASM) was disappointing.
On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines GroupAAL . Airline behemoth Delta Air LinesDAL reported traffic data for April, which was adversely impacted by a strong dollar, as has been the case for the last few months.
Alaska Air GroupALK , the parent company of Alaska Airlines, reported healthy traffic numbers for April on the back of strong demand. Another major event in the airline space in the past week was the launch of the airline ETF - the Global Jets ETF (JETS) - on Apr 30, 2015.
The NYSE ARCA Airline index declined 1.35% over the past five trading days mainly due to resurgent oil prices and Spirit Airlines' tepid guidance. The launch of the airline ETF, however, pleased investors, curbing the magnitude of the fall of the index.
(Read the last Airline Stock Roundup for April 29, 2015 )
Recap of the Past Week's Most Important Stories
1. Spirit Airlines' first-quarter 2015 earnings (excluding special items) of 96 cents per share were in line with the Zacks Consensus Estimate. Operating revenues grew 12.6% from the year-ago quarter to $493.4 million, in line with the Zacks Consensus Estimate. The budget carrier said that it expects RASM to decline in the range of 14% to 15% for the quarter ending Jun 30, 2015 (read more: Spirit Airlines Q1 Earnings in Line; Stock Down on Weak View ).
2. Delta Air Lines stated, while reporting traffic figures for the month, that its April PRASM, on a consolidated basis, declined 3.5% year over year due to foreign exchange pressure. A strong dollar negatively impacted international business.
Moreover, lower surcharges in international markets also hurt results. Airline traffic, measured in revenue passenger miles, went up 1.8% year over year to 16.87 billion on a consolidated basis. Domestic traffic climbed 2.6% in the month, while the same on the international front was up a mere 0.6%.
Consolidated capacity or available seat miles improved 3.7% to 20.29 billion. Load factor (% of seats filled with passengers) stood at 87% for domestic flights, up 0.6% year over year. However, the metric declined 360 basis points (bps) to 79.1% on international flights. Consolidated load factor was down 150 bps to 83.2%. The company registered a completion factor of 99.8%, with 86.8% of its flights on schedule.
3. Alaska Air Group saw its April air traffic (measured in revenue passenger miles or RPMs) move up 9.8% year over year on a 13.2% rise in capacity. Load factor (% of seats filled by passengers) fell 250 basis points to 83.6%, courtesy a greater rise in capacity. In Apr 2015, the carrier transported 219,000 more passengers than compared to the same month a year ago.
In the first four months of 2015, the company has generated RPMs of 10,458 million (up 9.3% from the corresponding period last year) and ASMs of 12,530 million (up 11.4%). Load factor declined 160 bps year over year to 83.5%.
4. Virgin America's first-quarter 2015 adjusted earnings of 24 cents per share substantially beat the Zacks Consensus Estimate of 14 cents. Operating revenues came in at $326.4 million surpassing the Zacks Consensus Estimate of $322 million. Revenues also improved 4.1% from the year-ago figure (read more: Virgin America Beats on Q1 Earnings, Revenues ).
5. Several flights of American Airlines Group recently experienced significant delays due to a software glitch. According to media reports, pilots' iPads crashed abruptly resulting in the delay. Incidentally, iPads are used by the airline for distributing flight plans and other relevant information to its crew (read more: American Airlines Flights Delayed by iPad app Glitch ).
Performance
The following table shows the price movement of the major airline players over the past week and during the last 6 months.
As the chart above suggests, all the airline stocks -- with the exception of JetBlue AirwaysJBLU -- traded in the red over the past week. Shares of Spirit Airlines suffered the most losing 11.85% in the face of a weak RASM guidance provided for the second quarter. Meanwhile, most of the stocks have gained over the last six months, with JetBlue witnessing the highest upside (67.06%) over the period.
What's Next in the Airline Biz?
With the earnings season nearly over, we expect traffic updates from carriers like Southwest AirlinesLUV in the coming days. Focus will also remain on the price movement of airline stocks given the volatile nature exhibited by oil prices lately.
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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
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
VIRGIN AMERICA (VA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines GroupAAL . 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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Airline behemoth Delta Air LinesDAL reported traffic data for April, which was adversely impacted by a strong dollar, as has been the case for the last few months.
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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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines GroupAAL . Delta Air Lines stated, while reporting traffic figures for the month, that its April PRASM, on a consolidated basis, declined 3.5% year over year due to foreign exchange pressure.
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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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines GroupAAL . Delta Air Lines stated, while reporting traffic figures for the month, that its April PRASM, on a consolidated basis, declined 3.5% year over year due to foreign exchange pressure.
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On the non-earnings front, headlines were dominated by the news of a technical glitch that delayed flights at American Airlines GroupAAL . 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 SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Low-cost carrier Spirit AirlinesSAVE reported first-quarter 2015 earnings and revenues in line with the Zacks Consensus Estimate.
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8375.0
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2015-05-05 00:00:00 UTC
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Delta Air Lines, Inc. (DAL) Ex-Dividend Date Scheduled for May 06, 2015
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-inc-dal-ex-dividend-date-scheduled-may-06-2015-2015-05-05
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nan
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Delta Air Lines, Inc. ( DAL ) will begin trading ex-dividend on May 06, 2015. A cash dividend payment of $0.09 per share is scheduled to be paid on May 29, 2015. Shareholders who purchased DAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that DAL has paid the same dividend. At the current stock price of $45.29, the dividend yield is .79%.
The previous trading day's last sale of DAL was $45.29, representing a -11.3% decrease from the 52 week high of $51.06 and a 50.37% increase over the 52 week low of $30.12.
DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). DAL's current earnings per share, an indicator of a company's profitability, is $1.4. Zacks Investment Research reports DAL's forecasted earnings growth in 2015 as 41.31%, compared to an industry average of 19.4%.
For more information on the declaration, record and payment dates, visit the DAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have DAL as a top-10 holding:
PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ )
Deep Value ETF ( DVP )
iShares Transportation AverageETF ( IYT )
PowerShares DWA Consumer Cyclicals Momentum Portfolio ( PEZ )
SPDR S&P Transportation ETF ( XTN ).
The top-performing ETF of this group is PEJ with an increase of 6.74% over the last 100 days. It also has the highest percent weighting of DAL at 5.06%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased DAL prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DAL's forecasted earnings growth in 2015 as 41.31%, compared to an industry average of 19.4%.
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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. DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). DAL's current earnings per share, an indicator of a company's profitability, is $1.4.
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DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). Shareholders who purchased DAL prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DAL Dividend History page.
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DAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and American Airlines Group, Inc. ( AAL ). A cash dividend payment of $0.09 per share is scheduled to be paid on May 29, 2015. DAL's current earnings per share, an indicator of a company's profitability, is $1.4.
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8376.0
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2015-05-05 00:00:00 UTC
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What Risks Does JetBlue Face?
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AAL
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https://www.nasdaq.com/articles/what-risks-does-jetblue-face-2015-05-05
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nan
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nan
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In the past few years, airline stocks have provided exceptionally good returns to investors. That hasn't always been the case. Airlines are considered of the riskiest industries in operation, and often for sound reasons.
Here I'll look at the biggest risks facing JetBlue Airways (NASDAQ: JBLU) and the airline industry as a whole.
Low-cost carriers
Low-cost carriers, also known as discount airlines or their more extreme cousins ultra-discount airlines, have long been a threat to JetBlue and even established airlines. By having younger workforces, lower compensation, fewer features, or all of the above, low-cost carriers can undercut the fares of JetBlue and other airlines putting pressure on passenger revenue per available seat mile, or PRASM.
While all airlines can be affected by low-cost carrier actions, JetBlue is particularly susceptible to pressure due to the way the airline gets business customers.
JetBlue lacks the groups of large corporate accounts found at major legacy carriers. Instead, the airline's strategy for business customers has been to pursue more small and mid size businesses since these businesses often do not require the full size worldwide networks of major legacy carriers; a key requirement since JetBlue does not have this size of network.
Former CEO David Barger has credited this strategy with being key to building the airline's business customer base, but smaller businesses tend to accumulate less status at airlines than large corporations making them less loyal and more ready to switch airlines. This, combined with the fact that these businesses don't need as large of route networks making low-cost carrier networks more likely to fulfill their needs, makes JetBlue's business clientele more likely to be stolen by low-cost carriers than the business customers at major legacy carriers.
Partially mitigating the low-cost carrier threat is JetBlue's strong presence at slot restricted Northeast airports. Slot restrictions prevent upstarts from launching operations at these airports. While this can help protect core Northeast operations, it does not protect non-Northeast routes that are necessary to JetBlue's expansion.
Airport concentration
With about half its flights going through New York or Boston, JetBlue carries both an advantage and risks. The advantage comes from being able to serve these in-demand airports at a frequency unheard of for an airline of JetBlue's size. But the downside is that it leaves the airline particularly exposed to events that affect traffic at these two airport areas.
Shutting down a major airport for an extended period of time is unlikely given the pressure that would be put on government officials to reopen it for operations. However, there can be events that generally lower traffic at a specific airport. Major construction projects can cause customers to use alternative airports. This was a real issue for Logan International Airport when Boston's "Big Dig" project was under construction in the early 2000s.
Expansion at other airports can also reduce demand at existing airports and lower traffic for existing carriers. In the case of New York, JetBlue has operations at New York JFK, New York LaGuardia, and Newark International but expansion at any one of these airports could cause traffic to shift away from another New York airport. If JetBlue is not able to collect additional slots in the expansion, it could lose market share at one airport while seeing traffic drop at other airports it serves.
A similar situation exists in the Boston area where there are other airports that passengers can use to access the Boston area besides Boston Logan International where JetBlue has major operations. Expansion at Manchester, New Hamsphire or Providence, Rhode Island could draw traffic away from JetBlue's Boston Logan operations. And there is precedent for Boston travelers choosing these airports. During the previously mentioned "Big Dig" construction, Manchester and Providence became key alternatives for Boston Logan traffic. Ironically, it drove Boston Logan traffic down so much that it helped convince the Massachusetts Port Authority to allow JetBlue to move into Boston Logan.
While other airlines can also have issues with changes in airport traffic levels, JetBlue's concentration around two major airport areas leaves it particularly exposed to changes in these airports. Although I don't see this area as a solvency risk given JetBlue would still be able to continue operations with less traffic, it does have the potential to negatively impact revenue and earnings.
Growth plan execution
Part of JetBlue's core strategy for revenue growth has been expansion into new markets. Currently, the airline has focused its expansion on Latin America where it already has major Caribbean operations and some destinations in South America.
Right now, the Latin American expansion strategy is my preferred way for JetBlue to expand given its current operations there, but there are risks in this plan nonetheless. If there were to be an economic slump in Latin America, regionwide political instability, or JetBlue's management team is just not able to execute in the market, the airline would face a major problem. Without Latin America and with no current plans for expansion outside the Americas, JetBlue would have to either give up international expansion and try to grow in the slower growing U.S. domestic market, or abruptly change course and take on a new region for growth. The former idea would severely inhibit the airline's growth ambitions while the latter would send JetBlue into a market it may not be prepared to enter.
Aircraft deliveries
Like many of its rivals, JetBlue is also aggressively purchasing new aircraft with 127 aircraft and ten spare engines on order through 2023 at a cost of $6.67 billion. Even though JetBlue has large numbers of aircraft on order, its current average aircraft age is well below that of rivals who are ordering mostly for fleet modenization.
source: Company 10-Ks
JetBlue's plans for these aircraft rely on using them to operate the airline's growth plans and getting them into service will be required in order to earn the revenue to cover the massive order costs. With 203 aircraft in its current fleet, this order would mean adding another 60% to the JetBlue fleet. Some of the oldest aircraft may be retired, but this still leaves a large number of aircraft JetBlue will need to put into operation and begin generating revenue with.
In effect, JetBlue's order book is set up assuming substantial growth over the next eight years. If it fails to materialize, JetBlue could be left with extra planes it would need to either sell, lease to other airlines, or park and incur the costs of aircraft expenses and maintenance.
In a worst-case scenario, these deliveries could pose a solvency risk for the airline if growth slows and reasonable financing terms cannot be secured since the $6.67 billion commitment greatly exceeds JetBlue's $708 million in cash and short term investments. However, the more likely risk scenario is one where JetBlue has to sell some of the new aircraft or parts of its existing fleet to raise cash in the event the airline's growth plan doesn't pan out.
The bottom line
The airline industry has long been a risky place to invest and each airline has a set of risks that apply more greatly to it than the rest of the industry. In the case of JetBlue, the airline faces potential competition from low-cost carriers and the potential for traffic to be diverted in its two key airport areas.
Additionally, JetBlue is heavily reliant on growth at this point and could be in trouble if its Latin American strategy doesn't pan out or if it can't find revenue generating uses for its aircraft on order. All in all, JetBlue carries its own set of risks and investors should be aware of these unique risks before investing.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article What Risks Does JetBlue Face? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 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 .
Copyright © 1995 - 2015 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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By having younger workforces, lower compensation, fewer features, or all of the above, low-cost carriers can undercut the fares of JetBlue and other airlines putting pressure on passenger revenue per available seat mile, or PRASM. If there were to be an economic slump in Latin America, regionwide political instability, or JetBlue's management team is just not able to execute in the market, the airline would face a major problem. However, the more likely risk scenario is one where JetBlue has to sell some of the new aircraft or parts of its existing fleet to raise cash in the event the airline's growth plan doesn't pan out.
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Instead, the airline's strategy for business customers has been to pursue more small and mid size businesses since these businesses often do not require the full size worldwide networks of major legacy carriers; a key requirement since JetBlue does not have this size of network. During the previously mentioned "Big Dig" construction, Manchester and Providence became key alternatives for Boston Logan traffic. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
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Low-cost carriers Low-cost carriers, also known as discount airlines or their more extreme cousins ultra-discount airlines, have long been a threat to JetBlue and even established airlines. This, combined with the fact that these businesses don't need as large of route networks making low-cost carrier networks more likely to fulfill their needs, makes JetBlue's business clientele more likely to be stolen by low-cost carriers than the business customers at major legacy carriers. While other airlines can also have issues with changes in airport traffic levels, JetBlue's concentration around two major airport areas leaves it particularly exposed to changes in these airports.
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A similar situation exists in the Boston area where there are other airports that passengers can use to access the Boston area besides Boston Logan International where JetBlue has major operations. Growth plan execution Part of JetBlue's core strategy for revenue growth has been expansion into new markets. However, the more likely risk scenario is one where JetBlue has to sell some of the new aircraft or parts of its existing fleet to raise cash in the event the airline's growth plan doesn't pan out.
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8377.0
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2015-05-04 00:00:00 UTC
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Weekly Insider Sells Highlight: JNJ, TRV, AAL, STJ
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AAL
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https://www.nasdaq.com/articles/weekly-insider-sells-highlight-jnj-trv-aal-stj-2015-05-04
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nan
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nan
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According to GuruFocus Insider Data , the largest insider sells during the past week were: Johnson & Johnson, Travelers Companies Inc, American Airlines Group Inc, and St Jude Medical Inc.
The overall trend of insiders is illustrated in the chart below:
Johnson & Johnson ( JNJ ): Chief Scientific Officer Paulus Stoffels sold 187,250 Shares
Chief Scientific Officer Paulus Stoffels sold 187,250 shares of JNJ stock on 04/28/2015 at the average price of $100.73. Paulus Stoffels owns at least 94,473 shares after this. The price of the stock has decreased by 0.6% since.
Warren Buffett Recent Buys
Johnson & Johnson has a market cap of $278.41 billion; its shares were traded at around $100.13 with a P/E ratio of 17.30 and P/S ratio of 3.86. The dividend yield of Johnson & Johnson stocks is 2.80% and the company had an annual average earnings growth of 4.30% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 3-star .
The company reported first quarter 2015 sales of $17.4 billion, which was a decrease of 4.1% versus the same quarter last year. First quarter adjusted EPS was $1.56, a decrease of 4.3% year-over-year.
Travelers Companies Inc ( TRV ): Chairman & Chief Exec. Officer Jay S Fishman sold 126,638 Shares
Chairman & Chief Exec. Officer of Travelers Companies Inc ( TRV ) Jay S Fishman sold 126,638 shares on 04/27/2015 at an average price of $102.12.
Travelers Companies Inc provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals. The company has a market cap of $32.55 billion; its shares were traded at around $102.12 with a P/E ratio of 10.00 and P/S ratio of 1.26. The dividend yield of Travelers Companies Inc stocks is 2.15% and it had an annual average earnings growth of 13.50% over the past 10 years. GuruFocus rated Travelers Companies Inc the business predictability rank of 3-star.
For its first quarter of 2015, Travelers Companies reported net income of $833 million ($2.55 per diluted share), compared to net income of $1.05 billion ($2.95 per share) in the same quarter of 2014. ROE was 13.4% versus 16.8% a year ago, and operating income decreased 21% to $827 million.
American Airlines Group Inc ( AAL ): President J Scott Kirby sold 262,471 Shares
President J Scott Kirby sold 262,471 shares of AAL stock on 04/30/2015 at the average price of $49.47. J Scott Kirby owns at least 828,516 shares after this. The price of the stock has decreased by 0.16% since.
American Airlines Group Inc operates in the airline industry. The company has a market cap of $34.22 billion; its shares were traded at around $49.39 with a P/E ratio of 10.80 and P/S ratio of 0.85. The dividend yield of American Airlines Group Inc stocks is 0.81%.
American Airlines reported first quarter 2015 net profit of $1.2 billion excluding special charges. This compares to first quarter 2014 net profit of $402 million. Meanwhile, total revenue for the quarter was $9.8 billion, a decrease of 1.7% year-over-year.
St Jude Medical Inc ( STJ ): Executive Vice President John C Heinmiller sold 160,000 Shares
Executive Vice President of St Jude Medical Inc ( STJ ) John C Heinmiller sold 160,000 shares on 04/24/2015 at an average price of $71.47.
St Jude Medical Inc has a market cap of $20.1 billion; its shares were traded at around $71.47 with a P/E ratio of 21.00 and P/S ratio of 3.68. The dividend yield of St Jude Medical Inc stocks is 1.54%. St Jude Medical Inc had an annual average earnings growth of 11.00% over the past 10 years. GuruFocus rated St Jude Medical Inc the business predictability rank of 2.5-star.
Chairman, CEO & President Daniel J Starks and multiple other insiders also recently sold shares of STJ stock.
For the complete list of stocks that bought/sold by their company executives, go to: Insider Buys.
About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc ( AAL ): President J Scott Kirby sold 262,471 Shares President J Scott Kirby sold 262,471 shares of AAL stock on 04/30/2015 at the average price of $49.47. Travelers Companies Inc provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals. St Jude Medical Inc ( STJ ): Executive Vice President John C Heinmiller sold 160,000 Shares Executive Vice President of St Jude Medical Inc ( STJ ) John C Heinmiller sold 160,000 shares on 04/24/2015 at an average price of $71.47.
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American Airlines Group Inc ( AAL ): President J Scott Kirby sold 262,471 Shares President J Scott Kirby sold 262,471 shares of AAL stock on 04/30/2015 at the average price of $49.47. The overall trend of insiders is illustrated in the chart below: Johnson & Johnson ( JNJ ): Chief Scientific Officer Paulus Stoffels sold 187,250 Shares Chief Scientific Officer Paulus Stoffels sold 187,250 shares of JNJ stock on 04/28/2015 at the average price of $100.73. St Jude Medical Inc ( STJ ): Executive Vice President John C Heinmiller sold 160,000 Shares Executive Vice President of St Jude Medical Inc ( STJ ) John C Heinmiller sold 160,000 shares on 04/24/2015 at an average price of $71.47.
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American Airlines Group Inc ( AAL ): President J Scott Kirby sold 262,471 Shares President J Scott Kirby sold 262,471 shares of AAL stock on 04/30/2015 at the average price of $49.47. The overall trend of insiders is illustrated in the chart below: Johnson & Johnson ( JNJ ): Chief Scientific Officer Paulus Stoffels sold 187,250 Shares Chief Scientific Officer Paulus Stoffels sold 187,250 shares of JNJ stock on 04/28/2015 at the average price of $100.73. St Jude Medical Inc ( STJ ): Executive Vice President John C Heinmiller sold 160,000 Shares Executive Vice President of St Jude Medical Inc ( STJ ) John C Heinmiller sold 160,000 shares on 04/24/2015 at an average price of $71.47.
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American Airlines Group Inc ( AAL ): President J Scott Kirby sold 262,471 Shares President J Scott Kirby sold 262,471 shares of AAL stock on 04/30/2015 at the average price of $49.47. According to GuruFocus Insider Data , the largest insider sells during the past week were: Johnson & Johnson, Travelers Companies Inc, American Airlines Group Inc, and St Jude Medical Inc. The overall trend of insiders is illustrated in the chart below: Johnson & Johnson ( JNJ ): Chief Scientific Officer Paulus Stoffels sold 187,250 Shares Chief Scientific Officer Paulus Stoffels sold 187,250 shares of JNJ stock on 04/28/2015 at the average price of $100.73.
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8378.0
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2015-05-04 00:00:00 UTC
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Where is JetBlue Headed Next?
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AAL
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https://www.nasdaq.com/articles/where-jetblue-headed-next-2015-05-04
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nan
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nan
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Right now, JetBlue Airways (NASDAQ: JBLU) is the fifth largest airline in the U.S. by market share. While catching its larger rivals will be difficult, the airline is still pursuing growth opportunities and has plenty of them available.
Geographic expansion
Since its founding in 1998, JetBlue has made itself a major airline for the East Coast of the U.S. and the Caribbean, but it has a smaller presence elsewhere. Clearly, there's much of the world JetBlue isn't involved in, and and it's up to management to decide where to lead the carrier. At the head of this effort will be JetBlue CEO Robin Hayes who worked in the Americas division of British Airways and CFO Mark Powers who worked for both Continental Airlines and Northwest Airlines before joining JetBlue. As the airline expands, this prior experience should be valuable in helping JetBlue to execute its growth plans
Let's consider several areas for potential expansion.
Latin America
Already, there are signs that JetBlue may expand more into Latin America. In 2013, the airline added Lima, Peru, as its southernmost destination, and it has added a few other South American destinations as well.
Right now, the strained relations between Venezuela and major airlines are casting a dark shadow over the Latin American aviation market, but that's only one country on the continent. While JetBlue is unlikely to venture into Venezuela, there's potential for growth in other nations, such as Colombia, Ecuador, Peru, and Brazil.
Farther north, Mexico also presents an opportunity for JetBlue given the airline's only current destination in the country is Cancun. While this city does have some attractive tourism qualities, there are lots of similar opportunities . Alaska Air Group-- which holds a smaller U.S. market share than JetBlue-- currently serves nine cities in Mexico.
Based on data from both the Federal Aviation Administration and the International Air Transport Association, JetBlue would be smart to continue investing in this region. The FAA data forecasts Latin America to show a 4.2% annual growth in enplanements by U.S. mainline carriers through 2035; the fastest growth of any region. IATA data is similarly bullish forecasting a 4.7% annual growth in Latin American air travel through 2034, behind only the Middle East as the fastest growing reion.
Besides the bullish industry forecasts, there is another key reason why JetBlue should look to Latin America for expansion. Unlike most flights to Asia and Europe which typically require widebody aircraft, JetBlue can and is serving Latin America with narrowbody aircraft. While JetBlue may eventually take on widebody aircraft for overseas flights or certain high volume routes, maintaining an all narrowbody fleet allows JetBlue to have fewer different types of aircraft. This, in turn, carries key advantages in reduced maintenance costs and pilot flexibility. For these reasons, I see Latin America as one of the best places for JetBlue to focus international expansion efforts.
Canada
Canada's airline market is dominated by Air Canada and WestJet while the remainder is controlled by far smaller carriers. While JetBlue doesn't operate flights to Canada currently, there are certain eastern cities, such as Toronto, Montreal, and Ottawa, that are within a short flying distance of the airline's Northeast hubs.
In a market dominated by two players, a significant presence from a third airline may be a welcome change. Already, Southwest Airlines has noted its ambitions to move into this market by the end of the decade, as the Dallas-based airline looks for international destinations to add.
For now, JetBlue is partnering with Porter Airlines to connect passengers from Canada through JetBlue's Boston hub. At this point, the partnership with Porter gives JetBlue a network in Canada while the benefits from a significant expansion in Canada are limited. FAA data estimates transborder traffic to only grow 3.3% annually through 2035; well below the rates in Latin America and other emerging markets.Because of this, I would expect expansion into Canada, if any, to be a relatively small part of JetBlue's overall growth plan.
Europe and Asia
Having flights to Europe and Asia is a good indicator of what separates the major legacy carriers from their more regionally focused counterparts. American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Continental Holdings (NYSE: UAL) all have worldwide networks, while Southwest, Alaska, and JetBlue stick to flights within the Americas.
For airlines focused on a market as big as the U.S., the need to expand beyond the Americas is less critical; after all, Southwest Airlines operates only within the Americas, and it's been growing since 1967.
For Europe, JetBlue's strong Northeast presence lends itself to European flights but there are other issues with European expansion. First, such expansion may require widebody aircraft which would add another layer of complexity to JetBlue's fleet potentially increasing maintenance costs and reducing pilot flexibility. And second, the European and transatlantic markets are forecasted as some of the slowest growing markets in the world over the next 20 years according to both FAA and IATA forecasts. If JetBlue does decide to pursue European expansion despite this, I expect it to pick and choose optimal routes and expand slowly.
While Asia does have some of the highest forecasted growth rates, I do not expect to see expansion to this region by JetBlue in the near future. Lacking both the widebody aircraft and a strong west coast presence, expansion in Asia would require a major overhaul in domestic and international operations as well as changes in the airline's fleet management strategy.
Ancillary revenue growth
For 2014, JetBlue said the revenue from its Even More Space seats increased 16% from 2013 levels to $200 million. Although it does call the Even More Space seats its largest ancillary product, JetBlue does not give numbers for how much more it expects to get from this offering. The airline is voting with its wallet by showing support for more upgraded seating approaches such as the Mint suites added last year.
At about $30 million, the increase in revenue from the Even More Space seats did not have a major impact on JetBlue's total 2014 operating revenue of $5.8 billion. But as an ancillary revenue product, this revenue is almost certainly higher margin than ordinary fare revenue.
Not as well-received by customers in 2014 was the airline's announcement that it would begin charging for checked bags on its lowest tier of fares. Despite their lack of popularity, bag fees could generate significant revenue for the airline once fully implemented. Analyst Jamie Baker of JP Morgan estimated that the bag fees could generate another $200 million in annual revenue for the airline; an estimate that is reasonably close to the $170 million JetBlue would collect if it got a share of total checked bag fees proportional to its 5.1% market share. With extremely high margins due to the fact that most bag fee paying customers would have otherwise checked the bag anyway but for free, the bag fee revenue should flow to the bottom line and provide a major boost to profits.
Although the ancillary products generate relatively small amounts of revenue, the revenue generated is high margin in nature and should be a substantial profit booster. Because of this, I see ancillary revenue growth as one of the key ways for JetBlue to boost profits over the next few years.
JetBlue vs. rivals
JetBlue started out in the Northeast but has since expanded while never giving up its strong Northeast presence. This presence should serve it well when it comes to competing against both smaller and larger rivals.
While JetBlue lacks the resources that its larger rivals have in cash and network size, it does have access to key slot restricted airports in major Northeastern population centers. This should enable the airline to build a strong connection between these in demand airports and the new markets it goes after. This also gives it a clear advantage over smaller carriers that lack a strong U.S. presence and therefore cannot offer the same flights to slot restricted airports.
Having found previous success expanding westward and into parts of Latin America, JetBlue has shown its ability to use discipline in its expansion to prevent itself from being stretched too thin. Investors should expect JetBlue to continue its strategy of testing the waters in new markets with only a few flights at a time before ramping up operations. At the same time, tying these flights back into its stronghold in the Northeast ensures that the airline continues to play to regions where it's strong even as it searches out new growth.
With the experience of the CEO and CFO in operating airlines with worldwide networks, I expect JetBlue to continue being able to grow without overextending itself.
The bottom line
JetBlue has clearly made the decision that international expansion is necessary to long-term growth and, based on industry forecasts, I agree with this course of action. With strong growth forecasts and an existing network there, investors should expect more JetBlue expansion in Latin America over the next several years.
Investors should also keep a close eye on ancillary revenue growth sourced from premium seating offerings and checked bag fees as both of these have the potential to substantially boost the airline's bottom line.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Where is JetBlue Headed Next? originally appeared on Fool.com.
Alexander MacLennan owns shares of Air Canada, American Airlines Group, and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 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 .
Copyright © 1995 - 2015 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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American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Continental Holdings (NYSE: UAL) all have worldwide networks, while Southwest, Alaska, and JetBlue stick to flights within the Americas. FAA data estimates transborder traffic to only grow 3.3% annually through 2035; well below the rates in Latin America and other emerging markets.Because of this, I would expect expansion into Canada, if any, to be a relatively small part of JetBlue's overall growth plan. Lacking both the widebody aircraft and a strong west coast presence, expansion in Asia would require a major overhaul in domestic and international operations as well as changes in the airline's fleet management strategy.
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American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Continental Holdings (NYSE: UAL) all have worldwide networks, while Southwest, Alaska, and JetBlue stick to flights within the Americas. Alexander MacLennan owns shares of Air Canada, American Airlines Group, and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
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American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Continental Holdings (NYSE: UAL) all have worldwide networks, while Southwest, Alaska, and JetBlue stick to flights within the Americas. At the head of this effort will be JetBlue CEO Robin Hayes who worked in the Americas division of British Airways and CFO Mark Powers who worked for both Continental Airlines and Northwest Airlines before joining JetBlue. Analyst Jamie Baker of JP Morgan estimated that the bag fees could generate another $200 million in annual revenue for the airline; an estimate that is reasonably close to the $170 million JetBlue would collect if it got a share of total checked bag fees proportional to its 5.1% market share.
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American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Continental Holdings (NYSE: UAL) all have worldwide networks, while Southwest, Alaska, and JetBlue stick to flights within the Americas. Alaska Air Group-- which holds a smaller U.S. market share than JetBlue-- currently serves nine cities in Mexico. FAA data estimates transborder traffic to only grow 3.3% annually through 2035; well below the rates in Latin America and other emerging markets.Because of this, I would expect expansion into Canada, if any, to be a relatively small part of JetBlue's overall growth plan.
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8379.0
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2015-05-02 00:00:00 UTC
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Don't Worry About Boeing's Dreamliner Sales
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AAL
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https://www.nasdaq.com/articles/dont-worry-about-boeings-dreamliner-sales-2015-05-02
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nan
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nan
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Boeing's stock has slumped a bit since the company's earnings report last week, even though it beat analysts' first-quarter earnings estimates and reaffirmed its full-year guidance.
To some extent, investors might be reacting to recent news that Boeing's two main U.S. Dreamliner customers -- United Continental and American Airlines -- are canceling or deferring some of their orders for the aircraft.
American Airlines is deferring some Dreamliner deliveries for a year or two. Photo: American Airlines.
However, both airlines insisted they are still very excited about the Dreamliner. Moreover, the biggest impediment to more Dreamliner sales right now is the lack of near-term availability. As a result, having some customers choose to take the Dreamliner later -- or to buy other Boeing aircraft instead -- probably isn't reason to be pessimistic on Boeing's future.
Two U.S. carriers make fleet plan changes
As part of its latest earnings report on April 23, United Continental confirmed plans to switch 10 of its Dreamliner orders to the larger Boeing 777-300ER. The carrier had been hinting that it would do this for the past few months, so this shouldn't have surprised anyone.
United seems interested in using the 777-300ER to add more seats at its busy Newark, N.J. hub, where slot constraints prevent it from adding extra flights. With fuel prices having dropped so much over the past year, United plans to keep its Boeing 767s flying longer, which reduces its need for Dreamliners to replace those planes -- for now.
Meanwhile, American Airlines announced the following day that it had agreed with Boeing to defer the delivery of five Dreamliners scheduled to arrive next year to 2017 and 2018. The stated purpose was to reduce American's international growth rate in light of unit revenue weakness in several regions.
Notably, executives at both United and American said they remain committed to the Dreamliner -- indeed, both airlines still have big Dreamliner order books. Their recent order changes were driven by short-term tactical adjustments, not big strategy changes.
The Dreamliner backlog is strong
In evaluating the impact of Dreamliner order changes and cancellations on Boeing, it's important to remember the size of the Dreamliner backlog.
The Dreamliner still has a massive order backlog. Photo: Boeing.
Boeing has captured about 1,100 orders across its three Dreamliner variants: the 787-8, the 787-9, and the 787-10. As of the end of March, it had only delivered 258, leaving a backlog of 847 planes. At Boeing's current production rate of 10 Dreamliners per month, that represents seven years of production. Boeing plans to increase output to 14 per month by the end of the decade; but even so, it is more or less sold out through 2020.
This is a significant impediment to sales. For example, Airbus won an Delta Air Lines order for 50 wide bodies last fall. One key reason it beat out Boeing was its ability to start delivering next-generation wide bodies in large numbers by 2017. Delta would have had to wait longer to get a significant number of Dreamliners.
Boeing is making the right moves
The high global demand for airplanes in the Dreamliner's size class has some counterintuitive implications for Boeing.
First, Boeing should welcome -- and perhaps even actively seek out -- deals like United's to swap Dreamliner orders for 777s. Based on the massive Dreamliner order backlog, Boeing will have no trouble finding other airlines to take any Dreamliner slots that might open up in the next few years.
Second, Boeing should also welcome the new low fuel price environment. On the surface, it might seem like Boeing should be worried about the threat of airlines like United and American keeping older, less fuel-efficient aircraft flying longer.
However, airlines will need to replace their old 767s sooner or later. If they're willing to wait until after 2020 -- by which point competition for Dreamliner delivery slots will be more muted -- that's actually better for Boeing. Boeing's management seems to be comfortable with these dynamics. CEO Jim McNerney remains confident that the Dreamliner is a great investment for airlines at today's fuel prices. He has also stated repeatedly that customers are mainly asking about accelerating deliveries rather than deferring them.
Accordingly, Boeing is 100% focused on increasing Dreamliner production from 10 per month today to 12 per month in late 2016 and 14 per month by the end of the decade. The only thing limiting Boeing's ability to sell more Dreamliners is its ability to build more of them. As long as the production increases go reasonably well, investors shouldn't worry about Dreamliner sales.
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The article Don't Worry About Boeing's Dreamliner Sales originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of The Boeing Company. 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 .
Copyright © 1995 - 2015 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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To some extent, investors might be reacting to recent news that Boeing's two main U.S. Dreamliner customers -- United Continental and American Airlines -- are canceling or deferring some of their orders for the aircraft. United seems interested in using the 777-300ER to add more seats at its busy Newark, N.J. hub, where slot constraints prevent it from adding extra flights. With fuel prices having dropped so much over the past year, United plans to keep its Boeing 767s flying longer, which reduces its need for Dreamliners to replace those planes -- for now.
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To some extent, investors might be reacting to recent news that Boeing's two main U.S. Dreamliner customers -- United Continental and American Airlines -- are canceling or deferring some of their orders for the aircraft. With fuel prices having dropped so much over the past year, United plans to keep its Boeing 767s flying longer, which reduces its need for Dreamliners to replace those planes -- for now. As long as the production increases go reasonably well, investors shouldn't worry about Dreamliner sales.
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To some extent, investors might be reacting to recent news that Boeing's two main U.S. Dreamliner customers -- United Continental and American Airlines -- are canceling or deferring some of their orders for the aircraft. The Dreamliner backlog is strong In evaluating the impact of Dreamliner order changes and cancellations on Boeing, it's important to remember the size of the Dreamliner backlog. Based on the massive Dreamliner order backlog, Boeing will have no trouble finding other airlines to take any Dreamliner slots that might open up in the next few years.
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American Airlines is deferring some Dreamliner deliveries for a year or two. With fuel prices having dropped so much over the past year, United plans to keep its Boeing 767s flying longer, which reduces its need for Dreamliners to replace those planes -- for now. Notably, executives at both United and American said they remain committed to the Dreamliner -- indeed, both airlines still have big Dreamliner order books.
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8380.0
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2015-05-02 00:00:00 UTC
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What's Driving JetBlue's Profits?
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AAL
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https://www.nasdaq.com/articles/whats-driving-jetblues-profits-2015-05-02
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nan
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nan
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For 2014, JetBlue Airways reported a record profit of $401 million, or $232 million excluding the sale of the airline's LiveTV unit, but the sources behind this record profit have implications for the entire airline industry. I'll take a look at how JetBlue posted this profit and how other airlines are also posting record profits.
Record year
Last year saw Delta Air Lines , United Continental Holdings , American Airlines Group , and Southwest Airlines all post record profits, in large part because of a combination of rising demand, higher fares, and gains in ancillary revenue.
JetBlue's 10-K notes that 92% of its 2014 revenue was "passenger revenue." You may think that all of an airline's revenue would come from "passengers," but the airline prefers to break it down further and needs to find a way to account for revenue not directly attributable to passengers.
Besides the base fares themselves, there are other items included here as well. JetBlue includes some of its ancillary revenue here, such as the $200 million collected from Even More Space seats, the airline's larger economy-seat offering.
In the 10-K, JetBlue discusses the balancing act it undergoes in pricing fares:
For those who don't speak airline, JetBlue tries to increase average fares while keeping those fares competitive with those of its rival airlines. In 2014, the airline was largely successful in doing so, increasing its average fare 2.1% from $163.19 to $166.57 and increasing revenue passenger miles from 35.8 million in 2013 to 37.8 million in 2014.
Revenue from the Even More Space seats was also impressive, seeing 16% growth from 2013 to 2014. The strategy of offering larger economy-class seats for an extra price has taken hold across the airline industry, with all the majors climbing onboard and even many of the newer entrants taking them on.
Unfortunately, JetBlue's competitors don't break out revenue growth from upgraded economy offerings like JetBlue does. However, Delta Air Lines appears positive on its upgraded economy seats citing them as a key factor behind an increase in passenger revenue during 2014. Delta is also voicing its bullishness for tiered classes of seating by launching a plan to have five classes of fares in an initiative to generate more revenue per passenger.
Other major carriers are also going forward with this approach with Economy Plus seating at United and Main Cabin Extra at American Airlines; however, Southwest Airlines is notably absent from the trend and it will be interesting to see if it moves in this direction in the future. Nonetheless, while major carriers are not disclosing their upgraded economy revenue growth like JetBlue, they are voting with their wallets to continue or even expand the programs.
Going forward, this should be an area to watch, to see whether this type of growth can continue and what other new seat offerings airlines roll out to capture the market.
Other revenue
Among the other items included in "other revenue" are cargo operations, charter operations, onboard product sales, and reservation change fees. These all represent potential areas for future growth, but they comprised a mere 8% of JetBlue's 2014 revenue. Below are the five largest U.S. airlines with JetBlue ranking second-to-last in "other revenue" as a percentage of operating revenue.
source: Company 10-Ks
*Other Revenue combines the Other Revenue and Cargo Revenue at each airline to better compare to JetBlue's Other Revenue measurement which includes both types of revenue.
There's reason to expect that this number could change, though. "Other revenue" includes fees from checked bags, and JetBlue plans to roll out a fee on first checked bags. Since both JetBlue and Southwest lack the first checked bag fee for now, that could explain much of the difference in percent of operating revenue coming from other revenue.
The checked bag fee is part of the JetBlue's new tiered pricing structure and will only affect passengers buying the fares in the lowest tier. Since these fares are the cheapest, many passengers are likely to go this route anyway and pay for the checked bag. By making first checked bags no longer free with the lowest fare, investors should expect the "other revenue" category to show growth from this factor alone.
Expenses
No income-statement analysis is complete without a discussion of major expenses. At JetBlue, as with most airlines, labor is one of the largest expenses, costing JetBlue $1.3 billion in 2014, or 24.4% of total operating expenses.
But while labor costs are fairly stable because of existing contracts, fuel prices aren't. Jet fuel prices are highly correlated with oil prices , and oil prices rise or fall based on a plethora of factors. In 2014, aircraft fuel and related taxes made up the largest single operating expense, costing JetBlue $1.9 billion, or 36% of operating expenses, an amount in line with broader industry levels.
JetBlue noted in its most recent 10-K form that it consumed 639 million gallons of jet fuel in 2014. With this amount of fuel consumption, it's easy to see how small swings in the price-per-gallon of jet fuel can mean a big impact to JetBlue's bottom line. Excluding the effects of hedging, JetBlue would see a $6.39 million pre-tax change in profit for every cent-per-gallon move in jet fuel prices.
But JetBlue does hedge 15%-20% of its fuel consumption to smooth out oil price volatility. Despite this, the hedges do not fully protect the airline from fuel price movements since only part of the consumption is hedged and the hedges only extend a year into the future. With fuel being such a major expense, investors should keep an eye on fuel prices as they have the potential to significantly alter the bottom line.
Other costs at JetBlue totaled $2.1 billion and are summarized in the table below.
source: JetBlue 10-K
When taken together, these expenses are significant but are essential to running an airline. Of course these costs are at a lower scale compared to the major carriers since JetBlue is significantly smaller by both fleet size and market share. But even when this is taken into account, as a percent of revenue, none of JetBlue's other expenses appear to be too far out of the ordinary for an airline.
As JetBlue continues to expand, investors should expect many categories of expenses to grow as more flights are operated and more aircraft are used. However, this should also generate more revenue for the airline and if management can execute, it could result in higher earnings.
The bottom line
The vast majority of JetBlue's revenue comes from fares and products closely associated with fares such as Even More Space seats which are posting impressive revenue growth. But as the airline rolls out its new baggage-fee policy, look for growth in the "other revenue" category as more bag fees are collected and the possibility of closing the gap with the major legacy carriers. On the expense side, the biggest factor for investors to watch for right now is fuel. As JetBlue's single largest expense, fuel prices can have major effects on the airline's bottom line.
Overall, JetBlue's income and expenses are similar to those of many other airlines but investors should keep an eye on new products and fees from JetBlue on the revenue side and movements in fuel prices on the expense side.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article What's Driving JetBlue's Profits? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines,. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 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 .
Copyright © 1995 - 2015 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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The strategy of offering larger economy-class seats for an extra price has taken hold across the airline industry, with all the majors climbing onboard and even many of the newer entrants taking them on. Nonetheless, while major carriers are not disclosing their upgraded economy revenue growth like JetBlue, they are voting with their wallets to continue or even expand the programs. But as the airline rolls out its new baggage-fee policy, look for growth in the "other revenue" category as more bag fees are collected and the possibility of closing the gap with the major legacy carriers.
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Record year Last year saw Delta Air Lines , United Continental Holdings , American Airlines Group , and Southwest Airlines all post record profits, in large part because of a combination of rising demand, higher fares, and gains in ancillary revenue. As JetBlue's single largest expense, fuel prices can have major effects on the airline's bottom line. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
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In the 10-K, JetBlue discusses the balancing act it undergoes in pricing fares: For those who don't speak airline, JetBlue tries to increase average fares while keeping those fares competitive with those of its rival airlines. source: Company 10-Ks *Other Revenue combines the Other Revenue and Cargo Revenue at each airline to better compare to JetBlue's Other Revenue measurement which includes both types of revenue. Overall, JetBlue's income and expenses are similar to those of many other airlines but investors should keep an eye on new products and fees from JetBlue on the revenue side and movements in fuel prices on the expense side.
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Record year Last year saw Delta Air Lines , United Continental Holdings , American Airlines Group , and Southwest Airlines all post record profits, in large part because of a combination of rising demand, higher fares, and gains in ancillary revenue. By making first checked bags no longer free with the lowest fare, investors should expect the "other revenue" category to show growth from this factor alone. The bottom line The vast majority of JetBlue's revenue comes from fares and products closely associated with fares such as Even More Space seats which are posting impressive revenue growth.
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8381.0
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2015-05-01 00:00:00 UTC
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American Airlines Group (AAL) Flights Delayed by iPad app Glitch - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-flights-delayed-by-ipad-app-glitch-analyst-blog-2015-05-01
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nan
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nan
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Several flights of American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, experienced significant delays due to a software glitch. According to media reports, pilots' iPads crashed abruptly resulting in the delay.
We remind investors that the Fort Worth, TX-based carrier has been utilizing tech giant Apple Inc.'s AAPL iPads in its cockpits for the last few years. In order to get rid of the deluge of papers that was carried by pilots to primarily view flight plans, American Airlines had resorted to this new-age technology and implemented electronic flight bags (electronic information management devices) throughout its fleet. The process, completed in Jun 2013, had American Airlines equip its cockpits with electronic flight bags, thereby doing away with approximately 35 pounds of paper-based documents. The replacement of paper kit bags resulted in massive savings in fuel costs. Other carriers such as Delta Air Lines DAL too have resorted to the same technology.
The iPads are used by the airline for distributing flight plans and other relevant information to the crew. The malfunctioning app, which robbed the pilots access to navigational charts thereby causing customers unnecessary delays and harassments, resulted in the shares of the carrier declining 4.51% to $48.88 on Apr 29.
Problem and Solution Identified
The flight delays and the consequent inconvenience caused to its fliers prompted American Airlines to thoroughly investigate the matter. The investigation revealed that the problem lay in an iPad app created by Boeing's BA Jeppesen. Maps of multiple airport facilities are present in the app. The presence of the redundant navigation map for Ronald Reagan National Airport in the app was the root cause of the problem.
The solution to the software glitch was also provided. To resolve the issue, the pilots were asked to delete the app and then download it again. The glitch, though now solved, has highlighted the unforeseen risks associated with reliance on technology in today's digital age.
Zacks Rank
American Airlines Group currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is JetBlue Airways JBLU , which holds a Zacks Rank #2 (Buy).
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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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Several flights of American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, experienced significant delays due to a software glitch. Click to get this free report BOEING CO (BA): Free Stock Analysis Report APPLE INC (AAPL): 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 process, completed in Jun 2013, had American Airlines equip its cockpits with electronic flight bags, thereby doing away with approximately 35 pounds of paper-based documents.
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Click to get this free report BOEING CO (BA): Free Stock Analysis Report APPLE INC (AAPL): 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. Several flights of American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, experienced significant delays due to a software glitch. In order to get rid of the deluge of papers that was carried by pilots to primarily view flight plans, American Airlines had resorted to this new-age technology and implemented electronic flight bags (electronic information management devices) throughout its fleet.
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Several flights of American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, experienced significant delays due to a software glitch. Click to get this free report BOEING CO (BA): Free Stock Analysis Report APPLE INC (AAPL): 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. In order to get rid of the deluge of papers that was carried by pilots to primarily view flight plans, American Airlines had resorted to this new-age technology and implemented electronic flight bags (electronic information management devices) throughout its fleet.
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Click to get this free report BOEING CO (BA): Free Stock Analysis Report APPLE INC (AAPL): 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. Several flights of American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, experienced significant delays due to a software glitch. In order to get rid of the deluge of papers that was carried by pilots to primarily view flight plans, American Airlines had resorted to this new-age technology and implemented electronic flight bags (electronic information management devices) throughout its fleet.
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8382.0
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2015-05-01 00:00:00 UTC
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Should You Be Concerned About JetBlue's Liabilities?
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https://www.nasdaq.com/articles/should-you-be-concerned-about-jetblues-liabilities-2015-05-01
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The airline industry has a long history of carriers going belly up and excessive liabilities have been a key cause of many airline failures. Here I'll look what liabilities JetBlue Airways (NASDAQ: JBLU) faces, how these compare to assets, and how strong the airline is financially.
Debt
As of the end of 2014, JetBlue said it had $2.23 billion in total debt, $1.97 billion of which was long-term debt. That may seem like a lot, accounting for nearly half of the airline's capitalization, but airlines are best looked at for their net debt. This is because it is common industry practice to carry large amounts of cash while simultaneously carrying large amounts of debt since much of the debt matures years into the future but the cash may be needed in the event of an industry downturn. Using the total debt rather than net debt fails to account for the large amounts of cash carried by airlines that could be directed to pay down debt but are instead maintained as a short-term safety net.
It's also important to put net debt in context since a company's ability to pay its debts depends largely on how much cash flow it can generate. Here, a net debt to operating cash flow ratio compares how much net debt a company has to how much cash flow it's generating from operations. For airlines in particular, operating cash flow is more useful here than earnings since earnings include many non-cash and one-time charges such as depreciation and debt extinguishment costs.
Source: Company 10-Ks
Compared with other major airlines, JetBlue has an edge in carrying a net debt-to-operating cash flow ratio at the low end of the industry range. However, with net cash and strong operating cash flow, Southwest Airlines is the industry standout even outperforming JetBlue on this metric. With a net cash balance of $100 million, Southwest could conceivably pay off it debt right now but, as previously mentioned, the airline wants to retain cash in case of tough industry times.
Pension plans
Like Southwest Airlines, but unlike some of its other legacy rivals, JetBlue doesn't sponsor a defined benefit pension plan of any significant size. Both carriers thus escape the problems of underfunded pensions, which are a $4.2 billion liability for United Continental, $7.6 billion for American Airlines, and $15.1 billion for Delta.
While the underfunded plans don't need to be fully funded immediately, contributions to them will be a drain on the bottom line for years to come. By opting for defined contribution plans instead of defined benefit plans, JetBlue and Southwest have managed to avoid the pension liabilities that follow the legacy carriers.
By avoiding these pension issues, JetBlue and Southwest avoid having to periodically contribute large sums of cash to pensions plans. Last year, Delta Air Lines contributed $250 million to its pension plan and American Airlines Group contributed $810 million to its own plan. While the pension plans are unlikely to cause insolvency since contributions can be periodically delayed and they will not come due all at once, contributions which vary by year will consume extra cash that could otherwise be redirected toward reinvestment in the airline or returned to shareholders through dividends and buybacks.
In effect, the pension plan contributions can reduce cash flow potentially negatively impacting a number investors look upon for valuing a company. Lacking defined benefit pension plans, JetBlue and Southwest can keep this cash for themselves giving them an edge in cash flow and EBIT margins over legacy competitors.
Other commitments
As an airline, JetBlue has to pay for the leasing of facilities and aircraft, and many of those leases can't be cancelled. In its most 2014 10-K form, the airline said it has $2 billion in non-cancellable lease and financing obligations for 2015 to 2019 and $1.36 billion in the years following.
Based on the ranking below, JetBlue is about average in percentage of aircraft leased.
source: Company 10-Ks
In the current environment, aircraft lease costs are easily covered, but they could cause problems in a sharp industry downturn. However, JetBlue is about average in this area so it's risks in this area are close to those of other carriers. JetBlue and other airlines are also under obligation to pay facility leases, since it's highly unusual for an airline to own part of an airport.
Also worth looking at is aircraft on order. Since orders for aircraft are placed years in advance of delivery, airlines typically have years' worth of commitments ahead of them. JetBlue notes that it has about $6.67 billion worth of commitments to purchase 127 additional aircraft and ten spare engines through 2023. At an average of 7.8 years of age, which is well below the average fleet ages of larger rivals, JetBlue's fleet does not require too much updating and many of these aircraft are poised to operate JetBlue's growth plans. However, JetBlue has not revealed the size of its fleet for 2023 so we don't know exactly how many aircraft will be used to grow the fleet and how many will replace existing planes.
source: Company 10-Ks
But as the table above shows, even if JetBlue were to add 127 aircraft without replacing any existing planes, its fleet would still be less than half the size of the next largest competitor's. The ratio of planes added to planes removed may be adjusted by economic conditions or if the airline's growth strategy changes. But with a low average fleet age and growth ambitions, it's highly likely that many of these planes will be added without replacing an existing aircraft.
Like other airlines that are expanding or modernizing their fleets, JetBlue is likely to tap the debt markets to finance purchases of these aircraft. How successful the airline is in accomplishing this goal will depend on the health of the airline industry, interest rates, and investor appetite to purchase airline debt. Here, JetBlue may choose to use equipment-backed financing, whereby the aircraft itself is pledged as collateral. This method is common in the airline industry, as it typically results in a lower interest rate than unsecured debt offers since creditors have a direct claim on an asset in the event of default.
While having so many aircraft on order does present greater risk going forward, these orders are necessary for JetBlue to continue its expansion and improve the size of its network for the future. Considering all of the other major airlines also have significant aircraft orders lined up as they look to replace older aircraft and modernize their fleets, commitments to future orders should be seen as a necessary part of any airline and not just a risk for JetBlue.
The bottom line
JetBlue is one of the better positioned carriers using a net debt to operating cash flow metric but Southwest Airlines is the best positioned due to its net cash balance and strong operating cash flow to back it up. But JetBlue and Southwest both have an edge over legacy carriers in the area of pensions allowing JetBlue and Southwest to reinvest or give cash to shareholders rather than use it to fund pensions.
Over the next several years, JetBlue also has large number of aircraft on order as it both expands and modernizes its fleet as well as facility costs to pay. However, both of these are inescapable costs for airlines that want to keep their fleet modern and use airport facilities.
With healthy cash flow and a reasonable amount of liabilities, I do not see JetBlue as being at risk of insolvency in the current environment. However, it still has the risks inherent to an airline including cyclical volatility and high ongoing costs.
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2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Should You Be Concerned About JetBlue's Liabilities? originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines,. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 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 .
Copyright © 1995 - 2015 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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Source: Company 10-Ks Compared with other major airlines, JetBlue has an edge in carrying a net debt-to-operating cash flow ratio at the low end of the industry range. In effect, the pension plan contributions can reduce cash flow potentially negatively impacting a number investors look upon for valuing a company. This method is common in the airline industry, as it typically results in a lower interest rate than unsecured debt offers since creditors have a direct claim on an asset in the event of default.
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Last year, Delta Air Lines contributed $250 million to its pension plan and American Airlines Group contributed $810 million to its own plan. The bottom line JetBlue is one of the better positioned carriers using a net debt to operating cash flow metric but Southwest Airlines is the best positioned due to its net cash balance and strong operating cash flow to back it up. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
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However, with net cash and strong operating cash flow, Southwest Airlines is the industry standout even outperforming JetBlue on this metric. Considering all of the other major airlines also have significant aircraft orders lined up as they look to replace older aircraft and modernize their fleets, commitments to future orders should be seen as a necessary part of any airline and not just a risk for JetBlue. The bottom line JetBlue is one of the better positioned carriers using a net debt to operating cash flow metric but Southwest Airlines is the best positioned due to its net cash balance and strong operating cash flow to back it up.
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Last year, Delta Air Lines contributed $250 million to its pension plan and American Airlines Group contributed $810 million to its own plan. Considering all of the other major airlines also have significant aircraft orders lined up as they look to replace older aircraft and modernize their fleets, commitments to future orders should be seen as a necessary part of any airline and not just a risk for JetBlue. Over the next several years, JetBlue also has large number of aircraft on order as it both expands and modernizes its fleet as well as facility costs to pay.
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8383.0
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2015-04-30 00:00:00 UTC
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Cash, Planes, and More: A Look at JetBlue Airways
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https://www.nasdaq.com/articles/cash-planes-and-more-look-jetblue-airways-2015-04-30
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Digging into a company's assets is always important before making an investment decision and JetBlue Airways (NASDAQ: JBLU) is no exception. Here, I'll look at some of the key assets of JetBlue including cash and aircraft as well as the less talked about routes and slots.
Cash
As of Dec. 31, JetBlue had $708 million in cash and short-term investments. That may seem like a lot for a $5 billion company, but retaining a significant amount of cash on hand is a common practice in the aviation industry. At the moment, the major carriers all have multiple billions in cash that they're retaining to fund working operations, provide a safety net in the event of an industry downturn, and improve the balance sheet in order to get better financing rates for purchases and leased aircraft. Many airlines are ordering new aircraft, but these planes are purchased largely with a mixture of debt financing and cash generated from operations instead of straight cash purchases. Even with its current cash and short-term investments, JetBlue only owns 137 planes in its 203 aircraft fleet since it would rather retain the cash than buy a more of its fleet.
Since 2012, JetBlue's cash and short-term investments have remained fairly stable within the $600 million to $800 million range, which puts the company's liquidity slightly below but well within the range of its competitors on a current and quick ratio basis-- both measures of liquid assets compared to working capital.
All five airlines don't have enough liquid assets on hand to cover their capital needs, but all are currently in positions where they could tap the debt markets for more financing if needed. Here, I consider JetBlue's financial health largely in line with peers but something investors should still keep an eye on.
Planes
An airline doesn't own all of the planes you see painted in that airline's colors. In many cases, they're leased. In fact, there's an entire industry built around leasing aircraft to commercial airlines.
There are enough pros and cons to leasing aircraft to merit a book on the subject. In looking over an airline's assets, finding out how many planes are leased is important to know. Having more owned aircraft can provide more flexibility in tough times by allowing carriers to raise funds through sale-leaseback programs, not having to pay aircraft leases, and having the flexibility to reduce costs and capacity by taking extra aircraft out of service.
The following table shows airlines in order of percentage of aircraft owned:
source: Company 10-K forms
Here, it appears JetBlue is in line with the industry average for leasing versus owning aircraft but as the airline takes delivery of more aircraft investors should keep an eye on whether they are purchased upfront, financed, or leased.
At this point, JetBlue's fleet is comprised of the Airbus A320, Airbus A321, and Embraer 190; all of which are narrowbody aircraft. For an airline focused on travel within the Americas rather than flying to Europe and Asia, this arrangement of aircraft is workable. Having a limited variety of aircraft helps to save on maintenance costs and increase pilot flexibility. Also, With an average fleet age of 7.8 years, JetBlue's fleet is younger than those of its larger rivals.
source: Company 10-Ks
Like many of its rivals, though, JetBlue is busy ordering new aircraft which should result in lowering the average age over the next several years. Investors should keep an eye on how many of JetBlue's new aircraft go to replacing existing planes and how many are used to grow the fleet.
Routes and slots
Another factor to point out are routes the airline controls. Although JetBlue doesn't place a dollar value on all of its routes and slots, it's clear they are highly valuable when considering how airlines operate and how they compete for slots.
Having access to the best routes through controlling slots at airports is critical to an airline's ability to offer the flights passengers demand. JetBlue describes one of its competitive advantages as "high-value geography," and the value becomes clear when considering that many of the airports in the Northeastern U.S. are in demand and slot-restricted.
And with a strong Northeast presence, JetBlue has gained access to these airports in a way that no new entrant could hope to claim within any reasonable timeframe, unless it had an extremely large amount of capital to use. So not only do these slots make sure JetBlue has access to the routes passengers want but they also keep new airlines out.
For an example of how airlines compete for airport access, look no further than the situation at Washington National Airport. During the American Airlines-US Airways merger, JetBlue and Southwest Airlines both pushed for the new American to be forced to divest some slots at the airport.Sure enough, the Department of Justice the required divestment of 104 slots at Washington National as part of the merger approval, and JetBlue and Southwest lined up to bid. In the end, JetBlue and Southwest both won slots at the airport, giving them greater access to the closest major airport to the nation's capital.
So while JetBlue doesn't break down the value all of its slots (acquired ones are part of intangible assets), it's clear that they're valuable and provide an advantage over potential new airline start-ups.
Branding and loyalty
While things like cash and planes tend to get the most attention, intangible assets like brand names and customer loyalty are essential to the airline industry. Here, airlines put great effort into providing perks for their most frequent and highest paying travelers in an effort to encourage them to continue spending money at the same airline.
JetBlue has long built a brand name around being a different type of airline. From its early tech-savvy days to today where it still provides more economy legroom than most rivals, the JetBlue name is something that no other airline can completely copy. Combined with previous experiences on JetBlue and accumulated status, the airline maintains an advantage over new entrants that lack a core customer base and widely known brand name.
It would be difficult to put a dollar value on JetBlue's brand, customer loyalty, and market position but it's clear they are important to the airline.
The bottom line
Many of JetBlue's assets resemble those of other airlines, reflecting a broader industry strategy. Cash levels remain high not because of excessive hoarding but because airlines industrywide find it necessary to retain cash to fund operations and provide a cushion in the event of a downturn.
Aircraft ownership is also similar to the owned-to-leased ratios among the major legacy carriers. An X factor at JetBlue is the slots it controls, particularly those at high-demand Northeast airports, which, although valued highly in the airline industry, aren't all included on the balance sheet.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article Cash, Planes, and More: A Look at JetBlue Airways originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines,. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 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 .
Copyright © 1995 - 2015 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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At the moment, the major carriers all have multiple billions in cash that they're retaining to fund working operations, provide a safety net in the event of an industry downturn, and improve the balance sheet in order to get better financing rates for purchases and leased aircraft. So while JetBlue doesn't break down the value all of its slots (acquired ones are part of intangible assets), it's clear that they're valuable and provide an advantage over potential new airline start-ups. Combined with previous experiences on JetBlue and accumulated status, the airline maintains an advantage over new entrants that lack a core customer base and widely known brand name.
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Even with its current cash and short-term investments, JetBlue only owns 137 planes in its 203 aircraft fleet since it would rather retain the cash than buy a more of its fleet. The following table shows airlines in order of percentage of aircraft owned: source: Company 10-K forms Here, it appears JetBlue is in line with the industry average for leasing versus owning aircraft but as the airline takes delivery of more aircraft investors should keep an eye on whether they are purchased upfront, financed, or leased. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
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Even with its current cash and short-term investments, JetBlue only owns 137 planes in its 203 aircraft fleet since it would rather retain the cash than buy a more of its fleet. The following table shows airlines in order of percentage of aircraft owned: source: Company 10-K forms Here, it appears JetBlue is in line with the industry average for leasing versus owning aircraft but as the airline takes delivery of more aircraft investors should keep an eye on whether they are purchased upfront, financed, or leased. During the American Airlines-US Airways merger, JetBlue and Southwest Airlines both pushed for the new American to be forced to divest some slots at the airport.Sure enough, the Department of Justice the required divestment of 104 slots at Washington National as part of the merger approval, and JetBlue and Southwest lined up to bid.
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Even with its current cash and short-term investments, JetBlue only owns 137 planes in its 203 aircraft fleet since it would rather retain the cash than buy a more of its fleet. The following table shows airlines in order of percentage of aircraft owned: source: Company 10-K forms Here, it appears JetBlue is in line with the industry average for leasing versus owning aircraft but as the airline takes delivery of more aircraft investors should keep an eye on whether they are purchased upfront, financed, or leased. 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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8384.0
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2015-04-29 00:00:00 UTC
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How JetBlue Takes on the Airline Industry
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AAL
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https://www.nasdaq.com/articles/how-jetblue-takes-airline-industry-2015-04-29
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It's no secret that succeeding in the airline industry is difficult, yet JetBlue Airways has managed to survive a period that saw almost all legacy carriers flying today declare bankruptcy.
The airline industry has changed a lot since then. Let's look at the current industry conditions, including competition, consolidation, and potential threats, and explore where airlines could be headed.
Consolidation wave
While the airline industry has taken a lot of challenges from economic recessions to volatile oil prices , the reason for the drop in the number of legacy carriers is consolidation, not bankruptcy. In the past few years, we have seen three major mergers within the space:
Even domestically focused Southwest Airlines got in on the merger action by acquiring AirTran Airways , giving Southwest some quick growth and access to its first international routes.
Source: Bureau of Transportation Statistics.
Consolidation benefits
By combining with other carriers, the major airlines get better capacity discipline and can pass on higher fares. At the same time, economies of scale have resulted in billions in synergies for the major carriers as they reduced redundant services and integrated workforces.
Even though JetBlue wasn't part of any of the big airline mergers, it still stands to benefit from the mergers in two ways: additional slots in restricted airports and higher fares from reduced competition.
For JetBlue, slot restrictions are a double-edged sword. On the one hand, they help protect existing operations from new competitors that might bring lower fares or capture market share. On the other hand, slot restrictions could make expansion more difficult for JetBlue since it can be tougher to break into restricted airports. In 2014, JetBlue won 12 slots at Washington National Airport that American Airlines gave up to complete its merger with US Airways.
Also, with fewer major carriers fighting on prices, the entire industry has seen a lift in profitability. Reduced compeition has contributed to a 13% total nominal rise ( 2.6% inflation adjusted) in average airfares since the 2008 Delta-Northwest merger.JetBlue is reaping the benefits of these higher fares as well. Since 2008, the airline's average fare increased a total of 19.4%, or 9.4% inflation adjusted. Not only did the average fare increase, but the average stage length decreased nearly 3%, showing that the higher fares did not come solely from flying longer routes.
While this fare increase may not seem like much, the airline industry has high revenues and thin margins (JetBlue's operating margin is only 8.9%) so even small fare increases can create substantial profit growth.
Threats from new technologies
In 2015, air travel is the fastest practical way to move people and cargo over large distances in most of the world. While some might think high-speed rail is a potential disruptor of airline traffic, I don't see this as a major threat to the airline industry. High speed rail only really works where there is a dense configuration of population centers, similar to that of the Northeastern United States and Europe, but even with high-speed rail in Europe and some in the Northeast U.S., both regions still support robust airline travel.
Digital communication may get some businesses to cut back on travel, but this technology doesn't meet all of the goals of business travel in many cases. Longer-term, this could be an area to watch as technology improves, but current business travel appears healthy despite all sorts of digital communication technologies.
For now, passenger traffic among U.S. carriers is increasing, with 2014 seeing 72.09 million revenue passenger miles, up from 70.97 million passenger miles from 2013. This increase in demand follows with the growth in the economy, which helps to stimulate business and leisure demand. Although there will likely be bumps along the road, the International Air Transport Association estimates air passenger demand to grow at a rate of 3.3% annually for the next 20 years.
Threats from new airlines
Historically, competition has been one of the major downfalls of the airline industry, so the threat from new airlines is definitely worth examining.
While consolidation has reduced current levels of competition, there are ways new competitors could cause problems. Airlines entering with lower fares could drive down overall fares and individual airline margins. However, these airlines would either need to operate with extremely thin margins -- which is difficult for start-up companies in capital-intensive industries -- or reduce features, which would make their product a lower-end one competing for a different market. Right now, Spirit Airlines and Allegiant Air are looked at as threats because they are bringing in lower fares to attack the lower end of the market.
Moves by new airlines are something to watch, but the barriers to entry in the airline industry are high because of difficulty securing slots at key airports, the lack of a loyal customer base, and the high fixed costs that begin from day one.
Key statistics
Statisticians have plenty to work with when analyzing airlines, but there are only a few key statistics that are of particular significance. The first is passenger revenue per available seat mile, or PRASM. This metric measures how much revenue an airline is able to collect for each mile each seat is flown. Clearly a higher number is beneficial, here, as it means more revenue is being collected on the same number of seats.
Source: Company 10-Ks.
JetBlue trails its larger rivals on both operational efficiency and on PRASM growth, but it's still seeing respectable growth, here. Last June, the airline launched its new Mint suite offering, with a higher price than ordinary seats in an effort to boost revenue. Investors should see how this translates to PRASM growth as the suites see their first full year of operation in 2015.
Another key statistic industry watchers follow is load factor. This measures what percentage of an airline's seats are filled. Since there are so many fixed fees associated with travel, load factors need to be high to remain profitable.
Source: Company 10-Ks.
JetBlue's load factor is near the higher end of the range, but it registered only slight growth in 2014. The airline is not running excess capacity in the air. Investors should keep an eye on load factor results as they can provide insight on the strength of demand and, in JetBlue's case, can hint at whether or not the new premium seat offerings are selling.
Because of the significance of these metrics, airline investors should watch for the monthly traffic reports released by carriers, which contain both PRASM and load factor numbers.
The bottom line
JetBlue is the largest of the non-major U.S. carriers by market share, but it's benefiting from the consolidated industry environment the major carriers have merged to create. Investors should still watch out for new airlines and new technologies, but neither one appears to be a near-term threat to JetBlue's viability.
Overall, JetBlue is largely connected to the fortunes of the airline industry through fares and fuel prices as it continues in its growth plans.
1 great stock to buy for 2015 and beyond
2015 is shaping up to be another great year for stocks. But if you want to make sure that 2015 is your best investing year ever, you need to know where to start. That's why The Motley Fool's chief investment officer just published a brand-new research report that reveals his top stock for the year ahead. To get the full story on this year's stock -- completely free -- simply click here .
The article How JetBlue Takes on the Airline Industry originally appeared on Fool.com.
Alexander MacLennan owns shares of American Airlines Group and Delta Air Lines. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 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 .
Copyright © 1995 - 2015 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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It's no secret that succeeding in the airline industry is difficult, yet JetBlue Airways has managed to survive a period that saw almost all legacy carriers flying today declare bankruptcy. However, these airlines would either need to operate with extremely thin margins -- which is difficult for start-up companies in capital-intensive industries -- or reduce features, which would make their product a lower-end one competing for a different market. Investors should keep an eye on load factor results as they can provide insight on the strength of demand and, in JetBlue's case, can hint at whether or not the new premium seat offerings are selling.
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While this fare increase may not seem like much, the airline industry has high revenues and thin margins (JetBlue's operating margin is only 8.9%) so even small fare increases can create substantial profit growth. For now, passenger traffic among U.S. carriers is increasing, with 2014 seeing 72.09 million revenue passenger miles, up from 70.97 million passenger miles from 2013. Alexander MacLennan has the following options: long January 2017 $25 calls on American Airlines Group and long January 2016 $60 calls on American Airlines Group.
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While this fare increase may not seem like much, the airline industry has high revenues and thin margins (JetBlue's operating margin is only 8.9%) so even small fare increases can create substantial profit growth. Threats from new airlines Historically, competition has been one of the major downfalls of the airline industry, so the threat from new airlines is definitely worth examining. Moves by new airlines are something to watch, but the barriers to entry in the airline industry are high because of difficulty securing slots at key airports, the lack of a loyal customer base, and the high fixed costs that begin from day one.
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Consolidation wave While the airline industry has taken a lot of challenges from economic recessions to volatile oil prices , the reason for the drop in the number of legacy carriers is consolidation, not bankruptcy. While this fare increase may not seem like much, the airline industry has high revenues and thin margins (JetBlue's operating margin is only 8.9%) so even small fare increases can create substantial profit growth. 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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8385.0
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2015-04-29 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for April 30, 2015
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-april-30-2015-2015-04-29
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nan
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nan
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on April 30, 2015. A cash dividend payment of $0.1 per share is scheduled to be paid on May 18, 2015. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that AAL has paid the same dividend. At the current stock price of $51.19, the dividend yield is .78%.
The previous trading day's last sale of AAL was $51.19, representing a -8.91% decrease from the 52 week high of $56.20 and a 82.17% increase over the 52 week low of $28.10.
AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). AAL's current earnings per share, an indicator of a company's profitability, is $4.57. Zacks Investment Research reports AAL's forecasted earnings growth in 2015 as 78.9%, compared to an industry average of 20.1%.
For more information on the declaration, record and payment dates, visit the AAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAL as a top-10 holding:
PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ )
PowerShares DWA Consumer Cyclicals Momentum Portfolio ( PEZ )
SPDR S&P Transportation ETF ( XTN )
First Trust Industrials AlphaDEX ( FXR )
PowerShares Fundamental Pure Mid Value Portfolio ( PXMV ).
The top-performing ETF of this group is PEJ with an increase of 8.77% over the last 100 days. It also has the highest percent weighting of AAL at 5.12%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). Zacks Investment Research reports AAL's forecasted earnings growth in 2015 as 78.9%, compared to an industry average of 20.1%. For more information on the declaration, record and payment dates, visit the AAL Dividend History page.
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AAL's current earnings per share, an indicator of a company's profitability, is $4.57. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on April 30, 2015.
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAL Dividend History page. The following ETF(s) have AAL as a top-10 holding: PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ ) PowerShares DWA Consumer Cyclicals Momentum Portfolio ( PEZ ) SPDR S&P Transportation ETF ( XTN ) First Trust Industrials AlphaDEX ( FXR ) PowerShares Fundamental Pure Mid Value Portfolio ( PXMV ).
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AAL's current earnings per share, an indicator of a company's profitability, is $4.57. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on April 30, 2015. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment.
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8386.0
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2015-04-29 00:00:00 UTC
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American Airlines bulls on runway
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AAL
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https://www.nasdaq.com/articles/american-airlines-bulls-runway-2015-04-29
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nan
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nan
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(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
American Airlines is trying to bounce, and the bulls are waiting for takeoff.
optionMONSTER's Heat Seeker tracking system detected the purchase of about 33,000 June 52.50 calls for about $2.10 yesterday. A matching number of May 52.50 calls was sold for $0.77 against previous open interest, which suggests an existing bullish position was rolled forward in time.
Long calls lock in the price where investors can buy shares. They're safer than stock because only the premium can be lost in the event of a selloff. Their cheap cost can also generate significant leverage on a percentage basis if a rally occurs. Yesterday's transaction kept the trader long an additional month for an incremental cost of $1.33. (See our Education section)
AAL slid 1.31 percent to $51.19 and is attempting to hold support at its 50-day moving average. It's drifted along with most other major carriers this year following a big rally in late 2014. Earnings beat expectations last Friday.
Overall option volume was quadruple the daily average, with calls accounting for a bullish 82 percent of the total.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(See our Education section) AAL slid 1.31 percent to $51.19 and is attempting to hold support at its 50-day moving average. optionMONSTER's Heat Seeker tracking system detected the purchase of about 33,000 June 52.50 calls for about $2.10 yesterday. A matching number of May 52.50 calls was sold for $0.77 against previous open interest, which suggests an existing bullish position was rolled forward in time.
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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. (See our Education section) AAL slid 1.31 percent to $51.19 and is attempting to hold support at its 50-day moving average. Long calls lock in the price where investors can buy shares.
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(See our Education section) AAL slid 1.31 percent to $51.19 and is attempting to hold support at its 50-day moving average. optionMONSTER's Heat Seeker tracking system detected the purchase of about 33,000 June 52.50 calls for about $2.10 yesterday. A matching number of May 52.50 calls was sold for $0.77 against previous open interest, which suggests an existing bullish position was rolled forward in time.
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(See our Education section) AAL slid 1.31 percent to $51.19 and is attempting to hold support at its 50-day moving average. (The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.) American Airlines is trying to bounce, and the bulls are waiting for takeoff.
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8387.0
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2015-04-27 00:00:00 UTC
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S&P 500 Analyst Moves: AAL
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AAL
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https://www.nasdaq.com/articles/sp-500-analyst-moves-aal-2015-04-27
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nan
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nan
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, American Airlines Group ( AAL ) is now the #59 analyst pick, moving up by 7 spots.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, American Airlines Group ( AAL ) is lower by about 2.4%.
VIDEO: S&P 500 Analyst Moves: 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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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, American Airlines Group ( AAL ) is now the #59 analyst pick, moving up by 7 spots. Looking at the stock price movement year to date, American Airlines Group ( AAL ) is lower by about 2.4%. VIDEO: S&P 500 Analyst Moves: AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the stock price movement year to date, American Airlines Group ( AAL ) is lower by about 2.4%. VIDEO: S&P 500 Analyst Moves: 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 latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, American Airlines Group ( AAL ) is now the #59 analyst pick, moving up by 7 spots.
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, American Airlines Group ( AAL ) is now the #59 analyst pick, moving up by 7 spots. VIDEO: S&P 500 Analyst Moves: AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at the stock price movement year to date, American Airlines Group ( AAL ) is lower by about 2.4%.
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, American Airlines Group ( AAL ) is now the #59 analyst pick, moving up by 7 spots. Looking at the stock price movement year to date, American Airlines Group ( AAL ) is lower by about 2.4%. VIDEO: S&P 500 Analyst Moves: AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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8388.0
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2015-04-27 00:00:00 UTC
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Company News for April 27, 2015 - Corporate Summary
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AAL
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https://www.nasdaq.com/articles/company-news-for-april-27-2015-corporate-summary-2015-04-27
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nan
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nan
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• Shares of American Airlines Group Inc. ( AAL ) gained 2.4% after the company reported earnings per share of $1.73, beating the Zacks Consensus Estimate by 3 cents
• Biogen Inc.'s ( BIIB ) shares declined 6.6% after the company posted first quarter earnings per share of $3.82, below the Zacks Consensus Estimate of $3.91
• Shares of Xerox Corporation ( XRX ) dropped 8.8% after the company reported first quarter revenues of $4.469 billion that missed the Zacks Consensus Estimate of $4.511 billion
• Shares of Juniper Networks, Inc. ( JNPR ) climbed 8.9% after the company posted first quarter revenues of $1.067 billion that beat the Zacks Consensus Estimate of $1.044 billion
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
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
XEROX CORP (XRX): Free Stock Analysis Report
JUNIPER NETWRKS (JNPR): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Shares of American Airlines Group Inc. ( AAL ) gained 2.4% after the company reported earnings per share of $1.73, beating the Zacks Consensus Estimate by 3 cents • Biogen Inc.'s ( BIIB ) shares declined 6.6% after the company posted first quarter earnings per share of $3.82, below the Zacks Consensus Estimate of $3.91 • Shares of Xerox Corporation ( XRX ) dropped 8.8% after the company reported first quarter revenues of $4.469 billion that missed the Zacks Consensus Estimate of $4.511 billion • Shares of Juniper Networks, Inc. ( JNPR ) climbed 8.9% after the company posted first quarter revenues of $1.067 billion that beat the Zacks Consensus Estimate of $1.044 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report JUNIPER NETWRKS (JNPR): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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• Shares of American Airlines Group Inc. ( AAL ) gained 2.4% after the company reported earnings per share of $1.73, beating the Zacks Consensus Estimate by 3 cents • Biogen Inc.'s ( BIIB ) shares declined 6.6% after the company posted first quarter earnings per share of $3.82, below the Zacks Consensus Estimate of $3.91 • Shares of Xerox Corporation ( XRX ) dropped 8.8% after the company reported first quarter revenues of $4.469 billion that missed the Zacks Consensus Estimate of $4.511 billion • Shares of Juniper Networks, Inc. ( JNPR ) climbed 8.9% after the company posted first quarter revenues of $1.067 billion that beat the Zacks Consensus Estimate of $1.044 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report JUNIPER NETWRKS (JNPR): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Shares of American Airlines Group Inc. ( AAL ) gained 2.4% after the company reported earnings per share of $1.73, beating the Zacks Consensus Estimate by 3 cents • Biogen Inc.'s ( BIIB ) shares declined 6.6% after the company posted first quarter earnings per share of $3.82, below the Zacks Consensus Estimate of $3.91 • Shares of Xerox Corporation ( XRX ) dropped 8.8% after the company reported first quarter revenues of $4.469 billion that missed the Zacks Consensus Estimate of $4.511 billion • Shares of Juniper Networks, Inc. ( JNPR ) climbed 8.9% after the company posted first quarter revenues of $1.067 billion that beat the Zacks Consensus Estimate of $1.044 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report JUNIPER NETWRKS (JNPR): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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• Shares of American Airlines Group Inc. ( AAL ) gained 2.4% after the company reported earnings per share of $1.73, beating the Zacks Consensus Estimate by 3 cents • Biogen Inc.'s ( BIIB ) shares declined 6.6% after the company posted first quarter earnings per share of $3.82, below the Zacks Consensus Estimate of $3.91 • Shares of Xerox Corporation ( XRX ) dropped 8.8% after the company reported first quarter revenues of $4.469 billion that missed the Zacks Consensus Estimate of $4.511 billion • Shares of Juniper Networks, Inc. ( JNPR ) climbed 8.9% after the company posted first quarter revenues of $1.067 billion that beat the Zacks Consensus Estimate of $1.044 billion Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report BIOGEN IDEC INC (BIIB): Free Stock Analysis Report XEROX CORP (XRX): Free Stock Analysis Report JUNIPER NETWRKS (JNPR): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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8389.0
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2015-04-25 00:00:00 UTC
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The Worst Stocks for a Stock Market Crash
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AAL
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https://www.nasdaq.com/articles/worst-stocks-stock-market-crash-2015-04-25
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nan
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nan
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It's not a matter of "if" the stock market is going to crash again -- it's a matter of "when."
Source: Flickr user Jedimentat44.
Between 1997 and 2011 the Dow Jones Industrial Average , arguably the most followed stock market index in the world, fell in excess of 514 points in a single trading session 10 times. On a percentage basis this worked out to a loss of 4.6% on the low end to as much as 7.9% on the high end during the height of the financial crisis.
Although the stock market has historically trended higher over the long run -- thus favoring the long-term investor -- corrections, even very rapid corrections known as crashes, are possible.
What causes stock market crashes? Unfortunately, that's impossible to predict. We've witnessed the financial crisis and a terrorist attack play a role in pushing the market notably lower, but foreign pressures, rumors of the United States potentially losing its AAA credit rating, and weak economic data have all played their roles too. Honestly, there's just no way to predict with any accuracy where the next black swan event will come from.
The worst stocks for a stock market crash
But one thing is for certain: there are certain areas of the market that can be nightmarish for investors during a stock market crash.
Although we at The Motley Fool are not into timing our investments because there's no rhyme or reason to the occurrence of stock market crashes, it nonetheless is important to recognize that there are stocks which are probably going to perform poorly during a stock market crash. That being said, and understanding that there's an arbitrary quality to this list by necessity, here are the worst stocks for a stock market crash.
No. 1: Emotionally driven stocks
Stocks that are driven by emotions rather than genuine fundamentals such as revenue growth and profits are generally going to have a rough go during a stock market crash.
Source: GW Pharmaceuticals.
Think of a company like GW Pharmaceuticals in the biotech arena. GW Pharmaceuticals has shot higher because it's developing a pipeline of drugs using cannabinoids from the cannabis plant. As public perception of marijuana has shifted toward a positive stance, GW Pharmaceuticals has benefited. There's even been an initial bill proposed in Congress that could reduce some of the barriers GW Pharmaceuticals has to leap over in order to study its cannabinoids.
However, GW Pharma is slated to lose money throughout the remainder of the decade. If the stock market is crashing, the emotions tied to this "marijuana trade" could quickly go up in smoke as investors look for profitable safe havens.
Source: Flickr user Emilian Robert Vicol.
No. 2: Penny stocks
Whether it's a bull or bear market, penny stocks are generally not a good investment idea -- but they can be especially dangerous to hold during a stock market crash.
Take coal miner Arch Coal as a prime example. As the stock market has motored higher, Arch Coal has continued to head lower as coal prices and demand remain weak and its losses expand. Compound this with lower natural gas prices and an impetus for electric utilities to change from coal-fired plants to natural gas-fired plants and you have a problem. Tack on a stock market crash whereby Arch Coal could tumble below the $1 per share threshold that most institutional investors won't cross and you have the potential for a very big problem.
No. 3: The "next big thing"
During a bull market the "next big thing" stocks tend to perform extremely well, as they're fueled by a combination of emotions and lofty growth estimates from Wall Street (and often the company's own hype).
What's the "next big thing?" There are a lot of game-changing products out there in the technology and biotech spaces, such as 3D printing, the Internet of Things, and cancer immunotherapies, for example, that could transform the way we live. But if you want a great example of a scary stock to own during a market crash -- and here comes the bias, because I am short this stock at the moment -- look no further than electric vehicle maker Tesla Motors .
Tesla Model S. Source: Tesla Motors.
CEO Elon Musk has indeed introduced the first new car brand in 50 years, but Tesla isn't expected to be profitable on a GAAP basis until 2020. In the meantime, it's building its Gigafactory to make lithium-ion batteries for its electric vehicles when it has no prior experience as a battery manufacturer, it's making as many cars in a quarter as some of its rivals can make in two days, and the company has regularly delayed the debut of its new vehicles. Are electric vehicles the future at some point? Most likely. But are they the standard now? Not even close, meaning Tesla is potentially one of the worst stocks to own during a stock market crash.
No. 4: Cyclical stocks
Cyclical stocks can also have a rough go when the stock market is crashing. Cyclical stocks tend to outperform the broad averages when the economy is healthy and the indexes are rising. Conversely, when the stock market is crashing, or the U.S. or global economy is in a recession, they tend to underperform the indexes.
Source: Citibank, Facebook.
A great example here? How about Citigroup in the banking sector. There could certainly be more volatile banking stocks I could have chosen, but Citi's still in the process of cleaning up its balance sheet from the financial crisis, and banks in general are reliant on a growing economy to drive loan and deposit growth. To add to that, Citi's business is also heavily leveraged to overseas markets, such as Europe, which are forecast to generate slower growth over the next couple of years. A plunging stock market could imply loss of confidence in global financial markets, which could be devastating to Citigroup shareholders.
Source: Flickr user James Wang.
No. 5: Leisure sector stocks
Lastly, a specific sector that can be among the worst during a stock market crash is leisure. Leisure companies depend on a strong economy and growing investment to drive consumers' desire to take vacations and treat themselves. Seeing the stock market crash and watching their investable dollars evaporate won't entice consumers to take vacations.
Who would feel the most pain? I suspect shareholders in airline stocks such as American Airlines Group could be in for some major turbulence. Although fuel prices could fall during a stock market crash, ultimately helping American Airlines, a reduction in bookings could prove to be too much to counteract what are already very tight margins in the airline industry. Tack on $17.9 billion in total debt for American Airlines Group and you have a recipe for this stock to be grounded.
One final note
I believe it's worth emphasizing once again that stock market crashes are going to happen whether you want them to or not, and they're going to come at random times. Trying to time the market simply isn't going to work in your favor over the long run.
As an investor this means picking out great companies and understanding that these hiccups are going to occur from time to time. If the potential for excess volatility isn't a fear, then some of these aforementioned companies could still be investment-worthy over the long-term. Just make sure you understand your risk tolerance prior to making your investment as you never know what tomorrow could bring.
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The article The Worst Stocks for a Stock Market Crash originally appeared on Fool.com.
Sean Williams is short shares of Tesla Motors, but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool owns shares of, and recommends Tesla Motors. It also owns shares of Citigroup. 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 - 2015 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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Between 1997 and 2011 the Dow Jones Industrial Average , arguably the most followed stock market index in the world, fell in excess of 514 points in a single trading session 10 times. Tack on a stock market crash whereby Arch Coal could tumble below the $1 per share threshold that most institutional investors won't cross and you have the potential for a very big problem. To add to that, Citi's business is also heavily leveraged to overseas markets, such as Europe, which are forecast to generate slower growth over the next couple of years.
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Although the stock market has historically trended higher over the long run -- thus favoring the long-term investor -- corrections, even very rapid corrections known as crashes, are possible. As the stock market has motored higher, Arch Coal has continued to head lower as coal prices and demand remain weak and its losses expand. 3: The "next big thing" During a bull market the "next big thing" stocks tend to perform extremely well, as they're fueled by a combination of emotions and lofty growth estimates from Wall Street (and often the company's own hype).
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The worst stocks for a stock market crash But one thing is for certain: there are certain areas of the market that can be nightmarish for investors during a stock market crash. Although we at The Motley Fool are not into timing our investments because there's no rhyme or reason to the occurrence of stock market crashes, it nonetheless is important to recognize that there are stocks which are probably going to perform poorly during a stock market crash. 2: Penny stocks Whether it's a bull or bear market, penny stocks are generally not a good investment idea -- but they can be especially dangerous to hold during a stock market crash.
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What causes stock market crashes? The worst stocks for a stock market crash But one thing is for certain: there are certain areas of the market that can be nightmarish for investors during a stock market crash. Source: GW Pharmaceuticals.
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8390.0
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2015-04-24 00:00:00 UTC
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American Airlines Beats Q1 Earnings on Lower Fuel Costs - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-beats-q1-earnings-on-lower-fuel-costs-analyst-blog-2015-04-24
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nan
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nan
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American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, reported higher-than-expected earnings and revenues in the first quarter of 2015. The company recorded adjusted earnings per share of $1.73, beating the Zacks Consensus Estimate by 3 cents.
American Airlines Group Inc. - Quarterly EPS | FindTheCompany
The earnings beat pleased the investors, resulting in shares of the company gaining in pre-market trading
American Airlines Group reported operating revenues of $9.83 billion in the first quarter of 2015, representing a 1.7% increase over the comparable figure in the year-ago period. Quarterly revenues were marginally higher than the Zacks Consensus Estimate of $9.82 billion.
Consolidated passenger revenue per available seat miles (PRASM) declined 1.7% to 13.44 cents in the reported quarter. Consolidated passenger yield declined 1.2% to 16.82 cents. Load factor (% of seats filled by passengers) declined to 79.9% from the comparable year-ago figure of 80.3%. Weakness in the Atlantic and Latin American areas contributed to the decline in load factor.
American Airlines' results in the reported quarter benefited from low fuel costs. This is because fuel costs account for a major chunk of an airline's operating expenses. Total operating expenses declined 7.1% to $8.6 billion on the back of a 42.2% reduction in fuel costs.
The company looks to reward shareholders by paying dividends and repurchasing shares. During the first quarter of the year, the company returned $260 million to its shareholders by paying $70 million in quarterly dividends and buying back common stock worth $190 million. The company also declared a dividend of 10 cents per share to be paid on May 18, 2015, to stockholders on record as of May 4.
Upcoming Release
JetBlue Airways JBLU will release its first quarter earnings numbers on Apr 28, 2015.
Integration Update
The integration process of the merger between American Airlines and US Airways is almost over. The process took a massive step toward completion earlier this month when the Federal Aviation Administration decided to grant a single operating certificate to American Airlines.
Following the approval, the two airlines will be able to operate under a solitary certificate. The single airline approval implies that most flight operations, maintenance and dispatch procedures will be the same for all flights operated by American Airlines and US Airways.
The reservation systems are expected to be merged later in the year. Eventually planes operated by US Airways will be repainted to sport American Airlines' colors and logo.
Zacks Rank
American Airlines Group currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the transportation sector are Covenant Transportation Group CVTI and Ryder System R . Covenant Transportation Group sports a Zacks Rank #1 (Strong Buy) while Ryder System 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
AMER AIRLINES (AAL): Free Stock Analysis Report
RYDER SYS (R): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
COVENANT TRANS (CVTI): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, reported higher-than-expected earnings and revenues in the first quarter of 2015. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report RYDER SYS (R): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report COVENANT TRANS (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. - Quarterly EPS | FindTheCompany The earnings beat pleased the investors, resulting in shares of the company gaining in pre-market trading American Airlines Group reported operating revenues of $9.83 billion in the first quarter of 2015, representing a 1.7% increase over the comparable figure in the year-ago period.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report RYDER SYS (R): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report COVENANT TRANS (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, reported higher-than-expected earnings and revenues in the first quarter of 2015. During the first quarter of the year, the company returned $260 million to its shareholders by paying $70 million in quarterly dividends and buying back common stock worth $190 million.
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American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, reported higher-than-expected earnings and revenues in the first quarter of 2015. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report RYDER SYS (R): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report COVENANT TRANS (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. - Quarterly EPS | FindTheCompany The earnings beat pleased the investors, resulting in shares of the company gaining in pre-market trading American Airlines Group reported operating revenues of $9.83 billion in the first quarter of 2015, representing a 1.7% increase over the comparable figure in the year-ago period.
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American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, reported higher-than-expected earnings and revenues in the first quarter of 2015. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report RYDER SYS (R): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report COVENANT TRANS (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines' results in the reported quarter benefited from low fuel costs.
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8391.0
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2015-04-24 00:00:00 UTC
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American Airlines Group, Inc. Earnings: Another Quarter, Another Record
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-earnings-another-quarter-another-record-2015-04-24
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nan
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nan
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On Friday morning, American Airlines Group, Inc. reported another record profit, as it has in every quarter since it merged with US Airways in late 2013.
As was the case in the final quarter of 2014 , investors can thank low oil prices and the prescient no-hedging strategy adopted by American Airlines CEO Doug Parker and the rest of his management team for the company's strong earnings growth. Lower fuel prices will continue to be a huge tailwind through the rest of 2015. This should keep American's earnings at record levels despite some other headwinds that it faces.
The hard numbers
For Q1, while American's revenue fell 1.7% to $9.8 billion, adjusted net income roughly tripled from $402 million last year to $1.2 billion this year. Adjusted EPS came in at $1.73, which just barely beat the average analyst estimate of $1.71.
American Airlines' net income tripled last quarter. Photo: American Airlines.
Unit revenue including ancillary revenue, or RASM, declined by 0.7% last quarter, while unit revenue excluding ancillary revenue, or PRASM, declined by 1.7% on a 0.9% capacity decrease. American's PRASM was pressured by the strong dollar, economic weakness in some international markets, and competitive capacity growth on numerous key routes.
American's cost per available seat mile fell 10.8% excluding special items, thanks to a big drop in fuel costs. Excluding fuel and special items, unit costs rose 5.2%, largely due to the impact of new labor contracts -- particularly for pilots.
American Airlines posted a pre-tax margin of 12.7%, in line with its updated guidance from early April projecting a 12%-13% pre-tax margin. However, this was slightly below American's original pre-tax margin guidance of 13%-15%. Nevertheless, this was a remarkable result considering that Q1 is seasonally the weakest quarter of the year.
Capitalizing on cheap oil
The key driver of American's improved profitability was the massive drop in oil prices that has occurred since mid-2014. In Q1 2014, American Airlines paid an average of $3.10 per gallon for jet fuel. By comparison, it paid just $1.83 per gallon for jet fuel last quarter: a 41% decrease.
Since American uses more than 1 billion gallons of jet fuel per quarter, this drop corresponded to fuel cost savings of nearly $1.3 billion.
Still lagging Delta
American Airlines' management team deserves a lot of credit for its decision not to hedge fuel costs. That said, it's interesting to note that American's profit of $1.2 billion was slightly smaller than its fuel cost reduction of $1.3 billion.
By contrast, Delta Air Lines got caught on the wrong side of some fuel hedging bets last quarter. But even as hedging losses of $1.1 billion wiped out nearly all of Delta's fuel cost savings, Delta still increased its Q1 EPS from $0.33 to $0.45 thanks to its solid non-fuel cost control and ancillary revenue growth.
Delta has posted big fuel hedging losses lately, but strong performance otherwise.
A similar dynamic is likely to play out in Q2. Delta recently projected that PRASM will decline 2%-4% in Q2. American Airlines expects a larger 4%-6% decline in that same metric. Delta will also probably benefit from smaller non-fuel unit cost increases and better ancillary revenue trends.
However, Delta will again be hit by big fuel hedging losses, while American will enjoy the full benefit of lower oil prices. As a result, American is projecting a pre-tax profit margin that is several percentage points better than Delta's margin guidance.
In the second half of the year, Delta expects its fuel hedging losses to subside dramatically. But American Airlines will also benefit later this year from easier revenue comparisons and new efforts like the rebanking of its Chicago and Dallas-Fort Worth hubs.
It will be interesting to see whether American can maintain its margin advantage over Delta after its fuel cost advantage narrows later in 2015. At the moment, it looks like American needs to make more merger integration progress if it wants to have the highest profit margin among the legacy carriers beyond Q2.
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The article American Airlines Group, Inc. Earnings: Another Quarter, Another Record originally appeared on Fool.com.
Adam Levine-Weinberg is long January 2017 $40 calls on Delta Air Lines, 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 .
Copyright © 1995 - 2015 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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As was the case in the final quarter of 2014 , investors can thank low oil prices and the prescient no-hedging strategy adopted by American Airlines CEO Doug Parker and the rest of his management team for the company's strong earnings growth. American's PRASM was pressured by the strong dollar, economic weakness in some international markets, and competitive capacity growth on numerous key routes. But American Airlines will also benefit later this year from easier revenue comparisons and new efforts like the rebanking of its Chicago and Dallas-Fort Worth hubs.
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The hard numbers For Q1, while American's revenue fell 1.7% to $9.8 billion, adjusted net income roughly tripled from $402 million last year to $1.2 billion this year. Unit revenue including ancillary revenue, or RASM, declined by 0.7% last quarter, while unit revenue excluding ancillary revenue, or PRASM, declined by 1.7% on a 0.9% capacity decrease. However, Delta will again be hit by big fuel hedging losses, while American will enjoy the full benefit of lower oil prices.
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Since American uses more than 1 billion gallons of jet fuel per quarter, this drop corresponded to fuel cost savings of nearly $1.3 billion. Still lagging Delta American Airlines' management team deserves a lot of credit for its decision not to hedge fuel costs. But even as hedging losses of $1.1 billion wiped out nearly all of Delta's fuel cost savings, Delta still increased its Q1 EPS from $0.33 to $0.45 thanks to its solid non-fuel cost control and ancillary revenue growth.
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But even as hedging losses of $1.1 billion wiped out nearly all of Delta's fuel cost savings, Delta still increased its Q1 EPS from $0.33 to $0.45 thanks to its solid non-fuel cost control and ancillary revenue growth. However, Delta will again be hit by big fuel hedging losses, while American will enjoy the full benefit of lower oil prices. 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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8392.0
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2015-04-23 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines Group, Alaska Air Group, Spirit Airlines, Ryanair Holdings and Delta Air Lines - Press Releases
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-alaska-air-group-spirit
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nan
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nan
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For Immediate Release
Chicago, IL - April 23, 2015 - 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 the American Airlines Group Inc. ( AAL ), Alaska Air Group, Inc. ( ALK ), Spirit Airlines ( SAVE ), Ryanair Holdings ( RYAAY ) and Delta Air Lines, Inc. ( DAL ).
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
With first quarter 2015 earnings yet to take center stage in the airline space, news flow was spare over the past week. Nevertheless, American Airlines Group Inc. ( AAL ) grabbed headlines with the U.S. Department of Transportation (DOT) approving its planned operations on the Los Angeles-Mexico City route, replacing Alaska Air Group, Inc. ( ALK ).
Moreover, according to data released by the Bureau of Labor Statistics, average airfares in the U.S. for the month of March decreased 5% over Mar 2014. The March figure was down 1.7% from Feb 2015 on a seasonally adjusted basis.
Low-cost carrier Spirit Airlines ( SAVE ) was also in the news for its launch of non-stop flights to ten new destinations and expanded service to 18 summer routes. Meanwhile, European low-cost carrier Ryanair Holdings ( RYAAY ) announced its intention to launch three new routes from October this year.
On the price front, the NYSE ARCA Airline index gained 2.4% over the past week.
(Read the last 'Airline Stock Roundup' here: Delta Q1 Earnings Top, Virgin America Named Top Airline in US .)
Recap of Most Important Stories of the Last 5 Trading Days
1. American Airlines Group received encouraging news when the DOT approved the request filed by American Airlines and Alaska Air, thus allowing the former to take over a route between Los Angeles and Mexico City from the latter. American Airlines intends to start operating on the route from June 4, 2015, replacing Alaska Airlines. Delta Air Lines, Inc. ( DAL ) had also been looking to operate flights on the route, operations on which were restricted by the U.S.-Mexico treaty (read more: American Airlines to Connect LA-Mexico Instead of Alaska Air ).
2. Data released by the Bureau of Labor Statistics suggest that average airfares in the U.S. for March declined 5% on a year-over-year basis. Weak oil prices over the period and increased competition contributed to the decline. The March figure was down 1.7% from Feb 2015 on a seasonally adjusted basis reflecting weak oil prices.
3. In a bid to expand further and improve customer convenience, Spirit Airlines introduced non-stop flights to ten new destinations and expanded service to 18 summer routes such as Cleveland, Boston, Denver, Los Angeles, Houston and Chicago.
However, according to the 2015 American Customer Satisfaction Index (ACSI) by customer service, Spirit Airlines secured the lowest score for airlines.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
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 .
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
ALASKA AIR GRP (ALK): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
DELTA AIR LINES (DAL): 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 the American Airlines Group Inc. ( AAL ), Alaska Air Group, Inc. ( ALK ), Spirit Airlines ( SAVE ), Ryanair Holdings ( RYAAY ) and Delta Air Lines, Inc. ( DAL ). Nevertheless, American Airlines Group Inc. ( AAL ) grabbed headlines with the U.S. Department of Transportation (DOT) approving its planned operations on the Los Angeles-Mexico City route, replacing Alaska Air Group, Inc. ( ALK ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL ), Alaska Air Group, Inc. ( ALK ), Spirit Airlines ( SAVE ), Ryanair Holdings ( RYAAY ) and Delta Air Lines, Inc. ( DAL ). Nevertheless, American Airlines Group Inc. ( AAL ) grabbed headlines with the U.S. Department of Transportation (DOT) approving its planned operations on the Los Angeles-Mexico City route, replacing Alaska Air Group, Inc. ( ALK ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL ), Alaska Air Group, Inc. ( ALK ), Spirit Airlines ( SAVE ), Ryanair Holdings ( RYAAY ) and Delta Air Lines, Inc. ( DAL ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, American Airlines Group Inc. ( AAL ) grabbed headlines with the U.S. Department of Transportation (DOT) approving its planned operations on the Los Angeles-Mexico City route, replacing Alaska Air Group, Inc. ( ALK ).
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Stocks recently featured in the blog include the American Airlines Group Inc. ( AAL ), Alaska Air Group, Inc. ( ALK ), Spirit Airlines ( SAVE ), Ryanair Holdings ( RYAAY ) and Delta Air Lines, Inc. ( DAL ). Nevertheless, American Airlines Group Inc. ( AAL ) grabbed headlines with the U.S. Department of Transportation (DOT) approving its planned operations on the Los Angeles-Mexico City route, replacing Alaska Air Group, Inc. ( ALK ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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8393.0
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2015-04-22 00:00:00 UTC
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QLD, ALXN, AAL, ADI: Large Outflows Detected at ETF
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AAL
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https://www.nasdaq.com/articles/qld-alxn-aal-adi-large-outflows-detected-etf-2015-04-22
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $22.4 million dollar outflow -- that's a 2.0% decrease week over week (from 7,450,000 to 7,300,000). Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is trading flat, American Airlines Group Inc (Symbol: AAL) is off about 1.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.8%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average:
Looking at the chart above, QLD's low point in its 52 week range is $93.29 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.53. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is trading flat, American Airlines Group Inc (Symbol: AAL) is off about 1.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $22.4 million dollar outflow -- that's a 2.0% decrease week over week (from 7,450,000 to 7,300,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is trading flat, American Airlines Group Inc (Symbol: AAL) is off about 1.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.8%. For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $93.29 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.53. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is trading flat, American Airlines Group Inc (Symbol: AAL) is off about 1.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $22.4 million dollar outflow -- that's a 2.0% decrease week over week (from 7,450,000 to 7,300,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $93.29 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.53.
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Among the largest underlying components of QLD, in trading today Alexion Pharmaceuticals Inc. (Symbol: ALXN) is trading flat, American Airlines Group Inc (Symbol: AAL) is off about 1.4%, and Analog Devices, Inc. (Symbol: ADI) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra QQQ (Symbol: QLD) where we have detected an approximate $22.4 million dollar outflow -- that's a 2.0% decrease week over week (from 7,450,000 to 7,300,000). For a complete list of holdings, visit the QLD Holdings page » The chart below shows the one year price performance of QLD, versus its 200 day moving average: Looking at the chart above, QLD's low point in its 52 week range is $93.29 per share, with $152.84 as the 52 week high point - that compares with a last trade of $148.53.
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8394.0
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2015-04-22 00:00:00 UTC
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Will American Airlines Group (AAL) Surprise Earnings in Q1? - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/will-american-airlines-group-aal-surprise-earnings-in-q1-analyst-blog-2015-04-22
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nan
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nan
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American Airlines Group Inc.AAL is set to release its first-quarter 2015 results before the market opens on Apr 24.
In the last quarter, the company delivered a 0.66% earnings surprise. Meanwhile, in all the four quarters last year, the company delivered positive earnings surprises, with an average beat of 3.14%. Let's see how things are shaping up for this announcement.
Factors at Play
American Airlines continues to gain from the present slump in fuel prices. Moreover, the ongoing integration of U.S. Airways coupled with the expansion of routes will certainly benefit the company ahead.
However, stiff competition from low-cost carriers as well as from major airlines that have cut fares in order to attract customers may further impact the company's profits. Moreover, the carrier expects passenger revenue per available seat mile (PRASM: a measure of unit revenue) to decline in the range of 1% to 3% in the first quarter , mainly impacted by a stronger dollar.
Earnings Whispers
Our proven model does not conclusively show that American Airlines is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or at least 3 for this to happen. That is not the case here, as you will see below:
Zacks ESP: The Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. Thus, the ESP for the company currently stands at -0.59% as the Most Accurate estimate is pegged at $1.69 while the Zacks Consensus Estimate is higher at $1.70.
Zacks Rank: American Airlines carries a Zacks Rank #3 (Hold). While this increases the predictive power, a negative ESP leaves our prediction inconclusive.
Please note that Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Ryder System, Inc. R has an Earnings ESP of +1.98% and a Zacks Rank #2 (Buy).
Virgin America Inc. VA has an Earnings ESP of +7.14% and a Zacks Rank #3.
United Continental Holdings, Inc. UAL has an earnings ESP of +3.55% and a Zacks Rank #3.
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
RYDER SYS (R): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
VIRGIN AMERICA (VA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc.AAL is set to release its first-quarter 2015 results before the market opens on Apr 24. Click to get this free report RYDER SYS (R): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play American Airlines continues to gain from the present slump in fuel prices.
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Click to get this free report RYDER SYS (R): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL is set to release its first-quarter 2015 results before the market opens on Apr 24. Zacks Rank: American Airlines carries a Zacks Rank #3 (Hold).
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Click to get this free report RYDER SYS (R): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL is set to release its first-quarter 2015 results before the market opens on Apr 24. Earnings Whispers Our proven model does not conclusively show that American Airlines is likely to beat the Zacks Consensus Estimate this quarter.
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American Airlines Group Inc.AAL is set to release its first-quarter 2015 results before the market opens on Apr 24. Click to get this free report RYDER SYS (R): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings Whispers Our proven model does not conclusively show that American Airlines is likely to beat the Zacks Consensus Estimate this quarter.
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8395.0
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2015-04-22 00:00:00 UTC
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Is American cleared for takeoff?
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AAL
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https://www.nasdaq.com/articles/american-cleared-takeoff-2015-04-22
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nan
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nan
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American Airlines reports earnings Friday, and the bulls are betting that it will take off.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 6,000 Weekly 50 calls expiring on May 8, most of which priced for $2.36. Volume was almost 9 times open interest at the strike, which indicates new money was put to work.
Long calls fix the level where investors can buy a stock, no matter how high it climbs by expiration. That helps manage risk because only the premium can be lost if shares decline. The cheap cost of the options can also produce significant leverage on a percentage basis if a rally occurs. (See our Education section)
AAL is off 0.35 percent to $51.18 in afternoon trading as it tries to hold support above its 50-day moving average. It's been trading in a range since December along with other major carriers such as Delta Air Lines and United Continental. That follows big rallies in 2013 and 2014.
This Friday's quarterly report for AAL is also noteworthy because it will be the company's first release since being added to the S&P 500 last month.
Total option volume in is slightly above average in the name, with calls outnumbering puts by almost 3 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(See our Education section) AAL is off 0.35 percent to $51.18 in afternoon trading as it tries to hold support above its 50-day moving average. This Friday's quarterly report for AAL is also noteworthy because it will be the company's first release since being added to the S&P 500 last month. optionMONSTER's Heat Seeker monitoring program detected the purchase of 6,000 Weekly 50 calls expiring on May 8, most of which priced for $2.36.
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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. (See our Education section) AAL is off 0.35 percent to $51.18 in afternoon trading as it tries to hold support above its 50-day moving average. This Friday's quarterly report for AAL is also noteworthy because it will be the company's first release since being added to the S&P 500 last month.
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(See our Education section) AAL is off 0.35 percent to $51.18 in afternoon trading as it tries to hold support above its 50-day moving average. This Friday's quarterly report for AAL is also noteworthy because it will be the company's first release since being added to the S&P 500 last month. The cheap cost of the options can also produce significant leverage on a percentage basis if a rally occurs.
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(See our Education section) AAL is off 0.35 percent to $51.18 in afternoon trading as it tries to hold support above its 50-day moving average. This Friday's quarterly report for AAL is also noteworthy because it will be the company's first release since being added to the S&P 500 last month. American Airlines reports earnings Friday, and the bulls are betting that it will take off.
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8396.0
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2015-04-20 00:00:00 UTC
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American Airlines to Connect LA-Mexico Instead of Alaska Air - Analyst Blog
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-connect-la-mexico-instead-of-alaska-air-analyst-blog-2015-04-20
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nan
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nan
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In good news for American Airlines Group Inc. AAL , the carrier has gained approval from the U.S. Department of Transportation (DOT) to take over a route between Los Angeles and Mexico City from Alaska Air Group, Inc. ALK . American Airlines intends to start operating on the route from June 4, 2015, replacing Alaska Airlines.
We note that airline behemoth Delta Air Lines, Inc. DAL was also looking to operate flights on the route, operations on which were restricted by the U.S.-Mexico treaty. The DOT, however, gave its go-ahead to American Airlines and Alaska Air Group's request for transfer of the route's operations to the former.
According to a report published on dallasnews.com, American Airlines intends to operate two flights on the route per day as opposed to Alaska Airlines' one. Both American Airlines and Alaska Air Group had applied to the DOT in February this year.
However, the DOT approval comes with a clause. The application from the two carriers had sought permission for American Airlines to operate on the route for two years, but has gained clearance for only one. The DOT expects substantial changes to take place in the U.S.-Mexico aviation market over the next year following the recently concluded talks between the two governments regarding a new air deal.
We note that following the DOT's decision to clear the transfer, competition on the said route will intensify further. Carriers like United Continental Holdings, Inc. UAL and Volaris VLRS , a low-cost Mexican company, already operate on the much-valued route. Moreover, the transfer would also mean increased passenger convenience for the company as Los Angeles is already a hub for American Airlines.
The DOT further holds that Alaska Air Group's code-sharing on American Airlines' flights will ensure that the former does not lose out on its presence in the market.
Zacks Rank
Both American Airlines Group and Alaska Air Group carry a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is JetBlue Airways Corp. JBLU 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
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): 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
CONTROLADORA VL (VLRS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In good news for American Airlines Group Inc. AAL , the carrier has gained approval from the U.S. Department of Transportation (DOT) to take over a route between Los Angeles and Mexico City from Alaska Air Group, Inc. ALK . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 CONTROLADORA VL (VLRS): Free Stock Analysis Report To read this article on Zacks.com click here. The DOT expects substantial changes to take place in the U.S.-Mexico aviation market over the next year following the recently concluded talks between the two governments regarding a new air deal.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 CONTROLADORA VL (VLRS): Free Stock Analysis Report To read this article on Zacks.com click here. In good news for American Airlines Group Inc. AAL , the carrier has gained approval from the U.S. Department of Transportation (DOT) to take over a route between Los Angeles and Mexico City from Alaska Air Group, Inc. ALK . Zacks Rank Both American Airlines Group and Alaska Air Group carry a Zacks Rank #3 (Hold).
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In good news for American Airlines Group Inc. AAL , the carrier has gained approval from the U.S. Department of Transportation (DOT) to take over a route between Los Angeles and Mexico City from Alaska Air Group, Inc. ALK . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 CONTROLADORA VL (VLRS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank Both American Airlines Group and Alaska Air Group carry a Zacks Rank #3 (Hold).
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In good news for American Airlines Group Inc. AAL , the carrier has gained approval from the U.S. Department of Transportation (DOT) to take over a route between Los Angeles and Mexico City from Alaska Air Group, Inc. ALK . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 CONTROLADORA VL (VLRS): Free Stock Analysis Report To read this article on Zacks.com click here. The DOT, however, gave its go-ahead to American Airlines and Alaska Air Group's request for transfer of the route's operations to the former.
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8397.0
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2015-04-17 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, Virgin America, American Airlines Group, JetBlue Airways and Southwest Airlines - Press Releases
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-virgin-america-american-airlines-group
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nan
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nan
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For Immediate Release
Chicago, IL - April 17, 2015 - 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 the Delta Air Lines Inc. ( DAL - Free Report ), Virgin America ( VA - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), JetBlue Airways Corp. ( JBLU - Free Report ) and Southwest Airlines Co. ( LUV - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Thursday's Analyst Blog:
Airline Stock Roundup
It was a week which saw airline behemoth Delta Air Lines Inc. ( DAL - Free Report ) kick-starting the first quarter 2015 earnings season within the aviation space. Delta beat the Zacks Consensus Estimate of earnings by a penny - the ninth successive quarterly earnings beat at the company.
On the non-earnings front, California-based low-cost carrier Virgin America ( VA - Free Report ) retained its position as the top U.S. carrier for the third successive year, according to the Airline Quality Rating (AQR) report. In addition, American Airlines Group Inc. ( AAL - Free Report ) announced disappointing traffic results for the month of March. The company also said that it expects passenger revenue per available seat mile (PRASM: a measure of unit revenue) to decline in the range of 1% to 3% in the first quarter of 2015.
Low-cost airline JetBlue Airways Corp. ( JBLU - Free Report ) announced healthy traffic numbers for March, apart from raising its PRASM forecast for the first quarter. Southwest Airlines Co. ( LUV - Free Report ), which also announced higher air traffic for March, voiced its intention to operate flights between Puerto Vallarta, Mexico and Denver.
The price movement of stocks in the airline space remained subdued over the past week with the NYSE ARCA Airline index gaining a mere 0.6% over the said period.
(Read the last Airline Stock Roundup for Apr 9, 2015 ).
Recap of the Most Important Stories over the Past Week
1. Delta Air Lines reported mixed results in the first quarter of 2015 reporting higher-than-expected earnings but lower-than-expected revenues. Results were aided by weak fuel costs. To reduce the adverse impact of foreign exchange on its international operations Delta announced that it will slash its international capacity by 3% on a year-over-year basis this winter.
System capacity is expected to be flat in the fourth quarter of 2015 in view of the international capacity cut and the 2% growth in the domestic front. Delta announced these measures in order to bring the key metric - PRASM - back on the growth track. PRASM was down 2% in the first quarter of 2015 (read more: Delta Tops Q1 Earnings by a Penny, Revenues Miss the Mark ).
2. Virgin America, partly owned by British billionaire investor Richard Branson, secured the top score of -0.30 among the 12 U.S. carriers evaluated in the AQR report. The comparable score for the carrier in 2013 was -0.32.
The report, however, painted a bleak picture with respect to the overall performance of the airline industry in 2014 as the AQR industry score of -1.24 hit a major five-year low hinting at increased harassments for fliers (read more: Virgin America Named Best US Airline 3rd Time in a Row ).
3. American Airlines Group announced that total revenue passenger miles (RPMs) - a measure of air traffic - declined 0.6% in the month of March with capacity falling 0.9%. Load factor (% of seats filled with passengers) increased 30 basis points to 82.1% in March 2015. The company further said that it projects PRASM for the first quarter of 2015 to decline in the range of 1% to 3%. Pre-tax margin (excluding special items) for the quarter is expected in the band of 12% and 13% (old guidance 12% to 14%). The tepid guidance was in view of a strong dollar.
4. JetBlue Airways announced a 9.2% increase in its March RPMs with capacity climbing 6.2%. Load factor expanded 240 basis points in March 2015 to 87.2%. PRASM improved 8%. Buoyed by the healthy traffic data, the carrier raised its PRASM guidance for the first quarter of 2015. The carrier now foresees 4.5% growth in the metric as opposed to 3% to 4% projected earlier.
5. Southwest Airlines said that its RPMs improved 6.7% in March 2015 with capacity climbing 4.4%. Load factor improved 180 basis points to 84.5% in the month with PRASM increasing approximately 1%. For the first quarter of 2015, RPMs improved 7.1% on the back of a 6% capacity rise. Quarterly load factor improved 80 basis points to 80.1%.
Furthermore, the carrier said that it has sought permission from the U.S. Department of Transportation to operate non-stop daily flights between Denver and Puerto Vallarta, Mexico from Nov 2015. Following approval, Puerto Vallarta will become the third non-stop Mexican destination for fliers from Denver.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
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 .
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
VIRGIN AMERICA (VA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): 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 the Delta Air Lines Inc. ( DAL - Free Report ), Virgin America ( VA - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), JetBlue Airways Corp. ( JBLU - Free Report ) and Southwest Airlines Co. ( LUV - Free Report ). In addition, American Airlines Group Inc. ( AAL - Free Report ) announced disappointing traffic results for the month of March. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): 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 the Delta Air Lines Inc. ( DAL - Free Report ), Virgin America ( VA - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), JetBlue Airways Corp. ( JBLU - Free Report ) and Southwest Airlines Co. ( LUV - Free Report ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, American Airlines Group Inc. ( AAL - Free Report ) announced disappointing traffic results for the month of March.
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Stocks recently featured in the blog include the Delta Air Lines Inc. ( DAL - Free Report ), Virgin America ( VA - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), JetBlue Airways Corp. ( JBLU - Free Report ) and Southwest Airlines Co. ( LUV - Free Report ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, American Airlines Group Inc. ( AAL - Free Report ) announced disappointing traffic results for the month of March.
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Stocks recently featured in the blog include the Delta Air Lines Inc. ( DAL - Free Report ), Virgin America ( VA - Free Report ), American Airlines Group Inc. ( AAL - Free Report ), JetBlue Airways Corp. ( JBLU - Free Report ) and Southwest Airlines Co. ( LUV - Free Report ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, American Airlines Group Inc. ( AAL - Free Report ) announced disappointing traffic results for the month of March.
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8398.0
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2015-04-16 00:00:00 UTC
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Nasdaq 100 Movers: SNDK, NFLX
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-sndk-nflx-2015-04-16
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nan
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nan
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In early trading on Thursday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.2%. Year to date, Netflix registers a 59.0% gain.
And the worst performing Nasdaq 100 component thus far on the day is SanDisk ( SNDK ), trading down 7.5%. SanDisk is lower by about 32.8% looking at the year to date performance.
Two other components making moves today are Applied Materials ( AMAT ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 1.7% on the day.
VIDEO: Nasdaq 100 Movers: SNDK, NFLX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 Applied Materials ( AMAT ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 1.7% on the day. In early trading on Thursday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.2%. And the worst performing Nasdaq 100 component thus far on the day is SanDisk ( SNDK ), trading down 7.5%.
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Two other components making moves today are Applied Materials ( AMAT ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 1.7% on the day. And the worst performing Nasdaq 100 component thus far on the day is SanDisk ( SNDK ), trading down 7.5%. VIDEO: Nasdaq 100 Movers: SNDK, NFLX The views and 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 Applied Materials ( AMAT ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 1.7% on the day. In early trading on Thursday, shares of Netflix ( NFLX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.2%. And the worst performing Nasdaq 100 component thus far on the day is SanDisk ( SNDK ), trading down 7.5%.
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Two other components making moves today are Applied Materials ( AMAT ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 1.7% on the day. And the worst performing Nasdaq 100 component thus far on the day is SanDisk ( SNDK ), trading down 7.5%. SanDisk is lower by about 32.8% looking at the year to date performance.
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8399.0
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2015-04-15 00:00:00 UTC
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Southwest Vs. JetBlue: What is the Best Airline Stock Now? - Stocks in the News
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AAL
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https://www.nasdaq.com/articles/southwest-vs-jetblue-what-best-airline-stock-now-stocks-news-2015-04-15
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nan
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nan
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Southwest Airlines Co ( LUV ) and JetBlue Airways Corp ( JBLU ) are two of the most recognized names in the airline industry. In recent years, they rose to prominence as low-cost alternatives to legacy carriers Delta Airlines ( DAL ), United Continental Holdings Inc ( UAL ), and American Airlines Grp ( AAL ).
However, due to aging fleets and rising unit costs, Southwest and JetBlue can no longer rely on low-costs to set themselves apart from the competition; the cost gap between Southwest and JetBlue and legacy carriers is slowly staring to narrow. It's a brand new environment for these airlines, and both carriers are implementing similar yet unique business strategies to reflect this new market. Which of these two airlines is the best airline stock now?
Industry as a Whole
In order to answer this question, let's take a look at the airline industry as a whole. This particular industry is sensitive to adjustments in economic growth, and tends to fluctuate with the state of the economy and real gross domestic product growth (GDP).
The recent drop in crude oil prices , due to an over-supplied oil market and a decrease in demand, has been quite the pleasant surprise, resulting in lower jet fuel prices and boosting the bottom line of stocks in the airline market.
Investors can expect solid earnings and growth rates to continue in 2015. Looking forward, research firm International Air Transport Association (IATA) has projected a rise in the industry's total profit to $25 billion, up significantly from $19.9 billion in 2014. IATA has also forecasted earnings of $7.08 per passenger in this year, which has increased 17.6% year over year. The firm maintains that crude prices will continue in the downward trend in 2015; the average price is expected to linger near $85 per barrel.
In addition to these numbers, IATA predicts that cargo will witness the highest growth increase in 2015 since 2010; cargo volumes are estimated to see growth of 4.5% this year, surpassing the 4.3% observed in 2014.
New Initiatives
With the positive industry outlook in mind, both Southwest and JetBlue have been making some big changes, allowing the airlines to take in the positive side effects of the good profit numbers.
Southwest, in the past few years or so, has become much more assertive, making themselves a bigger contender in the coveted, lucrative travel markets. Not only are they courting business travelers with refundable "Business Select" fares and other free amenities, but Southwest is now serving more cities than ever before. New York City, Boston, Chicago, Atlanta, and Denver are just a few cities the airline serves at their main airports, making it a much more viable selection for business travelers.
Southwest has also been adding bigger planes to its fleet. Over the past few years, the airline has purchased approximately 80 Boeing 737-800s with 175 seats, all while continuing to phase out 122-seaters 737-500s and 117-seaters 717s. Thanks to a report by Bloomberg , Southwest is now installing seats with a width of 17.8 inches, giving it the widest 737 seat of any U.S. airline.
Like Southwest, JetBlue has chosen to upgrade its fleet. The airline is in the process of switching most of its aircraft orders from 100- and 150-seaters to 190-seat Airbus A321s, planes that have lower unit costs. JetBlue has also added flights to various business markets in order to win more corporate travel contracts, and is introducing premium seating on cross-country flights from New York City to Los Angeles and San Francisco.
In 2015, JetBlue is planning to roll out "fare families," a revenue system that unbundles current amenities like one free checked bag and free high-speed Wi-Fi.
Southwest vs. JetBlue
Based on these numbers, JetBlue Airways is poised to have a great 2015. With a high rank on the Zacks Rank (#2) and a stunning year over year growth estimate of 3,611.11% in the green, JetBlue is continuing to make a name for itself. Their earnings per share (EPS) is expected to grow almost 140% this year, and combined with their fleet improvements and increase in amenities options for travelers, JetBlue is a hot stock to buy now. While Southwest's numbers fall slightly below JetBlue's in almost every category, Southwest is still a dependable choice for investors. The airline's projected EPS growth is a solid 74.20% for the year, while their net margin is a respectable 6.11% compared to the airline industry's net margin of 3.90%
Bottom Line
Both Southwest and JetBlue are airline stocks that investors should consider seriously. Southwest has proven their gaining power over the past few years, and is an airline that will not let you down. However, JetBlue is slowly starting to close the margin and valuation gaps between itself and Southwest, potentially leading to high share price gains.
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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In recent years, they rose to prominence as low-cost alternatives to legacy carriers Delta Airlines ( DAL ), United Continental Holdings Inc ( UAL ), and American Airlines Grp ( AAL ). 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. It's a brand new environment for these airlines, and both carriers are implementing similar yet unique business strategies to reflect this new market.
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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. In recent years, they rose to prominence as low-cost alternatives to legacy carriers Delta Airlines ( DAL ), United Continental Holdings Inc ( UAL ), and American Airlines Grp ( AAL ). The airline's projected EPS growth is a solid 74.20% for the year, while their net margin is a respectable 6.11% compared to the airline industry's net margin of 3.90% Bottom Line Both Southwest and JetBlue are airline stocks that investors should consider seriously.
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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. In recent years, they rose to prominence as low-cost alternatives to legacy carriers Delta Airlines ( DAL ), United Continental Holdings Inc ( UAL ), and American Airlines Grp ( AAL ). Southwest Airlines Co ( LUV ) and JetBlue Airways Corp ( JBLU ) are two of the most recognized names in the airline industry.
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In recent years, they rose to prominence as low-cost alternatives to legacy carriers Delta Airlines ( DAL ), United Continental Holdings Inc ( UAL ), and American Airlines Grp ( AAL ). 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. Which of these two airlines is the best airline stock now?
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