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2300.0
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2023-08-30 00:00:00 UTC
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INSIGHT-Coal miners forced to save for a rainy day by insurance snub
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AAL
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https://www.nasdaq.com/articles/insight-coal-miners-forced-to-save-for-a-rainy-day-by-insurance-snub
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nan
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nan
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By Clara Denina and Sarah McFarlane
LONDON, Aug 31 (Reuters) - Some coal producers are having to set aside tens of millions of dollars to cover their own risks as they are cut adrift by insurers, making it more difficult and costly to do business amid a surge in demand for the fossil fuel.
Dozens of insurers have announced restrictions on their cover for the coal industry, particularly for new projects, in response to pressure from shareholders, governments and environmental groups who want to limit coal's contribution to global warming. This follows similar moves by banks to restrict their coal financing activities.
Coal miners need extensive insurance including for operations, property, equipment, and environmental liability. Three insurance brokers said it can now take months and dozens of enquiries to find such coverage for a coal client.
Reuters spoke to five coal mining executives who said that the industry is increasingly moving towards self-insurance and self-finance, as the difficulty of securing coverage from insurers makes loans more expensive or unavailable.
Some miners, including South Africa's Seriti Resources and Thungela Resources TGAJ.J, are already setting aside capital to self-insure and only buying insurance to protect against larger and less frequent losses.
While Seriti has said it is not struggling to get funding from banks, securing insurance cover has become more challenging, according to its chief financial officer Doug Gain.
"In recognition of ESG and related factors shrinking the availability of thermal coal insurance capacity globally, Seriti has embarked on a journey toward increased self-insurance," Gain told Reuters via email.
He did not elaborate on the cost for Seriti, which supplies many of South Africa's coal power stations.
Many coal producers are finding workarounds and production continues to rise. The International Energy Agency (IEA) forecasts 2023 global supplies will surpass last year's record of 8.6 billion tons, after the energy crisis triggered by Russia's invasion of Ukraine forced many countries to use coal to keep the lights on.
But the need to earmark funds for self-insurance ties up money on the balance sheets of coal companies and could leave them vulnerable to large costs when something goes wrong, industry analysts say.
Three analysts told Reuters that coal companies have been able to absorb any increase in costs due to record profits last year, but may find it harder in leaner times, as the issues with insurance ultimately push up the cost of production.
"Financing becomes impossible without insurance," said Liberum equity analyst Ben Davis.
"For existing producers at the moment, this is not a massive issue because they can still set funds aside, given sustained coal prices. But there are going to be tougher times ahead for the ones that don't set the money aside," he added.
The dwindling supply of insurance for coal producers has led to premiums rising nearly three times as much as an industry benchmark, data from brokerage Willis Towers Watson shows.
Thermal coal insurance rates rose more than 20% last year, it said, above the 7.3% rise in the benchmark Marsh Global Insurance Market Index.
Whitehaven Coal WHC.AX, Australia's top independent coal miner, has seen its insurance costs roughly double over the last two years, a person familiar with the company who asked not to be identified because the information is financially sensitive, told Reuters.
Whitehaven declined to comment.
TAKE COVER
Seriti has a combination of self-insurance to cover damage to some assets, while retaining some cover from the insurance industry such as flood damage or underground fire damage, a spokesperson said.
To reduce the cost of insurance cover, Seriti is increasing the retention of capital in its own insurance unit so that only excess layers of risk need to be insured by third parties.
"We expect the availability of insurance capacity for thermal coal assets to continue to shrink over time and the capacity will likely be extremely limited by circa 2030," Gain said.
In the case of Thungela - a company spun off from Anglo American - it set aside R1.2 billion ($67 million) to self-insure some of its risk last year, while still sourcing its catastrophic risk cover, including events like mine collapses or natural disasters, from the insurance market.
Thungela told Reuters it intends to become fully self-insured in future, without specifying the timeframe.
Forty-five insurance companies have introduced restrictions now on cover for the coal industry, including Allianz, Swiss Re and Munich Re, according to the Insure Our Future environmental pressure group.
Some insurers still have relatively large fossil fuel businesses, with Bermuda's AEGIS, China's PICC, Russia's SOGAZ, Switzerland's Chubb and Germany's Allianz the top five by gross premiums in 2022, according to data exclusively provided to Reuters by Insuramore, which produces insurance rankings and analysis.
AEGIS said in an email that its coal business represents a small portion of its total and was decreasing, while Allianz said it will phase out coal-based business by 2040.
Chubb, which says it does not insure new risks for miners generating more than 30% of their revenue from coal, declined to comment. China's PICC and Russia's SOGAZ did not respond to a request for comment.
Some coal producers have set up their own separate company to deal with their insurance - called a captive - which can be covered by a combination of their own funds, individual insurance companies, and a group of insurance companies working together to share the risk with so-called reinsurance.
Insurance companies can be active in both primary insurance and reinsurance and have differing commitments on ESG for different parts of their business.
"The majority of the reinsurance market remains open to the ongoing operations of coal companies but not their new projects," said Insure Our Future coordinator Peter Bosshard.
MUTUAL INSURANCE FUND
In Australia, coal companies have explored setting up a mutual insurance fund that they would all pay into as a form of self-insurance, but talks have stalled with a lack of government support, people familiar with the matter said.
"Establishing a mutual fund for the coal industry is a matter for the coal industry," a spokesperson for the Australian Department of Treasury said. "Any financial support or guarantee for a mutual fund would involve a decision of government."
The spokesperson did not say whether the government had been approached by companies about the fund.
Nombasa Tsengwa, Chief Executive Officer at South African coal miner Exxaro Resources EXXJ.J, said that insurers in some countries and regions, including in Asia, were more willing to do business than elsewhere.
"What we have also noticed is that there are other jurisdictions that are interested in absorbing the risk of coal businesses," Tsengwa said, referring to more stringent regulations in Europe.
"I'm talking about going beyond your normal UK-based markets and looking into Asia for funders and insurance cover," she added.
Coal prices hit record highs in September last year as European countries scrambled to replace Russian gas, sending coal miners' profits soaring.
But prices have since fallen and analysts say the need by producers to meet more of their own financing and insurance requirements could exacerbate the impact of weaker prices on profits.
Thungela and Exxaro saw their profits fall by 75% and 29% respectively in the first half on weaker prices. Major diversified miner Glencore GLEN.L said its industrial assets' profit fell by 51% in the first half due to lower prices, particularly in coal, and inflationary costs.
(Reporting by Clara Denina and Sarah McFarlane Additional reporting by Nelson Banya; Editing by Elaine Hardcastle and Daniel Flynn)
((sarah.mcfarlane@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Clara Denina and Sarah McFarlane LONDON, Aug 31 (Reuters) - Some coal producers are having to set aside tens of millions of dollars to cover their own risks as they are cut adrift by insurers, making it more difficult and costly to do business amid a surge in demand for the fossil fuel. "In recognition of ESG and related factors shrinking the availability of thermal coal insurance capacity globally, Seriti has embarked on a journey toward increased self-insurance," Gain told Reuters via email. In Australia, coal companies have explored setting up a mutual insurance fund that they would all pay into as a form of self-insurance, but talks have stalled with a lack of government support, people familiar with the matter said.
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Some miners, including South Africa's Seriti Resources and Thungela Resources TGAJ.J, are already setting aside capital to self-insure and only buying insurance to protect against larger and less frequent losses. Some insurers still have relatively large fossil fuel businesses, with Bermuda's AEGIS, China's PICC, Russia's SOGAZ, Switzerland's Chubb and Germany's Allianz the top five by gross premiums in 2022, according to data exclusively provided to Reuters by Insuramore, which produces insurance rankings and analysis. Nombasa Tsengwa, Chief Executive Officer at South African coal miner Exxaro Resources EXXJ.J, said that insurers in some countries and regions, including in Asia, were more willing to do business than elsewhere.
|
Whitehaven Coal WHC.AX, Australia's top independent coal miner, has seen its insurance costs roughly double over the last two years, a person familiar with the company who asked not to be identified because the information is financially sensitive, told Reuters. Forty-five insurance companies have introduced restrictions now on cover for the coal industry, including Allianz, Swiss Re and Munich Re, according to the Insure Our Future environmental pressure group. Some coal producers have set up their own separate company to deal with their insurance - called a captive - which can be covered by a combination of their own funds, individual insurance companies, and a group of insurance companies working together to share the risk with so-called reinsurance.
|
Many coal producers are finding workarounds and production continues to rise. Three analysts told Reuters that coal companies have been able to absorb any increase in costs due to record profits last year, but may find it harder in leaner times, as the issues with insurance ultimately push up the cost of production. Some coal producers have set up their own separate company to deal with their insurance - called a captive - which can be covered by a combination of their own funds, individual insurance companies, and a group of insurance companies working together to share the risk with so-called reinsurance.
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c8750456-099d-4dff-b0fe-816302f5e15a
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2301.0
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2023-08-30 00:00:00 UTC
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American Airlines flight attendants vote to authorize strike - union
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AAL
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https://www.nasdaq.com/articles/american-airlines-flight-attendants-vote-to-authorize-strike-union
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nan
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nan
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Aug 30 (Reuters) - American Airlines' AAL.O flight attendants voted to authorize a strike if the company refuses to agree to "reasonable" contract terms, the Association of Professional Flight Attendants (APFA) said on Wednesday.
An overwhelming 99.47% of the flight attendants represented by the labor union voted to authorize a strike, according to APFA that covers more than 26,000 flight attendants at the carrier.
"Flight attendants are fired up and ready for a contract. They (the company) ignore this strike vote at their peril," Julie Hedrick, national president of APFA, said in a statement.
If the company and the union are unable to reach an agreement in federal mediation, APFA could request to be released into a 30-day cooling-off period, after which the attendants would be free to begin a strike.
The deliberations come as union workers including pilots, employees and delivery drivers enjoy enhanced bargaining power against the backdrop of a tight labor market and a rise in public support for unions.
Last week, American Airlines' pilots approved a new contract that includes more than $9.6 billion in total pay and benefits increases over four years, as it competes with rivals United Airlines UAL.O and Delta Air Lines DAL.N.
With travel demand showing no signs of cooling off, airlines have been in a rush to staff up which has bolstered workers to bargain for higher salaries and improved working conditions.
(Reporting by Priyamvada C in Bengaluru; Editing by Maju Samuel)
((Priyamvada.C@thomsonreuters.comhttps://twitter.com/priyamouli1812?lang=en;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 30 (Reuters) - American Airlines' AAL.O flight attendants voted to authorize a strike if the company refuses to agree to "reasonable" contract terms, the Association of Professional Flight Attendants (APFA) said on Wednesday. They (the company) ignore this strike vote at their peril," Julie Hedrick, national president of APFA, said in a statement. If the company and the union are unable to reach an agreement in federal mediation, APFA could request to be released into a 30-day cooling-off period, after which the attendants would be free to begin a strike.
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Aug 30 (Reuters) - American Airlines' AAL.O flight attendants voted to authorize a strike if the company refuses to agree to "reasonable" contract terms, the Association of Professional Flight Attendants (APFA) said on Wednesday. An overwhelming 99.47% of the flight attendants represented by the labor union voted to authorize a strike, according to APFA that covers more than 26,000 flight attendants at the carrier. The deliberations come as union workers including pilots, employees and delivery drivers enjoy enhanced bargaining power against the backdrop of a tight labor market and a rise in public support for unions.
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Aug 30 (Reuters) - American Airlines' AAL.O flight attendants voted to authorize a strike if the company refuses to agree to "reasonable" contract terms, the Association of Professional Flight Attendants (APFA) said on Wednesday. An overwhelming 99.47% of the flight attendants represented by the labor union voted to authorize a strike, according to APFA that covers more than 26,000 flight attendants at the carrier. If the company and the union are unable to reach an agreement in federal mediation, APFA could request to be released into a 30-day cooling-off period, after which the attendants would be free to begin a strike.
|
Aug 30 (Reuters) - American Airlines' AAL.O flight attendants voted to authorize a strike if the company refuses to agree to "reasonable" contract terms, the Association of Professional Flight Attendants (APFA) said on Wednesday. An overwhelming 99.47% of the flight attendants represented by the labor union voted to authorize a strike, according to APFA that covers more than 26,000 flight attendants at the carrier. "Flight attendants are fired up and ready for a contract.
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62878cfd-50a6-4b3d-b080-9644af82ee17
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2302.0
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2023-08-30 00:00:00 UTC
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Here's Why Investors Should Retain American Airlines (AAL) Now
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AAL
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https://www.nasdaq.com/articles/heres-why-investors-should-retain-american-airlines-aal-now-0
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nan
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nan
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American Airlines Group Inc. AAL is benefiting from improved air travel demand and debt-reduction efforts. However, escalating fuel costs are worrisome.
Factors Favoring AAL
Continued recovery in air travel demand, particularly on the domestic front, bodes well for American Airlines. Recently, management lifted the earnings per share forecast for 2023, primarily driven by the rosy air-travel-demand scenario.
The company now expects 2023 earnings per share (on an adjusted basis) to be between $3 and $3.75 (earlier view: $2.5-$3.5). Driven by upbeat demand, the current-year adjusted operating margin is now anticipated in the 7-9% band (earlier guidance:11-13%).
The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end. The company aims to attain this objective through naturally occurring amortization. Also, it intends to utilize surplus cash and free cash flow to pay down prepayable debt. As of Jun 30, 2023, the carrier reduced its debt levels by more than $9 billion from peak levels in mid-2021.
Key Risks
The current scenario of rising fuel costs does not bode well for the airline. Oil price is moving northward mainly due to supply concerns triggered by the Russia-Ukraine war. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Fuel cost per gallon is projected in the range of $2.55-$2.65 for third-quarter 2023.
Zacks Rank
AAL currently carries Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are GATX Corporation GATX and Triton International Limited TRTN.
GATX, which presently carries a Zacks Rank #2 (Buy), has strengthened its railcar leasing operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For third-quarter and full-year 2023, GATX’s earnings are expected to register 36.6% and 14.3% growth, respectively, on a year-over-year basis.
Triton, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.
Triton has an impressive liquidity position. Its current ratio (a measure of liquidity) was 3.83 at the end of second-quarter 2023. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
Zacks Reveals ChatGPT "Sleeper" Stock
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As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
GATX Corporation (GATX) : Free Stock Analysis Report
Triton International Limited (TRTN) : 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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Factors Favoring AAL Continued recovery in air travel demand, particularly on the domestic front, bodes well for American Airlines. American Airlines Group Inc. AAL is benefiting from improved air travel demand and debt-reduction efforts. Zacks Rank AAL currently carries Zacks Rank #3 (Hold).
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American Airlines Group Inc. AAL is benefiting from improved air travel demand and debt-reduction efforts. Zacks Rank AAL currently carries Zacks Rank #3 (Hold). Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report GATX Corporation (GATX) : Free Stock Analysis Report Triton International Limited (TRTN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank AAL currently carries Zacks Rank #3 (Hold). Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report GATX Corporation (GATX) : Free Stock Analysis Report Triton International Limited (TRTN) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL is benefiting from improved air travel demand and debt-reduction efforts.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report GATX Corporation (GATX) : Free Stock Analysis Report Triton International Limited (TRTN) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL is benefiting from improved air travel demand and debt-reduction efforts. Factors Favoring AAL Continued recovery in air travel demand, particularly on the domestic front, bodes well for American Airlines.
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09330d30-a6a5-487a-a610-f3145c5179d6
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2303.0
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2023-08-30 00:00:00 UTC
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Consumer Sector Update for 08/30/2023: AAL, DAL, LUV, BF.A, BF.B, AMZN, QSR
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-for-08-30-2023%3A-aal-dal-luv-bf.a-bf.b-amzn-qsr
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nan
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nan
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Consumer stocks were rising late Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.4%.
In company news, American Airlines (AAL), Southwest Airlines (LUV), and Delta Airlines (DAL) shares were falling 0.6%, 0.7%, and 1.1%, respectively, after the carriers delayed or canceled hundreds of flights as Hurricane Idalia struck Florida.
Brown-Forman (BF.A, BF.B) class A shares fell nearly 5% and class B shares dropped past 4% after the company's fiscal Q1 earnings fell unexpectedly.
Amazon (AMZN) has been warned by the US Food and Drug Administration that it may face legal action over the alleged sales of "unapproved" drugs on its e-commerce platform, the Financial Times reported. Amazon shares were fractionally lower.
Restaurant Brands International's (QSR) Burger King unit has to face a lawsuit alleging that in-store pictures of its Whopper made the burger appear 35% bigger than it actually is, Reuters reported Tuesday. Restaurant Brands shares rose 0.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In company news, American Airlines (AAL), Southwest Airlines (LUV), and Delta Airlines (DAL) shares were falling 0.6%, 0.7%, and 1.1%, respectively, after the carriers delayed or canceled hundreds of flights as Hurricane Idalia struck Florida. Consumer stocks were rising late Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.4%. Amazon (AMZN) has been warned by the US Food and Drug Administration that it may face legal action over the alleged sales of "unapproved" drugs on its e-commerce platform, the Financial Times reported.
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In company news, American Airlines (AAL), Southwest Airlines (LUV), and Delta Airlines (DAL) shares were falling 0.6%, 0.7%, and 1.1%, respectively, after the carriers delayed or canceled hundreds of flights as Hurricane Idalia struck Florida. Consumer stocks were rising late Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.4%. Brown-Forman (BF.A, BF.B) class A shares fell nearly 5% and class B shares dropped past 4% after the company's fiscal Q1 earnings fell unexpectedly.
|
In company news, American Airlines (AAL), Southwest Airlines (LUV), and Delta Airlines (DAL) shares were falling 0.6%, 0.7%, and 1.1%, respectively, after the carriers delayed or canceled hundreds of flights as Hurricane Idalia struck Florida. Brown-Forman (BF.A, BF.B) class A shares fell nearly 5% and class B shares dropped past 4% after the company's fiscal Q1 earnings fell unexpectedly. Restaurant Brands International's (QSR) Burger King unit has to face a lawsuit alleging that in-store pictures of its Whopper made the burger appear 35% bigger than it actually is, Reuters reported Tuesday.
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In company news, American Airlines (AAL), Southwest Airlines (LUV), and Delta Airlines (DAL) shares were falling 0.6%, 0.7%, and 1.1%, respectively, after the carriers delayed or canceled hundreds of flights as Hurricane Idalia struck Florida. Consumer stocks were rising late Wednesday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.2% and the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.4%. Brown-Forman (BF.A, BF.B) class A shares fell nearly 5% and class B shares dropped past 4% after the company's fiscal Q1 earnings fell unexpectedly.
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3b54de9e-c070-4f5f-bb7d-ba2878f7b014
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2304.0
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2023-08-30 00:00:00 UTC
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US airlines cancel over 850 flights as Hurricane Idalia makes Florida landfall
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AAL
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https://www.nasdaq.com/articles/us-airlines-cancel-over-850-flights-as-hurricane-idalia-makes-florida-landfall
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nan
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nan
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Aug 30 (Reuters) - Airlines in the United States canceled more than 850 flights on Wednesday as Hurricane Idalia made landfall in Florida's Big Bend region as an "extremely dangerous" Category 3 storm.
Southwest Airlines LUV.N canceled more than 200 flights, while Delta Air Lines DAL.N and American Airlines AAL.O canceled 148 and 98 flights, respectively, as of 8:17 a.m. ET, according to flight-tracking website Flightaware.com.
About 795 flights were also delayed.
Airports at Tampa, Clearwater and Tallahassee shut down operations and were monitoring the status of the storm.
Drawing strength from the Gulf of Mexico's warm waters, Idalia was forecast to unleash destructive winds and torrential downpours that will cause coastal flooding up to 16 feet (4.88 m) deep.
Idalia grew from a tropical storm into a hurricane early on Tuesday, a day after passing west of Cuba, where it damaged homes, knocked out power, flooded villages and prompted mass evacuations.
"With Tampa Airport closing at midnight Tuesday, we canceled everything there through at least afternoon today and we're awaiting a decision from the airport as to when it will re-open to commercial service," Southwest Airlines said on Wednesday.
The airline also ceased operations for the day at Jacksonville International Airport.
(Reporting by Shivansh Tiwary and Nathan Gomes in Bengaluru; Editing by Shounak Dasgupta)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Southwest Airlines LUV.N canceled more than 200 flights, while Delta Air Lines DAL.N and American Airlines AAL.O canceled 148 and 98 flights, respectively, as of 8:17 a.m. Aug 30 (Reuters) - Airlines in the United States canceled more than 850 flights on Wednesday as Hurricane Idalia made landfall in Florida's Big Bend region as an "extremely dangerous" Category 3 storm. Drawing strength from the Gulf of Mexico's warm waters, Idalia was forecast to unleash destructive winds and torrential downpours that will cause coastal flooding up to 16 feet (4.88 m) deep.
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Southwest Airlines LUV.N canceled more than 200 flights, while Delta Air Lines DAL.N and American Airlines AAL.O canceled 148 and 98 flights, respectively, as of 8:17 a.m. Aug 30 (Reuters) - Airlines in the United States canceled more than 850 flights on Wednesday as Hurricane Idalia made landfall in Florida's Big Bend region as an "extremely dangerous" Category 3 storm. "With Tampa Airport closing at midnight Tuesday, we canceled everything there through at least afternoon today and we're awaiting a decision from the airport as to when it will re-open to commercial service," Southwest Airlines said on Wednesday.
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Southwest Airlines LUV.N canceled more than 200 flights, while Delta Air Lines DAL.N and American Airlines AAL.O canceled 148 and 98 flights, respectively, as of 8:17 a.m. Aug 30 (Reuters) - Airlines in the United States canceled more than 850 flights on Wednesday as Hurricane Idalia made landfall in Florida's Big Bend region as an "extremely dangerous" Category 3 storm. "With Tampa Airport closing at midnight Tuesday, we canceled everything there through at least afternoon today and we're awaiting a decision from the airport as to when it will re-open to commercial service," Southwest Airlines said on Wednesday.
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Southwest Airlines LUV.N canceled more than 200 flights, while Delta Air Lines DAL.N and American Airlines AAL.O canceled 148 and 98 flights, respectively, as of 8:17 a.m. ET, according to flight-tracking website Flightaware.com. "With Tampa Airport closing at midnight Tuesday, we canceled everything there through at least afternoon today and we're awaiting a decision from the airport as to when it will re-open to commercial service," Southwest Airlines said on Wednesday.
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3be5f1b4-a162-4817-9429-54463ebb2f0f
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2305.0
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2023-08-29 00:00:00 UTC
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American Airlines Faces $4.1 Mln Fine For Stranding Passengers On Grounded Planes
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AAL
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https://www.nasdaq.com/articles/american-airlines-faces-%244.1-mln-fine-for-stranding-passengers-on-grounded-planes
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nan
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nan
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(RTTNews) - In a significant penalty, American Airlines is slated to pay a hefty fine of $4.1 million imposed by the federal government for numerous incidents involving extended ground delays, during which passengers were confined to planes without the opportunity to disembark. The U.S. Department of Transportation, announcing this on Monday, asserted that this fine marks the most substantial punitive action against an airline since the enforcement of regulations pertaining to prolonged ground delays nearly a decade ago.
The Department of Transportation disclosed that this investigation covered a time span from 2018 to 2021, during which American Airlines held 43 domestic flights on the tarmac for a minimum of three hours, effectively stranding a total of 5,821 passengers without the option to deplane. While there exist exceptions allowing airlines leeway to deviate from these regulations, such as safety and security concerns, the Department of Transportation affirmed that none of these exceptions were relevant in the instances it identified.
Transportation Secretary Pete Buttigieg stated, "This latest measure underscores our ongoing commitment to safeguarding the rights of air travelers," emphasizing a resolute dedication to holding airlines accountable within the parameters of consumer protection laws.
The airline giant, American, is required to remit half of the stipulated fine within the forthcoming 30 days. Moreover, the Department of Transportation acknowledged American's payment of compensation to the inconvenienced passengers, attributing this as grounds for granting the airline a credit of just over $2 million, effectively reducing the financial blow.
American Airlines, in response, expressed its intent to minimize instances of protracted ground delays, noting that the 43 affected flights constituted a mere fraction—less than 1%—of the approximately 7.7 million flights executed by American and American Eagle during the period from 2018 to 2021. The airline further conveyed its commitment to providing substantial compensation to passengers who experienced delays, and underlined its enhanced focus on optimizing operational efficiency to mitigate such occurrences.
Of note, the majority of the identified delays transpired at Dallas-Fort Worth International Airport, where American Airlines maintains a dominant presence. Additional incidents occurred at airports in San Antonio and Houston, typically arising from diversions when flights intended for Dallas-Fort Worth were rerouted. Weather-related challenges, particularly thunderstorms, were cited as contributing factors, which at times hampered the airline's ability to effectively manage gate assignments for passengers to disembark.
Notably, American Airlines expressed reservations concerning the delays incurred at Reagan Washington National Airport during a winter storm in January 2019. However, the airline ultimately assented to the settlement terms outlined in the consent order, signifying a resolution to this regulatory matter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - In a significant penalty, American Airlines is slated to pay a hefty fine of $4.1 million imposed by the federal government for numerous incidents involving extended ground delays, during which passengers were confined to planes without the opportunity to disembark. The Department of Transportation disclosed that this investigation covered a time span from 2018 to 2021, during which American Airlines held 43 domestic flights on the tarmac for a minimum of three hours, effectively stranding a total of 5,821 passengers without the option to deplane. Transportation Secretary Pete Buttigieg stated, "This latest measure underscores our ongoing commitment to safeguarding the rights of air travelers," emphasizing a resolute dedication to holding airlines accountable within the parameters of consumer protection laws.
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American Airlines, in response, expressed its intent to minimize instances of protracted ground delays, noting that the 43 affected flights constituted a mere fraction—less than 1%—of the approximately 7.7 million flights executed by American and American Eagle during the period from 2018 to 2021. The airline further conveyed its commitment to providing substantial compensation to passengers who experienced delays, and underlined its enhanced focus on optimizing operational efficiency to mitigate such occurrences. Of note, the majority of the identified delays transpired at Dallas-Fort Worth International Airport, where American Airlines maintains a dominant presence.
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(RTTNews) - In a significant penalty, American Airlines is slated to pay a hefty fine of $4.1 million imposed by the federal government for numerous incidents involving extended ground delays, during which passengers were confined to planes without the opportunity to disembark. Moreover, the Department of Transportation acknowledged American's payment of compensation to the inconvenienced passengers, attributing this as grounds for granting the airline a credit of just over $2 million, effectively reducing the financial blow. American Airlines, in response, expressed its intent to minimize instances of protracted ground delays, noting that the 43 affected flights constituted a mere fraction—less than 1%—of the approximately 7.7 million flights executed by American and American Eagle during the period from 2018 to 2021.
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(RTTNews) - In a significant penalty, American Airlines is slated to pay a hefty fine of $4.1 million imposed by the federal government for numerous incidents involving extended ground delays, during which passengers were confined to planes without the opportunity to disembark. The U.S. Department of Transportation, announcing this on Monday, asserted that this fine marks the most substantial punitive action against an airline since the enforcement of regulations pertaining to prolonged ground delays nearly a decade ago. The Department of Transportation disclosed that this investigation covered a time span from 2018 to 2021, during which American Airlines held 43 domestic flights on the tarmac for a minimum of three hours, effectively stranding a total of 5,821 passengers without the option to deplane.
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c2db8a9c-0951-41a0-aee0-0cccdf92f5ef
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2306.0
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2023-08-29 00:00:00 UTC
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Evercore ISI Group Maintains American Airlines Group (AAL) In-Line Recommendation
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AAL
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https://www.nasdaq.com/articles/evercore-isi-group-maintains-american-airlines-group-aal-in-line-recommendation
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Fintel reports that on August 28, 2023, Evercore ISI Group maintained coverage of American Airlines Group (NASDAQ:AAL) with a In-Line recommendation.
Analyst Price Forecast Suggests 30.77% Upside
As of August 2, 2023, the average one-year price target for American Airlines Group is 19.26. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 30.77% from its latest reported closing price of 14.73.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1047 funds or institutions reporting positions in American Airlines Group. This is an increase of 17 owner(s) or 1.65% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.53%. Total shares owned by institutions increased in the last three months by 1.63% to 418,447K shares.
The put/call ratio of AAL is 3.74, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,318K shares representing 5.71% ownership of the company. In it's prior filing, the firm reported owning 37,738K shares, representing a decrease of 1.13%. The firm increased its portfolio allocation in AAL by 15.25% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,306K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 20,146K shares, representing an increase of 0.79%. The firm increased its portfolio allocation in AAL by 13.11% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,044K shares representing 2.91% ownership of the company. In it's prior filing, the firm reported owning 19,321K shares, representing a decrease of 1.45%. The firm increased its portfolio allocation in AAL by 15.39% over the last quarter.
Renaissance Technologies holds 17,107K shares representing 2.62% ownership of the company. In it's prior filing, the firm reported owning 15,723K shares, representing an increase of 8.09%. The firm increased its portfolio allocation in AAL by 43.72% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,544K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 15,180K shares, representing an increase of 2.34%. The firm increased its portfolio allocation in AAL by 12.80% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 28, 2023, Evercore ISI Group maintained coverage of American Airlines Group (NASDAQ:AAL) with a In-Line recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.53%. The put/call ratio of AAL is 3.74, indicating a bearish outlook.
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Fintel reports that on August 28, 2023, Evercore ISI Group maintained coverage of American Airlines Group (NASDAQ:AAL) with a In-Line recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.53%. The put/call ratio of AAL is 3.74, indicating a bearish outlook.
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Fintel reports that on August 28, 2023, Evercore ISI Group maintained coverage of American Airlines Group (NASDAQ:AAL) with a In-Line recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.53%. The put/call ratio of AAL is 3.74, indicating a bearish outlook.
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Fintel reports that on August 28, 2023, Evercore ISI Group maintained coverage of American Airlines Group (NASDAQ:AAL) with a In-Line recommendation. Average portfolio weight of all funds dedicated to AAL is 0.15%, an increase of 8.53%. The put/call ratio of AAL is 3.74, indicating a bearish outlook.
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7f616741-7f96-43ea-aa14-b59c6c056918
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2307.0
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2023-08-28 00:00:00 UTC
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US fines American Airlines for keeping passengers on tarmac
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AAL
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https://www.nasdaq.com/articles/us-fines-american-airlines-for-keeping-passengers-on-tarmac-0
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By David Shepardson and Paul Grant
Aug 28 (Reuters) - The United States Transportation Department (USDOT) on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the largest-ever penalty for violating the rule.
Of the $4.1 million assessed, $2.05 million will be credited to the airline for compensation provided to passengers of impacted flights.
USDOT said an extensive investigation by its Office of Aviation Consumer Protection found that between 2018 and 2021, American allowed 43 domestic flights to remain on the tarmac for lengthy periods without providing passengers an opportunity to deplane in violation of the department's tarmac delay rule.
On one of the 43 flights, passengers were not provided with food and water as required. Most delays occurred at Dallas Fort Worth Airport. The tarmac delays affected a total of 5,821 passengers.
“This is the latest action in our continued drive to enforce the rights of airline passengers,” U.S. Transportation Secretary Pete Buttigieg said. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.”
American told USDOT these delays were the result of exceptional weather events, and that the flights represented less than 0.001% of the approximately 7.7 million flights operated by American and its regional partners during the period of 2018 to 2021.
"We have since apologized to the impacted customers and regret any inconvenience caused," the airline said on Monday.
The airline said it has committed "substantial time and resources to improve its performance on tarmac delays."
While accepting this compromise settlement "American respectfully disagrees that certain of these tarmac delays warrant enforcement action under the extreme
circumstances presented," it added.
In 2016, USDOT fined American Airlines a then record-matching $1.6 million after it found the carrier had allowed a number of domestic flights to remain on the tarmac without allowing passengers an opportunity to get off the plane.
USDOT in January said it planned to seek higher penalties from airlines and others that broke consumer protection rules, saying they were necessary to deter future violations.
The department has fined numerous airlines in recent years, including a $135,000 penalty on British Airways over a 2017 tarmac delay in which it failed to ensure the timely deplaning of passengers.
(Reporting by David Shepardson and Paul Grant; Editing by Rami Ayyub and Bill Berkrot)
((paul.grant@thomsonreuters.com;))
The views and 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 David Shepardson and Paul Grant Aug 28 (Reuters) - The United States Transportation Department (USDOT) on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the largest-ever penalty for violating the rule. While accepting this compromise settlement "American respectfully disagrees that certain of these tarmac delays warrant enforcement action under the extreme circumstances presented," it added. The department has fined numerous airlines in recent years, including a $135,000 penalty on British Airways over a 2017 tarmac delay in which it failed to ensure the timely deplaning of passengers.
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By David Shepardson and Paul Grant Aug 28 (Reuters) - The United States Transportation Department (USDOT) on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the largest-ever penalty for violating the rule. USDOT said an extensive investigation by its Office of Aviation Consumer Protection found that between 2018 and 2021, American allowed 43 domestic flights to remain on the tarmac for lengthy periods without providing passengers an opportunity to deplane in violation of the department's tarmac delay rule. In 2016, USDOT fined American Airlines a then record-matching $1.6 million after it found the carrier had allowed a number of domestic flights to remain on the tarmac without allowing passengers an opportunity to get off the plane.
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By David Shepardson and Paul Grant Aug 28 (Reuters) - The United States Transportation Department (USDOT) on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the largest-ever penalty for violating the rule. USDOT said an extensive investigation by its Office of Aviation Consumer Protection found that between 2018 and 2021, American allowed 43 domestic flights to remain on the tarmac for lengthy periods without providing passengers an opportunity to deplane in violation of the department's tarmac delay rule. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.” American told USDOT these delays were the result of exceptional weather events, and that the flights represented less than 0.001% of the approximately 7.7 million flights operated by American and its regional partners during the period of 2018 to 2021.
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By David Shepardson and Paul Grant Aug 28 (Reuters) - The United States Transportation Department (USDOT) on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the largest-ever penalty for violating the rule. Of the $4.1 million assessed, $2.05 million will be credited to the airline for compensation provided to passengers of impacted flights. USDOT said an extensive investigation by its Office of Aviation Consumer Protection found that between 2018 and 2021, American allowed 43 domestic flights to remain on the tarmac for lengthy periods without providing passengers an opportunity to deplane in violation of the department's tarmac delay rule.
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634ceb45-e494-4014-8fe2-ccccee8f58f7
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2308.0
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2023-08-28 00:00:00 UTC
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US fines American Airlines for keeping passengers on tarmac
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AAL
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https://www.nasdaq.com/articles/us-fines-american-airlines-for-keeping-passengers-on-tarmac
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nan
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WASHINGTON, Aug 28 (Reuters) - The United States on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the Transportation Department said.
“This is the latest action in our continued drive to enforce the rights of airline passengers,” Transportation Secretary Pete Buttigieg said. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.”
(Reporting by Paul Grant; editing by Rami Ayyub)
((paul.grant@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 28 (Reuters) - The United States on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the Transportation Department said. “This is the latest action in our continued drive to enforce the rights of airline passengers,” Transportation Secretary Pete Buttigieg said. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.” (Reporting by Paul Grant; editing by Rami Ayyub) ((paul.grant@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 28 (Reuters) - The United States on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the Transportation Department said. “This is the latest action in our continued drive to enforce the rights of airline passengers,” Transportation Secretary Pete Buttigieg said. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.” (Reporting by Paul Grant; editing by Rami Ayyub) ((paul.grant@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WASHINGTON, Aug 28 (Reuters) - The United States on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the Transportation Department said. “This is the latest action in our continued drive to enforce the rights of airline passengers,” Transportation Secretary Pete Buttigieg said. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.” (Reporting by Paul Grant; editing by Rami Ayyub) ((paul.grant@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, Aug 28 (Reuters) - The United States on Monday fined American Airlines AAL.O $4.1 million for unlawfully keeping thousands of passengers on the tarmac for hours, the Transportation Department said. “This is the latest action in our continued drive to enforce the rights of airline passengers,” Transportation Secretary Pete Buttigieg said. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.” (Reporting by Paul Grant; editing by Rami Ayyub) ((paul.grant@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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e3a13924-0b2f-4910-93c6-e8ee94e7a05e
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2309.0
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2023-08-28 00:00:00 UTC
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The Zacks Analyst Blog Highlights American Airlines, Allegiant Travel's, JetBlue Airways and Spirit Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-american-airlines-allegiant-travels-jetblue-airways-and
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For Immediate Release
Chicago, IL – August 28, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines AAL, Allegiant Travel's ALGT, JetBlue Airways JBLU and Spirit Airlines SAVE.
Here are highlights from Friday’s Analyst Blog:
Airline Stocks Roundup: American, Allegiant & More
In the past week, American Airlines received encouraging tidings on the labor front when the company's pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. Due to the pay increase, management expects labor costs to increase in third-quarter 2023.
Meanwhile, Allegiant Travel's traffic report for the month of July was impressive owing to the post-pandemic surge in air-travel demand. Driven by high passenger volumes, load factor (percentage of seats filled by passengers) in July inched up 0.7 points to 91.2% from the year-ago quarter.
Read the last Airline Roundup here.
Recap of the Past Week's Most Important Stories
1. The approval of the tentative agreement makes AAL's pilots eligible for an immediate pay raise in excess of 21% on average. Also, the deal includes provisions aimed at improving pilots' quality of life. The approval implies that company contributions to retirement plans will increase. The contract becomes amendable on Aug 1, 2027 and includes a provision that the next round of bargaining can begin as soon as November 2026. The four-year contract boosts the overall compensation of AAL pilots by more than 46% over its duration and is valued at $9.6 billion.
The deal has provisions for retroactive pay for the first four months of 2023. This implies that $230 million will get reflected as additional expenses in the September-quarter results. Including the expenditures associated with the deal, American Airlines now expects third-quarter cost per available seat mile excluding fuel and net special items or CASM-ex to rise in the 4-6% band on a year-over-year basis (prior guidance: 2-4% year-over-year jump).
2. In July, scheduled traffic (measured in revenue passenger miles) at ALGT was flat compared with July 2022 levels. Capacity (measured in available seat miles) for scheduled service also decreased marginally from the July 2022 reading. For the total system (including scheduled service and fixed fee contract), Allegiant carried more passengers in July 2023 from the year-ago period's level. Total departures (scheduled services) increased 3.2% in July 2023 from its year-ago levels. Fuel price per gallon in July is estimated to have been $2.77 compared with $2.64 in June.
3. JetBlue Airways reportedly aims to hike fares on Spirit Airlines' flights by as much as 40% if the $3.8 billion deal materializes. JBLU intends to do away with 24 seats on an average from each of SAVE's roughly 200 planes to reduce capacity and increase prices. The disclosure may jeopardize the chances of the deal, which was announced in July 2022, going through. The Justice Department is already challenging the deal with a trial expected to commence in October.
Currently, JBLU carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The majority of airline stocks traded in the red in the past week. The NYSE ARCA Airline Index declined 1% over the period to $61.22. Over the course of the past six months, the sector tracker has increased 1.8%.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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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
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : 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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Stocks recently featured in the blog include: American Airlines AAL, Allegiant Travel's ALGT, JetBlue Airways JBLU and Spirit Airlines SAVE. The approval of the tentative agreement makes AAL's pilots eligible for an immediate pay raise in excess of 21% on average. The four-year contract boosts the overall compensation of AAL pilots by more than 46% over its duration and is valued at $9.6 billion.
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Stocks recently featured in the blog include: American Airlines AAL, Allegiant Travel's ALGT, JetBlue Airways JBLU and Spirit Airlines SAVE. Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. The approval of the tentative agreement makes AAL's pilots eligible for an immediate pay raise in excess of 21% on average.
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Stocks recently featured in the blog include: American Airlines AAL, Allegiant Travel's ALGT, JetBlue Airways JBLU and Spirit Airlines SAVE. Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. The approval of the tentative agreement makes AAL's pilots eligible for an immediate pay raise in excess of 21% on average.
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Stocks recently featured in the blog include: American Airlines AAL, Allegiant Travel's ALGT, JetBlue Airways JBLU and Spirit Airlines SAVE. The approval of the tentative agreement makes AAL's pilots eligible for an immediate pay raise in excess of 21% on average. The four-year contract boosts the overall compensation of AAL pilots by more than 46% over its duration and is valued at $9.6 billion.
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19087f67-aa5b-4745-9a15-134ce7122fdb
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2310.0
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2023-08-27 00:00:00 UTC
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Chile launches probe into deadly mining accidents at Anglo American, Minera ACF
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AAL
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https://www.nasdaq.com/articles/chile-launches-probe-into-deadly-mining-accidents-at-anglo-american-minera-acf
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SANTIAGO, Aug 27 (Reuters) - Chile's government has sent officials to investigate accidents at two mines in the South American country's metropolitan and Tarapaca regions and resulted in the deaths of three workers, it said on Sunday.
Newly appointed mining minister Aurora Williams is closely monitoring the inspections, her ministry said in a statement.
The country's mining and geology service over the weekend announced on the social media site X, formerly known as Twitter, the deaths of two workers at Anglo American's AAL.L Los Bronces copper mine some 40 miles (64 km) from the capital Santiago, and one at Minera ACF, which produces iodine and nitrate in the northern Tarapaca region.
Anglo American did not immediately respond to a request for commend while Minera ACF could not be reached.
"The Mining Ministry expresses its heartfelt condolences to the workers' families and co-workers," the ministry said in the statement, adding that it called on the mining firms to further reflect on the value of safety in their operations.
(Reporting by Fabian Cambrero; Writing by Sarah Morland; editing by Diane Craft)
((sarah.morland@thomsonreuters.com;))
The views and 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 country's mining and geology service over the weekend announced on the social media site X, formerly known as Twitter, the deaths of two workers at Anglo American's AAL.L Los Bronces copper mine some 40 miles (64 km) from the capital Santiago, and one at Minera ACF, which produces iodine and nitrate in the northern Tarapaca region. SANTIAGO, Aug 27 (Reuters) - Chile's government has sent officials to investigate accidents at two mines in the South American country's metropolitan and Tarapaca regions and resulted in the deaths of three workers, it said on Sunday. Newly appointed mining minister Aurora Williams is closely monitoring the inspections, her ministry said in a statement.
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The country's mining and geology service over the weekend announced on the social media site X, formerly known as Twitter, the deaths of two workers at Anglo American's AAL.L Los Bronces copper mine some 40 miles (64 km) from the capital Santiago, and one at Minera ACF, which produces iodine and nitrate in the northern Tarapaca region. SANTIAGO, Aug 27 (Reuters) - Chile's government has sent officials to investigate accidents at two mines in the South American country's metropolitan and Tarapaca regions and resulted in the deaths of three workers, it said on Sunday. "The Mining Ministry expresses its heartfelt condolences to the workers' families and co-workers," the ministry said in the statement, adding that it called on the mining firms to further reflect on the value of safety in their operations.
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The country's mining and geology service over the weekend announced on the social media site X, formerly known as Twitter, the deaths of two workers at Anglo American's AAL.L Los Bronces copper mine some 40 miles (64 km) from the capital Santiago, and one at Minera ACF, which produces iodine and nitrate in the northern Tarapaca region. SANTIAGO, Aug 27 (Reuters) - Chile's government has sent officials to investigate accidents at two mines in the South American country's metropolitan and Tarapaca regions and resulted in the deaths of three workers, it said on Sunday. "The Mining Ministry expresses its heartfelt condolences to the workers' families and co-workers," the ministry said in the statement, adding that it called on the mining firms to further reflect on the value of safety in their operations.
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The country's mining and geology service over the weekend announced on the social media site X, formerly known as Twitter, the deaths of two workers at Anglo American's AAL.L Los Bronces copper mine some 40 miles (64 km) from the capital Santiago, and one at Minera ACF, which produces iodine and nitrate in the northern Tarapaca region. Newly appointed mining minister Aurora Williams is closely monitoring the inspections, her ministry said in a statement. "The Mining Ministry expresses its heartfelt condolences to the workers' families and co-workers," the ministry said in the statement, adding that it called on the mining firms to further reflect on the value of safety in their operations.
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26135d5c-d812-430a-b236-4c0ada80bffe
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2311.0
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2023-08-27 00:00:00 UTC
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These 5 Magnificent Stocks Keep Driving Higher
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AAL
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https://www.nasdaq.com/articles/these-5-magnificent-stocks-keep-driving-higher
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A mini-correction in the markets often causes a pause for reflection. So, I thought I'd take a whistle-stop look at five companies that have all outperformed the S&P 500 index in 2023 and over the previous year, not least because they all have the potential to carry on doing so. Here's why.
1. nVent Electric
The electrical connection and protection company is something of a hidden gem. Run by an all-female CEO/CFO team, nVent's (NYSE: NVT) products are an indispensable part of the electrification of everything trend in the economy. Investments in electric vehicles and charging networks, smart buildings and infrastructure, data centers, renewable energy, 5G, and industrial automation all imply an increase in electrical installations, and that means an expanded market for nVent's electrical solutions.
The company has a super record of beating expectations and raising guidance. Investors have enjoyed a 174% return over the last three years as the company's end markets have expanded while management has taken full advantage. Trading on just over 16 times next year's estimated earnings, nVent remains a good value.
2. Baker Hughes
Fossil fuels may not be the flavor of the month as policymakers seek to promote renewable energy. However, for two reasons, Baker Hughes (NASDAQ: BKR) investors won't care too much about that.
First, despite ample skepticism around oil and talk of an impending recession, the fact is the price of oil is still around $79. Baker Hughes's management believes oil majors are being disciplined in their spending, having been burned after the end of the previous boom in the oil price burst in 2014. Meanwhile, leading oil producers Saudi Arabia and Russia have both repeatedly demonstrated a willingness to cut production to support the price of oil. The environment remains constructive, and Baker Hughes recently raised its full-year sales and earnings guidance.
Second, Baker Hughes is much more than oil field services and equipment. It's gaining traction in its fast-growing LNG and new energy orders, and management looks to generate further cost cuts on top of the $150 million planned as part of its restructuring program.
All told, the stock remains an excellent way to get some exposure to energy in your portfolio.
3. AAR Corp
With a market cap of just over $2 billion, AAR Corp (NYSE: AIR) isn't a household name. However, the customers it serves are very high-profile. AAR is a provider of aviation services (parts supply, maintenance, repair and engineering (MRO), and integrated solutions to some of the world's leading airlines (including United Airlines, Southwest, Delta Air Lines, and American Airlines), cargo airlines (including DHL and FedEx), and government customers including the U.S. Air Force and U.K. Ministry of Defense.
As such, it's an investment in the ongoing recovery in commercial air travel. In addition, the problems Boeing and Airbus have had with delivering airplanes in recent years mean airlines have extended their existing fleets, and older planes tend to need more servicing and parts.
Moreover, the acquisition of aircraft MRO and airline fleet management software company Trax adds high-margin recurring revenue to AAR's sales mix while opening up opportunities to cross-sell AAR's products and services to Trax's customer base. Wall Street analysts have AAR growing revenue at an 8.8% annual rate for the next couple of years, with margin expansion leading to a 16% annual increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) and good long-term growth prospects to follow.
4. ON Semiconductor
This company offers many things to different investors. For example, technology-focused investors are excited about ON Semiconductor's (NASDAQ: ON) silicon carbide technology. Industrial-focused investors are very interested in the company's focus on growing its intelligent power and sensing technology in key end markets like automotive (with a heavy focus on electric vehicles, or EVs) and industrial automation.
These end markets definitely make ON Semiconductor not the usual semiconductor conductor with heavy exposure to highly cyclical markets like consumer electronics.
The growth in EVs and industrial automation not only affords the company exciting secular growth markets but also offers an opportunity to expand revenue as these technologies use substantially more ON Semiconductor content.
Trading on less than 18 times earnings and with excellent long-term growth prospects, ON Semiconductor is an exciting stock to play some powerful secular growth trends.
5. Hexcel
Finally, advanced composite materials company Hexcel (NYSE: HXL) is an investment in the ongoing ramp in airplane production at Boeing and Airbus and the growing use of composite materials in airplane construction. The airplane manufacturers have multiyear backlogs in place and are aggressively ramping production as the commercial aerospace recovery continues and supply chain bottlenecks ease.
Meanwhile, there's little doubt that newer airplanes will increasingly contain more composite content, not least because Boeing's CEO believes they are an integral part of future airplane development.
As such, while Hexcel is hardly a cheap stock based on a valuation of 37 times this year's estimated earnings, it has high visibility into its future earnings thanks to the backlogs at Boeing and Airbus, and its long-term growth looks assured.
10 stocks we like better than Baker Hughes
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines, FedEx, Hexcel, ON Semiconductor, and Southwest Airlines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's gaining traction in its fast-growing LNG and new energy orders, and management looks to generate further cost cuts on top of the $150 million planned as part of its restructuring program. In addition, the problems Boeing and Airbus have had with delivering airplanes in recent years mean airlines have extended their existing fleets, and older planes tend to need more servicing and parts. The airplane manufacturers have multiyear backlogs in place and are aggressively ramping production as the commercial aerospace recovery continues and supply chain bottlenecks ease.
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AAR is a provider of aviation services (parts supply, maintenance, repair and engineering (MRO), and integrated solutions to some of the world's leading airlines (including United Airlines, Southwest, Delta Air Lines, and American Airlines), cargo airlines (including DHL and FedEx), and government customers including the U.S. Air Force and U.K. Ministry of Defense. Trading on less than 18 times earnings and with excellent long-term growth prospects, ON Semiconductor is an exciting stock to play some powerful secular growth trends. Hexcel Finally, advanced composite materials company Hexcel (NYSE: HXL) is an investment in the ongoing ramp in airplane production at Boeing and Airbus and the growing use of composite materials in airplane construction.
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AAR is a provider of aviation services (parts supply, maintenance, repair and engineering (MRO), and integrated solutions to some of the world's leading airlines (including United Airlines, Southwest, Delta Air Lines, and American Airlines), cargo airlines (including DHL and FedEx), and government customers including the U.S. Air Force and U.K. Ministry of Defense. The growth in EVs and industrial automation not only affords the company exciting secular growth markets but also offers an opportunity to expand revenue as these technologies use substantially more ON Semiconductor content. Hexcel Finally, advanced composite materials company Hexcel (NYSE: HXL) is an investment in the ongoing ramp in airplane production at Boeing and Airbus and the growing use of composite materials in airplane construction.
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Second, Baker Hughes is much more than oil field services and equipment. The growth in EVs and industrial automation not only affords the company exciting secular growth markets but also offers an opportunity to expand revenue as these technologies use substantially more ON Semiconductor content. Hexcel Finally, advanced composite materials company Hexcel (NYSE: HXL) is an investment in the ongoing ramp in airplane production at Boeing and Airbus and the growing use of composite materials in airplane construction.
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0de38733-d801-4acf-9785-0fda5038d750
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2312.0
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2023-08-25 00:00:00 UTC
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Worker death prompts US authorities to issue aviation ground safety alert
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AAL
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https://www.nasdaq.com/articles/worker-death-prompts-us-authorities-to-issue-aviation-ground-safety-alert
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By David Shepardson
WASHINGTON, Aug 25 (Reuters) - The death of an airline employee in December and another serious injury prompted the Federal Aviation Administration (FAA) to issue a safety alert on Friday to airlines in an effort to prevent more incidents.
The safety alert reiterates that "it is important for workers to remain clear of operating engines until they are shut down," the FAA said.
The alert comes as questions arise about U.S. aviation safety after a series of troubling near-miss incidents. The FAA has said it will hold runway safety meetings at 90 airports over the next few weeks.
In December, a ramp agent was fatally injured at Montgomery Regional Airport in Alabama when the worker was sucked into an engine of an American Airlines AAL.O regional carrier flight parked at the gate.
The flight was operated by Envoy Air, a wholly-owned subsidiary of American Airlines and the worker was employed by Piedmont Airlines, another American subsidiary.
The Occupational Safety and Health Administration issued Piedmont Airlines a citation for one serious violation in June for exposing ground crew workers to ingestion hazards while performing aircraft marshalling, wing-walking and baggage-handling tasks.
The airline faces $15,625 in proposed penalties, the maximum allowed by law. The company has contested the findings before the independent Occupational Safety and Health Review Commission.
In another event, a wing walker sustained a serious injury when an aircraft was being repositioned, the FAA said.
(Reporting by David Shepardson, editing by Deepa Babington)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and 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 December, a ramp agent was fatally injured at Montgomery Regional Airport in Alabama when the worker was sucked into an engine of an American Airlines AAL.O regional carrier flight parked at the gate. By David Shepardson WASHINGTON, Aug 25 (Reuters) - The death of an airline employee in December and another serious injury prompted the Federal Aviation Administration (FAA) to issue a safety alert on Friday to airlines in an effort to prevent more incidents. The safety alert reiterates that "it is important for workers to remain clear of operating engines until they are shut down," the FAA said.
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In December, a ramp agent was fatally injured at Montgomery Regional Airport in Alabama when the worker was sucked into an engine of an American Airlines AAL.O regional carrier flight parked at the gate. By David Shepardson WASHINGTON, Aug 25 (Reuters) - The death of an airline employee in December and another serious injury prompted the Federal Aviation Administration (FAA) to issue a safety alert on Friday to airlines in an effort to prevent more incidents. The flight was operated by Envoy Air, a wholly-owned subsidiary of American Airlines and the worker was employed by Piedmont Airlines, another American subsidiary.
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In December, a ramp agent was fatally injured at Montgomery Regional Airport in Alabama when the worker was sucked into an engine of an American Airlines AAL.O regional carrier flight parked at the gate. By David Shepardson WASHINGTON, Aug 25 (Reuters) - The death of an airline employee in December and another serious injury prompted the Federal Aviation Administration (FAA) to issue a safety alert on Friday to airlines in an effort to prevent more incidents. The flight was operated by Envoy Air, a wholly-owned subsidiary of American Airlines and the worker was employed by Piedmont Airlines, another American subsidiary.
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In December, a ramp agent was fatally injured at Montgomery Regional Airport in Alabama when the worker was sucked into an engine of an American Airlines AAL.O regional carrier flight parked at the gate. By David Shepardson WASHINGTON, Aug 25 (Reuters) - The death of an airline employee in December and another serious injury prompted the Federal Aviation Administration (FAA) to issue a safety alert on Friday to airlines in an effort to prevent more incidents. The safety alert reiterates that "it is important for workers to remain clear of operating engines until they are shut down," the FAA said.
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dcc923ab-9008-419d-8274-115952454e03
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2313.0
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2023-08-25 00:00:00 UTC
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Interesting AAL Put And Call Options For December 15th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-december-15th
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 15th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 112 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $14.00 strike price has a current bid of 84 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $14.00, but will also collect the premium, putting the cost basis of the shares at $13.16 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $14.44/share today.
Because the $14.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.00% return on the cash commitment, or 19.55% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $14.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.00 strike price has a current bid of 61 cents. If an investor was to purchase shares of AAL stock at the current price level of $14.44/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 15.03% if the stock gets called away at the December 15th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red:
Considering the fact that the $16.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.22% boost of extra return to the investor, or 13.76% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $14.44) to be 40%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
KR Historical Stock Prices
Institutional Holders of PBCT
TBCP Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 15th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 15th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 15th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new December 15th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 11% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the December 15th expiration.
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7ba71b45-9a81-4553-a049-7130e65582cb
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2314.0
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2023-08-25 00:00:00 UTC
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3 Airline Stocks to Watch Amid Upbeat Passenger Volumes
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-to-watch-amid-upbeat-passenger-volumes
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With air travel demand bouncing back strongly from the pandemic lows, prospects of stocks in the Zacks Transportation - Airline industry appear bright indeed. It is well documented that air travel demand is particularly strong on the leisure front. What is more encouraging is that international demand made a roaring comeback.The decline in fuel expenses represents another tailwind for the industry.
Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like Ryanair Holdings RYAAY, United Airlines UAL and American Airlines AAL on their radar.
About the Industry
The Zacks Airline industry players are engaged in transporting passengers and cargo to various destinations globally. Most operators maintain a fleet of multiple mainline jets in addition to several regional planes. Their operations are aided by their regional airline subsidiaries and third-party regional carriers. Additionally, industry players utilize their respective cargo divisions to offer a wide range of freight and mail services. The players invest substantially to upgrade technology. The industry, apart from comprising legacy carriers, includes low-cost players. The well-being of companies in this group is linked to the health of the overall economy. For example, the aviation space was one of the worst pandemic-hit corners, with passenger revenues taking a beating. However, air travel demand is extremely rosy now. The focus on boosting cargo revenues is a positive too.
Factors Relevant to the Industry's Fortunes
Rosy Air Traffic Scenario: The stronger-than-expected recovery in air travel demand from pandemic lows is a huge positive for the industry, which was one of the worst hit in the peak COVID-19 period. The removal of COVID-related restrictions is aiding air travel, which is now strong on the international front as well. Reflecting the recovery in air travel demand, overall global traffic was up 47.2% in the first half compared with the year-ago period, with double-digit increases on both the domestic and international fronts, per IATA.
People are again resorting to air travel as they resume their normal activities. Expecting the strong passenger volumes to continue, some airline companies like United Airlines have lifted their earnings per share view for the current year.
Declining Fuel Costs: The southward movement of oil price bodes well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation space. Notably, oil price declined 6.6% in the April-June period of 2023. Per IATA, the average jet fuel cost is expected to be $98.5 per barrel in 2023 (earlier forecast was $111.9 per barrel).
High Labor Costs: Increased operating costs are limiting bottom-line growth. With expenses on fuel moving south, costs will likely continue to be steep going forward due to escalated labor costs. Moreover, as U.S. airlines grapple with pilot shortage, the bargaining power of this labor group has increased. As a result, we have seen pay-hike deals being inked in the space. This is resulting in a spike in labor costs. American Airlines recently lifted its forecast for third-quarter non-fuel unit costs due to the four-year pay-related deal with pilots.
Zacks Industry Rank Signals Bright Prospects
The Zacks Airline industry is a 28-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #74, which places it in the top 29% of 250 plus Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The industry’s earnings estimate for 2023 has moved up 27.3% since March 2023.
Before we present a few stocks that you may want to add or retain in your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.
Industry Lags S&P 500 But Outperforms Sector
Over the past year, the Zacks Transportation - Airline industry has gained 5.8% compared with the S&P 500 composite’s rise of 6%. The broader sector has declined 3.4% in the said time frame.
One-Year Price Performance
Valuation Picture
The price/sales (P/S) ratio is often used to value airline stocks. The industry currently has a forward 12-month P/S of 0.44X compared with the S&P 500’s 3.71X. It is also below the sector’s forward-12-month P/S of 1.62X.
Over the past five years, the industry has traded as high as 1.02X, as low as 0.33X and at the median of 0.64X.
Forward 12-Month Price-to-Sales Ratio (Past Five Years)
3 Stocks to Keep a Tab on
Ryanair Holdings’ growth prospects are being supported by an upbeat air travel demand scenario. Upbeat passenger volumes are leading to the company posting impressive traffic numbers over the past few months.
Measures to expand its fleet to cater to the rising travel demand are encouraging as well. Riding on the buoyant air-traffic scenario, RYAAY shares have gained 31% year to date. RYAAY surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters by 21.4%. Ryanair currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here
Price and Consensus: RYAAY
United Airlines is seeing steady recovery in domestic and international air travel demand. Driven by the rosy air travel demand scenario, UAL expects third-quarter earnings per share in the $3.85-$4.35 band. Management has lifted its earnings forecast for 2023 and now expects 2023 earnings per share in the band of $11-12 (prior view: $10-$12).
Riding on the buoyant air traffic scenario, UAL shares have gained 31.1% year to date. UAL surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters and missed the mark on the other occasion. The average beat is 17.2%. UAL too currently sports a Zacks Rank #1.
Price and Consensus: UAL
American Airlines, currently carrying a Zacks Rank #3 (Hold), is benefiting from an improvement in air travel demand. Recently, American Airlines’ management lifted the earnings per share forecast for 2023. The company now expects 2023 earnings (on an adjusted basis) in the band of $3-$3.75 per share (earlier view was in the $2.5-$3.5 per share range).
Driven by upbeat demand, current-year adjusted operating margin is now anticipated in the 7-9% band (earlier guidance:11-13%). The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 17% in the past 60 days.
Price and Consensus: AAL
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like Ryanair Holdings RYAAY, United Airlines UAL and American Airlines AAL on their radar. The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 17% in the past 60 days. Price and Consensus: AAL
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like Ryanair Holdings RYAAY, United Airlines UAL and American Airlines AAL on their radar. The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 17% in the past 60 days.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like Ryanair Holdings RYAAY, United Airlines UAL and American Airlines AAL on their radar. The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 17% in the past 60 days.
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Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like Ryanair Holdings RYAAY, United Airlines UAL and American Airlines AAL on their radar. The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 17% in the past 60 days. Price and Consensus: AAL
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d206a0a1-bdeb-4597-88ec-279aae24a1b6
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2315.0
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2023-08-25 00:00:00 UTC
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Airline Stock Roundup: AAL's Bearish Q3 Cost View, ALGT's July Traffic Report
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aals-bearish-q3-cost-view-algts-july-traffic-report
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In the past week, American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. Due to the pay increase, management expects labor costs to increase in third-quarter 2023.
Meanwhile, Allegiant Travel's ALGT traffic report for the month of July was impressive owing to the post-pandemic surge in air-travel demand. Driven by high passenger volumes, load factor (percentage of seats filled by passengers) in July inched up 0.7 points to 91.2% from the year-ago quarter.
Read the last Airline Roundup here.
Recap of the Past Week’s Most Important Stories
1. The approval of the tentative agreement makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average. Also, the deal includes provisions aimed at improving pilots’ quality of life. The approval implies that company contributions to retirement plans will increase. The contract becomes amendable on Aug 1, 2027 and includes a provision that the next round of bargaining can begin as soon as November 2026. The four-year contract boosts the overall compensation of AAL pilots by more than 46% over its duration and is valued at $9.6 billion.
The deal has provisions for retroactive pay for the first four months of 2023. This implies that $230 million will get reflected as additional expenses in the September-quarter results. Including the expenditures associated with the deal, American Airlines now expects third-quarter cost per available seat mile excluding fuel and net special items or CASM-ex to rise in the 4-6% band on a year-over-year basis (prior guidance: 2-4% year-over-year jump).
2. In July, scheduled traffic (measured in revenue passenger miles) at ALGT was flat compared with July 2022 levels. Capacity (measured in available seat miles) for scheduled service also decreased marginally from the July 2022 reading. For the total system (including scheduled service and fixed fee contract), Allegiant carried more passengers in July 2023 from the year-ago period’s level. Total departures (scheduled services) increased 3.2% in July 2023 from its year-ago levels. Fuel price per gallon in July is estimated to have been $2.77 compared with $2.64 in June.
3. JetBlue Airways JBLU reportedly aims to hike fares on Spirit Airlines’ SAVE flights by as much as 40% if the $3.8 billion deal materializes. JBLU intends to do away with 24 seats on an average from each of SAVE’s roughly 200 planes to reduce capacity and increase prices. The disclosure may jeopardize the chances of the deal, which was announced in July 2022, going through. The Justice Department is already challenging the deal with a trial expected to commence in October.
Currently, JBLU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
Image Source: Zacks Investment Research
The table above shows that the majority of airline stocks traded in the red in the past week. The NYSE ARCA Airline Index declined 1% over the period to $61.22. Over the course of the past six months, the sector tracker has increased 1.8%.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : 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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In the past week, American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. The approval of the tentative agreement makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average. The four-year contract boosts the overall compensation of AAL pilots by more than 46% over its duration and is valued at $9.6 billion.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. The approval of the tentative agreement makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average.
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In the past week, American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. The approval of the tentative agreement makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average.
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In the past week, American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. The approval of the tentative agreement makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average. The four-year contract boosts the overall compensation of AAL pilots by more than 46% over its duration and is valued at $9.6 billion.
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b03d23bf-388b-4478-81f1-ae0b90759c97
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2316.0
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2023-08-25 00:00:00 UTC
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American Airlines (AAL) Gains But Lags Market: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-gains-but-lags-market%3A-what-you-should-know-10
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nan
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nan
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American Airlines (AAL) closed the most recent trading day at $14.58, moving +0.07% from the previous trading session. This move lagged the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.73%, and the Nasdaq, a tech-heavy index, added 0.94%.
Heading into today, shares of the world's largest airline had lost 12.07% over the past month, lagging the Transportation sector's loss of 5.51% and the S&P 500's loss of 3.8% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. The company is expected to report EPS of $0.79, up 14.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.56 billion, up 0.73% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $53.11 billion. These results would represent year-over-year changes of +550% and +8.46%, respectively.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.06% lower. American Airlines currently has a Zacks Rank of #3 (Hold).
Digging into valuation, American Airlines currently has a Forward P/E ratio of 4.48. For comparison, its industry has an average Forward P/E of 8.68, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $53.11 billion. American Airlines (AAL) closed the most recent trading day at $14.58, moving +0.07% from the previous trading session. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) closed the most recent trading day at $14.58, moving +0.07% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $53.11 billion.
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American Airlines (AAL) closed the most recent trading day at $14.58, moving +0.07% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $53.11 billion. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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American Airlines (AAL) closed the most recent trading day at $14.58, moving +0.07% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $53.11 billion. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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eb0e08ee-bcd0-4148-aaac-8e2661dd3ef5
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2317.0
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2023-08-23 00:00:00 UTC
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UPS' 5-Year Labor Deal Gets Workers' Nod, Strike Risk Averted
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AAL
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https://www.nasdaq.com/articles/ups-5-year-labor-deal-gets-workers-nod-strike-risk-averted
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nan
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nan
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United Parcel Service UPS received encouraging tidings on the labor front when thousands of its workers, represented by International Brotherhood of Teamsters, approved a five-year deal aimed at bettering pay and working conditions for the unionized workers. We remind investors that the tentative agreement between Teamsters and UPS was reached in July 2023.
Evidently, Teamsters represents 34,000 pilots of UPS, which currently carries a Zacks Rank #4 (Sell). In the ratification process, 86% of voting members cast their votes in favor of the deal. The voting procedure (electronic) started on Aug 3 and concluded on Aug 22.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This deal approval has averted the possibility of a strike by the workers. If a strike had materialized, operations of this parcel-delivery giant would have been severely crippled. This would also have worsened the supply-chain scenario in the United States. A strike, in all probability, would have resulted in delayed deliveries during Christmas apart from causing escalation in shipping costs.
This ratification enables the current full-and-part-time employees at UPS, represented by the union, to receive a $2.75 per hour pay increase in 2023. It also makes them eligible to get $7.50 more per hour over the length of the contract, which is five years. The deal has also done away with the contentious two-tier wage system for drivers.
Further, the deal includes provisions aimed at improving workers’ quality of life. To this end, the labor deal, worth $30 billion, has secured additional paid holiday, and safety and health protections for workers like air conditioning in vehicles and cargo ventilation. All local supplemental agreements, barring one, have also been ratified. The new deal will take effect as soon as the remaining supplemental agreement is renegotiated and finalized.
In fact, new labor deals are in vogue these days in the transportation space. With companies struggling with labor shortage, the bargaining power of various labor groups has naturally increased.
Recently, American Airlines’ AAL pilots ratified a $9.6 billion contract, which boosts the overall compensation of AAL pilots by more than 46% over its duration of four years. In March, Delta Air Lines’ DAL pilots approved a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay hike over the next four years.
Free Report: Top EV Battery Stocks to Buy 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
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recently, American Airlines’ AAL pilots ratified a $9.6 billion contract, which boosts the overall compensation of AAL pilots by more than 46% over its duration of four years. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. United Parcel Service UPS received encouraging tidings on the labor front when thousands of its workers, represented by International Brotherhood of Teamsters, approved a five-year deal aimed at bettering pay and working conditions for the unionized workers.
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Recently, American Airlines’ AAL pilots ratified a $9.6 billion contract, which boosts the overall compensation of AAL pilots by more than 46% over its duration of four years. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In March, Delta Air Lines’ DAL pilots approved a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay hike over the next four years.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Recently, American Airlines’ AAL pilots ratified a $9.6 billion contract, which boosts the overall compensation of AAL pilots by more than 46% over its duration of four years. United Parcel Service UPS received encouraging tidings on the labor front when thousands of its workers, represented by International Brotherhood of Teamsters, approved a five-year deal aimed at bettering pay and working conditions for the unionized workers.
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Recently, American Airlines’ AAL pilots ratified a $9.6 billion contract, which boosts the overall compensation of AAL pilots by more than 46% over its duration of four years. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. United Parcel Service UPS received encouraging tidings on the labor front when thousands of its workers, represented by International Brotherhood of Teamsters, approved a five-year deal aimed at bettering pay and working conditions for the unionized workers.
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6e4bf33c-eae8-4023-ad2e-21a9081f7e5f
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2318.0
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2023-08-23 00:00:00 UTC
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American Airlines (AAL) Expects High Q3 Costs Post Pilot Deal
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-expects-high-q3-costs-post-pilot-deal
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nan
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nan
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American Airlines AAL expects labor costs to increase following the four-year pay-related deal inked with pilots earlier this week. This rise is likely to get reflected in the bottom-line results of the third quarter.
The approval of the deal, which is valued at $9.6 billion over its tenure, makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses. The deal also has provisions for retroactive pay for the first four months of 2023. This implies that $230 million will get reflected as additional expenses in the September-quarter results.
Including the expenditures associated with the deal, American Airlines now expects third-quarter cost per available seat mile excluding fuel and net special items or CASM-ex to rise in the 4-6% band on a year-over-year basis (prior guidance: 2-4% year-over-year jump).
However, full-year 2023 guidance for the metric (even after including the pilot-deal related costs) remains the same due to changes in the projected timing of other expense items. Evidently, CASM-ex for 2023 is still forecast to climb in the range of 2-4%.
Zacks Rank & Key Picks
American Airlines currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Transportation sector may consider stocks like United Airlines UAL and Air Transport Services ATSG. Each stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United Airlines is seeing steady recovery in domestic and international air-travel demand. Owing to this, UAL suggests revenues for the September quarter to grow 10-13% year over year. Our projection for the metric hints at an increase of 11.4% year over year.
For third-quarter 2023, United Airlines anticipates capacity to improve 16% from the year-ago reported figure. The Zacks Consensus Estimate for UAL’s current-year earnings has been revised 19.7% upward over the past 60 days.
The uptrend with respect to e-commerce even in the post-pandemic scenario is a huge positive for Air Transport Services. It is the primary driver behind the uptick in demand for midsize air freighters.
With shippers replacing their older, less fuel-efficient equipment, ATSG’s freighters have emerged as suitable replacements. Driven by the upbeat demand, ATSG has delivered a record six converted freighters under lease in a month to its customers worldwide. The Zacks Consensus Estimate for ATSG’s current-year earnings has been revised 11.2% north in the past 60 days.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
Download free 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
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Air Transport Services Group, Inc (ATSG) : 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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American Airlines AAL expects labor costs to increase following the four-year pay-related deal inked with pilots earlier this week. The approval of the deal, which is valued at $9.6 billion over its tenure, makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL expects labor costs to increase following the four-year pay-related deal inked with pilots earlier this week. The approval of the deal, which is valued at $9.6 billion over its tenure, makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL expects labor costs to increase following the four-year pay-related deal inked with pilots earlier this week. The approval of the deal, which is valued at $9.6 billion over its tenure, makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL expects labor costs to increase following the four-year pay-related deal inked with pilots earlier this week. The approval of the deal, which is valued at $9.6 billion over its tenure, makes AAL’s pilots eligible for an immediate pay raise in excess of 21%, on average, as it includes roughly $1.1 billion in immediate, one-time payments and ratification bonuses.
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d740f937-43bf-4925-9b21-2b100d429203
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2319.0
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2023-08-22 00:00:00 UTC
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Which Is A Better Pick – Delta Stock Or United Airlines?
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AAL
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https://www.nasdaq.com/articles/which-is-a-better-pick-delta-stock-or-united-airlines
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nan
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nan
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We believe Delta stock (NYSE: DAL) and its peer United Airlines stock (NASDAQ: UAL) will likely offer similar returns in the next three years. Delta is trading at 0.5x revenues compared to 0.3x for United Airlines. Investors have assigned a higher multiple to Delta due to its superior revenue growth and profitability, as discussed below.
Interestingly, both DAL and UAL have had a Sharpe Ratio of 0.1 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
If we look at stock returns, United Airlines, with 30% returns in the last twelve months, has fared marginally better than Delta, up 26%, and both have outperformed the broader S&P 500 index, up 14%. There is more to the comparison, and in the sections below, we discuss the possible returns for DAL and UAL. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Delta vs. United Airlines: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Delta’s Revenue Growth Is Slightly Better
Delta’s revenue growth has been slightly better, with a 27% average annual growth rate in the last three years, compared to 26% for United Airlines.
The rise in revenues for both airlines over the recent years can be attributed to a rebound in air travel demand, with passenger traffic and ticket yield rising meaningfully in the recent past.
For perspective, Delta’s available seat miles (ASM) declined 30% between 2019 and 2021 but surged 20% in 2022. Similarly, its passenger revenue per available seat mile (PRASM) fell 25% between 2019 and 2021 but rose 49% y-o-y in 2022.
In comparison, United Airlines’ ASM decreased 27% between 2019 and 2021 before rising 39% y-o-y in 2022. Its PRASM declined 19% and increased 43% over the same period, respectively.
Looking at the last twelve months, United Airlines’ 43% sales growth has fared better than 33% for Delta.
Our Delta Revenue Comparison and United Airlines Revenue Comparison dashboards provide more insight into the companies’ sales.
2. Delta Is More Profitable
Delta’s reported operating margin slid from 13% in 2019 to -91% in 2020 before recovering to 6% in 2022. In comparison, United Airlines’ operating margin fell from 9% in 2019 to -49% in 2020 but rose to 2% in 2022.
Looking at the last twelve month period, Delta’s operating margin of 7% fares better than 5% for United Airlines.
Our Delta Operating Income Comparison and United Airlines Operating Income Comparison dashboards have more details.
Looking at financial risk, both are comparable. While Delta’s 80% debt as a percentage of equity is lower than 188% for United Airlines, its 8% cash as a percentage of assets is lower than 26% for the latter, implying that Delta has a better debt position, but United Airlines has more cash cushion.
3. The Net of It All
We see that Delta has seen superior revenue growth, is more profitable, and has a better debt position. On the other hand, United Airlines has more cash cushion and is trading at a slightly lower valuation multiple.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both Delta and United Airlines will likely offer similar returns over the next three years.
If we compare the current valuation multiples to the historical averages, UAL fares slightly better. Delta’s stock trades at 0.5x sales compared to its last five-year average of 0.9x, and United Airlines stock trades at 0.3x revenues vs. the last five-year average of 0.6x.
Our Delta (DAL) Valuation Ratios Comparison and United Airlines (UAL) Valuation Ratios Comparison have more details.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 19% for Delta over this period vs. a 24% expected return for United Airlines stock, implying that investors can pick either of the two airlines for similar returns, based on Trefis Machine Learning analysis – Delta vs. United Airlines – which also provides more details on how we arrive at these numbers.
While DAL and UAL may offer similar returns in the next three years, it is helpful to see how Delta’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
DAL Return -10% 26% -16%
UAL Return -10% 30% -33%
S&P 500 Return -5% 14% 95%
Trefis Reinforced Value Portfolio -7% 28% 555%
[1] Month-to-date and year-to-date as of 8/21/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and 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 compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Delta vs. United Airlines: Which Stock Is A Better Bet? Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both Delta and United Airlines will likely offer similar returns over the next three years. While DAL and UAL may offer similar returns in the next three years, it is helpful to see how Delta’s Peers fare on metrics that matter.
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We believe Delta stock (NYSE: DAL) and its peer United Airlines stock (NASDAQ: UAL) will likely offer similar returns in the next three years. Our Delta Operating Income Comparison and United Airlines Operating Income Comparison dashboards have more details. Our Delta (DAL) Valuation Ratios Comparison and United Airlines (UAL) Valuation Ratios Comparison have more details.
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Delta’s Revenue Growth Is Slightly Better Delta’s revenue growth has been slightly better, with a 27% average annual growth rate in the last three years, compared to 26% for United Airlines. While Delta’s 80% debt as a percentage of equity is lower than 188% for United Airlines, its 8% cash as a percentage of assets is lower than 26% for the latter, implying that Delta has a better debt position, but United Airlines has more cash cushion. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 19% for Delta over this period vs. a 24% expected return for United Airlines stock, implying that investors can pick either of the two airlines for similar returns, based on Trefis Machine Learning analysis – Delta vs. United Airlines – which also provides more details on how we arrive at these numbers.
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Interestingly, both DAL and UAL have had a Sharpe Ratio of 0.1 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Delta vs. United Airlines: Which Stock Is A Better Bet? In comparison, United Airlines’ ASM decreased 27% between 2019 and 2021 before rising 39% y-o-y in 2022.
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66b0f1c0-db1e-401c-a716-1a1d9a68af14
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2320.0
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2023-08-22 00:00:00 UTC
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American Airlines' (AAL) 4-Year Pact With Pilots Is Ratified
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-4-year-pact-with-pilots-is-ratified
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nan
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nan
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American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. We remind investors that the tentative agreement between APA and AAL was reached on Aug 1.
Evidently, APA represents 15,000 pilots of American Airlines. In the entire exercise, 95% pilots participated with 72.7% casting their votes in favor of the deal. Voting on the issue had been in progress since Aug 7.
The approval makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average. Also, the deal includes provisions aimed at improving pilots’ quality of life. In fact, improvements pertaining to quality of life represent nearly 20% of the increased value of the new contract.
The approval implies that company contributions to retirement plans will increase. The four-year contract boosts the overall compensation of AAL pilots by more than 46% over its duration, is valued at $9.6 billion. The contract becomes amendable on Aug 1, 2027 and includes a provision that the next round of bargaining can begin as soon as November 2026.
Expressing delight on the development, the union’s president Ed Sicher said, “This contract is a big first step toward restoring the wages, benefits, and work rules that were lost during the past two decades while our profession was under continuous assault." AAL’s CEO Robert Isom believes that the approval allows AAL to expand its pilot training and provide pilots with more opportunities pertaining to their career advancement.
The approval at AAL, currently carrying a Zacks Rank #3 (Hold), has not come without hurdles. In November 2022, AAL pilots had turned down an offer as they did not find the features satisfactory enough to meet their expectations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With U.S. airlines grappling with pilot shortage, the bargaining power of this group has naturally increased as air-travel demand is buoyant, having bounced back very strongly from the pandemic lows. Last month, United Airlines’ UAL pilots provisionally agreed on a $10 billion contract to increase their pay up to 40% over the four-year duration of the contract. In March, Delta Air Lines’ DAL pilots ratified a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay-hike over the next four years.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. We remind investors that the tentative agreement between APA and AAL was reached on Aug 1. The approval makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average.
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American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that the tentative agreement between APA and AAL was reached on Aug 1.
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American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. AAL’s CEO Robert Isom believes that the approval allows AAL to expand its pilot training and provide pilots with more opportunities pertaining to their career advancement. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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American Airlines AAL received encouraging tidings on the labor front when the company’s pilots, represented by Allied Pilots Association or APA, approved a four-year deal pertaining to wage increase. We remind investors that the tentative agreement between APA and AAL was reached on Aug 1. The approval makes AAL’s pilots eligible for an immediate pay raise in excess of 21% on average.
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ebb1a245-7404-499b-8f29-8425a9050f3d
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2321.0
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2023-08-22 00:00:00 UTC
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Citigroup Reiterates American Airlines Group (AAL) Neutral Recommendation
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AAL
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https://www.nasdaq.com/articles/citigroup-reiterates-american-airlines-group-aal-neutral-recommendation-0
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nan
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nan
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Fintel reports that on August 22, 2023, Citigroup reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 27.06% Upside
As of August 2, 2023, the average one-year price target for American Airlines Group is 19.26. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 27.06% from its latest reported closing price of 15.16.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1033 funds or institutions reporting positions in American Airlines Group. This is an increase of 23 owner(s) or 2.28% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.58%. Total shares owned by institutions increased in the last three months by 1.65% to 417,992K shares.
The put/call ratio of AAL is 3.72, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,318K shares representing 5.71% ownership of the company. In it's prior filing, the firm reported owning 37,738K shares, representing a decrease of 1.13%. The firm increased its portfolio allocation in AAL by 15.25% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 17,107K shares representing 2.62% ownership of the company. In it's prior filing, the firm reported owning 15,723K shares, representing an increase of 8.09%. The firm increased its portfolio allocation in AAL by 43.72% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 22, 2023, Citigroup reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.58%. The put/call ratio of AAL is 3.72, indicating a bearish outlook.
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Fintel reports that on August 22, 2023, Citigroup reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.58%. The put/call ratio of AAL is 3.72, indicating a bearish outlook.
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Fintel reports that on August 22, 2023, Citigroup reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.58%. The put/call ratio of AAL is 3.72, indicating a bearish outlook.
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Fintel reports that on August 22, 2023, Citigroup reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.58%. The put/call ratio of AAL is 3.72, indicating a bearish outlook.
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1ff18d86-5a19-4093-ab23-805663c13a71
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2322.0
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2023-08-22 00:00:00 UTC
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US FAA holding runway safety meetings after close call incidents
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AAL
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https://www.nasdaq.com/articles/us-faa-holding-runway-safety-meetings-after-close-call-incidents
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 22 (Reuters) - The U.S. Federal Aviation Administration said on Tuesday it will hold runway safety meetings at 90 airports over the next few weeks after a series of troubling close-call aviation incidents.
Earlier this month, the FAA and National Transportation Safety Board (NTSB) said they were investigating a near collision between a Southwest Airlines LUV.N Boeing 737 and a Cessna Citation 560X business jet in San Diego.
The NTSB is investigating seven runway incursion events since January, including the San Diego incident.
In March, the FAA said it was taking steps to improve its air traffic control operations after near-miss incidents, telling employees: "There is no question that we are seeing too many close calls."
At the "Runway Safety Action Team" meetings taking place through the end of September, the FAA said representatives from the FAA’s air traffic organization, airlines, pilots, airport vehicle drivers and others will "come together to identify unique risks to surface safety at that airport and develop plans to mitigate or eliminate those risks."
The FAA has been without a permanent administrator since April 2022. President Joe Biden's nominee to head the agency Phil Washington withdrew in March and the White House has yet to pick a new nominee.
Deputy Transportation Secretary Polly Trottenberg since June has been serving as acting FAA administrator in addition to her USDOT duties.
The FAA said its preliminary review of the Aug. 11 incident showed an air traffic controller at San Diego International Airport cleared the Cessna to land even though Southwest Airlines Flight 2493 had already been told to taxi onto the same runway and await instructions to depart.
A similar near-collision incident occurred in February in Austin, Texas, when a FedEx FDX.N cargo plane and a Southwest Boeing 737 came within about 115 feet (35 meters) in poor visibility conditions. The controller had cleared the FedEx plane to land and the Southwest plane to depart.
The FAA held a safety summit and issued a safety alert in March to airlines, pilots and others citing the "need for continued vigilance and attention to mitigation of safety risks."
(Reporting by David Shepardson; Editing by Kirsten Donovan and Bernadette Baum)
((David.Shepardson@thomsonreuters.com2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earlier this month, the FAA and National Transportation Safety Board (NTSB) said they were investigating a near collision between a Southwest Airlines LUV.N Boeing 737 and a Cessna Citation 560X business jet in San Diego. The FAA said its preliminary review of the Aug. 11 incident showed an air traffic controller at San Diego International Airport cleared the Cessna to land even though Southwest Airlines Flight 2493 had already been told to taxi onto the same runway and await instructions to depart. A similar near-collision incident occurred in February in Austin, Texas, when a FedEx FDX.N cargo plane and a Southwest Boeing 737 came within about 115 feet (35 meters) in poor visibility conditions.
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At the "Runway Safety Action Team" meetings taking place through the end of September, the FAA said representatives from the FAA’s air traffic organization, airlines, pilots, airport vehicle drivers and others will "come together to identify unique risks to surface safety at that airport and develop plans to mitigate or eliminate those risks." The FAA said its preliminary review of the Aug. 11 incident showed an air traffic controller at San Diego International Airport cleared the Cessna to land even though Southwest Airlines Flight 2493 had already been told to taxi onto the same runway and await instructions to depart. The controller had cleared the FedEx plane to land and the Southwest plane to depart.
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At the "Runway Safety Action Team" meetings taking place through the end of September, the FAA said representatives from the FAA’s air traffic organization, airlines, pilots, airport vehicle drivers and others will "come together to identify unique risks to surface safety at that airport and develop plans to mitigate or eliminate those risks." The FAA said its preliminary review of the Aug. 11 incident showed an air traffic controller at San Diego International Airport cleared the Cessna to land even though Southwest Airlines Flight 2493 had already been told to taxi onto the same runway and await instructions to depart. The FAA held a safety summit and issued a safety alert in March to airlines, pilots and others citing the "need for continued vigilance and attention to mitigation of safety risks."
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At the "Runway Safety Action Team" meetings taking place through the end of September, the FAA said representatives from the FAA’s air traffic organization, airlines, pilots, airport vehicle drivers and others will "come together to identify unique risks to surface safety at that airport and develop plans to mitigate or eliminate those risks." The FAA has been without a permanent administrator since April 2022. The FAA said its preliminary review of the Aug. 11 incident showed an air traffic controller at San Diego International Airport cleared the Cessna to land even though Southwest Airlines Flight 2493 had already been told to taxi onto the same runway and await instructions to depart.
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067cb7a6-3e96-4077-8b04-51754acc4deb
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2323.0
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2023-08-22 00:00:00 UTC
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American Airlines sees higher costs after new pilot contract
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AAL
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https://www.nasdaq.com/articles/american-airlines-sees-higher-costs-after-new-pilot-contract
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nan
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nan
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Adds background in paragraph 2, details in paragraph 4
Aug 22 (Reuters) - American Airlines AAL.O said on Tuesday that it was expecting to record higher costs in the current quarter following a new labor deal with its pilots.
The company's pilots approved a new contract on Monday that includes more than $9.6 billion in total pay and benefits increases over four years.
The company now expects its cost per available seat mile excluding fuel to rise about 4% to 6%, compared with its previous forecast of about 2% to 4% growth.
The company reaffirmed its cost outlook for the year.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Anil D'Silva)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background in paragraph 2, details in paragraph 4 Aug 22 (Reuters) - American Airlines AAL.O said on Tuesday that it was expecting to record higher costs in the current quarter following a new labor deal with its pilots. The company's pilots approved a new contract on Monday that includes more than $9.6 billion in total pay and benefits increases over four years. The company now expects its cost per available seat mile excluding fuel to rise about 4% to 6%, compared with its previous forecast of about 2% to 4% growth.
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Adds background in paragraph 2, details in paragraph 4 Aug 22 (Reuters) - American Airlines AAL.O said on Tuesday that it was expecting to record higher costs in the current quarter following a new labor deal with its pilots. The company's pilots approved a new contract on Monday that includes more than $9.6 billion in total pay and benefits increases over four years. The company now expects its cost per available seat mile excluding fuel to rise about 4% to 6%, compared with its previous forecast of about 2% to 4% growth.
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Adds background in paragraph 2, details in paragraph 4 Aug 22 (Reuters) - American Airlines AAL.O said on Tuesday that it was expecting to record higher costs in the current quarter following a new labor deal with its pilots. The company now expects its cost per available seat mile excluding fuel to rise about 4% to 6%, compared with its previous forecast of about 2% to 4% growth. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Anil D'Silva) ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background in paragraph 2, details in paragraph 4 Aug 22 (Reuters) - American Airlines AAL.O said on Tuesday that it was expecting to record higher costs in the current quarter following a new labor deal with its pilots. The company's pilots approved a new contract on Monday that includes more than $9.6 billion in total pay and benefits increases over four years. The company now expects its cost per available seat mile excluding fuel to rise about 4% to 6%, compared with its previous forecast of about 2% to 4% growth.
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24f095c3-9d14-45d4-a0f3-23f05689a041
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2324.0
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2023-08-21 00:00:00 UTC
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Is the Options Market Predicting a Spike in American Airlines (AAL) Stock?
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AAL
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-american-airlines-aal-stock-1
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nan
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Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 15, 2023 $1 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for American Airlines shares, but what is the fundamental picture for the company? Currently, American Airlines is a Zacks Rank #3 (Hold) in the Transportation - Airline industry that ranks in the Top 32% of our Zacks Industry Rank. Over the last 30 days, four analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 84 cents per share to 89 cents in that period.
Given the way analysts feel about American Airlines right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
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5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc. AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Given the way analysts feel about American Airlines right now, this huge implied volatility could mean there’s a trade developing.
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8ae261e9-790b-4894-accb-8199c84dc38f
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2325.0
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2023-08-21 00:00:00 UTC
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American Airlines Pilots Approve Enhanced Labor Deal Amid Industry Challenges
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilots-approve-enhanced-labor-deal-amid-industry-challenges
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nan
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nan
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(RTTNews) - In a significant development for the aviation sector, American Airlines pilots have given their resounding approval for an improved labor agreement, marking the second major U.S. carrier to successfully secure a fresh contract with its top-earning workforce.
With this decision, over 15,000 pilots within the American Airlines fold stand to gain immediate salary hikes of 21 percent. Over the course of the stipulated four-year contract, this will culminate in a remarkable cumulative compensation surge of more than 46 percent, a figure inclusive of 401(k) contributions, as confirmed by the pilots' union on Monday.
The path leading to this newly embraced agreement was not without its twists. A prior deal between American Airlines and the pilot union had previously fallen apart, influenced in part by the lucrative preliminary agreement achieved between rival carrier United Airlines and its corresponding union representatives. This left American Airlines with the challenge of recalibrating its offer to garner the needed support. Rising to the occasion, the airline revisited and enhanced its proposal, a strategic move that ultimately led to the present consensus.
The resounding endorsement of the contract by American's pilots speaks volumes, with an overwhelming 72 percent of the pilot body casting their votes in favor. This landslide decision was further amplified by an impressive 95 percent turnout, indicating the significance and unity of the pilot workforce. Beyond the palpable economic benefits, the agreement also encompasses a host of improvements to scheduling and associated benefits, addressing critical concerns of the pilots.
The aviation landscape has been notably altered by the aftermath of the Covid-19 pandemic, presenting a unique set of challenges, including a conspicuous shortage of aviators. Pilots across various airlines have seized this opportunity to advocate for more equitable compensation and refined work regulations, harnessing their collective voice to effect change.
"This agreement heralds a new chapter for American Airlines, enabling us to promptly bolster our pilot training capacity. This step is vital in supporting underutilized aircraft and preparing for future operational expansions. Importantly, this accord ushers in greater prospects for our pilots to advance within their professional trajectories," emphasized Robert Isom, the CEO of American Airlines, in a formal statement released in response to the development.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - In a significant development for the aviation sector, American Airlines pilots have given their resounding approval for an improved labor agreement, marking the second major U.S. carrier to successfully secure a fresh contract with its top-earning workforce. Over the course of the stipulated four-year contract, this will culminate in a remarkable cumulative compensation surge of more than 46 percent, a figure inclusive of 401(k) contributions, as confirmed by the pilots' union on Monday. Importantly, this accord ushers in greater prospects for our pilots to advance within their professional trajectories," emphasized Robert Isom, the CEO of American Airlines, in a formal statement released in response to the development.
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(RTTNews) - In a significant development for the aviation sector, American Airlines pilots have given their resounding approval for an improved labor agreement, marking the second major U.S. carrier to successfully secure a fresh contract with its top-earning workforce. With this decision, over 15,000 pilots within the American Airlines fold stand to gain immediate salary hikes of 21 percent. A prior deal between American Airlines and the pilot union had previously fallen apart, influenced in part by the lucrative preliminary agreement achieved between rival carrier United Airlines and its corresponding union representatives.
|
(RTTNews) - In a significant development for the aviation sector, American Airlines pilots have given their resounding approval for an improved labor agreement, marking the second major U.S. carrier to successfully secure a fresh contract with its top-earning workforce. A prior deal between American Airlines and the pilot union had previously fallen apart, influenced in part by the lucrative preliminary agreement achieved between rival carrier United Airlines and its corresponding union representatives. The resounding endorsement of the contract by American's pilots speaks volumes, with an overwhelming 72 percent of the pilot body casting their votes in favor.
|
(RTTNews) - In a significant development for the aviation sector, American Airlines pilots have given their resounding approval for an improved labor agreement, marking the second major U.S. carrier to successfully secure a fresh contract with its top-earning workforce. Over the course of the stipulated four-year contract, this will culminate in a remarkable cumulative compensation surge of more than 46 percent, a figure inclusive of 401(k) contributions, as confirmed by the pilots' union on Monday. This landslide decision was further amplified by an impressive 95 percent turnout, indicating the significance and unity of the pilot workforce.
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d12a34dc-5bf8-44fe-9861-d4c8c9245c9e
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2326.0
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2023-08-21 00:00:00 UTC
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ANALYSIS-Shippers bet on green methanol to cut emissions, supply lags
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AAL
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https://www.nasdaq.com/articles/analysis-shippers-bet-on-green-methanol-to-cut-emissions-supply-lags-0
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nan
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nan
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By Jeslyn Lerh and Jacob Gronholt-Pedersen
SINGAPORE/COPENHAGEN, Aug 21 (Reuters) - Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said.
The first green methanol-fuelled container ship, owned by A.P. Moller-Maersk, sailed from South Korea in July. The number of such vessels is expected to exceed 200 by 2028, up from 30 this year, consultancy DNV forecasts.
Container giants such as A.P. Moller-Maersk, CMA CGM and XpressFeeders dominate the order books. They ship consumer goods for companies including Apple, Nike, Adidas and Walmart and are betting on methanol, as well as exploring other less developed options such as ammonia, to meet their own and clients' emission reduction targets.
Maersk said methanol-powered ships with dual-fuel options cost about 10%-12% more than conventional ships, but the price difference should become insignificant in the longer run once developers achieve economies of scale.
The challenges of delivering enough fuel, however, are considerable and emissions will not be entirely eliminated.
"The real cost challenge remains on the fuel supply side and the need to rapidly build production globally and at scale; and the associated fuel infrastructure," Emma Mazhari, Maersk's head of energy markets, told Reuters.
Conventional methanol emits up to 80% less nitrogen oxides and cuts nearly 99% of sulphur oxide emissions versus fuel oil, but it still emits planet-warming carbon dioxide.
Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said.
But green methanol, produced from biomass or captured carbon and hydrogen from renewable power, is scarce and costs at least twice as much as conventional methanol, produced from fossil fuel, industry insiders say.
The renewable fuel's production is also far from the bunkering hubs, where ships refuel, meaning additional costs in terms of money and emissions for transportation, they added.
"It still has a 'C' (carbon) in its formula so the fuel that remains is not zero carbon," said Rashpal Singh Bhatti, BHP's vice president for maritime and supply chain excellence, referring to conventional methanol.
He added using methanol produced using fossil fuel was pointless in terms of reducing emissions.
"Ultimately, we're trying to find the ubiquitous source that has good decarbonisation potential," he said.
Global demand for methanol, typically used in construction and manufacturing, stands at 100 million tonnes per year (tpy), while a 16,000-TEU container ship consumes 30,000 to 40,000 tpy, the Methanol Institute said.
Methanol demand could grow by a further 6-to-8 million tonnes per year in 2028, based on Reuters calculations and the vessels on order.
However, bio-methanol provides less than 1% of global production, at between 300,000 and 400,000 tonnes as of last year, according to the Methanol Institute, which means ships for now must rely mainly on more conventional fuels.
"The main issue with methanol at this stage is increasing access and the scale of green production," Peter Lye, global head of shipping at Anglo American, said. He said the company was monitoring progress but had yet to place an order for such ships.
LOCATIONS
Shippers hope that their investments in methanol-fuelled ships will spur production of the renewable fuel and lower costs in the long run.
"We are tracking more than 90 projects globally looking to produce bio-methanol or e-methanol, with total announced anticipated production capacity of 8 million tonnes by 2027," the Methanol Institute's CEO Greg Dolan said, adding that the size of the plants being built has grown to 50,000-250,000 tonnes per year from 4,000-10,000 tonnes previously.
Netherlands-based OCI, which supplied green methanol to Maersk's first ship, can produce up to 200,000 tpy of the renewable fuel.
Bashir Lebada, CEO of OCI's methanol and fuels business, said the vessel orders have given suppliers a confidence boost in advancing their green methanol projects even though production is "very small" now.
Most green methanol projects are located in China, northern Europe and North America - far from major bunker hubs Singapore and the United Arab Emirates, creating a logistical gap.
Costs will come down as production increases over the next 15-to-20 years from less than 1% of output now, said Anita Gajadhar, Proman's executive director for marketing, logistics and shipping, adding that more countries, such as Chile and Argentina, have potential to make green methanol.
Within Asia, South Korea and China are set to increase their capacity to fuel ships with green methanol.
"Strategically this makes sense given the available methanol storage volumes and the port's proximity to the major Asian dockyards handling the majority of methanol newbuild orders," said Gajadhar, adding that multiple Chinese ports will also have a sizable demand requirement in future.
Maersk has set itself a goal to use low-emission fuels to transport a quarter of its volumes by 2030.
Methanol production pathways https://tmsnrt.rs/3qBIJUd
Methanol-fuelled fleet https://tmsnrt.rs/3sh9SfI
Key renewable methanol projects globally https://tmsnrt.rs/3E3hRiX
Shipowners, port operators ramp up methanol-fuelling projects
(Reporting by Jeslyn Lerh in Singapore and Jacob Gronholt-Pedersen in Copenhagen; Additional reporting by Johannes Birkebaek in Copenhagen; Editing by Florence Tan and Barbara Lewis)
((Jeslyn.Lerh@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They ship consumer goods for companies including Apple, Nike, Adidas and Walmart and are betting on methanol, as well as exploring other less developed options such as ammonia, to meet their own and clients' emission reduction targets. Most green methanol projects are located in China, northern Europe and North America - far from major bunker hubs Singapore and the United Arab Emirates, creating a logistical gap. Costs will come down as production increases over the next 15-to-20 years from less than 1% of output now, said Anita Gajadhar, Proman's executive director for marketing, logistics and shipping, adding that more countries, such as Chile and Argentina, have potential to make green methanol.
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By Jeslyn Lerh and Jacob Gronholt-Pedersen SINGAPORE/COPENHAGEN, Aug 21 (Reuters) - Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said. Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said. Methanol production pathways https://tmsnrt.rs/3qBIJUd Methanol-fuelled fleet https://tmsnrt.rs/3sh9SfI Key renewable methanol projects globally https://tmsnrt.rs/3E3hRiX Shipowners, port operators ramp up methanol-fuelling projects (Reporting by Jeslyn Lerh in Singapore and Jacob Gronholt-Pedersen in Copenhagen; Additional reporting by Johannes Birkebaek in Copenhagen; Editing by Florence Tan and Barbara Lewis) ((Jeslyn.Lerh@thomsonreuters.com)) The views and 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 Jeslyn Lerh and Jacob Gronholt-Pedersen SINGAPORE/COPENHAGEN, Aug 21 (Reuters) - Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said. Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said. But green methanol, produced from biomass or captured carbon and hydrogen from renewable power, is scarce and costs at least twice as much as conventional methanol, produced from fossil fuel, industry insiders say.
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Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said. Netherlands-based OCI, which supplied green methanol to Maersk's first ship, can produce up to 200,000 tpy of the renewable fuel. Within Asia, South Korea and China are set to increase their capacity to fuel ships with green methanol.
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3447c9f5-56b2-44b7-87bb-72f5e9b24eb2
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2327.0
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2023-08-21 00:00:00 UTC
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ANALYSIS-Shippers bet on green methanol to cut emissions, supply lags
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AAL
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https://www.nasdaq.com/articles/analysis-shippers-bet-on-green-methanol-to-cut-emissions-supply-lags
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nan
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nan
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By Jeslyn Lerh and Jacob Gronholt-Pedersen
SINGAPORE/COPENHAGEN, Aug 21 (Reuters) - Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said.
The first green methanol-fuelled container ship, owned by A.P. Moller-Maersk, sailed from South Korea in July. The number of such vessels is expected to exceed 200 by 2028, up from 30 this year, consultancy DNV forecasts.
Container giants such as A.P. Moller-Maersk, CMA CGM and XpressFeeders dominate the order books. They ship consumer goods for companies including Apple, Nike, Adidas and Walmart and are betting on methanol, as well as exploring other less developed options such as ammonia, to meet their own and clients' emission reduction targets.
Maersk said methanol-powered ships with dual-fuel options cost about 10%-12% more than conventional ships, but the price difference should become insignificant in the longer run once developers achieve economies of scale.
The challenges of delivering enough fuel, however, are considerable and emissions will not be entirely eliminated.
"The real cost challenge remains on the fuel supply side and the need to rapidly build production globally and at scale; and the associated fuel infrastructure," Emma Mazhari, Maersk's head of energy markets, told Reuters.
Conventional methanol emits up to 80% less nitrogen oxides and cuts nearly 99% of sulphur oxide emissions versus fuel oil, but it still emits planet-warming carbon dioxide.
Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said.
But green methanol, produced from biomass or captured carbon and hydrogen from renewable power, is scarce and costs at least twice as much as conventional methanol, produced from fossil fuel, industry insiders say.
The renewable fuel's production is also far from the bunkering hubs, where ships refuel, meaning additional costs in terms of money and emissions for transportation, they added.
"It still has a 'C' (carbon) in its formula so the fuel that remains is not zero carbon," said Rashpal Singh Bhatti, BHP's vice president for maritime and supply chain excellence, referring to conventional methanol.
He added using methanol produced using fossil fuel was pointless in terms of reducing emissions.
"Ultimately, we're trying to find the ubiquitous source that has good decarbonisation potential," he said.
Global demand for methanol, typically used in construction and manufacturing, stands at 100 million tonnes per year (tpy), while a 16,000-TEU container ship consumes 30,000 to 40,000 tpy, the Methanol Institute said.
Methanol demand could grow by a further 6-to-8 million tonnes per year in 2028, based on Reuters calculations and the vessels on order.
However, bio-methanol provides less than 1% of global production, at between 300,000 and 400,000 tonnes as of last year, according to the Methanol Institute, which means ships for now must rely mainly on more conventional fuels.
"The main issue with methanol at this stage is increasing access and the scale of green production," Peter Lye, global head of shipping at Anglo American, said. He said the company was monitoring progress but had yet to place an order for such ships.
LOCATIONS
Shippers hope that their investments in methanol-fuelled ships will spur production of the renewable fuel and lower costs in the long run.
"We are tracking more than 90 projects globally looking to produce bio-methanol or e-methanol, with total announced anticipated production capacity of 8 million tonnes by 2027," the Methanol Institute's CEO Greg Dolan said, adding that the size of the plants being built has grown to 50,000-250,000 tonnes per year from 4,000-10,000 tonnes previously.
Netherlands-based OCI, which supplied green methanol to Maersk's first ship, can produce up to 200,000 tpy of the renewable fuel.
Bashir Lebada, CEO of OCI's methanol and fuels business, said the vessel orders have given suppliers a confidence boost in advancing their green methanol projects even though production is "very small" now.
Most green methanol projects are located in China, northern Europe and North America - far from major bunker hubs Singapore and the United Arab Emirates, creating a logistical gap.
Costs will come down as production increases over the next 15-to-20 years from less than 1% of output now, said Anita Gajadhar, Proman's executive director for marketing, logistics and shipping, adding that more countries, such as Chile and Argentina, have potential to make green methanol.
Within Asia, South Korea and China are set to increase their capacity to fuel ships with green methanol.
"Strategically this makes sense given the available methanol storage volumes and the port's proximity to the major Asian dockyards handling the majority of methanol newbuild orders," said Gajadhar, adding that multiple Chinese ports will also have a sizable demand requirement in future.
Maersk has set itself a goal to use low-emission fuels to transport a quarter of its volumes by 2030.
Methanol production pathways https://tmsnrt.rs/3qBIJUd
Methanol-fuelled fleet https://tmsnrt.rs/3sh9SfI
Key renewable methanol projects globally https://tmsnrt.rs/3E3hRiX
Shipowners, port operators ramp up methanol-fuelling projects
(Reporting by Jeslyn Lerh in Singapore and Jacob Gronholt-Pedersen in Copenhagen; Additional reporting by Johannes Birkebaek in Copenhagen; Editing by Florence Tan and Barbara Lewis)
((Jeslyn.Lerh@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They ship consumer goods for companies including Apple, Nike, Adidas and Walmart and are betting on methanol, as well as exploring other less developed options such as ammonia, to meet their own and clients' emission reduction targets. Most green methanol projects are located in China, northern Europe and North America - far from major bunker hubs Singapore and the United Arab Emirates, creating a logistical gap. Costs will come down as production increases over the next 15-to-20 years from less than 1% of output now, said Anita Gajadhar, Proman's executive director for marketing, logistics and shipping, adding that more countries, such as Chile and Argentina, have potential to make green methanol.
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By Jeslyn Lerh and Jacob Gronholt-Pedersen SINGAPORE/COPENHAGEN, Aug 21 (Reuters) - Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said. Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said. Methanol production pathways https://tmsnrt.rs/3qBIJUd Methanol-fuelled fleet https://tmsnrt.rs/3sh9SfI Key renewable methanol projects globally https://tmsnrt.rs/3E3hRiX Shipowners, port operators ramp up methanol-fuelling projects (Reporting by Jeslyn Lerh in Singapore and Jacob Gronholt-Pedersen in Copenhagen; Additional reporting by Johannes Birkebaek in Copenhagen; Editing by Florence Tan and Barbara Lewis) ((Jeslyn.Lerh@thomsonreuters.com)) The views and 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 Jeslyn Lerh and Jacob Gronholt-Pedersen SINGAPORE/COPENHAGEN, Aug 21 (Reuters) - Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said. Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said. But green methanol, produced from biomass or captured carbon and hydrogen from renewable power, is scarce and costs at least twice as much as conventional methanol, produced from fossil fuel, industry insiders say.
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Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60% to 95% compared with conventional fuels, the Methanol Institute said. Netherlands-based OCI, which supplied green methanol to Maersk's first ship, can produce up to 200,000 tpy of the renewable fuel. Within Asia, South Korea and China are set to increase their capacity to fuel ships with green methanol.
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9f5f7ed9-58e2-4ffa-bd4f-ba1a6410aef6
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2328.0
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2023-08-21 00:00:00 UTC
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American Airlines pilots approve new contract -union
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilots-approve-new-contract-union
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nan
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nan
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Adds comments by union president and details of contract, paragraphs 3-7
CHICAGO, Aug 21 (Reuters) - American Airlines AAL.O pilots have approved a new four-year contract, which their union on Monday hailed as "unprecedented" in terms of gains secured in one agreement.
The Allied Pilots Association (APA), which represents 15,000 pilots at the Texas-based carrier, said 72.7% of the pilots voted for the deal, which secures more than $9.6 billion in additional value compared with their prior agreement.
Pilots at U.S. legacy carriers American, United Airlines UAL.O and Delta Air Lines DAL.N are securing vast gains in wages and working conditions in new agreements reached this year as travel soars after a sharp decline during the pandemic.
"It's unprecedented and historic," the Allied Pilots Association's president, Captain Ed Sicher, told Reuters on Monday.
"For pilots the biggest victory is not just the wages but the work-life stuff."
The 48-month contract brings pay improvements including about $1.1 billion in immediate, one-time payments and ratification bonuses. On average, pilots will see an immediate pay raise of more than 21%, the union said in a release.
Quality-of-life improvements represent nearly 20% of the increased value of the new contract. For example, pilots would get premium pay if the company reassigns them from a trip they bid on, or have asked to fly, Sicher said.
(Reporting by Rajesh Kumar Singh in Chicago and Allison Lampert in Montreal Editing by Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds comments by union president and details of contract, paragraphs 3-7 CHICAGO, Aug 21 (Reuters) - American Airlines AAL.O pilots have approved a new four-year contract, which their union on Monday hailed as "unprecedented" in terms of gains secured in one agreement. Pilots at U.S. legacy carriers American, United Airlines UAL.O and Delta Air Lines DAL.N are securing vast gains in wages and working conditions in new agreements reached this year as travel soars after a sharp decline during the pandemic. "It's unprecedented and historic," the Allied Pilots Association's president, Captain Ed Sicher, told Reuters on Monday.
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Adds comments by union president and details of contract, paragraphs 3-7 CHICAGO, Aug 21 (Reuters) - American Airlines AAL.O pilots have approved a new four-year contract, which their union on Monday hailed as "unprecedented" in terms of gains secured in one agreement. The Allied Pilots Association (APA), which represents 15,000 pilots at the Texas-based carrier, said 72.7% of the pilots voted for the deal, which secures more than $9.6 billion in additional value compared with their prior agreement. "It's unprecedented and historic," the Allied Pilots Association's president, Captain Ed Sicher, told Reuters on Monday.
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Adds comments by union president and details of contract, paragraphs 3-7 CHICAGO, Aug 21 (Reuters) - American Airlines AAL.O pilots have approved a new four-year contract, which their union on Monday hailed as "unprecedented" in terms of gains secured in one agreement. The Allied Pilots Association (APA), which represents 15,000 pilots at the Texas-based carrier, said 72.7% of the pilots voted for the deal, which secures more than $9.6 billion in additional value compared with their prior agreement. Pilots at U.S. legacy carriers American, United Airlines UAL.O and Delta Air Lines DAL.N are securing vast gains in wages and working conditions in new agreements reached this year as travel soars after a sharp decline during the pandemic.
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Adds comments by union president and details of contract, paragraphs 3-7 CHICAGO, Aug 21 (Reuters) - American Airlines AAL.O pilots have approved a new four-year contract, which their union on Monday hailed as "unprecedented" in terms of gains secured in one agreement. "It's unprecedented and historic," the Allied Pilots Association's president, Captain Ed Sicher, told Reuters on Monday. "For pilots the biggest victory is not just the wages but the work-life stuff."
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81f271db-3e27-42c6-86f8-4b37ba267200
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2329.0
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2023-08-21 00:00:00 UTC
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Thungela profit tumbles on lower coal prices and rail woes
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AAL
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https://www.nasdaq.com/articles/thungela-profit-tumbles-on-lower-coal-prices-and-rail-woes
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nan
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nan
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By Felix Njini
NAIROBI, Aug 21 (Reuters) - Thungela Resources TGAJ.J, South Africa's largest shipper of coal burned in power stations, suffered a 69% drop in first-half profit, hit by lower prices and transportation problems, it said on Monday.
The Johannesburg-based thermal coal producer spun off from Anglo American AAL.L in 2021 added that it could be forced to "structurally resize the portfolio in response to rail constraints".
Thungela said it has about 2.7 million metric tons of coal stockpiled at its mines due to state-owned rail operator Transnet SOC's inability to move sufficient coal to ports.
"Depending on the trajectory of Transnet's improvement or worsening thereof and the forward curve of prices, it could require us to further review the size and shape of our portfolio," Thungela CEO July Ndlovu said on a conference call. He did not elaborate.
Freight rail capacity problems in South Africa are also forcing producers such as Exxaro ResourcesEXXJ.J, Kumba Iron Ore KIOJ.J to build stockpiles at their mines as they struggle to move the minerals to ports.
Ndlovu declined to provide production guidance for 2024. Output this year is forecast at between 11.5 million tons and 12.5 million tons.
"We need to see in the remainder of the year where this is landing us and that will allow us to decide on where our production is going to be in 2024," Ndlovu said.
Freight rail capacity problems in South Africa are also forcing other coal and iron ore producers such as Exxaro Resources EXXJ.J and Kumba Iron Ore KIOJ.J to build stockpiles at their mines as they struggle to move the minerals to ports.
(Reporting by Felix Njini; Editing by David Goodman and Emelia Sithole-Matarise)
((Felix.Njini@thomsonreuters.com;))
The views and 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 Johannesburg-based thermal coal producer spun off from Anglo American AAL.L in 2021 added that it could be forced to "structurally resize the portfolio in response to rail constraints". By Felix Njini NAIROBI, Aug 21 (Reuters) - Thungela Resources TGAJ.J, South Africa's largest shipper of coal burned in power stations, suffered a 69% drop in first-half profit, hit by lower prices and transportation problems, it said on Monday. "Depending on the trajectory of Transnet's improvement or worsening thereof and the forward curve of prices, it could require us to further review the size and shape of our portfolio," Thungela CEO July Ndlovu said on a conference call.
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The Johannesburg-based thermal coal producer spun off from Anglo American AAL.L in 2021 added that it could be forced to "structurally resize the portfolio in response to rail constraints". Thungela said it has about 2.7 million metric tons of coal stockpiled at its mines due to state-owned rail operator Transnet SOC's inability to move sufficient coal to ports. Freight rail capacity problems in South Africa are also forcing producers such as Exxaro ResourcesEXXJ.J, Kumba Iron Ore KIOJ.J to build stockpiles at their mines as they struggle to move the minerals to ports.
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The Johannesburg-based thermal coal producer spun off from Anglo American AAL.L in 2021 added that it could be forced to "structurally resize the portfolio in response to rail constraints". Thungela said it has about 2.7 million metric tons of coal stockpiled at its mines due to state-owned rail operator Transnet SOC's inability to move sufficient coal to ports. Freight rail capacity problems in South Africa are also forcing producers such as Exxaro ResourcesEXXJ.J, Kumba Iron Ore KIOJ.J to build stockpiles at their mines as they struggle to move the minerals to ports.
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The Johannesburg-based thermal coal producer spun off from Anglo American AAL.L in 2021 added that it could be forced to "structurally resize the portfolio in response to rail constraints". Thungela said it has about 2.7 million metric tons of coal stockpiled at its mines due to state-owned rail operator Transnet SOC's inability to move sufficient coal to ports. "We need to see in the remainder of the year where this is landing us and that will allow us to decide on where our production is going to be in 2024," Ndlovu said.
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f0a25ed9-98ed-45d7-bc90-c062d4e5dc42
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2330.0
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2023-08-20 00:00:00 UTC
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Validea's Top Industrial Stocks Based On David Dreman - 8/20/2023
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AAL
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https://www.nasdaq.com/articles/valideas-top-industrial-stocks-based-on-david-dreman-8-20-2023
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nan
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nan
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The following are the top rated Industrial stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. The rating according to our strategy based on David Dreman is 61% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: American Airlines Group Inc. is a holding company. Its primary business activity is the operation of a network air carrier. The Company, together with its regional airline subsidiaries and third-party regional carriers, operates under the American Eagle brand, providing scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, District of Columbia and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo. Its subsidiaries include American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc. Its cargo division provides a range of freight and mail services with facilities and interline connections available across the globe. It operates 925 mainline aircraft supported by its regional airline subsidiaries and third-party regional carriers, which together operated an additional 536 regional aircraft.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL
PAYOUT RATIO: PASS
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: FAIL
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
AIR LEASE CORP (AL) is a mid-cap value stock in the Rental & Leasing industry. The rating according to our strategy based on David Dreman is 61% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Air Lease Corporation is an aircraft leasing company. The Company is engaged in purchasing the new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company (Boeing) and Airbus S.A.S.(Airbus) and leasing those aircraft to airlines throughout the world. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial service companies, airlines and other investors. It also provides fleet management services. The Company owns approximately 200 airlines across 70 countries. It operates its business on a global basis, providing aircraft to airline customers in geographical regions, including markets, such as Asia, Europe, the Middle East and Africa, United Stated and Canada, Central America, South America and Mexico, and the Pacific, Australia and New Zealand.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: PASS
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL
PAYOUT RATIO: FAIL
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS
Detailed Analysis of AIR LEASE CORP
AL Guru Analysis
AL Fundamental Analysis
David Dreman Portfolio
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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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AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis AIR LEASE CORP (AL) is a mid-cap value stock in the Rental & Leasing industry. The following are the top rated Industrial stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman.
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Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis AIR LEASE CORP (AL) is a mid-cap value stock in the Rental & Leasing industry. AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. The following are the top rated Industrial stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman.
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Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis AIR LEASE CORP (AL) is a mid-cap value stock in the Rental & Leasing industry. AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial service companies, airlines and other investors.
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AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap value stock in the Airline industry. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis AIR LEASE CORP (AL) is a mid-cap value stock in the Rental & Leasing industry. The following are the top rated Industrial stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman.
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624b74a8-43c9-48da-bd02-ac22b3f7c661
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2331.0
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2023-08-18 00:00:00 UTC
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Frontline (FRO) to Post Q2 Earnings: What's in the Offing?
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AAL
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https://www.nasdaq.com/articles/frontline-fro-to-post-q2-earnings%3A-whats-in-the-offing
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nan
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nan
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Frontline Ltd. FRO is scheduled to release second-quarter 2023 earnings on Aug 24. The Zacks Consensus Estimate for earnings has been revised 13.9% upward to 90 cents per share over the past 60 days.
Against this backdrop, let’s delve into the factors that might have impacted Frontline’s June-quarter performance.
FRO’s performance in the second quarter is expected to have been affected by supply-chain disruptions. High operating expenses due to increased average number of vessels in its fleet and fuel expenses are likely to have hurt the bottom line. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
However, high tanker rates are likely to have aided the top-line performance. Moreover, with the resumption of economic activities, world trade gained pace, which should aid second-quarter results of shipping stocks like Frontline. This is because the shipping industry is responsible for transporting several goods involved in world trade.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Frontline this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. However, that is not the case here.
Earnings ESP: Frontline has an Earnings ESP of -12.85% (the Most Accurate Estimate is pegged at 78 cents per share, 12 cents below the Zacks Consensus Estimate). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Frontline carries a Zacks Rank # 3 currently.
Q2 Performance of Some Other Transportation Companies
American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front.
Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #3.
United Airlines UAL reported second-quarter 2023 earnings per share of $5.03, outpacing the Zacks Consensus Estimate of $3.99 and surging more than 100% year over year. UAL currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Operating revenues of $14,178 million outshined the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
4 Oil Stocks with Massive Upsides
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Zacks Investment Research has just released an urgent special report to help you bank on this trend.
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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Frontline PLC (FRO) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. AAL currently carries a Zacks Rank #3.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Frontline PLC (FRO) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Frontline PLC (FRO) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. AAL currently carries a Zacks Rank #3.
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fa5c2bfa-53b9-4de5-811f-aa56aed9e524
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2332.0
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2023-08-18 00:00:00 UTC
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The Zacks Analyst Blog Highlights Southwest Airlines, Copa Holdings, Ryanair Holdings, Delta Air Lines and American Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-southwest-airlines-copa-holdings-ryanair-holdings-delta
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nan
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nan
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For Immediate Release
Chicago, IL – August 18, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Southwest Airlines LUV, Copa Holdings' CPA, Ryanair Holdings RYAAY, Delta Air Lines DAL and American Airlines AAL.
Here are highlights from Thursday’s Analyst Blog:
Airline Stock Roundup: Labor Deals, Traffic Reports & More
In the past week, Southwest Airlines received encouraging news on the labor front when it reached a provisional agreement with the union that represents more than 17,000 of its ramp, operations, provisioning and cargo employees.
Meanwhile, Copa Holdings' traffic report for July was impressive owing to the post-pandemic surge in air travel demand. Owing to the uptick in passenger volumes, European carrier Ryanair Holdings anticipates carrying a higher number of passengers in the current month than in July. If the expectation materializes, RYAAY would establish a new monthly traffic record.
Recap of the Past Week's Most Important Stories
1. The provisional deal inked between LUV's management and the Transport Workers Union Local 555 or TWU 555 provides substantial wage increase, better retirement and other benefits to the concerned employees. The deal will materialize only if it is approved through the ratification voting process. The details of LUV's current agreement and voting timeline will be directly communicated to Southwest Airlines' members by TWU 555.
2. In July, revenue passenger miles (a measure of traffic) rose in double digits, i.e., 12.5% on a year-over-year basis at CPA. To match the demand swell, CPA is increasing its capacity. In July, available seat miles (a measure of capacity) increased 9.9% year over year. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) improved to 89% from 87% in July 2022.
Copa Holdings was also in the news when it reported better-than-expected earnings per share and revenues for second-quarter 2023. The news was covered in the previous week's write up.
3. According to a Reuters report, Irish carrier Ryanair Holdings expects to carry more passengers in August than the actual figure in July. We remind investors that Ryanair carried 18.7 million passengers in July, which itself is a record. The load factor (% of seats filled by passengers) in July was as high as 96%.
Per Eddie Wilson, the head of Ryanair DAC, the largest airline in the group, "It should be slightly more (than July) ... people are still travelling." Healthy booking trends have resulted in the upbeat expectation. Ryanair has been benefiting from the stronger-than-expected recovery in air travel demand from the pandemic lows.
Currently, RYAAY carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
4. In a bid to meet the strong recovery in international travel in the post-pandemic scenario, Delta Air Lines has decided to expand its flight schedule to China. To this end, this Atlanta-based carrier has decided to operate 10 weekly flights to the Shanghai-Pudong International Airport from its hubs in Seattle and Detroit hubs this winter.
From Oct 29, the airline will operate daily flights from Shanghai and three-times-a-week flights from Detroit. Moreover, Delta intends to resume four-times-weekly flights to the Shanghai-Pudong International Airport from Los Angeles. DAL has not operated on the route since early 2020.
According to a Reuters report, American Airlines has also decided to expand its China operations. The carrier has decided to commence daily flights from Dallas-Fort Worth to Shanghai-Pudong International Airport from January 2024.
Price Performance
All airline stocks traded in the red in the past week. The NYSE ARCA Airline Index declined 5.9% over the period to $63.51. Over the course of the past six months, the sector tracker has increased 3.8%.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Southwest Airlines LUV, Copa Holdings' CPA, Ryanair Holdings RYAAY, Delta Air Lines DAL and American Airlines AAL. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. The provisional deal inked between LUV's management and the Transport Workers Union Local 555 or TWU 555 provides substantial wage increase, better retirement and other benefits to the concerned employees.
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Stocks recently featured in the blog include: Southwest Airlines LUV, Copa Holdings' CPA, Ryanair Holdings RYAAY, Delta Air Lines DAL and American Airlines AAL. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Thursday’s Analyst Blog: Airline Stock Roundup: Labor Deals, Traffic Reports & More In the past week, Southwest Airlines received encouraging news on the labor front when it reached a provisional agreement with the union that represents more than 17,000 of its ramp, operations, provisioning and cargo employees.
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Stocks recently featured in the blog include: Southwest Airlines LUV, Copa Holdings' CPA, Ryanair Holdings RYAAY, Delta Air Lines DAL and American Airlines AAL. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Thursday’s Analyst Blog: Airline Stock Roundup: Labor Deals, Traffic Reports & More In the past week, Southwest Airlines received encouraging news on the labor front when it reached a provisional agreement with the union that represents more than 17,000 of its ramp, operations, provisioning and cargo employees.
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Stocks recently featured in the blog include: Southwest Airlines LUV, Copa Holdings' CPA, Ryanair Holdings RYAAY, Delta Air Lines DAL and American Airlines AAL. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities.
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ad76db75-baa3-4357-9a8d-fe0f5cdcae0b
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2333.0
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2023-08-17 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
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nan
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nan
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $15.13, changing hands as low as $15.03 per share. American Airlines Group Inc shares are currently trading off about 2.3% on the day. The chart below shows the one year performance of AAL shares, versus its 200 day moving average:
Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.09. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
Funds Holding DNR
VBTX Stock Predictions
EOSE market cap history
The views and 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 Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $15.13, changing hands as low as $15.03 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 $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.09. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: Funds Holding DNR VBTX Stock Predictions EOSE market cap history The views and 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 Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $15.13, changing hands as low as $15.03 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 $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.09. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: Funds Holding DNR VBTX Stock Predictions EOSE market cap history The views and 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 Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $15.13, changing hands as low as $15.03 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 $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.09. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: Funds Holding DNR VBTX Stock Predictions EOSE market cap history The views and 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 Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $15.13, changing hands as low as $15.03 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 $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.09. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: Funds Holding DNR VBTX Stock Predictions EOSE market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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22393873-d6bb-4047-8abf-ed38fbd081ef
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2334.0
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2023-08-17 00:00:00 UTC
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Goldman Sachs Maintains American Airlines Group (AAL) Neutral Recommendation
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AAL
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https://www.nasdaq.com/articles/goldman-sachs-maintains-american-airlines-group-aal-neutral-recommendation-2
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nan
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nan
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Fintel reports that on August 17, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 24.76% Upside
As of August 2, 2023, the average one-year price target for American Airlines Group is 19.26. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 24.76% from its latest reported closing price of 15.44.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1030 funds or institutions reporting positions in American Airlines Group. This is an increase of 20 owner(s) or 1.98% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.08%. Total shares owned by institutions increased in the last three months by 0.42% to 415,800K shares.
The put/call ratio of AAL is 3.19, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 17,107K shares representing 2.62% ownership of the company. In it's prior filing, the firm reported owning 15,723K shares, representing an increase of 8.09%. The firm increased its portfolio allocation in AAL by 43.72% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 17, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.08%. The put/call ratio of AAL is 3.19, indicating a bearish outlook.
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Fintel reports that on August 17, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.08%. The put/call ratio of AAL is 3.19, indicating a bearish outlook.
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Fintel reports that on August 17, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.08%. The put/call ratio of AAL is 3.19, indicating a bearish outlook.
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Fintel reports that on August 17, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.08%. The put/call ratio of AAL is 3.19, indicating a bearish outlook.
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cb36729d-6ba0-4820-979d-a9d3abf0d7e5
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2335.0
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2023-08-17 00:00:00 UTC
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Stocks Lower as Bond Yields Rise
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AAL
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https://www.nasdaq.com/articles/stocks-lower-as-bond-yields-rise
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.13%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.39%.
Stocks this morning are lower, with the Nasdaq-100 falling to a 7-week low. Weekly jobless claims fell more than expected and the Aug Philadelphia Fed business outlook survey rose to a 16-month high.
Rising bond yields are weighing on technology stocks and are dragging the Nasdaq 100 lower after the 10-year T-note yield today rose to a 9-3/4 month high.
The Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets after the review in order to repay investors. This week, Chinese stocks have been under pressure as liquidity concerns in China’s shadow banking system intensified after Zhongrong International Trust, a unit of Zhongzhi Enterprise Group, missed payments on dozens of its investment products.
U.S. weekly initial unemployment claims fell -9,000 to 239,000, showing a slightly stronger labor market than expectations of 240,000.
The U.S. Aug Philadelphia Fed business outlook survey rose +25.5 to a 16-month high of 12.0, stronger than expectations of -10.4.
U.S. Jul leading indicators fell -0.4% m/m, right on expectations.
The markets are discounting the odds at 12% for a +25 bp rate hike at the September 20 FOMC meeting and 43% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are higher. The 10-year T-note yield rose to a 9-3/4 month high of 4.310% and is up +5.3 bp to 4.304%. The 10-year German bund yield is up +4.2 bp at 2.692%. The 10-year UK gilt yield jumped to a 14-year high of 4.747% and is up +7.3 bp at 4.7190%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -1.13%. China’s Shanghai Composite Index today closed up +0.43%. Japan’s Nikkei Stock Index closed down -0.44%.
Today’s stock movers…
Cisco Systems (CSCO) is up more than +4% to lead gainers in the S&P 500, Dow Jones Industrials, and Nasdaq 100 after reporting Q4 revenue of $15.20 billion, better than the consensus of $15.05 billion, and forecasting Q1 revenue of $14.50 billion-$14.70 billion, the midpoint above the consensus of $14.57 billion.
Ball Corp (BALL) is up more than +3% after BAE Systems agreed to buy Ball’s aerospace division for around $5.6 billion.
Energy stocks and energy service providers are climbing today, with the price of WTI crude up more than +1%. As a result, Exxon Mobil (XOM), ConocoPhillips (COP), Marathon Oil (MRO), Valero Energy (VLO), Devon Energy (DVN), Occidental Petroleum (OXY), and Marathon Petroleum (MPC) are up more than +2%.
Chesapeake Energy (CHK) is up more than +5% after S&P Dow Jones Indices said the company would replace Mercury Systems in the S&P MidCap 400 before the opening of trading on Aug 21.
U.S.-listed Chinese stocks are moving higher today after the Shanghai Composite recovered from a 7-1/2 month low and closed higher. As a result, PDD Holdings (PDD), JD.com (JD), Alibaba Group Holding (BABA), NetEase (NTES), and Baidu (BIDU) are up +1% or more.
Health insurance stocks are falling today after Blue Shield of California said it plans to drop CVS Health’s Caremark as its primary pharmacy benefit manager. As a result, CVS Health (CVS) is down more than -9% to lead losers in the S&P 500. Also, Cigna Group (CI) is down more than -6% and Cardinal Health (CAH) is down more than -3%. In addition, Walgreens Boots Alliance (WBA), McKesson (MCK), Centene (CNC),and Molina Healthcare (MOH) are down more than -2%.
Intel (INTC) is down more than -3% to lead losers in the Dow Jones Industrials and Nasdaq 100 on concern its failed deal to acquire Tower Semiconductor will hurt its foundry efforts.
Paramount Global (PARA) is down more than -3% after the Wall Street Journal reported that the company had dropped plans to sell a majority stake in its BET Media Group.
Airline stocks are under pressure today after Goldman Sachs lowered price targets across the sector due to marking-to-market for higher jet fuel prices. As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. Also, United Airlines Holdings (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) are down more than -1%.
Hawaiian Electric Industries (HE) is down more than -20% amid concerns over the company’s potential liabilities following the Maui wildfires.
Wolfspeed Inc (WOLF) is down more than -17% after reporting a Q4 adjusted loss per share of -42 cents, steeper than the consensus of -20 cents, and forecasting a Q1 adjusted loss per share of -60 cents to -75 cents, much weaker than the consensus of -30 cents.
Across the markets…
September 10-year T-notes (ZNU23) today are down -7 ticks, and the 10-year T-note yield is up +5.3 bp at 4.304%. Sep T-notes today dropped to a 10-month nearest-futures low, and the 10-year T-note yield climbed to a 9-3/4 month high of 4.310%. T-notes have negative carryover from a plunge in 10-year UK gilts today to a 14-year low. Also, today’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey were hawkish for Fed policy and bearish for T-notes.
The dollar index (DXY00) today is down by -0.27%. The dollar today retreated from a 2-month high and is moderately lower. Strength in stocks today has reduced the liquidity demand for the dollar. Also, a recovery in the yuan today weighed on the dollar after the yuan rebounded from a 9-1/2 month low against the dollar and moved higher on a report that said Chinese authorities told state-owned banks to step up intervention in the currency market this week to support the yuan and that government officials are considering the use of tools such as cutting banks’ foreign-exchange reserve requirements to prevent a rapid depreciation in the yuan.
EUR/USD (^EURUSD) today is up by +0.21%. The euro today recovered from a 6-week low and is moderately higher as weakness in the dollar sparked short covering in EUR/USD. The euro today initially moved lower on dovish comments from ECB Governing Council member Kazaks who said he was undecided on an ECB rate hike in September.
ECB Governing Council member Kazaks said he was undecided on an ECB rate hike in September and said, "If we look at the coming months, if there'll be increases in interest rates, then they'll be really very small."
USD/JPY (^USDJPY) is down by -0.29%. The yen today recovered from a 9-1/4 month low against the dollar and moved higher after the 10-year JGB bond yield rose to a 2-week high, strengthening the yen’s interest rate differentials. A slump in the Nikkei Stock Index to a 2-1/2 month low today also boosted safe-haven demand for the yen. Weaker-than-expected Japanese economic news today initially put pressure on the yen.
The Japan Jun tertiary industry index fell -0.4% m/m, weaker than expectations of -0.2% m/m.
Japan Jul exports fell -0.3% y/y, weaker than expectations of -0.2% y/y and the biggest decline in over two years. Also, Jul imports fell -13.5% y/y, the biggest decline in 2-3/4 years.
Japan Jun core machine orders rose +2.7% m/m, weaker than expectations of +3.5% m/m.
October gold (GCV3) today is down -2.0 (-0.10%), and Sep silver (SIU23) is up +0.240 (+1.07%). Precious metals prices this morning are mixed, with gold falling to a 5-month low. Higher global bond yields today are weighing on precious metals prices. Also, fund liquidation in gold continues after long gold holdings in ETFs fell to a 3-1/3 year low on Tuesday. Losses in gold are limited due to a weaker dollar. Silver price also found support on today’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey, which is positive for economic growth prospects and industrial metals demand.
More Stock Market News from Barchart
Attention Speculators: Going Long Discover Financial Services (DFS) Might Not Be a Bad IdeaWhere is Lumber Headed After Prices Fall About 10% in the Past Month?A Cheap Fast Food Stock Making Technological AdvancesMarkets Today: Stocks Climb as Chinese Markets Recover
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. The Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets after the review in order to repay investors. This week, Chinese stocks have been under pressure as liquidity concerns in China’s shadow banking system intensified after Zhongrong International Trust, a unit of Zhongzhi Enterprise Group, missed payments on dozens of its investment products.
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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. Weekly jobless claims fell more than expected and the Aug Philadelphia Fed business outlook survey rose to a 16-month high. Also, today’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey were hawkish for Fed policy and bearish for T-notes.
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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. Rising bond yields are weighing on technology stocks and are dragging the Nasdaq 100 lower after the 10-year T-note yield today rose to a 9-3/4 month high. Also, a recovery in the yuan today weighed on the dollar after the yuan rebounded from a 9-1/2 month low against the dollar and moved higher on a report that said Chinese authorities told state-owned banks to step up intervention in the currency market this week to support the yuan and that government officials are considering the use of tools such as cutting banks’ foreign-exchange reserve requirements to prevent a rapid depreciation in the yuan.
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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. U.S.-listed Chinese stocks are moving higher today after the Shanghai Composite recovered from a 7-1/2 month low and closed higher. The dollar index (DXY00) today is down by -0.27%.
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9c339aa6-bb95-44b8-a1b3-ec94b7982519
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2336.0
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2023-08-17 00:00:00 UTC
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Rising Bond Yields Pressure Stock Prices
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AAL
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https://www.nasdaq.com/articles/rising-bond-yields-pressure-stock-prices
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nan
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nan
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The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.77%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.84%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.08%.
Stocks on Thursday closed moderately lower, with the S&P 500 posting a 7-week low, the Dow Jones Industrials falling to a 1-month low, and the Nasdaq 100 dropping to a 1-1/2 month low. Rising U.S. bond yields pressured stocks Thursday after the 10-year T-note climbed to a 9-3/4 month high. Stocks had early support Thursday on signs that the U.S. economy can achieve a soft landing after weekly jobless claims fell more than expected and after the Aug Philadelphia Fed business outlook survey rose to a 16-month high.
U.S. stock indexes had some positive carryover from a slight recovery in Chinese stocks Thursday after the Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets in order to repay investors. This week, Chinese stocks have been under pressure as liquidity concerns in China’s shadow banking system intensified after Zhongrong International Trust, a unit of Zhongzhi Enterprise Group, missed payments on dozens of its investment products.
U.S. weekly initial unemployment claims fell -9,000 to 239,000, showing a slightly stronger labor market than expectations of 240,000.
The U.S. Aug Philadelphia Fed business outlook survey rose +25.5 to a 16-month high of 12.0, stronger than expectations of -10.4.
U.S. Jul leading indicators fell -0.4% m/m, right on expectations.
The markets are discounting the odds at 11% for a +25 bp rate hike at the September 20 FOMC meeting and 41% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields Thursday moved higher. The 10-year T-note yield rose to a 9-3/4 month high of 4.326% and finished up +4.2 bp to 4.292%. The 10-year German bund yield rose +5.9 bp to 2.709%. The 10-year UK gilt yield jumped to a 14-year high of 4.752% and finished up +10.0 bp to 4.746%.
Overseas stock markets Thursday settled mixed. The Euro Stoxx 50 closed down -1.32%. China’s Shanghai Composite Index closed up +0.43%. Japan’s Nikkei Stock Index closed down -0.44%.
Today’s stock movers…
Health insurance stocks retreated Thursday after Blue Shield of California said it plans to drop CVS Health’s Caremark as its primary pharmacy benefit manager. As a result, CVS Health (CVS) closed down more than -8% to lead losers in the S&P 500. Also, Cigna Group (CI) is down more than -6%, and Cardinal Health (CAH) closed down more than -4%. In addition, Walgreens Boots Alliance (WBA) closed down more than -3% to lead losers in the Dow Jones Industrials. Finally, McKesson (MCK) closed down by more than -2%, and Centene (CNC) and Molina Healthcare (MOH) closed down by more than -1%.
Homebuilders sold off Thursday after the 10-year T-note yield rose to a 9-3/4 month high, boosting mortgage rates and reducing home-buying prospects. As a result, DR Horton (DHI) closed down more than -5%. Also, PulteGroup (PHM), Toll Brothers (TOL), and Lennar (LEN) close down more than -4%.
Airline stocks moved lower after Goldman Sachs cut price targets across the sector due to marking-to-market for higher jet fuel prices. As a result, American Airlines Group (AAL), Alaska Air Group (ALK), United Airlines Holdings (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) closed down more than -2%.
Intel (INTC) closed down more than -2% on concern its failed deal to acquire Tower Semiconductor will hurt its foundry efforts.
Paramount Global (PARA) closed down more than -2% after the Wall Street Journal reported that the company had dropped plans to sell a majority stake in its BET Media Group.
Hawaiian Electric Industries (HE) closed down more than -14% amid concerns over the company’s potential liabilities following the Maui wildfires.
Wolfspeed Inc (WOLF) closed down more than -17% after reporting a Q4 adjusted loss per share of -42 cents, steeper than the consensus of -20 cents, and forecasting a Q1 adjusted loss per share of -60 cents to -75 cents, much weaker than the consensus of -30 cents.
Cisco Systems (CSCO) closed up more than +3% to lead gainers in the Dow Jones Industrials after reporting Q4 revenue of $15.20 billion, better than the consensus of $15.05 billion, and forecasting Q1 revenue of $14.50 billion-$14.70 billion, the midpoint above the consensus of $14.57 billion.
Energy stocks and energy service providers rose Thursday after the price of WTI crude climbed more than +1%. As a result, Exxon Mobil (XOM), ConocoPhillips (COP), Marathon Oil (MRO), Valero Energy (VLO), Devon Energy (DVN), and Hess Corp (HES) closed up more than +1%.
Chesapeake Energy (CHK) closed up more than +4% after S&P Dow Jones Indices said the company would replace Mercury Systems in the S&P MidCap 400 before the opening of trading on Aug 21.
Ball Corp (BALL) closed up more than +1% after BAE Systems agreed to buy Ball’s aerospace division for around $5.6 billion.
Across the markets…
September 10-year T-notes (ZNU23) Thursday closed down -9 ticks, and the 10-year T-note yield rose +4.2 bp to 4.292%. Sep T-notes Thursday tumbled to a 10-month month nearest-futures low, and the 10-year T-note yield climbed to a 9-3/4 month high of 4.326%. T-notes were under pressure on negative carryover from a plunge in 10-year UK gilts Thursday to a 14-year low. Also, Thursday’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey were hawkish for Fed policy and bearish for T-note prices. T-notes recovered from their worst levels when the selloff in stocks deepened, which boosted safe-haven demand for T-notes.
More Stock Market News from Barchart
Dollar Posts a 2-Month High on Strong Bond Yields Crude Closes Higher on Tight Global Supplies and U.S. Economic Strength Nat-Gas Prices Settle Higher on Forecasts for Hot U.S. Temps 3 Top Semiconductor Stocks to Watch Right Now
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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As a result, American Airlines Group (AAL), Alaska Air Group (ALK), United Airlines Holdings (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) closed down more than -2%. Stocks had early support Thursday on signs that the U.S. economy can achieve a soft landing after weekly jobless claims fell more than expected and after the Aug Philadelphia Fed business outlook survey rose to a 16-month high. This week, Chinese stocks have been under pressure as liquidity concerns in China’s shadow banking system intensified after Zhongrong International Trust, a unit of Zhongzhi Enterprise Group, missed payments on dozens of its investment products.
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As a result, American Airlines Group (AAL), Alaska Air Group (ALK), United Airlines Holdings (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) closed down more than -2%. U.S. stock indexes had some positive carryover from a slight recovery in Chinese stocks Thursday after the Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets in order to repay investors. Also, Thursday’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey were hawkish for Fed policy and bearish for T-note prices.
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As a result, American Airlines Group (AAL), Alaska Air Group (ALK), United Airlines Holdings (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) closed down more than -2%. The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.77%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.84%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.08%. Stocks on Thursday closed moderately lower, with the S&P 500 posting a 7-week low, the Dow Jones Industrials falling to a 1-month low, and the Nasdaq 100 dropping to a 1-1/2 month low.
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As a result, American Airlines Group (AAL), Alaska Air Group (ALK), United Airlines Holdings (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) closed down more than -2%. Rising U.S. bond yields pressured stocks Thursday after the 10-year T-note climbed to a 9-3/4 month high. U.S. stock indexes had some positive carryover from a slight recovery in Chinese stocks Thursday after the Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets in order to repay investors.
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02e26d87-c946-4211-bb9e-bf5d81bd2e45
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2337.0
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2023-08-17 00:00:00 UTC
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Stocks Mixed on a Rebound in Chinese Stocks and Higher Bond Yields
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AAL
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https://www.nasdaq.com/articles/stocks-mixed-on-a-rebound-in-chinese-stocks-and-higher-bond-yields
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.03%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.16%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.34%.
Stocks this morning are mixed, with the Nasdaq 100 falling to a 7-week low. U.S. stocks have some carryover support from a recovery in Chinese stocks. Also, the broader market is moving higher on signs that the U.S. economy can achieve a soft landing after weekly jobless claims fell more than expected and after the Aug Philadelphia Fed business outlook survey rose to a 16-month high. However, rising bond yields are weighing on technology stocks and are dragging the Nasdaq 100 lower after the 10-year T-note yield today rose to a 9-3/4 month high.
U.S. stock indexes have some positive carryover from a slight recovery in Chinese stocks after the Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets after the review in order to repay investors. This week, Chinese stocks have been under pressure as liquidity concerns in China’s shadow banking system intensified after Zhongrong International Trust, a unit of Zhongzhi Enterprise Group, missed payments on dozens of its investment products.
U.S. weekly initial unemployment claims fell -9,000 to 239,000, showing a slightly stronger labor market than expectations of 240,000.
The U.S. Aug Philadelphia Fed business outlook survey rose +25.5 to a 16-month high of 12.0, stronger than expectations of -10.4.
U.S. Jul leading indicators fell -0.4% m/m, right on expectations.
The markets are discounting the odds at 12% for a +25 bp rate hike at the September 20 FOMC meeting and 43% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are higher. The 10-year T-note yield rose to a 9-3/4 month high of 4.310% and is up +5.3 bp to 4.304%. The 10-year German bund yield is up +4.2 bp at 2.692%. The 10-year UK gilt yield jumped to a 14-year high of 4.747% and is up +7.3 bp at 4.7190%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -1.13%. China’s Shanghai Composite Index today closed up +0.43%. Japan’s Nikkei Stock Index closed down -0.44%.
Today’s stock movers…
Cisco Systems (CSCO) is up more than +4% to lead gainers in the S&P 500, Dow Jones Industrials, and Nasdaq 100 after reporting Q4 revenue of $15.20 billion, better than the consensus of $15.05 billion, and forecasting Q1 revenue of $14.50 billion-$14.70 billion, the midpoint above the consensus of $14.57 billion.
Ball Corp (BALL) is up more than +3% after BAE Systems agreed to buy Ball’s aerospace division for around $5.6 billion.
Energy stocks and energy service providers are climbing today, with the price of WTI crude up more than +1%. As a result, Exxon Mobil (XOM), ConocoPhillips (COP), Marathon Oil (MRO), Valero Energy (VLO), Devon Energy (DVN), Occidental Petroleum (OXY), and Marathon Petroleum (MPC) are up more than +2%.
Chesapeake Energy (CHK) is up more than +5% after S&P Dow Jones Indices said the company would replace Mercury Systems in the S&P MidCap 400 before the opening of trading on Aug 21.
U.S.-listed Chinese stocks are moving higher today after the Shanghai Composite recovered from a 7-1/2 month low and closed higher. As a result, PDD Holdings (PDD), JD.com (JD), Alibaba Group Holding (BABA), NetEase (NTES), and Baidu (BIDU) are up +1% or more.
Health insurance stocks are falling today after Blue Shield of California said it plans to drop CVS Health’s Caremark as its primary pharmacy benefit manager. As a result, CVS Health (CVS) is down more than -9% to lead losers in the S&P 500. Also, Cigna Group (CI) is down more than -6% and Cardinal Health (CAH) is down more than -3%. In addition, Walgreens Boots Alliance (WBA), McKesson (MCK), Centene (CNC),and Molina Healthcare (MOH) are down more than -2%.
Intel (INTC) is down more than -3% to lead losers in the Dow Jones Industrials and Nasdaq 100 on concern its failed deal to acquire Tower Semiconductor will hurt its foundry efforts.
Paramount Global (PARA) is down more than -3% after the Wall Street Journal reported that the company had dropped plans to sell a majority stake in its BET Media Group.
Airline stocks are under pressure today after Goldman Sachs lowered price targets across the sector due to marking-to-market for higher jet fuel prices. As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. Also, United Airlines Holdings (UAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) are down more than -1%.
Hawaiian Electric Industries (HE) is down more than -20% amid concerns over the company’s potential liabilities following the Maui wildfires.
Wolfspeed Inc (WOLF) is down more than -17% after reporting a Q4 adjusted loss per share of -42 cents, steeper than the consensus of -20 cents, and forecasting a Q1 adjusted loss per share of -60 cents to -75 cents, much weaker than the consensus of -30 cents.
Across the markets…
September 10-year T-notes (ZNU23) today are down -7 ticks, and the 10-year T-note yield is up +5.3 bp at 4.304%. Sep T-notes today dropped to a 10-month nearest-futures low, and the 10-year T-note yield climbed to a 9-3/4 month high of 4.310%. T-notes have negative carryover from a plunge in 10-year UK gilts today to a 14-year low. Also, today’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey were hawkish for Fed policy and bearish for T-notes.
The dollar index (DXY00) today is down by -0.27%. The dollar today retreated from a 2-month high and is moderately lower. Strength in stocks today has reduced the liquidity demand for the dollar. Also, a recovery in the yuan today weighed on the dollar after the yuan rebounded from a 9-1/2 month low against the dollar and moved higher on a report that said Chinese authorities told state-owned banks to step up intervention in the currency market this week to support the yuan and that government officials are considering the use of tools such as cutting banks’ foreign-exchange reserve requirements to prevent a rapid depreciation in the yuan.
EUR/USD (^EURUSD) today is up by +0.21%. The euro today recovered from a 6-week low and is moderately higher as weakness in the dollar sparked short covering in EUR/USD. The euro today initially moved lower on dovish comments from ECB Governing Council member Kazaks who said he was undecided on an ECB rate hike in September.
ECB Governing Council member Kazaks said he was undecided on an ECB rate hike in September and said, "If we look at the coming months, if there'll be increases in interest rates, then they'll be really very small."
USD/JPY (^USDJPY) is down by -0.29%. The yen today recovered from a 9-1/4 month low against the dollar and moved higher after the 10-year JGB bond yield rose to a 2-week high, strengthening the yen’s interest rate differentials. A slump in the Nikkei Stock Index to a 2-1/2 month low today also boosted safe-haven demand for the yen. Weaker-than-expected Japanese economic news today initially put pressure on the yen.
The Japan Jun tertiary industry index fell -0.4% m/m, weaker than expectations of -0.2% m/m.
Japan Jul exports fell -0.3% y/y, weaker than expectations of -0.2% y/y and the biggest decline in over two years. Also, Jul imports fell -13.5% y/y, the biggest decline in 2-3/4 years.
Japan Jun core machine orders rose +2.7% m/m, weaker than expectations of +3.5% m/m.
October gold (GCV3) today is down -2.0 (-0.10%), and Sep silver (SIU23) is up +0.240 (+1.07%). Precious metals prices this morning are mixed, with gold falling to a 5-month low. Higher global bond yields today are weighing on precious metals prices. Also, fund liquidation in gold continues after long gold holdings in ETFs fell to a 3-1/3 year low on Tuesday. Losses in gold are limited due to a weaker dollar. Silver price also found support on today’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey, which is positive for economic growth prospects and industrial metals demand.
More Stock Market News from Barchart
Attention Speculators: Going Long Discover Financial Services (DFS) Might Not Be a Bad Idea Where is Lumber Headed After Prices Fall About 10% in the Past Month? A Cheap Fast Food Stock Making Technological Advances Markets Today: Stocks Climb as Chinese Markets Recover
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. Also, the broader market is moving higher on signs that the U.S. economy can achieve a soft landing after weekly jobless claims fell more than expected and after the Aug Philadelphia Fed business outlook survey rose to a 16-month high. This week, Chinese stocks have been under pressure as liquidity concerns in China’s shadow banking system intensified after Zhongrong International Trust, a unit of Zhongzhi Enterprise Group, missed payments on dozens of its investment products.
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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. U.S. stock indexes have some positive carryover from a slight recovery in Chinese stocks after the Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets after the review in order to repay investors. Also, today’s stronger-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey were hawkish for Fed policy and bearish for T-notes.
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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. However, rising bond yields are weighing on technology stocks and are dragging the Nasdaq 100 lower after the 10-year T-note yield today rose to a 9-3/4 month high. U.S. stock indexes have some positive carryover from a slight recovery in Chinese stocks after the Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets after the review in order to repay investors.
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As a result, American Airlines Group (AAL) and Alaska Air Group (ALK) are down more than -2%. U.S. stock indexes have some positive carryover from a slight recovery in Chinese stocks after the Shanghai Stock Index rebounded from a 7-1/2 month low when the Zhongzhi Enterprise Group said it plans to restructure debt and sell assets after the review in order to repay investors. U.S.-listed Chinese stocks are moving higher today after the Shanghai Composite recovered from a 7-1/2 month low and closed higher.
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b77605f0-e479-4e4e-bd01-ec60988437ce
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2338.0
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2023-08-17 00:00:00 UTC
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Airline Stock Roundup: LUV's Tentative Labor Deal, CPA's Traffic Report & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-luvs-tentative-labor-deal-cpas-traffic-report-more
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nan
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nan
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In the past week, Southwest Airlines LUV received encouraging news on the labor front when it reached a provisional agreement with the union that represents more than 17,000 of its ramp, operations, provisioning and cargo employees.
Meanwhile, Copa Holdings’ CPA traffic report for July was impressive owing to the post-pandemic surge in air travel demand. Owing to the uptick in passenger volumes, European carrier Ryanair Holdings RYAAY anticipates carrying a higher number of passengers in the current month than in July. If the expectation materializes, RYAAY would establish a new monthly traffic record.
Recap of the Past Week’s Most Important Stories
1. The provisional deal inked between LUV’s management and the Transport Workers Union Local 555 or TWU 555 provides substantial wage increase, better retirement and other benefits to the concerned employees. The deal will materialize only if it is approved through the ratification voting process. The details of LUV’s current agreement and voting timeline will be directly communicated to Southwest Airlines’ members by TWU 555.
2. In July, revenue passenger miles (a measure of traffic) rose in double digits, i.e., 12.5% on a year-over-year basis at CPA. To match the demand swell, CPA is increasing its capacity. In July, available seat miles (a measure of capacity) increased 9.9% year over year. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) improved to 89% from 87% in July 2022.
Copa Holdings was also in the news when it reported better-than-expected earnings per share and revenues for second-quarter 2023. The news was covered in the previous week’s write up.
3. According to a Reuters report, Irish carrier Ryanair Holdings expects to carry more passengers in August than the actual figure in July. We remind investors that Ryanair carried 18.7 million passengers in July, which itself is a record. The load factor (% of seats filled by passengers) in July was as high as 96%.
Per Eddie Wilson, the head of Ryanair DAC, the largest airline in the group, "It should be slightly more (than July) ... people are still travelling." Healthy booking trends have resulted in the upbeat expectation. Ryanair has been benefiting from the stronger-than-expected recovery in air travel demand from the pandemic lows.
Currently, RYAAY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
4. In a bid to meet the strong recovery in international travel in the post-pandemic scenario, Delta Air Lines DAL has decided to expand its flight schedule to China. To this end, this Atlanta-based carrier has decided to operate 10 weekly flights to the Shanghai-Pudong International Airport from its hubs in Seattle and Detroit hubs this winter. From Oct 29, the airline will operate daily flights from Shanghai and three-times-a-week flights from Detroit. Moreover, Delta intends to resume four-times-weekly flights to the Shanghai-Pudong International Airport from Los Angeles. DAL has not operated on the route since early 2020.
According to a Reuters report, American Airlines AAL has also decided to expand its China operations. The carrier has decided to commence daily flights from Dallas-Fort Worth to Shanghai-Pudong International Airport from January 2024.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks traded in the red in the past week. The NYSE ARCA Airline Index declined 5.9% over the period to $63.51. Over the course of the past six months, the sector tracker has increased 3.8%.
What's Next in the Airline Space?
Stay tuned for the usual news updates in the space.
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to a Reuters report, American Airlines AAL has also decided to expand its China operations. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, Southwest Airlines LUV received encouraging news on the labor front when it reached a provisional agreement with the union that represents more than 17,000 of its ramp, operations, provisioning and cargo employees.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. According to a Reuters report, American Airlines AAL has also decided to expand its China operations. Meanwhile, Copa Holdings’ CPA traffic report for July was impressive owing to the post-pandemic surge in air travel demand.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. According to a Reuters report, American Airlines AAL has also decided to expand its China operations. Owing to the uptick in passenger volumes, European carrier Ryanair Holdings RYAAY anticipates carrying a higher number of passengers in the current month than in July.
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According to a Reuters report, American Airlines AAL has also decided to expand its China operations. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Copa Holdings’ CPA traffic report for July was impressive owing to the post-pandemic surge in air travel demand.
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a6e424d7-b1f0-4ed0-9649-2d12addee97e
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2339.0
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2023-08-17 00:00:00 UTC
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De Beers to aid employees in evacuation amid wildfires in Canada's Northwest Territories
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AAL
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https://www.nasdaq.com/articles/de-beers-to-aid-employees-in-evacuation-amid-wildfires-in-canadas-northwest-territories
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nan
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nan
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Aug 17 (Reuters) - Anglo American AAL.L unit De Beers Group said on Thursday it was assisting some employees at its Gahcho Kué diamond mine in Canada's Northwest Territories whose families were residing in the Yellowknife region and were asked to evacuate due to wildfires.
Canadian officials ordered the evacuation of the Northwest Territories' capital of Yellowknife and several smaller communities on Wednesday as a massive wildfire threatened the town of Hay River overnight.
"The Gahcho Kué team is working with the mine's Yellowknife resident employees to support those who wish to travel to Yellowknife to assist their families in evacuating the city," De Beers said.
The mine, however, continues to operate, the world's biggest diamond miner added.
Canada is enduring its worst wildfire season with more than 1,000 active fires burning across the country, including 230 in the Northwest Territories.
(Reporting by Arshreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
((Arshreet.Singh@thomsonreuters.com; Twitter: https://twitter.com/Arshreets;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 17 (Reuters) - Anglo American AAL.L unit De Beers Group said on Thursday it was assisting some employees at its Gahcho Kué diamond mine in Canada's Northwest Territories whose families were residing in the Yellowknife region and were asked to evacuate due to wildfires. Canadian officials ordered the evacuation of the Northwest Territories' capital of Yellowknife and several smaller communities on Wednesday as a massive wildfire threatened the town of Hay River overnight. Canada is enduring its worst wildfire season with more than 1,000 active fires burning across the country, including 230 in the Northwest Territories.
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Aug 17 (Reuters) - Anglo American AAL.L unit De Beers Group said on Thursday it was assisting some employees at its Gahcho Kué diamond mine in Canada's Northwest Territories whose families were residing in the Yellowknife region and were asked to evacuate due to wildfires. Canadian officials ordered the evacuation of the Northwest Territories' capital of Yellowknife and several smaller communities on Wednesday as a massive wildfire threatened the town of Hay River overnight. "The Gahcho Kué team is working with the mine's Yellowknife resident employees to support those who wish to travel to Yellowknife to assist their families in evacuating the city," De Beers said.
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Aug 17 (Reuters) - Anglo American AAL.L unit De Beers Group said on Thursday it was assisting some employees at its Gahcho Kué diamond mine in Canada's Northwest Territories whose families were residing in the Yellowknife region and were asked to evacuate due to wildfires. "The Gahcho Kué team is working with the mine's Yellowknife resident employees to support those who wish to travel to Yellowknife to assist their families in evacuating the city," De Beers said. (Reporting by Arshreet Singh in Bengaluru; Editing by Krishna Chandra Eluri) ((Arshreet.Singh@thomsonreuters.com; Twitter: https://twitter.com/Arshreets;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 17 (Reuters) - Anglo American AAL.L unit De Beers Group said on Thursday it was assisting some employees at its Gahcho Kué diamond mine in Canada's Northwest Territories whose families were residing in the Yellowknife region and were asked to evacuate due to wildfires. Canadian officials ordered the evacuation of the Northwest Territories' capital of Yellowknife and several smaller communities on Wednesday as a massive wildfire threatened the town of Hay River overnight. "The Gahcho Kué team is working with the mine's Yellowknife resident employees to support those who wish to travel to Yellowknife to assist their families in evacuating the city," De Beers said.
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be9c6250-cb3c-4c00-9c81-5cc9d64ecf97
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2340.0
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2023-08-17 00:00:00 UTC
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American Airlines Group Becomes Oversold (AAL)
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-becomes-oversold-aal-1
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $15.03 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 37.7. A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares:
Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.10.
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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.
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A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.10. In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $15.03 per share.
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A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.10. In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $15.03 per share.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $15.03 per share. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.10. A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $15.03 per share. A bullish investor could look at AAL's 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $19.08 as the 52 week high point — that compares with a last trade of $15.10.
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eefe2147-971f-410e-b27d-ad06f51e17fb
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2341.0
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2023-08-16 00:00:00 UTC
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Delta, American Airlines to expand China flight schedule
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AAL
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https://www.nasdaq.com/articles/delta-american-airlines-to-expand-china-flight-schedule
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nan
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nan
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Adds details on American Airlines increasing flights to China
Aug 16 (Reuters) - Delta Air Lines DAL.N and American Airlines Group AAL.O will operate more flights to China soon, the two carriers said on Wednesday, as they look to capitalize on strong travel demand in the Asia-Pacific region.
The Biden administration said last week that the United States and China would approve twice the number of passenger flights currently permitted for air carriers to fly between the two countries.
American Airlines told Reuters the daily service from Dallas-Fort Worth to Shanghai Pudong International Airport will start from January.
The published schedule will be updated by this weekend to reflect the change, the carrier said. American currently operates flights from Dallas to Shanghai four times a week
Delta Air Lines said it would offer 10 weekly flights to Shanghai-Pudong International Airport from its Seattle (SEA) and Detroit (DTW) hubs.
"Beginning October 29, the airline will operate daily flights from SEA and three-times-weekly service from DTW," Delta said in a statement.
Delta added that customers flying with the carrier would be able to connect to other cities within China via its partnership with China Eastern Airlines 600115.SS.
(Reporting by Nathan Gomes and Ananta Agarwal in Bengaluru; Editing by Krishna Chandra Eluri)
((Nathan.Gomes@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on American Airlines increasing flights to China Aug 16 (Reuters) - Delta Air Lines DAL.N and American Airlines Group AAL.O will operate more flights to China soon, the two carriers said on Wednesday, as they look to capitalize on strong travel demand in the Asia-Pacific region. The Biden administration said last week that the United States and China would approve twice the number of passenger flights currently permitted for air carriers to fly between the two countries. American Airlines told Reuters the daily service from Dallas-Fort Worth to Shanghai Pudong International Airport will start from January.
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Adds details on American Airlines increasing flights to China Aug 16 (Reuters) - Delta Air Lines DAL.N and American Airlines Group AAL.O will operate more flights to China soon, the two carriers said on Wednesday, as they look to capitalize on strong travel demand in the Asia-Pacific region. American currently operates flights from Dallas to Shanghai four times a week Delta Air Lines said it would offer 10 weekly flights to Shanghai-Pudong International Airport from its Seattle (SEA) and Detroit (DTW) hubs. "Beginning October 29, the airline will operate daily flights from SEA and three-times-weekly service from DTW," Delta said in a statement.
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Adds details on American Airlines increasing flights to China Aug 16 (Reuters) - Delta Air Lines DAL.N and American Airlines Group AAL.O will operate more flights to China soon, the two carriers said on Wednesday, as they look to capitalize on strong travel demand in the Asia-Pacific region. American currently operates flights from Dallas to Shanghai four times a week Delta Air Lines said it would offer 10 weekly flights to Shanghai-Pudong International Airport from its Seattle (SEA) and Detroit (DTW) hubs. (Reporting by Nathan Gomes and Ananta Agarwal in Bengaluru; Editing by Krishna Chandra Eluri) ((Nathan.Gomes@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on American Airlines increasing flights to China Aug 16 (Reuters) - Delta Air Lines DAL.N and American Airlines Group AAL.O will operate more flights to China soon, the two carriers said on Wednesday, as they look to capitalize on strong travel demand in the Asia-Pacific region. The published schedule will be updated by this weekend to reflect the change, the carrier said. American currently operates flights from Dallas to Shanghai four times a week Delta Air Lines said it would offer 10 weekly flights to Shanghai-Pudong International Airport from its Seattle (SEA) and Detroit (DTW) hubs.
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4425e914-42f9-4751-bbbc-3e045f51c292
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2342.0
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2023-08-16 00:00:00 UTC
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Wheels Up flies for now, but private-jet rivals see opportunity
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AAL
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https://www.nasdaq.com/articles/wheels-up-flies-for-now-but-private-jet-rivals-see-opportunity
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nan
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nan
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By Allison Lampert
Aug 16 (Reuters) - Loss-making private jet firm Wheels Up Experience UP.N nabbed a key $500 million lifeline but still faces turnaround challenges, as demand for private travel softens in the wake of the COVID-19 pandemic and rival operators lure some of their customers.
Wheels Up avoided a possible bankruptcy when it secured backing from investors on Tuesday, including U.S. carrier Delta Air Lines DAL.N. Shares rose 11% on Wednesday in midday trading.
But the company still has work to do to become profitable in a more difficult environment, said business aviation consultant Brian Foley. Two operators have closed down since May in the face of diminished traffic and higher labor costs could force some private-jet operators out of business.
Rivals, meanwhile, say they have been picking up some of the company's customers.
Wheels Up said it is pleased with the response from customers. "We are in the middle of year-long meaningful improvement in our operational performance and service levels," the company said in a statement.
Wheels Up, which charters planes by the hour, went public in 2021 through a special purpose acquisition company (SPAC) with the goal of appealing to a broader flying base as an "Uber of the sky."
The state of private traffic and the preowned plane market are both closely watched by investors as they affect demand for corporate jets from companies like General Dynamics's GD.N Gulfstream and Canada's Bombardier BBDb.TO.
While private flying remains above 2019 levels, traffic has slowed since the pandemic, when wealthy passengers sought to avoid crowded commercial airports. Charter traffic from the top 10 U.S. private airports declined 17% on an annual basis for the first half of 2023, research firm Argus International said.
Segrave, of North Carolina-based FlyExclusive, said in an interview he sees opportunity to gain market share in a softer market as it prepares to go public through a SPAC. The company, which provided third-party flying service to Wheels Up, faces a lawsuit from Wheels Up over a contract dispute.
Jamie Walker, chairman of U.S. private jet operator Jet Linx, said he sees opportunity for both organic growth and acquisitions due to the softening marketplace. The company has attracted new customers due to Wheels Up's recent struggles.
"We have received numerous inquiries over the last several months from Wheels Up clients who are unsettled with the financial health of the company," Walker said. "But more importantly, we have successfully converted many of them."
(Reporting By Allison Lampert in Montreal, editing by Ben Klayman and Andy Sullivan)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wheels Up, which charters planes by the hour, went public in 2021 through a special purpose acquisition company (SPAC) with the goal of appealing to a broader flying base as an "Uber of the sky." The state of private traffic and the preowned plane market are both closely watched by investors as they affect demand for corporate jets from companies like General Dynamics's GD.N Gulfstream and Canada's Bombardier BBDb.TO. While private flying remains above 2019 levels, traffic has slowed since the pandemic, when wealthy passengers sought to avoid crowded commercial airports.
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By Allison Lampert Aug 16 (Reuters) - Loss-making private jet firm Wheels Up Experience UP.N nabbed a key $500 million lifeline but still faces turnaround challenges, as demand for private travel softens in the wake of the COVID-19 pandemic and rival operators lure some of their customers. The state of private traffic and the preowned plane market are both closely watched by investors as they affect demand for corporate jets from companies like General Dynamics's GD.N Gulfstream and Canada's Bombardier BBDb.TO. Jamie Walker, chairman of U.S. private jet operator Jet Linx, said he sees opportunity for both organic growth and acquisitions due to the softening marketplace.
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By Allison Lampert Aug 16 (Reuters) - Loss-making private jet firm Wheels Up Experience UP.N nabbed a key $500 million lifeline but still faces turnaround challenges, as demand for private travel softens in the wake of the COVID-19 pandemic and rival operators lure some of their customers. The state of private traffic and the preowned plane market are both closely watched by investors as they affect demand for corporate jets from companies like General Dynamics's GD.N Gulfstream and Canada's Bombardier BBDb.TO. The company, which provided third-party flying service to Wheels Up, faces a lawsuit from Wheels Up over a contract dispute.
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Wheels Up avoided a possible bankruptcy when it secured backing from investors on Tuesday, including U.S. carrier Delta Air Lines DAL.N. Rivals, meanwhile, say they have been picking up some of the company's customers. Jamie Walker, chairman of U.S. private jet operator Jet Linx, said he sees opportunity for both organic growth and acquisitions due to the softening marketplace.
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14f75463-af92-4000-8175-28d2bd6dfdea
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2343.0
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2023-08-15 00:00:00 UTC
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Tuesday's ETF with Unusual Volume: RSPN
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AAL
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https://www.nasdaq.com/articles/tuesdays-etf-with-unusual-volume%3A-rspn
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nan
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nan
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The Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Tuesday, with over 260,000 shares traded versus three month average volume of about 42,000. Shares of RSPN were down about 1.1% on the day.
Components of that ETF with the highest volume on Tuesday were American Airlines Group, trading off about 1.9% with over 10.2 million shares changing hands so far this session, and CSX, down about 1.9% on volume of over 4.6 million shares. Generac Holdlings is the component faring the best Tuesday, higher by about 0.2% on the day, while Norfolk Southern is lagging other components of the Invesco S&P 500— Equal Weight Industrials ETF, trading lower by about 2.9%.
VIDEO: Tuesday's ETF with Unusual Volume: RSPN
The views and 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 Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Tuesday, with over 260,000 shares traded versus three month average volume of about 42,000. Components of that ETF with the highest volume on Tuesday were American Airlines Group, trading off about 1.9% with over 10.2 million shares changing hands so far this session, and CSX, down about 1.9% on volume of over 4.6 million shares. Generac Holdlings is the component faring the best Tuesday, higher by about 0.2% on the day, while Norfolk Southern is lagging other components of the Invesco S&P 500— Equal Weight Industrials ETF, trading lower by about 2.9%.
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The Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Tuesday, with over 260,000 shares traded versus three month average volume of about 42,000. Generac Holdlings is the component faring the best Tuesday, higher by about 0.2% on the day, while Norfolk Southern is lagging other components of the Invesco S&P 500— Equal Weight Industrials ETF, trading lower by about 2.9%. VIDEO: Tuesday's ETF with Unusual Volume: RSPN The views and 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 Invesco S&P 500— Equal Weight Industrials ETF is seeing unusually high volume in afternoon trading Tuesday, with over 260,000 shares traded versus three month average volume of about 42,000. Components of that ETF with the highest volume on Tuesday were American Airlines Group, trading off about 1.9% with over 10.2 million shares changing hands so far this session, and CSX, down about 1.9% on volume of over 4.6 million shares. Generac Holdlings is the component faring the best Tuesday, higher by about 0.2% on the day, while Norfolk Southern is lagging other components of the Invesco S&P 500— Equal Weight Industrials ETF, trading lower by about 2.9%.
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Components of that ETF with the highest volume on Tuesday were American Airlines Group, trading off about 1.9% with over 10.2 million shares changing hands so far this session, and CSX, down about 1.9% on volume of over 4.6 million shares. Generac Holdlings is the component faring the best Tuesday, higher by about 0.2% on the day, while Norfolk Southern is lagging other components of the Invesco S&P 500— Equal Weight Industrials ETF, trading lower by about 2.9%. VIDEO: Tuesday's ETF with Unusual Volume: RSPN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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a1ed878b-a72b-4a3b-9505-557c112ec887
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2344.0
|
2023-08-14 00:00:00 UTC
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The 3 Most Undervalued Stocks Under $20 to Buy Now: August 2023
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AAL
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https://www.nasdaq.com/articles/the-3-most-undervalued-stocks-under-%2420-to-buy-now%3A-august-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite the looming threat of a recession over the past year, the recession hasn’t taken effect. Some experts are predicting that it will never arrive, including the Federal Reserve. On July 26th, the Federal Reserve stated that they are “no longer forecasting a recession,” which spells good news for stocks.
Many predict a ‘soft landing’ from our current economic state. In June, the Consumer Price Index (CPI) slowed to 3% which is a record over the past two years. This compounded with unemployment at a long-term low of 3.5% seals the deal for a more optimistic future.
With the negative economic headwinds finally gone, undervalued growth stocks can flourish in the revitalized market environment. Investors looking for a bargain may want to consider these top stocks under $20.
Palantir Technologies (PLTR)
Source: Spyro the Dragon / Shutterstock.com
Palantir Technologies (NYSE:PLTR) is a software company that provides big data analytics and visualization services to government agencies and networks. Backed by the FBI and CIA, Palantir’s artificial intelligence platform is a key growth driver.
PLTR stock is up by over 140% YTD, rewarding long-term investors in the process. Palantir’s main business lies in artificial intelligence, which is expected to grow at a 26.8% CAGR from $150.20 billion in 2023 to $1,345.20 billion by 2030.
Financials are strong as revenue is growing rapidly based on a forward revenue 19.44% growth rate. With a $0.01 non-GAAP EPS in Q2 2023 and a levered FCF margin of 21.32% demonstrating high profitability, Palantir could even be trading at 11.3x its sales over the coming years.
Palantir introduced a $1 billion buyback program from the demand for its AI platforms which will attract more investors in the long run. Palantir also introduced AIP, an artificial intelligence platform that actively presents real-time data for the user. Revenue from the United States government increased 15% YoY to $302 million from $230 million in Q1.
This also introduced new demands from international governments. With notable technology companies such as Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) utilizing platforms such as Palantir’s Foundry, Palantir is positioned to enhance customer interfaces effectively in the long run.
Palantir Technologies is a sound investment opportunity for investors looking for strong growth probability. Its artificial intelligence platforms can provide value for investors’ portfolios.
American Airlines Group Incorporated (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines Group Incorporated (NASDAQ:AAL) is an American airline company that provides air transportation services for its passengers and cargo. Year-to-date, AAL stock is up 22.84% and is hovering at the $15 range. Yahoo! Finance reports 13 analysts having a 12-month median price target of $18.88, with the range spanning from as low as $11.00 to as high as $26.00. The global airline industry is forecasted to grow at a high 25.5% CAGR from 2022 to 2027.
American Airlines has reported good financials lately. In its Q2 2023, American Airlines reported a revenue of $14.06 billion that grew 4.72% YoY and beat analyst expectations by 2.35%. Diluted EPS of 1.88 also grew 176.47% YoY and beat analyst expectations by 20.45%. Finally, net income of $1.34 billion grew 181.09% and these financials alone are strong indicators moving forward for continued profitability.
American Airlines has been working on a partnership with start-up Connect Airlines. These two companies have signed a Memorandum of Understanding (MoU), and Connect is raising up to $40 million in Series B funding while waiting on full operational approval from the Federal Aviation Administration (FAA).
A letter was sent to the Department of Transportation for approval on any deals possible with shareholders as well. Assuming these two companies do fulfill this partnership, American Airlines will benefit from its competitive advantage in expanding international plane rides to Canada. The company is the only major United States carrier without a partner to carry out flight routes to Canada.
The partnership with Connect Airlines can greatly benefit American Airlines. AAL stock and its financials have been performing well, and the developing partnership can present a buying opportunity for investors.
SoFi Technologies Incorporated (SOFI)
Source: shutterstock.com/rafapress
SoFi Technologies Incorporated (NASDAQ:SOFI) is an American fintech company. SOFI stock is up by over 90% year-to-date, and the stock price is in the $8.00-$9.00 price range. Yahoo Finance! reports 16 analysts having a mean 12-month price target of $10.09, running from a low of $3.00 to a high of $16.00.
The personal finance software market is forecasted to grow at more than 6% CAGR from $1.7 billion in 2023 to $2.2 billion in 2027. Within the United States, consumer demand for personalized and secure devices has been increasing at a steady rate over the years.
Financials for SoFi Technologies are strong. SoFi’s recent quarter has reported a revenue of $485.4 million, which grew 37.73% YoY and beat analyst expectations by 3.26%. A diluted EPS of -$0.06 is recovering nicely having grown 50.38% YoY and exceeding analyst expectations by 14.20%. Lastly, a net profit margin of -9.8% grew by 63.96% and these financials demonstrate a strong recovery in the years to come.
Recently, SoFi Technologies acquired Wyndham Capital Mortgage in an all-cash transaction, a leading financial technology mortgage lender. Wyndham Capital has helped more than 100,000 borrowers with a 98% satisfaction rating in the past two decades. This acquisition allows SoFi Technologies to provide more mortgage products and enhance its digital application process.
SOFI is a stock that you would not want to miss out on. It is dirt cheap, with high growth prospects following its partnership with Wyndham Capital and steadily recovering financials moving into 2024.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post The 3 Most Undervalued Stocks Under $20 to Buy Now: August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Incorporated (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Incorporated (NASDAQ:AAL) is an American airline company that provides air transportation services for its passengers and cargo. Year-to-date, AAL stock is up 22.84% and is hovering at the $15 range. AAL stock and its financials have been performing well, and the developing partnership can present a buying opportunity for investors.
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American Airlines Group Incorporated (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Incorporated (NASDAQ:AAL) is an American airline company that provides air transportation services for its passengers and cargo. Year-to-date, AAL stock is up 22.84% and is hovering at the $15 range. AAL stock and its financials have been performing well, and the developing partnership can present a buying opportunity for investors.
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American Airlines Group Incorporated (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Incorporated (NASDAQ:AAL) is an American airline company that provides air transportation services for its passengers and cargo. Year-to-date, AAL stock is up 22.84% and is hovering at the $15 range. AAL stock and its financials have been performing well, and the developing partnership can present a buying opportunity for investors.
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American Airlines Group Incorporated (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines Group Incorporated (NASDAQ:AAL) is an American airline company that provides air transportation services for its passengers and cargo. Year-to-date, AAL stock is up 22.84% and is hovering at the $15 range. AAL stock and its financials have been performing well, and the developing partnership can present a buying opportunity for investors.
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cc09408e-8294-45c2-b695-df5f4b7b439e
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2345.0
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2023-08-14 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAL
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AAL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-4
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nan
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 84% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
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Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
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1786acdc-269c-44b8-94c6-88296db7954c
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2346.0
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2023-08-14 00:00:00 UTC
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5 Airline Stocks to Buy on Buoyant Passenger & Cargo Demand
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AAL
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https://www.nasdaq.com/articles/5-airline-stocks-to-buy-on-buoyant-passenger-cargo-demand
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nan
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nan
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The airlines industry is seeing a steady recovery in domestic and international travel demand. A stronger-than-expected recovery in air-travel demand from the pandemic lows is a huge positive for the industry, which was one of the worst hits in the peak COVID-19 period. The removal of COVID-related restrictions is aiding air travel, which is now strong on the international front as well.
Aside from buoyant air-travel demand, airlines are currently focusing on boosting cargo revenues. The International Air Transport Association (IATA) expects airlines to return to profitability in 2023. Airlines are also investing heavily in technology. Notably, the Zacks Airline industry has risen 19.9% so far this year, outperforming the 12.6% growth of the broader Zacks Transportation sector.
Most of the airlines have provided a rosy outlook in their recent earnings reports. At this stage, investment in airline stocks with a favorable Zacks Rank should prove fruitful in the near term.
Our Top Picks
We have narrowed our search to five airlines stocks with strong potential for the rest of 2023. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
United Airlines Holdings Inc. UAL: For the third quarter of 2023, UAL expects capacity to improve almost 16% from the year-ago reported figure. Total revenues are anticipated to grow 10-13% year over year. UAL expects third-quarter earnings per share in the band of $3.85-$4.35.
For 2023, United Airlines expects capacity to improve almost 18% from the year-ago reported figure. Adjusted capital expenditures are expected to be around $8.5 billion. In a bid to modernize its fleet, United Airlines will purchase 100 Boeing 787 Dreamliners, with options to buy 100 more. UAL expects 2023 EPS in the band of $11.00-$12.00 (prior view: $10-$12).
United Airlines has an expected revenue and earnings growth rate of 19.2% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.7% over the last 30 days.
American Airlines Group Inc. AAL: With air-travel demand having improved, AAL is constantly looking to add routes and broaden network. AAL expects 2023 adjusted earnings in the band of $3-$3.75 per share (the earlier view was in the $2.5-$3.5 per share range).
AAL projects the September-end quarter's adjusted earnings per share in the $0.85-$0.95 range. Management expects third-quarter 2023 TRASM to be between 4.5% and 6.5%, lower than third-quarter 2022 actuals. System capacity for the September-end quarter is estimated to increase 5-7% from third-quarter 2022 levels.
American Airlines has an expected revenue and earnings growth rate of 8.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.2% over the last 30 days.
Delta Air Lines Inc. DAL: The company expects 2023 adjusted earnings in the band of $6-$7 per share (the earlier view was $6 per share). Free cash flow for the current year is expected to be $3 billion. DAL expects September-quarter adjusted revenues to increase in the 11-14% band from third-quarter 2022 actuals.
Third-quarter adjusted earnings are expected in the range of $2.20-$2.50 per share. The adjusted operating margin in the September quarter is expected in the mid-teens. DAL projects current-year total revenues (adjusted) to increase in the 17-20% range on a year-over-year basis. The operating margin is expected to be above 12%.
Delta Air Lines has an expected revenue and earnings growth rate of 10.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.4% over the last 30 days.
SkyWest Inc. SKYW: The company’s fleet-modernization efforts are commendable. In a bid to modernize its fleet, SKYW entered into an agreement with Delta to add two E175 aircraft in fourth-quarter 2023 and one E175 aircraft in 2024. By the end of 2025, SKYW is scheduled to operate a total of 239 E175 aircraft.
SkyWest spent $31 million on spare engines and other fixed assets. SKYW’s environmentally-friendly deal with Eve Air is encouraging. Under this deal, SKYW and Eve aim to develop a portfolio of services-based capabilities to optimize eVTOL performance in key early adopter cities that will be prioritized for initial Urban Air Mobility operations.
SkyWest has an expected revenue and earnings growth rate of 20% and more than 100%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 19% over the last seven days.
Ryanair Holdings plc RYAAY: Improvement in traffic from the pandemic-led slump is encouraging. Traffic grew 11% to 50.4 million in first-quarter fiscal 2024. RYAAY expects its traffic view for fiscal 2024 to be 183.5 million.
On the back of a buoyant traffic scenario, RYAAY’s profit after tax was €663 million in first-quarter fiscal 2024, up more than 100% year over year. Load factor increased to 95% in first-quarter fiscal 2024 from 92% in the year-ago reported quarter. Measures to expand RYAAY’s fleet to cater to the rising travel demand are encouraging.
Ryanair Holdings has an expected revenue and earnings growth rate of 28.3% and 24.7%, respectively, for the current year (ending March 2024). The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last seven days.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : 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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American Airlines Group Inc. AAL: With air-travel demand having improved, AAL is constantly looking to add routes and broaden network. AAL expects 2023 adjusted earnings in the band of $3-$3.75 per share (the earlier view was in the $2.5-$3.5 per share range). AAL projects the September-end quarter's adjusted earnings per share in the $0.85-$0.95 range.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (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: With air-travel demand having improved, AAL is constantly looking to add routes and broaden network. AAL expects 2023 adjusted earnings in the band of $3-$3.75 per share (the earlier view was in the $2.5-$3.5 per share range).
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (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: With air-travel demand having improved, AAL is constantly looking to add routes and broaden network. AAL expects 2023 adjusted earnings in the band of $3-$3.75 per share (the earlier view was in the $2.5-$3.5 per share range).
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American Airlines Group Inc. AAL: With air-travel demand having improved, AAL is constantly looking to add routes and broaden network. AAL expects 2023 adjusted earnings in the band of $3-$3.75 per share (the earlier view was in the $2.5-$3.5 per share range). AAL projects the September-end quarter's adjusted earnings per share in the $0.85-$0.95 range.
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c10bfdee-4269-4e31-be9c-0e1680bdd748
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2347.0
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2023-08-14 00:00:00 UTC
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Airlines, hotels branch out with experiences to lure travelers
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AAL
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https://www.nasdaq.com/articles/airlines-hotels-branch-out-with-experiences-to-lure-travelers
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By Doyinsola Oladipo
NEW YORK, Aug 14 (Reuters) - Casino operator MGM Resorts International MGM.N is finding Formula One's inaugural stop in Las Vegas is as much of a draw as its slot machines this year, and it is not the only company realizing that travelers are increasingly seeking out experiences beyond the traditional draws for tourists.
Global travel has rebounded in a big way in the post-pandemic period, but travelers are no longer plunking down as much cash on souvenirs, and instead splurging on sporting events or concert tickets in new destinations.
Airlines, hotels and travel operators are increasingly capitalizing on that, venturing beyond their usual services to arrange bookings for special experiences to keep customers.
"Our gaming revenues are up but relatively flat," MGM Chief Executive Officer Bill Hornbuckle told Reuters, saying revenue growth was being driven by entertainment, and luxury food and drink experiences. "There's just this appetite for experience at a higher level that people seem to be prepared to pay for."
Tourist spending on experiences like restaurants, amusement parks and nightclubs globally was up 65% in March 2023, the most recent month for which data is available,from March 2019, before the pandemic, according to Mastercard's Travel Industry Trends 2023 report. But spending by travelers on goods like cosmetics, jewelry and electronics is up just 12%, the report said.
"People love experiences," Airbnb's CEO ABNB.O Brian Chesky told investors on a post-earnings call in early August. On the Airbnb website, 95% of reviews for experiences receive a 5-star review while 84% of home stays get that rating, he said.
"That means that people on a statistical basis like experiences even more than homes," he said.
Chesky said Airbnb, a website that allows travelers to book short-term room or home rentals, plans to expand its experience offerings in coming years.
Other companies have also found revenues from experiences are growing.
Online travel company Tripadvisor's TRIP.O experiences platform Viator posted a 59% rise in second-quarter revenue to $216 million. The platform accounted for about 44% of the company's revenue in the quarter, up from 33% a year ago, according to company figures.
"2023 is on track to be another record-breaking year for our category. We’re outpacing last year’s and pre-pandemic bookings," said a Viator spokesperson.
Around two-thirds of total travel globally is now booked online but just about 30% of things to do while on vacation are booked online, said Dan Wasiolek, Morningstar equity analyst.
TRADITIONAL OPERATORS MUSCLE IN
Traditional hotel and flight operators are trying to tap into that business. American Airlines AAL.O in June started giving loyalty members the ability to earn flight miles and points on entertainment purchases when they book through the airline's website. The company said it has seen a significant increase in members using the site to purchase event tickets.
Hotel operator Marriott International MAR.O in February named its first-ever "chief customer officer" to develop and execute the company's global consumer strategy.
"We've been showcasing our experiences, which to me is about giving people access to things that they either couldn't necessarily plan or organize themselves," the new executive, Peggy Roe, said in an interview.
She cited examples like an auction for members to learn tricks on the field as well as get manicures with a professional U.S. women's soccer player in Washington.
Hornbuckle said MGM's occupancy level for November, when the Las Vegas F1 Grand Prix is scheduled, is double that in the same period a year ago, despite a higher price rate. He also said the biggest booking day of the year for the company in Las Vegas was the day the National Football League's Las Vegas Raiders released their yearly schedule for games.
Hilton Worldwide HLT.N saw a record number of points redeemed for experiences in 2022, and points redeemed for experiences so far this year have doubled from a year ago, said Brad Anderson, vice president of Hilton Honors Program Strategy.
Competitor Hyatt Hotels H.N launched an experience program in November 2022 with over 200 experiences like foraging in a Hungarian forest for truffles with expert hunters and their dogs or taking a spritz cocktail masterclass in Venice. The company said it has since increased its offerings by about 25%.
(Reporting by Doyinsola Oladipo in New York; editing by Deepa Babington)
((Doyinsola.Oladipo@thomsonreuters.com; +18623846440; https://www.linkedin.com/in/doyinsolaoladipo/;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O in June started giving loyalty members the ability to earn flight miles and points on entertainment purchases when they book through the airline's website. Chesky said Airbnb, a website that allows travelers to book short-term room or home rentals, plans to expand its experience offerings in coming years. Hotel operator Marriott International MAR.O in February named its first-ever "chief customer officer" to develop and execute the company's global consumer strategy.
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American Airlines AAL.O in June started giving loyalty members the ability to earn flight miles and points on entertainment purchases when they book through the airline's website. "Our gaming revenues are up but relatively flat," MGM Chief Executive Officer Bill Hornbuckle told Reuters, saying revenue growth was being driven by entertainment, and luxury food and drink experiences. Online travel company Tripadvisor's TRIP.O experiences platform Viator posted a 59% rise in second-quarter revenue to $216 million.
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American Airlines AAL.O in June started giving loyalty members the ability to earn flight miles and points on entertainment purchases when they book through the airline's website. By Doyinsola Oladipo NEW YORK, Aug 14 (Reuters) - Casino operator MGM Resorts International MGM.N is finding Formula One's inaugural stop in Las Vegas is as much of a draw as its slot machines this year, and it is not the only company realizing that travelers are increasingly seeking out experiences beyond the traditional draws for tourists. Chesky said Airbnb, a website that allows travelers to book short-term room or home rentals, plans to expand its experience offerings in coming years.
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American Airlines AAL.O in June started giving loyalty members the ability to earn flight miles and points on entertainment purchases when they book through the airline's website. By Doyinsola Oladipo NEW YORK, Aug 14 (Reuters) - Casino operator MGM Resorts International MGM.N is finding Formula One's inaugural stop in Las Vegas is as much of a draw as its slot machines this year, and it is not the only company realizing that travelers are increasingly seeking out experiences beyond the traditional draws for tourists. Online travel company Tripadvisor's TRIP.O experiences platform Viator posted a 59% rise in second-quarter revenue to $216 million.
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9cba386e-816d-4df2-a9b2-c03cfaf72c10
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2348.0
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2023-08-11 00:00:00 UTC
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5 Buy the Dip Prospects if Markets Keep Cooling
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AAL
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https://www.nasdaq.com/articles/5-buy-the-dip-prospects-if-markets-keep-cooling
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nan
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Broader markets lost some steam this week but the S&P 500 and Nasdaq are still up +18% and +30% in 2023 respectively.
This week’s cool-down could start presenting better buying opportunities and keep valuations more reasonable. In that regard here are several top-rated stocks from a variety of sectors that are worthy of consideration as they are shaping up to be ideal buy-the-dip candidates.
Computer & Technology
Considering the Nasdaq’s strong YTD performance, we’ll start with a pair of tech stocks that shouldn’t be overlooked in Jabil JBL and Hewlett Packard HPE.
Notably, Jabil’s Electronics-Manufacturing Services Industry is in Zacks top 2% of over 250 industries. As one of the largest global suppliers of electronic manufacturing services Jabil is expecting solid top and bottom line growth.
Annual earnings are forecasted to jump 11% this year and rise another 9% in FY24 at $9.25 per share. Fiscal 2023 sales are forecasted to be up 4% and rise another 3% in FY24 to $35.77 billion. Pleasantly, this steady growth makes Jabil a prime buy-the-dip candidate among tech stocks trading at 12.5X forward earnings which is on par with its industry average and nicely beneath the S&P 500’s 20.9X.
Image Source: Zacks Investment Research
Pivoting to Hewlett Packard, the company’s P/E valuation is also attractive at just 8.3X forward earnings which is well below its own industry average of 15.6X and the benchmark.
Plus, Hewlett Packard’s earnings are expected to be up 4% in FY23 to $2.11 per share. Annual earnings are expected to dip -1% in FY24 but EPS projections of $2.08 per share would still represent 54% growth over the last five years with 2020 earnings at $1.35 a share.
Image Source: Zacks Investment Research
Transportation
After impressively surpassing Q2 top and bottom-line expectations in July, American Airlines AAL and Delta Air Lines DAL might be overlooked at the moment. Both stocks trade under 10X forward earnings with rising earnings estimates supporting their attractive valuations.
Travel demand remains higher and the outlook continues to strengthen for airliners with earnings estimates still nicely up for American Airlines and Delta over the last 60 days. American Airlines’ fiscal 2023 earnings estimates have climbed 16% to $3.37 per share compared to $2.91 a share two months ago. Plus, FY24 earnings estimates are up 6%.
Image Source: Zacks Investment Research
The trend in earnings estimate revisions is similar for Delta with the company expecting noticeable bottom line expansion. Delta’s earnings are now forecasted to soar 108% in FY23 to $6.67 per share compared to $3.20 a share in 2022. Fiscal 2024 earnings are projected to leap another 13% to $7.52 per share.
Image Source: Zacks Investment Research
Multi-Sector Conglomerates
Another stock to watch is ITT Inc ITT, a global multi-industry leader in high-technology engineering and manufacturing projects. With an expanding bottom line, ITT stock also trades reasonably at 19.9X forward earnings.
This is a nice discount to the Diversified Operations Market’s 23.7X and ITT is a clear-cut leader in the space. More importantly, earnings estimates are ticking higher with ITT’s bottom line expected to expand 13% in FY23 and then another 12% in FY24 at $5.62 per share.
Image Source: Zacks Investment Research
Bottom Line
These top-rated Zacks stocks share the commonality of a Zacks Rank #2 (Buy) and an overall “A” VGM Style Scores grade for the combination of Value, Growth, and Momentum. Serving as a complementary set of indicators to use alongside the Zacks Rank this impressive Style Scores grade is also favorable for buying the dip.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
ITT Inc. (ITT) : Free Stock Analysis Report
Jabil, Inc. (JBL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : 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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Image Source: Zacks Investment Research Transportation After impressively surpassing Q2 top and bottom-line expectations in July, American Airlines AAL and Delta Air Lines DAL might be overlooked at the moment. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report ITT Inc. (ITT) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report To read this article on Zacks.com click here. Computer & Technology Considering the Nasdaq’s strong YTD performance, we’ll start with a pair of tech stocks that shouldn’t be overlooked in Jabil JBL and Hewlett Packard HPE.
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Image Source: Zacks Investment Research Transportation After impressively surpassing Q2 top and bottom-line expectations in July, American Airlines AAL and Delta Air Lines DAL might be overlooked at the moment. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report ITT Inc. (ITT) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Bottom Line These top-rated Zacks stocks share the commonality of a Zacks Rank #2 (Buy) and an overall “A” VGM Style Scores grade for the combination of Value, Growth, and Momentum.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report ITT Inc. (ITT) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Transportation After impressively surpassing Q2 top and bottom-line expectations in July, American Airlines AAL and Delta Air Lines DAL might be overlooked at the moment. Image Source: Zacks Investment Research The trend in earnings estimate revisions is similar for Delta with the company expecting noticeable bottom line expansion.
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Image Source: Zacks Investment Research Transportation After impressively surpassing Q2 top and bottom-line expectations in July, American Airlines AAL and Delta Air Lines DAL might be overlooked at the moment. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report ITT Inc. (ITT) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report To read this article on Zacks.com click here. Plus, Hewlett Packard’s earnings are expected to be up 4% in FY23 to $2.11 per share.
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0079b676-45e8-40b1-b4de-fc748e101b6c
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2349.0
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2023-08-11 00:00:00 UTC
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AZUL's Q2 Earnings & Revenues Miss Expectations, Rise Y/Y
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AAL
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https://www.nasdaq.com/articles/azuls-q2-earnings-revenues-miss-expectations-rise-y-y
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nan
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Azul AZUL incurred a loss (excluding $1.52 from non-recurring items) of 81 cents per share in the second quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 70 cents. Loss per share was 94 cents in second-quarter 2022.
Total revenues amounted to R$4,269.4 million ($862.7 million). The Zacks Consensus Estimate was pegged at $908.3 million. Despite this lag, the top line increased 7.8% year over year as air-travel demand has improved.
With more people taking to the skies, Azul’s passenger revenues, contributing 92.5% to the top line, increased 11% year over year (on higher total capacity). We estimated the metric to rise 16.5% year over year.
Cargo and other revenues declined 12.4% year over year. We projected a 1% year over year decline.
Consolidated traffic, measured in revenue passenger kilometers, jumped 10% (down 2.6% in domestic but up 93.8% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, grew 8.4% from the first quarter of 2022, with a 3.4% decline in domestic capacity and 95% rise in international capacity. Since traffic increase was more than capacity expansion, load factor (percentage of seats filled with passengers) climbed 1.2 percentage points to 79.9%.
Azul’s total revenues per ASK inched up 0.3% and passenger revenues per ASK rose 2.3% year over year. Cost per ASK (CASK) decreased 10.5% from the year-ago quarter’s reported figure to 38.89 cents. This was mainly stemmed from a fall in jet fuel prices apart from the company’s cost reduction initiatives and productivity gains.
Fuel cost per liter plunged 24.5% from the prior-year quarter’s reported figure. CASK, excluding fuel, grew 3.2% to 22.15 cents. Average fare gained 6% from second-quarter 2022 level.
AZUL exited the second quarter with total liquidity of R$5.5 billion. Gross debt tumbled R$1.1 billion sequentially to R$20.6 billion in the reported quarter, mainly due to appreciation of the Brazilian real.
Currently, Azul carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Sneak Peek Into Other Notable Airlines’ Results
American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front. Demand was particularly strong in June on the back of growth in close-in bookings.
United Airlines UAL reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues gained 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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 Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
AZUL (AZUL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL’s results were aided by lower costs and higher revenues.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here. A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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b517e35c-a642-4b57-bd40-780417e61683
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2350.0
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2023-08-10 00:00:00 UTC
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Antofagasta raises shareholder payouts after strong profit
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AAL
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https://www.nasdaq.com/articles/antofagasta-raises-shareholder-payouts-after-strong-profit
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nan
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Adds detail, CEO comment, background
LONDON, Aug 10 (Reuters) - Mining company Antofagasta ANTO.L raised shareholder returns on Thursday after posting a 7.5% rise in half-year profit as higher copper sales more than offset lower prices for the metal used in electrification.
The London-listed Chilean company bucked a trend among major miners including Rio Tinto RIO.L, RIO.AX, Glencore GLEN.L and Anglo American AAL.L, which reported lower half-year profits because of reduced commodities demand amid slower economic growth in key markets.
Antofagasta, majority owned by Chile's wealthy Luksic family, said it would increase its interim dividend to 11.7 cents per share from 9.2 cents last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the first six months of the year rose to $1.33 billion, up from $1.24 billion last year.
"Our focus remains on growing production through our pipeline of projects safely and competitively, which will generate value for all our stakeholders," said Chief Executive Ivan Arriagada.
The FTSE 100 company operates four copper mines in Chile, the world's biggest producer of the industrial metal, accounting for 30% of global output.
Copper demand is expected to increase in applications from solar panels to electric cars as the world moves toward green energy and electrification.
(Reporting by Clara Denina Editing by David Goodman)
((Clara.Denina@thomsonreuters.com;))
The views and 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 London-listed Chilean company bucked a trend among major miners including Rio Tinto RIO.L, RIO.AX, Glencore GLEN.L and Anglo American AAL.L, which reported lower half-year profits because of reduced commodities demand amid slower economic growth in key markets. Adds detail, CEO comment, background LONDON, Aug 10 (Reuters) - Mining company Antofagasta ANTO.L raised shareholder returns on Thursday after posting a 7.5% rise in half-year profit as higher copper sales more than offset lower prices for the metal used in electrification. The FTSE 100 company operates four copper mines in Chile, the world's biggest producer of the industrial metal, accounting for 30% of global output.
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The London-listed Chilean company bucked a trend among major miners including Rio Tinto RIO.L, RIO.AX, Glencore GLEN.L and Anglo American AAL.L, which reported lower half-year profits because of reduced commodities demand amid slower economic growth in key markets. Adds detail, CEO comment, background LONDON, Aug 10 (Reuters) - Mining company Antofagasta ANTO.L raised shareholder returns on Thursday after posting a 7.5% rise in half-year profit as higher copper sales more than offset lower prices for the metal used in electrification. The FTSE 100 company operates four copper mines in Chile, the world's biggest producer of the industrial metal, accounting for 30% of global output.
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The London-listed Chilean company bucked a trend among major miners including Rio Tinto RIO.L, RIO.AX, Glencore GLEN.L and Anglo American AAL.L, which reported lower half-year profits because of reduced commodities demand amid slower economic growth in key markets. Adds detail, CEO comment, background LONDON, Aug 10 (Reuters) - Mining company Antofagasta ANTO.L raised shareholder returns on Thursday after posting a 7.5% rise in half-year profit as higher copper sales more than offset lower prices for the metal used in electrification. "Our focus remains on growing production through our pipeline of projects safely and competitively, which will generate value for all our stakeholders," said Chief Executive Ivan Arriagada.
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The London-listed Chilean company bucked a trend among major miners including Rio Tinto RIO.L, RIO.AX, Glencore GLEN.L and Anglo American AAL.L, which reported lower half-year profits because of reduced commodities demand amid slower economic growth in key markets. Adds detail, CEO comment, background LONDON, Aug 10 (Reuters) - Mining company Antofagasta ANTO.L raised shareholder returns on Thursday after posting a 7.5% rise in half-year profit as higher copper sales more than offset lower prices for the metal used in electrification. Antofagasta, majority owned by Chile's wealthy Luksic family, said it would increase its interim dividend to 11.7 cents per share from 9.2 cents last year.
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d5c8ae51-2bd6-4650-b78e-d728f3e0f8af
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2351.0
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2023-08-10 00:00:00 UTC
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Are Transportation Stocks Lagging American Airlines (AAL) This Year?
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AAL
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https://www.nasdaq.com/articles/are-transportation-stocks-lagging-american-airlines-aal-this-year-1
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nan
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nan
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The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is American Airlines (AAL) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
American Airlines is a member of our Transportation group, which includes 131 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AAL's full-year earnings has moved 28.1% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, AAL has gained about 23.9% so far this year. In comparison, Transportation companies have returned an average of 13%. This means that American Airlines is outperforming the sector as a whole this year.
One other Transportation stock that has outperformed the sector so far this year is Air Canada (ACDVF). The stock is up 16.9% year-to-date.
Over the past three months, Air Canada's consensus EPS estimate for the current year has increased 44.7%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, American Airlines belongs to the Transportation - Airline industry, which includes 30 individual stocks and currently sits at #54 in the Zacks Industry Rank. This group has gained an average of 21.2% so far this year, so AAL is performing better in this area. Air Canada is also part of the same industry.
American Airlines and Air Canada could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Air Canada (ACDVF) : 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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Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 28.1% higher within the past quarter. Based on the latest available data, AAL has gained about 23.9% so far this year.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here. Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 28.1% higher within the past quarter.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here. Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 28.1% higher within the past quarter.
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Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 28.1% higher within the past quarter. Based on the latest available data, AAL has gained about 23.9% so far this year.
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35367582-2657-4d44-ae34-542efd62ecf1
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2352.0
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2023-08-10 00:00:00 UTC
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Is American Airlines (AAL) Stock Undervalued Right Now?
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AAL
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https://www.nasdaq.com/articles/is-american-airlines-aal-stock-undervalued-right-now-0
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nan
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nan
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
American Airlines (AAL) is a stock many investors are watching right now. AAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.86. This compares to its industry's average Forward P/E of 7.90. AAL's Forward P/E has been as high as 18.17 and as low as -88.98, with a median of 7.71, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AAL has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.49.
Finally, our model also underscores that AAL has a P/CF ratio of 2.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AAL's P/CF compares to its industry's average P/CF of 6.64. Within the past 12 months, AAL's P/CF has been as high as 26.90 and as low as 2.06, with a median of 4.81.
Allegiant (ALGT) may be another strong Transportation - Airline stock to add to your shortlist. ALGT is a # 2 (Buy) stock with a Value grade of A.
Allegiant sports a P/B ratio of 1.60 as well; this compares to its industry's price-to-book ratio of 4.71. In the past 52 weeks, ALGT's P/B has been as high as 1.88, as low as 0.98, with a median of 1.41.
These are just a handful of the figures considered in American Airlines and Allegiant's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AAL and ALGT is an impressive value stock right now.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : 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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American Airlines (AAL) is a stock many investors are watching right now. AAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. AAL's Forward P/E has been as high as 18.17 and as low as -88.98, with a median of 7.71, all within the past year.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) is a stock many investors are watching right now. AAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) is a stock many investors are watching right now. AAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
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American Airlines (AAL) is a stock many investors are watching right now. AAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. AAL's Forward P/E has been as high as 18.17 and as low as -88.98, with a median of 7.71, all within the past year.
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c751aa3f-498a-4cd2-a089-45cb47f1c631
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2353.0
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2023-08-09 00:00:00 UTC
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Should You Buy RTX Corp Stock At $85?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-rtx-corp-stock-at-%2485
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nan
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nan
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RTX Corp stock (NYSE: RTX), formerly known as Raytheon Technologies, has seen a 13% fall in a month, underperforming the broader S&P500 index, up 2%. Although the company reported an upbeat Q2, its recall of over 1,000 engines and associated costs has weighed on its stock. In the longer term, RTX stock is up 23% from levels seen in late 2020, faring marginally better than the S&P 500 index, up around 20%.
This 23% growth for RTX stock since late 2020 can primarily be attributed to 1. RTX Corp’s revenue growth of 25% to $71 billion over the last twelve months, compared to $57 billion in 2020, 2. the company’s P/S ratio rising a modest 0.5% to 1.7x trailing revenues, partly offset by 3. a 1.7% rise in its total shares outstanding to 1.5 billion. This has meant that the company’s revenue per share metric has risen 23% to $48.49 now, compared to $39.54 in 2020. Our dashboard on Why RTX Corp Stock Moved has more details.
RTX Corp has undergone significant restructuring over recent years. United Technologies merged with Raytheon to form Raytheon Technologies in 2020. Furthermore, it spun off its OTIS and Carrier businesses, making Raytheon purely an aerospace and defense-focused company.
Raytheon’s commercial airplane business was hit during the pandemic weighing on its commercial OEM and aftermarket sales. This trend has now reversed, with both Pratt & Whitney and Collins Aerospace Systems segments driving the sales growth for the company in the recent past. This trend is expected to continue, with a multi-year travel demand recovery.
Late last month, the company reported its Q2 results, which were better than the street estimates. Total sales were up 12% to $18.3 billion, led by a 17% rise in Collins Aerospace revenue and 15% growth for Pratt & Whitney sales. Sales were comfortably above the $17.7 billion consensus estimate. RTX Corp’s bottom line of $1.29 on a per share and adjusted basis was also up 11% y-o-y. This compares with the consensus estimate of $1.12.
Not only did the company post upbeat results, it also raised its full-year outlook. It now expects total sales of $73.0 – $74.0 billion, compared to the $72.0 – $73.0 billion prior estimate, and its adjusted EPS to be between $4.95 and $5.05, up from the $4.90 to $5.05 range. However, the company lowered its free cash flow estimate by $500 million owing to a certain Pratt & Whitney engine recall. While the $500 million figure is for 2023, there are concerns that this cost may increase in 2024.
Finally, looking at valuation, we believe RTX stock has little room for growth, despite its recent fall. RTX stock is trading at 17x forward earnings of $5.00 at the mid-point of the provided range, compared to its last three-year average of 18x. Even if we were to look from a P/S multiple perspective, with RTX stock currently trading at 1.7x forward revenue per share of $50.04, compared to the last three-year average of 1.8x, it implies little room for growth. Our RTX Corp Valuation Ratios Comparison dashboard has more details.
Now, there could be a case for a slightly higher multiple compared to the historical average, given that the company is expected to benefit from rising global travel demand. Also, the ongoing geopolitical tensions should bode well for its defense business. That said, the recall of over 1,000 engines will surely weigh on the company’s bottom line expansion in 2023-24. As such, any significant deviation in the valuation multiple from the historical average may not be justified, in our view. Overall, we believe that investors will likely be better off choosing other stocks in defense and aerospace for better gains in the long term. Our take on Here’s Why Boeing Stock Is A Better Pick Over RTX is one such example.
While RTX stock looks like it has little room for growth, it is helpful to see how RTX Corp’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
What if you’re looking for a portfolio that aims for long-term growth? Here’s a value portfolio that’s done much better than the market since 2016.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
RTX Return -3% -16% 42%
S&P 500 Return -2% 17% 101%
Trefis Multi-Strategy Portfolio -4% 24% 298%
[1] Month-to-date and year-to-date as of 8/7/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This trend has now reversed, with both Pratt & Whitney and Collins Aerospace Systems segments driving the sales growth for the company in the recent past. Even if we were to look from a P/S multiple perspective, with RTX stock currently trading at 1.7x forward revenue per share of $50.04, compared to the last three-year average of 1.8x, it implies little room for growth. Now, there could be a case for a slightly higher multiple compared to the historical average, given that the company is expected to benefit from rising global travel demand.
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Total sales were up 12% to $18.3 billion, led by a 17% rise in Collins Aerospace revenue and 15% growth for Pratt & Whitney sales. Even if we were to look from a P/S multiple perspective, with RTX stock currently trading at 1.7x forward revenue per share of $50.04, compared to the last three-year average of 1.8x, it implies little room for growth. Our RTX Corp Valuation Ratios Comparison dashboard has more details.
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RTX Corp’s revenue growth of 25% to $71 billion over the last twelve months, compared to $57 billion in 2020, 2. the company’s P/S ratio rising a modest 0.5% to 1.7x trailing revenues, partly offset by 3. a 1.7% rise in its total shares outstanding to 1.5 billion. While RTX stock looks like it has little room for growth, it is helpful to see how RTX Corp’s Peers fare on metrics that matter. Total [2] RTX Return -3% -16% 42% S&P 500 Return -2% 17% 101% Trefis Multi-Strategy Portfolio -4% 24% 298% [1] Month-to-date and year-to-date as of 8/7/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and 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 now expects total sales of $73.0 – $74.0 billion, compared to the $72.0 – $73.0 billion prior estimate, and its adjusted EPS to be between $4.95 and $5.05, up from the $4.90 to $5.05 range. Even if we were to look from a P/S multiple perspective, with RTX stock currently trading at 1.7x forward revenue per share of $50.04, compared to the last three-year average of 1.8x, it implies little room for growth. While RTX stock looks like it has little room for growth, it is helpful to see how RTX Corp’s Peers fare on metrics that matter.
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67471a43-89e2-4bb4-8ce2-ff284697bfcf
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2354.0
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2023-08-08 00:00:00 UTC
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Expeditors (EXPD) Stock Down on Q2 Earnings & Revenue Miss
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AAL
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https://www.nasdaq.com/articles/expeditors-expd-stock-down-on-q2-earnings-revenue-miss
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nan
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nan
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Expeditors International of Washington’s EXPD second-quarter 2023 earnings of $1.30 per share fell short of the Zacks Consensus Estimate of $1.34. Moreover, the bottom line plunged 42.7% year over year. Total revenues of $2,239.8 million lagged the Zacks Consensus Estimate of 2,878.8 million and decreased 51.3% year over year. Results were hurt by the lackluster demand scenario.
The below-par second-quarter performance naturally disappointed investors. As a result, EXPD stock declined in early trading following the earnings release.
A dip in volumes also played spoilsport. Airfreight tonnage and ocean container volumes tumbled 15% and 13% year over year, respectively. Operating income declined 51% to $278 million. Total operating expenses fell 51% to $1.99 billion.
Airfreight services revenues decreased 53% year over year to $525 million in the second quarter of 2023. Ocean freight and ocean services revenues fell 66.2% to $593.8 million. Customs brokerage and other services revenues declined 27.9% year over year to $894.8 million.
Expeditors International of Washington, Inc. Price, Consensus and EPS Surprise
Expeditors International of Washington, Inc. price-consensus-eps-surprise-chart | Expeditors International of Washington, Inc. Quote
Per Jeffrey S. Musser, EXPD’s president and chief executive officer, “Despite increased air capacity, shippers face uncertain demand for their products, as consumers remain cautious amidst declines in their purchasing power. In that regard, second-quarter operating conditions were very much a continuation of what we experienced in the immediately prior two quarters”.
In the reported quarter, EXPD repurchased 6 million shares at an average price of $114.61 per share. Expeditors also pays dividends of 69 cents per share on a semi-annual basis. It exited the June-end quarter with cash and cash equivalents of $1.69 billion compared with $2.03 billion at 2022 end.
Currently, Expeditors carries a Zacks Rank #3 (Hold).
Q2 Performance of Some Other Transportation Companies
American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million. Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front.
Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2 (Buy).
United Airlines UAL, currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Operating revenues of $14,178 million outshined the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. AAL currently carries a Zacks Rank #2 (Buy).
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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dc4a6808-9d01-4e49-a4ac-57222ce3fc8b
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2355.0
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2023-08-08 00:00:00 UTC
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Archer Aviation’s Electric Rise: Is ACHR the Next Big Thing in vTOL Stocks?
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AAL
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https://www.nasdaq.com/articles/archer-aviations-electric-rise%3A-is-achr-the-next-big-thing-in-vtol-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Archer Aviation (NASDAQ:ACHR) stock got a boost this week. The company became the unquestioned leader in the electric vertical take-off and landing business this last week. That’s thanks to a $142 million contract from the U.S. Air Force.
The contract is for six of its “Midnight” craft. The deal comes with training, repair, and data service revenue. Midnight, first assembled in May, carries four passengers, plus a pilot, and has a range of 100 miles.
Archer shares jumped 29% on the news and are up 200% in 2023.
A Closer Look at ACHR Stock
Electric vTOLs fly forward like airplanes but take off vertically, like helicopters. They have been under development for years, promising fast service between the homes of the wealthy and major airports.
Archer is one of several vTOL companies vying in civilian and military markets. Joby Aviation (NASDAQ:JOBY) recently signed a $200 million deal to develop air taxis for Delta Airlines (NYSE:DAL).
American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) have also invested in the space.
Boeing (NYSE:BA) owns an air taxi company called Wisk, for which it paid $450 million in 2022.
Wisk sued Archer for patent infringement and theft of trade secrets in 2021. A judge recently knocked down some claims but set the suit for trial.
This is a global competition. There are Chinese players, like Ehang (NASDAQ:EH), whose craft is more helicopter-like with four rotors at the corners. There’s also a German player, Lilium, which raised $150 million from investors this year.
Interest in vTOLs increased after the Federal Aviation Administration outlined plans for regulating a competitive market in July. Commercial flights are now expected in 2025, with service expected to be routine by 2028.
Archer appears to be in the lead, not only thanks to the Air Force, but agreements to sell several hundred units and build a factory in Georgia.
The FAA statement is the first step toward approving regular commercial service.
Archer has been working with the Air Force since 2021. Its craft are seen as an alternative to helicopters. The Air Force hopes they will also be more cost-effective to transport, operate and maintain.
What Comes Next?
ACHR stock went public in 2021 after it landed a $1 billion deal with United that let it go into production. United and Archer announced an air taxi service out of Chicago O’Hare in February.
Archer now has a market cap of $1.42 billion. Analysts believe the Air Force contract gives ACHR stock a leg-up, thanks to a steady stream of revenue that will also help fund its development. The deal is contingent, however, on Archer delivering the Midnight with the promised specifications.
The Bottom Line
These are still early days in the electric vTOL market. A single accident, or failure to gain certification, could cripple any company.
By the end of the decade, this will be a real business, but between here and there will be many twists and turns. ACHR stock remains speculative, albeit the best one I have seen.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The post Archer Aviation’s Electric Rise: Is ACHR the Next Big Thing in vTOL Stocks? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) have also invested in the space. Interest in vTOLs increased after the Federal Aviation Administration outlined plans for regulating a competitive market in July. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) have also invested in the space. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Archer Aviation (NASDAQ:ACHR) stock got a boost this week. Joby Aviation (NASDAQ:JOBY) recently signed a $200 million deal to develop air taxis for Delta Airlines (NYSE:DAL).
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American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) have also invested in the space. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Archer Aviation (NASDAQ:ACHR) stock got a boost this week. Joby Aviation (NASDAQ:JOBY) recently signed a $200 million deal to develop air taxis for Delta Airlines (NYSE:DAL).
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American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) have also invested in the space. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Archer Aviation (NASDAQ:ACHR) stock got a boost this week. That’s thanks to a $142 million contract from the U.S. Air Force.
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5d9784b2-58d5-473b-9523-57a6b2ca1cac
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2356.0
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2023-08-08 00:00:00 UTC
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Glencore stays on acquisition path as first-half earnings halve
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AAL
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https://www.nasdaq.com/articles/glencore-stays-on-acquisition-path-as-first-half-earnings-halve
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nan
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nan
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Adds detail throughout, CEO quote in paragraph 4
LONDON, Aug 8 (Reuters) - Commodities and mining group Glencore GLEN.L on Tuesday said it remains on the hunt for acquisitions, including a possible partial or full takeover of Canada's Teck Resources, after reporting a halving in earnings in the first six months of the year.
Glencore joined rival miners Rio Tinto RIO.L, RIO.AX, Teck Resources TECKb.TO and Anglo American AAL.L in reporting lower profit, as economic growth, including in major consumer China, remained lacklustre.
Glencore's adjusted core earnings, or earnings before interest, tax, depreciation and amortisation (EBITDA), fell to $9.39 billion in the six months through June, from $18.92 billion a year earlier. Analysts at Deutsche Bank had expected half-year earnings of $9.9 billion, while Citi's estimate was $11.4 billion.
"As the world moves towards a low-carbon economy, we remain focused on supporting the energy needs of today whilst investing in our transition metals portfolio," CEO Gary Nagle said.
The company announced additional returns of around $2.2 billion, lifting total announced shareholder payouts this year to $9.3 billion, and said that its divestment of agricultural business Viterra and subsequent merger with U.S. giant Bunge is expected to close in the middle of 2024.
(Reporting by Clara Denina and Pratima Desai; Editing by Kirsten Donovan)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Glencore joined rival miners Rio Tinto RIO.L, RIO.AX, Teck Resources TECKb.TO and Anglo American AAL.L in reporting lower profit, as economic growth, including in major consumer China, remained lacklustre. Adds detail throughout, CEO quote in paragraph 4 LONDON, Aug 8 (Reuters) - Commodities and mining group Glencore GLEN.L on Tuesday said it remains on the hunt for acquisitions, including a possible partial or full takeover of Canada's Teck Resources, after reporting a halving in earnings in the first six months of the year. "As the world moves towards a low-carbon economy, we remain focused on supporting the energy needs of today whilst investing in our transition metals portfolio," CEO Gary Nagle said.
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Glencore joined rival miners Rio Tinto RIO.L, RIO.AX, Teck Resources TECKb.TO and Anglo American AAL.L in reporting lower profit, as economic growth, including in major consumer China, remained lacklustre. Adds detail throughout, CEO quote in paragraph 4 LONDON, Aug 8 (Reuters) - Commodities and mining group Glencore GLEN.L on Tuesday said it remains on the hunt for acquisitions, including a possible partial or full takeover of Canada's Teck Resources, after reporting a halving in earnings in the first six months of the year. Analysts at Deutsche Bank had expected half-year earnings of $9.9 billion, while Citi's estimate was $11.4 billion.
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Glencore joined rival miners Rio Tinto RIO.L, RIO.AX, Teck Resources TECKb.TO and Anglo American AAL.L in reporting lower profit, as economic growth, including in major consumer China, remained lacklustre. Adds detail throughout, CEO quote in paragraph 4 LONDON, Aug 8 (Reuters) - Commodities and mining group Glencore GLEN.L on Tuesday said it remains on the hunt for acquisitions, including a possible partial or full takeover of Canada's Teck Resources, after reporting a halving in earnings in the first six months of the year. Glencore's adjusted core earnings, or earnings before interest, tax, depreciation and amortisation (EBITDA), fell to $9.39 billion in the six months through June, from $18.92 billion a year earlier.
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Glencore joined rival miners Rio Tinto RIO.L, RIO.AX, Teck Resources TECKb.TO and Anglo American AAL.L in reporting lower profit, as economic growth, including in major consumer China, remained lacklustre. Adds detail throughout, CEO quote in paragraph 4 LONDON, Aug 8 (Reuters) - Commodities and mining group Glencore GLEN.L on Tuesday said it remains on the hunt for acquisitions, including a possible partial or full takeover of Canada's Teck Resources, after reporting a halving in earnings in the first six months of the year. Glencore's adjusted core earnings, or earnings before interest, tax, depreciation and amortisation (EBITDA), fell to $9.39 billion in the six months through June, from $18.92 billion a year earlier.
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bd122a7c-0c13-42ca-8b17-42e056aabf15
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2357.0
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2023-08-08 00:00:00 UTC
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What Awaits ZIM Integrated Shipping (ZIM) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/what-awaits-zim-integrated-shipping-zim-in-q2-earnings-0
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nan
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nan
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ZIM Integrated Shipping Services ZIM is slated to release second-quarter 2023 results on Aug 16, before market open.
The Zacks Consensus Estimate is pegged at a loss of 88 cents per share, widened from a loss of 53 cents over the past 90 days. ZIM Integrated Shipping, which went public in February 2021, surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters (missed twice), the average miss being 33.11%.
ZIM Integrated Shipping Services Ltd. Price and EPS Surprise
ZIM Integrated Shipping Services Ltd. price-eps-surprise | ZIM Integrated Shipping Services Ltd. Quote
Against this backdrop, let’s look at the factors that might have shaped ZIM’s June-quarter performance.
We expect the company’s bottom-line performance to have been hit by escalated voyage operating expenses. High fuel and labor costs are also likely to have played spoilsport. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
Supply-chain disruptions, lower shipments and slowdown in freight demand might have dented ZIM’s performance in the quarter under review.
On a brighter note, buoyant travel demand is likely to have boosted voyage revenues in the quarter under review. Continued fleet-expansion initiatives are also likely to have driven the company’s performance.
Earnings Whisper
Our proven model does not conclusively predict an earnings beat for ZIM Integrated Shipping this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of -20.00% (the Most Accurate Estimate is pegged at a loss of $1.06 and the Zacks Consensus Estimate is pegged at a loss of 88 cents). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ZIM Integrated Shipping has a Zacks Rank #4 (Sell), currently.
Q2 Performance of Some Other Transportation Companies
American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front.
Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2.
United Airlines UAL, currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Operating revenues of $14,178 million outshined the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar
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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
ZIM Integrated Shipping Services Ltd. (ZIM) : 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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Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. AAL currently carries a Zacks Rank #2.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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Q2 Performance of Some Other Transportation Companies American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. AAL currently carries a Zacks Rank #2.
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e31de5c1-ae30-4de2-a33a-6747f4cfa9e8
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2358.0
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2023-08-07 00:00:00 UTC
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Airlines seek extension to minimum flight requirements cuts at New York-area airports
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AAL
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https://www.nasdaq.com/articles/airlines-seek-extension-to-minimum-flight-requirements-cuts-at-new-york-area-airports
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nan
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nan
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By David Shepardson
WASHINGTON, Aug 7 (Reuters) - Major U.S. airlines on Monday asked the Federal Aviation Administration to extend cuts to minimum flight requirements at congested New York City-area airports and a Washington airport, citing a lack of adequate air traffic control staffing.
The FAA in March agreed to the request of Delta Air Lines DAL.N and United Airlines UAL.O to temporarily return up to 10% of slots and flights at New York-area airports and Washington National Airport through Sept. 15.
Airlines for America, a trade group representing major carriers, in a letter seen by Reuters, asked that the cuts be extended through Oct. 28, saying air traffic staffing levels in a key northeastern sector have not "meaningfully improved."
Airlines can lose their slots at congested airports if they do not use them at least 80% of the time. In the Airlines for America letter, the group said air traffic control staffing and extreme weather "are unique circumstances beyond our control." The group added: "Granting relief for the rest of the summer season is in the best interest of the flying public because it will minimize disruptions and provide greater predictability for airlines and consumers."
Last month, Chicago-based United said it would drop to about 395 daily flights from 410 at Newark Liberty International Airport after planning 438 on peak days before the FAA waiver.
In June, a government audit said the FAA faces critical air traffic staffing shortages and "lacks a plan to address them."
The audit said New York Terminal Radar Approach Control (TRACON) staffing was at 54% compared with optimal levels; it had eight supervisors but was authorized for 30.
Last summer there were 41,498 flights from New York airports where air traffic control staffing was a contributing factor in delays.
The FAA did not immediately comment on Monday. In March, it said that later this year it planned to reassign approximately 100 square miles of Newark airspace from the area known as N90 to the Philadelphia Terminal Radar Approach Control to address staffing issues.
"Since the issuance of the March waiver, the Newark airspace has not been transferred, nor have the staffing levels at N90 meaningfully improved," Airlines for America said in Monday's letter.
(Reporting by David Shepardson in Washington Editing by Leslie Adler and Matthew Lewis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and 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 for America, a trade group representing major carriers, in a letter seen by Reuters, asked that the cuts be extended through Oct. 28, saying air traffic staffing levels in a key northeastern sector have not "meaningfully improved." The group added: "Granting relief for the rest of the summer season is in the best interest of the flying public because it will minimize disruptions and provide greater predictability for airlines and consumers." In March, it said that later this year it planned to reassign approximately 100 square miles of Newark airspace from the area known as N90 to the Philadelphia Terminal Radar Approach Control to address staffing issues.
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By David Shepardson WASHINGTON, Aug 7 (Reuters) - Major U.S. airlines on Monday asked the Federal Aviation Administration to extend cuts to minimum flight requirements at congested New York City-area airports and a Washington airport, citing a lack of adequate air traffic control staffing. Airlines for America, a trade group representing major carriers, in a letter seen by Reuters, asked that the cuts be extended through Oct. 28, saying air traffic staffing levels in a key northeastern sector have not "meaningfully improved." In the Airlines for America letter, the group said air traffic control staffing and extreme weather "are unique circumstances beyond our control."
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By David Shepardson WASHINGTON, Aug 7 (Reuters) - Major U.S. airlines on Monday asked the Federal Aviation Administration to extend cuts to minimum flight requirements at congested New York City-area airports and a Washington airport, citing a lack of adequate air traffic control staffing. The FAA in March agreed to the request of Delta Air Lines DAL.N and United Airlines UAL.O to temporarily return up to 10% of slots and flights at New York-area airports and Washington National Airport through Sept. 15. Airlines for America, a trade group representing major carriers, in a letter seen by Reuters, asked that the cuts be extended through Oct. 28, saying air traffic staffing levels in a key northeastern sector have not "meaningfully improved."
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By David Shepardson WASHINGTON, Aug 7 (Reuters) - Major U.S. airlines on Monday asked the Federal Aviation Administration to extend cuts to minimum flight requirements at congested New York City-area airports and a Washington airport, citing a lack of adequate air traffic control staffing. In March, it said that later this year it planned to reassign approximately 100 square miles of Newark airspace from the area known as N90 to the Philadelphia Terminal Radar Approach Control to address staffing issues. "Since the issuance of the March waiver, the Newark airspace has not been transferred, nor have the staffing levels at N90 meaningfully improved," Airlines for America said in Monday's letter.
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061e69bd-caa5-42a0-85a2-9b4231618fb6
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2359.0
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2023-08-07 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAL
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AAL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-3
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nan
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 84% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
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Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
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Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
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1fe38028-651b-4d51-bccc-40f9322dec19
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2360.0
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2023-08-07 00:00:00 UTC
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Airlines take aim at Italy's plans to bring down sky-high prices
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AAL
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https://www.nasdaq.com/articles/airlines-take-aim-at-italys-plans-to-bring-down-sky-high-prices
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nan
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nan
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Repeats to additional subscribers
ROME, Aug 7 (Reuters) - A group of airlines operating in Italy on Monday criticised government plans to curb ticket prices at the height of the summer season, saying they could breach European Union free market rules.
Prime Minister Giorgia Meloni's cabinet was set to approve later on Monday a decree law covering a range of subjects including support for strategic industries, taxi licences, a blue crab invasion as well as airline prices.
The draft decree, still subject to change, forbids companies from raising fares for Sicily or Sardinia beyond a level that is "200% higher" than the average price for such routes. Ticket prices to Italy's two main islands have soared in recent weeks.
The Italian Board of Airlines Representatives (IBAR) and Assaereo trade associations complained in a joint statement that the government never discussed the issue with them, saying it could have led to "less punitive solutions."
They also said the price controls "appear to be in conflict with the applicable sector regulations," which generally allow carriers operating in the EU "to choose the routes on which to operate and to freely set passenger and cargo fares."
Sicily and Sardinia, have poor connections to the mainland, leaving both residents and tourists little choice but to use air transport to reach them, even when prices are sky-high during peak seasons.
Companies including Lufthansa LHAG.DE, EasyJet EZJ.L, American Airlines AAL.O and Delta DAL.N are members of the IBAR, the association's website shows.
The groups called on the government to reconsider its decision, warning that "any attempt to restrict the freedoms of the sector and the competition that characterises it" could negatively impact supply and ticket prices, as well as employment levels in the airline sector and related industries.
Measures in a decree law take effect immediately, but parliament has to ratify them within two months, otherwise they lapse. Parliament can also amend the contents of a decree during the ratification procedure.
(Reporting by Angelo Amante, editing by Alvise Armellini)
((Angelo.Amante@thomsonreuters.com; @AmanteAngelo;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies including Lufthansa LHAG.DE, EasyJet EZJ.L, American Airlines AAL.O and Delta DAL.N are members of the IBAR, the association's website shows. Repeats to additional subscribers ROME, Aug 7 (Reuters) - A group of airlines operating in Italy on Monday criticised government plans to curb ticket prices at the height of the summer season, saying they could breach European Union free market rules. Prime Minister Giorgia Meloni's cabinet was set to approve later on Monday a decree law covering a range of subjects including support for strategic industries, taxi licences, a blue crab invasion as well as airline prices.
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Companies including Lufthansa LHAG.DE, EasyJet EZJ.L, American Airlines AAL.O and Delta DAL.N are members of the IBAR, the association's website shows. Repeats to additional subscribers ROME, Aug 7 (Reuters) - A group of airlines operating in Italy on Monday criticised government plans to curb ticket prices at the height of the summer season, saying they could breach European Union free market rules. Prime Minister Giorgia Meloni's cabinet was set to approve later on Monday a decree law covering a range of subjects including support for strategic industries, taxi licences, a blue crab invasion as well as airline prices.
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Companies including Lufthansa LHAG.DE, EasyJet EZJ.L, American Airlines AAL.O and Delta DAL.N are members of the IBAR, the association's website shows. Repeats to additional subscribers ROME, Aug 7 (Reuters) - A group of airlines operating in Italy on Monday criticised government plans to curb ticket prices at the height of the summer season, saying they could breach European Union free market rules. Prime Minister Giorgia Meloni's cabinet was set to approve later on Monday a decree law covering a range of subjects including support for strategic industries, taxi licences, a blue crab invasion as well as airline prices.
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Companies including Lufthansa LHAG.DE, EasyJet EZJ.L, American Airlines AAL.O and Delta DAL.N are members of the IBAR, the association's website shows. Repeats to additional subscribers ROME, Aug 7 (Reuters) - A group of airlines operating in Italy on Monday criticised government plans to curb ticket prices at the height of the summer season, saying they could breach European Union free market rules. Prime Minister Giorgia Meloni's cabinet was set to approve later on Monday a decree law covering a range of subjects including support for strategic industries, taxi licences, a blue crab invasion as well as airline prices.
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9ebf4e2f-22d5-4669-9336-12ecbbce8d58
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2361.0
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2023-08-07 00:00:00 UTC
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Markets Today: Stocks Push Higher on Earnings Optimism
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AAL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-push-higher-on-earnings-optimism
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nan
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nan
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Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are up +0.28%, and Sep Nasdaq 100 E-Mini futures (NQU23) are up +0.41%.
Stock indexes this morning are moderately higher on optimism that Q2 corporate earnings results will continue to outperform. M&A activity also boosted stocks after Campbell Soup agreed to acquire Sovos Brands in a deal valued at $2.7 billion. Hawkish Fed comments from Fed Governor Bowman and NY Fed President Williams pushed bond yields higher and limited gains in stock index futures.
NY Fed President Williams said, "I expect that Fed policy will need to be kept restrictive for some time" and that the need for more rate hikes is "an open question."
Fed Governor Bowman said that "additional rate increases will likely be needed to get inflation on a path down to the FOMC's 2% target" to fully restore price stability.
The markets are discounting the odds at 16% for a +25 bp rate hike at the September 20 FOMC meeting and 38% for a +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are higher. The 10-year T-note yield is up +5.1 bp at 4.084%. The 10-year German bund yield is up +2.9 bp at 2.591%. The 10-year UK gilt yield is up +6.2 bp at 4.441%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.20%. China’s Shanghai Composite Index today closed down -0.59%. Japan’s Nikkei Stock Index closed up +0.19%.
The Euro Stoxx 50 today is slightly lower. Weakness in mining stocks is leading the overall market lower today after Goldman Sachs warned of the possibility that China may cut steel output in this half of the year. Also, concerns about the German economy, the Eurozone’s largest, weighed on stocks after German Jun industrial production fell more than expected. Losses in European stocks were contained after the Eurozone Aug Sentix investor confidence index unexpectedly increased.
The Eurozone Aug Sentix investor confidence index unexpectedly rose +3.6 to -18.9, stronger than expectations of a decline to -24.5.
German Jun industrial production fell -1.5% m/m, weaker than expectations of -0.5% m/m.
China’s Shanghai Composite today posted moderate losses. A slump in Chinese healthcare and pharmaceutical stocks weighed on the overall market today after authorities widened an anti-graft crackdown on the sectors. According to a local media report, at least 155 officials nationwide were being probed for allegedly violating laws and regulations, more than double the amount investigated last year. Losses in the overall market were limited as Chinese companies that develop computer operating systems and information security equipment rallied after the Ministry of Finance announced standards for the products that it plans to purchase via public tenders.
Japan’s Nikkei Stock Index today recovered from a 3-1/2 week low and closed slightly higher. Japanese steelmakers rallied today, led by a +3% gain in Nippon Steel after it raised its full-year net income forecast above the consensus. Also, telecom stocks rose after Softbank reported better-than-expected Q1 operating profit. In addition, property and retail stocks gained amid expectations for stable inflation. Finally, weakness in the yen today pushed exporter stocks higher as the weaker yen bolsters the earnings prospects of exporters.
The Japan Jun leading index CI fell -0.3 to 108.9, right on expectations.
Pre-Market U.S. Stock Movers
Berkshire Hathaway (BRK/A) rose more than +1% in pre-market trading after reporting Q2 operating income of $10.04 billion, well above the consensus of $9.28 billion.
Sovos Brands (SOVO) soared more than +24% in pre-market trading after Campbell Soup agreed to acquire the company for about $2.7 billion.
Elanco Animal Health (ELAN) jumped more than +8% in pre-market trading after reporting Q2 revenue of $1.06 billion, better than the consensus of $1.04 billion, and raising its full-year revenue forecast to $4.35 billion-$4.41 billion from a previous estimate of $4.31 billion-$4.40 billion, stronger than the consensus of $4.35 billion.
Wayfair (W) climbed more than +2% in pre-market trading after UBS upgraded the stock to buy from neutral with a price target of $110.
Fortinet (FTNT) moved up more than +3% in pre-market trading after Guggenheim Securities upgraded the stock to buy from neutral with a price target of $70.
PG&E (PCG) gained more than +1% in pre-market trading after UBS upgraded the stock to buy from neutral with a price target of $21.
Monster Beverage (MNST) climbed more than +3% in pre-market trading after Piper Sandler upgraded the stock to overweight from neutral.
Tyson Foods (TSN) tumbled more than -5% in pre-market trading after reporting Q3 sales of $13.14 billion, weaker than the consensus of $13.59 billion.
Biogen (BIIB) dropped more than -3% in pre-market trading after Piper Sandler cut its price target on the stock to $350 from $380.
Cloudflare (NET) fell more than -2% in pre-market trading after Guggenheim Securities downgraded the stock to sell from neutral with a price target of $50.
American Airlines Group (AAL) slid more than -1% in pre-market trading after Redburn downgraded the stock to neutral from buy.
Southwest Airlines (LUV) fell more than -1% in pre-market trading after Redburn downgraded the stock to sell from neutral.
Apellis Pharmaceuticals (APLS) dropped more than -10% in pre-market trading after Wedbush cut its price target on the stock to $29 from $32.
Today’s U.S. Earnings Reports (8/7/2023)
Celanese Corp (CE), Coterra Energy Inc (CTRA), Henry Schein Inc (HSIC), International Flavors & Fragrances (IFF), ONEOK Inc (OKE), Paramount Global (PARA), Skyworks Solutions Inc (SWKS), Tyson Foods Inc (TSN), Viatris Inc (VTRS).
More Stock Market News from Barchart
Option Volatility and Earnings Report for August 7 - 11 Stocks Set to Open Higher as Investors Await U.S. Inflation Data and More Corporate Earnings Rates, CPI and Other Can't Miss Items This Week Stop Wasting Time and Start Comprehending the Australian Dollars Seasonal Trading Pattern in August
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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American Airlines Group (AAL) slid more than -1% in pre-market trading after Redburn downgraded the stock to neutral from buy. Losses in the overall market were limited as Chinese companies that develop computer operating systems and information security equipment rallied after the Ministry of Finance announced standards for the products that it plans to purchase via public tenders. Today’s U.S. Earnings Reports (8/7/2023) Celanese Corp (CE), Coterra Energy Inc (CTRA), Henry Schein Inc (HSIC), International Flavors & Fragrances (IFF), ONEOK Inc (OKE), Paramount Global (PARA), Skyworks Solutions Inc (SWKS), Tyson Foods Inc (TSN), Viatris Inc (VTRS).
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American Airlines Group (AAL) slid more than -1% in pre-market trading after Redburn downgraded the stock to neutral from buy. Hawkish Fed comments from Fed Governor Bowman and NY Fed President Williams pushed bond yields higher and limited gains in stock index futures. The Eurozone Aug Sentix investor confidence index unexpectedly rose +3.6 to -18.9, stronger than expectations of a decline to -24.5.
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American Airlines Group (AAL) slid more than -1% in pre-market trading after Redburn downgraded the stock to neutral from buy. Pre-Market U.S. Stock Movers Berkshire Hathaway (BRK/A) rose more than +1% in pre-market trading after reporting Q2 operating income of $10.04 billion, well above the consensus of $9.28 billion. Elanco Animal Health (ELAN) jumped more than +8% in pre-market trading after reporting Q2 revenue of $1.06 billion, better than the consensus of $1.04 billion, and raising its full-year revenue forecast to $4.35 billion-$4.41 billion from a previous estimate of $4.31 billion-$4.40 billion, stronger than the consensus of $4.35 billion.
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American Airlines Group (AAL) slid more than -1% in pre-market trading after Redburn downgraded the stock to neutral from buy. The Japan Jun leading index CI fell -0.3 to 108.9, right on expectations. Pre-Market U.S. Stock Movers Berkshire Hathaway (BRK/A) rose more than +1% in pre-market trading after reporting Q2 operating income of $10.04 billion, well above the consensus of $9.28 billion.
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51d0314e-fe70-4552-9aee-b869bd1ab246
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2362.0
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2023-08-04 00:00:00 UTC
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Airline Stock Roundup: ALGT & JBLU Beat on Q2 Earnings, SAVE & GOL Miss
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-algt-jblu-beat-on-q2-earnings-save-gol-miss
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nan
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nan
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In the past week, key players like JetBlue Airways JBLU, Allegiant Travel Company ALGT, Gol Linhas GOL and Spirit Airlines SAVE reported earnings for second-quarter 2023. Results were aided by upbeat air travel demand and lower fuel costs.
Despite reporting better-than-expected earnings per share, JetBlue shares declined following the earnings release. The downside was due to the bearish guidance issued by management for third quarter as well as full-year 2023. The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL, following an adverse court ruling.
Recap of the Past Week’s Most Important Stories
1. JetBlue Airways’ second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of 45 cents per share beat the Zacks Consensus Estimate of 40 cents. The results were aided by strong air travel demand. In the year-ago quarter, JBLU incurred a loss of 47 cents per share. Operating revenues of $2,610 million marginally missed the Zacks Consensus Estimate of $2,610.9 million. However, the top line increased 6.75% year over year on account of improving air travel demand. Passenger revenues, accounting for the bulk of the top line (94.25%), climbed to $2,460 million from $2,302 million a year ago when air travel demand was not so robust. Management expects third-quarter revenues to decrease year over year in the range of 4-8%. JBLU currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
2. Gol Linhas reported second-quarter 2023 loss of 41 cents per share, wider than the Zacks Consensus Estimate of a loss of 11 cents. In the year-ago quarter, GOL had incurred a loss of 43 cents. Net operating revenues of $837.7 million lagged the Zacks Consensus Estimate of $842.7 million. However, with people again taking to the skies, the top line improved year over year. Gol expects capacity to increase 15-20% year over year in 2023.
3. Spirit Airlines’ second-quarter 2023 earnings (excluding 31 cents from non-recurring items) of 29 cents per share missed the Zacks Consensus Estimate of 38 cents. In the year-ago quarter, SAVE had incurred a loss of 30 cents per share. Revenues of $1,432.5 million too missed the Zacks Consensus Estimate of $1,472.2 million. However, the top line improved 4.8% year over year on the back of increased flight volume. In second-quarter 2023, passenger revenues, which accounted for the bulk of the top line (98.4%), increased 4.6% year over year to $1,410.1 million. Other revenues increased 19.4% year over year to $22.4 million.
For third-quarter 2023, management expects total revenues in the $1.3-$1.32 billion range. Adjusted operating margin is expected to be between -5.5% and -7.5%. Fuel gallons consumed are expected to be $147 million. Fuel price per gallon is anticipated to be $2.80. The effective tax rate is projected to be 22.6%. Available seat miles are anticipated to increase 13.7% from third-quarter 2022 actuals.
4. Allegiant Travel reported second-quarter 2023 earnings (excluding 45 cents from non-recurring items) of $4.35 per share, surpassing the Zacks Consensus Estimate of $3.63. The company had reported earnings of 62 cents in the year-ago reported quarter. Operating revenues of $683.8 million beat the Zacks Consensus Estimate of $658.3 million and increased 3.9% on a year-over-year basis. Passenger revenues, which accounted for the bulk (94%) of the top line, increased by around 8.5% on a year-over-year basis. Upbeat air travel demand can be correlated with such an increase.
Management expects available seat miles or ASMs (for scheduled service) for 2023 to increase 0-3% on a year-over-year basis. Total system ASM is also expected to rise 0-3% on a year-over-year basis. Earnings per share (airline) are now expected in the $10.5-$13.00 (prior view: $9-$13) range. Fuel cost per gallon is expected to be $2.90 (prior view: $3). Interest expenses are now expected to be in the range of $145-$150 million (prior view: $150- $160 million).
For 2023, under airline capex, aircraft, engines, induction costs and pre-delivery deposits are now expected in the $490-$500 million range (prior view: $550-$570 million). Capitalized deferred heavy maintenance is expected to be in the range of $60-$70 million. Other airline capital expenditures are now expected to be between $140 million and $145 million (prior view: $130-$150 million). Total project spending (Sunseeker Resorts Project) for 2023 is still expected to be $695 million. The company expects to expand its fleet size to 127 at 2023-end.
More second-quarter 2023 earnings updates are available in the previous week’s write-up.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks traded in the red in the past week. The NYSE ARCA Airline Index declined 6.7% over the period to $68.92. Over the course of the past six months, the sector tracker has increased 7%.
What's Next in the Airline Space?
Investors will look forward to the second-quarter 2023 earnings report of Copa Holdings CPA, scheduled to be out on Aug 9.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : 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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The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL, following an adverse court ruling. Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel reported second-quarter 2023 earnings (excluding 45 cents from non-recurring items) of $4.35 per share, surpassing the Zacks Consensus Estimate of $3.63.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL, following an adverse court ruling. In the past week, key players like JetBlue Airways JBLU, Allegiant Travel Company ALGT, Gol Linhas GOL and Spirit Airlines SAVE reported earnings for second-quarter 2023.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL, following an adverse court ruling. Spirit Airlines’ second-quarter 2023 earnings (excluding 31 cents from non-recurring items) of 29 cents per share missed the Zacks Consensus Estimate of 38 cents.
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The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL, following an adverse court ruling. Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. Despite reporting better-than-expected earnings per share, JetBlue shares declined following the earnings release.
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44014cf4-263d-46c3-b5a8-1c4a9787671f
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2363.0
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2023-08-04 00:00:00 UTC
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EXCLUSIVE-Botswana plans extra diamond sales route after De Beers deal
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AAL
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https://www.nasdaq.com/articles/exclusive-botswana-plans-extra-diamond-sales-route-after-de-beers-deal-0
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nan
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nan
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By Felix Njini and Clara Denina
NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July.
The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process.
ODC's share of rough stones from Debswana will rise to 50% over the next decade due to Botswana's new deal with De Beers, but selling large volumes will be hard due to an uncertain economic outlook, and in the face of competition from laboratory-grown gems.
Botswana, the world's No. 1 diamond producer by value, generates about 30% of its revenue and 70% of its foreign exchange earnings from diamonds, making its economy heavily exposed to prices of the precious stones, which have fallen around 12% in the last six months.
"ODC auctions are too big and need to be optimized," ODC Managing Director Mmetla Masire told Reuters via email. "We also need to de-risk the business and support other customers that want alternative selling channels."
While ODC is not moving away from the open tender model, the new channel should complement and work in parallel with auctions, Masire added.
"We are not shifting away from the auction channel, we are looking at running the auction and adding another channel to complement and work in parallel with auctions," he said.
With auctions, "apart from the logistical challenges of tendering such huge volumes of diamonds, technically what happens when the market is bad like today, you tender a large amount of diamonds you can't sell", said James Campbell, managing director of mining group Botswana Diamonds BODP.L.
De Beers uses an alternative selling channel that involves offering boxes of unpolished gems to customers such as manufacturers and diamond magnates at sales known as "sights" held about ten times a year. This helps when the market is weak.
"ODC will have the freedom to sell to customers directly in a way that they haven't had before," De Beers CEO Al Cook told Reuters in an interview.
"In practical terms, that does provide a structure for insuring that we get rid of the peaks and troughs that characterize selling by tender or auction," he added, referring to De Beers' selling channel.
Debswana's rough diamond sales dropped 17% in the first six months of the year, data released by the central bank showed, as prices for the stones dropped sharply.
(Reporting by Clara Denina and Felix Njini; Editing by Jan Harvey)
((Clara.Denina@thomsonreuters.com;))
The views and 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 Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. De Beers uses an alternative selling channel that involves offering boxes of unpolished gems to customers such as manufacturers and diamond magnates at sales known as "sights" held about ten times a year.
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The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. ODC's share of rough stones from Debswana will rise to 50% over the next decade due to Botswana's new deal with De Beers, but selling large volumes will be hard due to an uncertain economic outlook, and in the face of competition from laboratory-grown gems.
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The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. With auctions, "apart from the logistical challenges of tendering such huge volumes of diamonds, technically what happens when the market is bad like today, you tender a large amount of diamonds you can't sell", said James Campbell, managing director of mining group Botswana Diamonds BODP.L.
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The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. "ODC auctions are too big and need to be optimized," ODC Managing Director Mmetla Masire told Reuters via email.
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2e21a451-5ffc-4667-9d05-bb9f832c38ce
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2364.0
|
2023-08-04 00:00:00 UTC
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EXCLUSIVE-Botswana plans extra diamond sales route after De Beers deal
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AAL
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https://www.nasdaq.com/articles/exclusive-botswana-plans-extra-diamond-sales-route-after-de-beers-deal
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nan
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nan
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By Felix Njini and Clara Denina
NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July.
The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process.
ODC's share of rough stones from Debswana will rise to 50% over the next decade due to Botswana's new deal with De Beers, but selling large volumes will be hard due to an uncertain economic outlook, and in the face of competition from laboratory-grown gems.
Botswana, the world's No. 1 diamond producer by value, generates about 30% of its revenue and 70% of its foreign exchange earnings from diamonds, making its economy heavily exposed to prices of the precious stones, which have fallen around 12% in the last six months.
"ODC auctions are too big and need to be optimized," ODC Managing Director Mmetla Masire told Reuters via email. "We also need to de-risk the business and support other customers that want alternative selling channels."
With auctions, "apart from the logistical challenges of tendering such huge volumes of diamonds, technically what happens when the market is bad like today, you tender a large amount of diamonds you can't sell", said James Campbell, managing director of mining group Botswana Diamonds BODP.L.
When the market is weak, De Beers uses an alternative selling channel to achieve higher prices that involves offering boxes of unpolished gems to customers such as manufacturers and diamond magnates at sales known as "sights" held about ten times a year.
"ODC will have the freedom to sell to customers directly in a way that they haven't had before," De Beers CEO Al Cook told Reuters in an interview.
"In practical terms, that does provide a structure for insuring that we get rid of the peaks and troughs that characterize selling by tender or auction," he added.
Debswana's rough diamond sales dropped 17% in the first six months of the year, data released by the central bank showed, as prices for the stones dropped sharply.
While ODC is not moving away from the open tender model, the new channel should complement and work in parallel with auctions, Masire added.
(Reporting by Clara Denina and Felix Njini; Editing by Jan Harvey)
((Clara.Denina@thomsonreuters.com;))
The views and 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 Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. When the market is weak, De Beers uses an alternative selling channel to achieve higher prices that involves offering boxes of unpolished gems to customers such as manufacturers and diamond magnates at sales known as "sights" held about ten times a year.
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The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. ODC's share of rough stones from Debswana will rise to 50% over the next decade due to Botswana's new deal with De Beers, but selling large volumes will be hard due to an uncertain economic outlook, and in the face of competition from laboratory-grown gems.
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The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. ODC's share of rough stones from Debswana will rise to 50% over the next decade due to Botswana's new deal with De Beers, but selling large volumes will be hard due to an uncertain economic outlook, and in the face of competition from laboratory-grown gems.
|
The Okavango Diamond Company (ODC) currently sells 25% of the gems produced by the Botswanan government's Debswana joint venture with Anglo American AAL.L unit De Beers via an auction process. By Felix Njini and Clara Denina NAIROBI/LONDON Aug 4 (Reuters) - Botswana's state diamond company is planning to diversify how it sells precious stones to the market as it gears up to receive far more supply under a multi-year deal the country struck with producer De Beers in July. "ODC auctions are too big and need to be optimized," ODC Managing Director Mmetla Masire told Reuters via email.
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c6facabe-ec94-4aaa-86a7-6511cf161a86
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2365.0
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2023-08-04 00:00:00 UTC
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What's in the Cards for Air Canada (ACDVF) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-the-cards-for-air-canada-acdvf-in-q2-earnings
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nan
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nan
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Air Canada ACDVF is scheduled to report second-quarter 2023 results on Aug 11, before market open.
The company has a disappointing earnings surprise history, having missed the Zacks Consensus Estimate in three of the preceding four quarters (beating once). The average miss is 241.51%. The Zacks Consensus Estimate for second-quarter earnings has been revised 2.7% upward over the past 60 days.
Given this backdrop, let's delve deeper into the factors likely to have influenced ACDVF’s second-quarter 2023 performance.
We expect upbeat air-travel demand to have boosted Air Canada’s top-line performance in the to-be-reported quarter. High passenger revenues are likely to have aided the results. Driven by upbeat traffic, load factor (percentage of seats filled by passengers) is likely to have been impressive in the June quarter.
However, high fuel cost might have affected the bottom-line performance in the quarter under review. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Non-fuel unit costs are likely have been high in the quarter under discussion due to increased labor costs.
What Our Model Says
Our proven model does not predict an earnings beat for ACDVF this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Air Canada has an Earnings ESP of 0.00% (the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 38 cents per share) and presently sports a Zacks Rank #1.
A Sneak Peek Into Other Notable Airlines’ Results
American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front. Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines UAL, currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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 Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Air Canada (ACDVF) : 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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A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. AAL currently carries a Zacks Rank #2.
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A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL’s results were aided by lower costs and higher revenues.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here. A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
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A Sneak Peek Into Other Notable Airlines’ Results American Airlines’ AAL second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. AAL currently carries a Zacks Rank #2.
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0b5300a3-73f5-4407-a2af-2a4a50679a76
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2366.0
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2023-08-03 00:00:00 UTC
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Gloomy Spirit, Expedia reports drag travel stocks lower on demand slowdown fears
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AAL
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https://www.nasdaq.com/articles/gloomy-spirit-expedia-reports-drag-travel-stocks-lower-on-demand-slowdown-fears
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nan
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nan
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Recasts throughout with results from Spirit, comments from Expedia, shares of other travel firms
Aug 3 (Reuters) - U.S. travel stocks fell in early trading on Thursday following downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
Spirit, which mainly operates on domestic routes, also forecast weaker-than-expected revenue for the third quarter, with Citi analysts citing the effect from travel demand shifting to international from domestic.
The airline, which also missed second-quarter profit and revenue estimates, has also struggled with pilot attrition and geared turbofan engine issues.
Its shares fell 5.7% in morning trade as current-quarter revenue forecast of between $1.30 billion and $1.32 billion came in below expectations of $1.51 billion, as per Refinitiv data.
Last week, Southwest Airlines LUV.N and Alaska Air ALK.N had offered downbeat full-year forecasts.
Shares of large U.S. airlines Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O slipped about 1%, while Southwest fell about 2%.
Adding to the gloom, online travel firm Expedia Inc EXPE.O reported smaller-than-expected bookings for the second quarter, even as it said travel demand remained "strong."
Gross bookings of $27.32 billion missed analysts' estimates of $28.16 billion.
Revenue from points of sale in the U.S. fell to $2.17 billion from $2.21 billion, while international sales rose.
"We believe this is further evidence of softening in U.S. travel demand trends while international growth continues to outperform," Wedbush analyst Scott Devitt said in a note.
U.S. domestic airfares had seen some declines as capacity increases, company executives said during an investor call, while cross-border airfares were stable.
Expedia's shares plunged 14% to $101.29.
The company reported an adjusted profit of $2.89 per share, beating expectations of $2.32 but revenue of $3.36 billion was slightly below expectations.
Tripadvisor TRIP.O and Trivago's TVAGy.F U.S-listed shares were down 8.6% and 3.3%, respectively.
Shares of vacation rental firm Airbnb ABNB.O, which reports results later on Thursday, were down 1.5%.
(Reporting by Priyamvada C, Kannaki Deka, Pratyush Thakur in Bengaluru; Editing by Sriraj Kalluvila)
((Pratyush.Thakur@thomsonreuters.com))
The views and 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 large U.S. airlines Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O slipped about 1%, while Southwest fell about 2%. Recasts throughout with results from Spirit, comments from Expedia, shares of other travel firms Aug 3 (Reuters) - U.S. travel stocks fell in early trading on Thursday following downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows. The airline, which also missed second-quarter profit and revenue estimates, has also struggled with pilot attrition and geared turbofan engine issues.
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Shares of large U.S. airlines Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O slipped about 1%, while Southwest fell about 2%. Recasts throughout with results from Spirit, comments from Expedia, shares of other travel firms Aug 3 (Reuters) - U.S. travel stocks fell in early trading on Thursday following downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows. Its shares fell 5.7% in morning trade as current-quarter revenue forecast of between $1.30 billion and $1.32 billion came in below expectations of $1.51 billion, as per Refinitiv data.
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Shares of large U.S. airlines Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O slipped about 1%, while Southwest fell about 2%. Recasts throughout with results from Spirit, comments from Expedia, shares of other travel firms Aug 3 (Reuters) - U.S. travel stocks fell in early trading on Thursday following downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows. Its shares fell 5.7% in morning trade as current-quarter revenue forecast of between $1.30 billion and $1.32 billion came in below expectations of $1.51 billion, as per Refinitiv data.
|
Shares of large U.S. airlines Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O slipped about 1%, while Southwest fell about 2%. Recasts throughout with results from Spirit, comments from Expedia, shares of other travel firms Aug 3 (Reuters) - U.S. travel stocks fell in early trading on Thursday following downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows. Spirit, which mainly operates on domestic routes, also forecast weaker-than-expected revenue for the third quarter, with Citi analysts citing the effect from travel demand shifting to international from domestic.
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00fcbe49-3ce7-46b7-8d24-6526db784347
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2367.0
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2023-08-03 00:00:00 UTC
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Interesting AAL Put And Call Options For September 22nd
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-september-22nd
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the September 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 22nd contracts and identified one put and one call contract of particular interest.
The put contract at the $15.50 strike price has a current bid of 60 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.50, but will also collect the premium, putting the cost basis of the shares at $14.90 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $15.86/share today.
Because the $15.50 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.87% return on the cash commitment, or 28.26% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $15.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.50 strike price has a current bid of 57 cents. If an investor was to purchase shares of AAL stock at the current price level of $15.86/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.63% if the stock gets called away at the September 22nd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red:
Considering the fact that the $16.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.59% boost of extra return to the investor, or 26.24% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $15.86) to be 41%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
VAC Dividend History
Institutional Holders of XOS
DTRM Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the September 22nd expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the September 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 22nd contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the September 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 22nd contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the September 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 22nd contracts and identified one put and one call contract of particular interest.
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ce80d535-ea03-445b-af79-61998ee1f9ad
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2368.0
|
2023-08-03 00:00:00 UTC
|
Sluggish return of business travelers forces US airlines to rejig their networks
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AAL
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https://www.nasdaq.com/articles/sluggish-return-of-business-travelers-forces-us-airlines-to-rejig-their-networks-0
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, Aug 3 (Reuters) - U.S. airlines are enjoying strong leisure travel demand, but corporate travelers are still not back in full force, compelling airlines to restructure their networks to account for fewer people flying for business purposes.
Before the pandemic hit in 2020, corporate travel was the travel industry's cash cow. But now, with U.S. companies still seeking to persuade employees to return to offices, bookings have stagnated. Investors in travel companies are concerned that the spending from vacationers cannot make up the shortfall.
Business trips generated as much as half of passenger revenue at U.S. airlines before the global health crisis, according to industry group Airlines for America. This helped airlines sell high-margin premium seats and fill weekday flights.
For months, Alaska Air's ALK.N business bookings have been 25% below pre-pandemic levels. The Seattle-based carrier said it is hopeful of finally breaking through "the 75% recovered ceiling" next year when companies finalize new travel budgets, but it is wary of factoring that assumption into network planning.
"We are still waiting for the market to fully normalize," Alaska Air's chief financial officer, Shane Tackett, told Reuters. The company has been investing in leisure destinations like Mexico and Costa Rica, while its network in California remains 25% below 2019 levels.
JetBlue Airways JBLU.O said on Tuesday it will redeploy capacity away from New York to high-margin leisure destinations with business travel demand 20% below pre-pandemic levels.
Southwest Airlines LUV.N is shifting the frequency of its flights from mostly short-haul business routes to medium- and long-haul routes. It will also move flights from early morning or late-night hours and cut flights on Tuesdays and Wednesdays by up to 10% compared with Mondays, Thursdays and Fridays.
"I expect business to continue to come back, but it's going to trail the restoration of leisure here for a while," Southwest CEO Bob Jordan said on anearnings calllast week.
Hotels are also grappling with weak corporate demand. Marriott MAR.O on Tuesday said U.S. bookings from technology and accounting firms are still down significantly compared with 2019 levels, and room bookings by large companies are recovering more slowly.
Corporate travel's recovery has been led by countries in Asia-Pacific and Europe, where more people returned to offices, compared with countries like the U.S. where companies are more amenable to remote-work arrangements, according to a MasterCard report on business travel trends.
SHIFT IN TRAVEL PATTERNS
Airline executives say hybrid work arrangements are allowing people to combine business and leisure trips, helping carriers fill high-margin seats previously booked by corporate travelers.
Delta Air Lines DAL.N said revenue growth from premium cabins has been outpacing that from low-cost seats since the pandemic. American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers.
But some investors are skeptical that consumers can continue to travel at the same blistering pace. Recent passenger screening and fare data shows U.S. travel demand has peaked, hurting the carriers' pricing power. The NYSE Arca Airline index .XAL has lost about 10% in the current quarter compared with a gain of about 3% in the S&P 500 index .SPX.
Valuations for travel companies remain below historical levels which reflects investor uncertainty beyond the summer, said Kevin Kopelman, an analyst covering hotels and online travel at Cowen.
Some executives expect corporate travel to gather steam in September. Luis Gallego, CEO of British Airways owner IAG ICAG.L, last week said corporate traffic was showing "some signs of recovery" in the third quarter.
Companies such as Alphabet's GOOGL.O Google, JPMorgan Chase JPM.N, Goldman Sachs GS.N and Morgan Stanley MS.N have been pushing employees to return to offices.
But as companies hold down costs in an uncertain macroeconomic environment, a full business travel recovery in 2023 and beyond is at risk, MasterCard said in its annual travel report.
(Reporting by Rajesh Kumar Singh in Chicago, Additional reporting by Doyinsola Oladipo in New York, Sarah Young and Joanna Plucinska in London Editing by David Gaffen and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. JetBlue Airways JBLU.O said on Tuesday it will redeploy capacity away from New York to high-margin leisure destinations with business travel demand 20% below pre-pandemic levels. "I expect business to continue to come back, but it's going to trail the restoration of leisure here for a while," Southwest CEO Bob Jordan said on anearnings calllast week.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. By Rajesh Kumar Singh CHICAGO, Aug 3 (Reuters) - U.S. airlines are enjoying strong leisure travel demand, but corporate travelers are still not back in full force, compelling airlines to restructure their networks to account for fewer people flying for business purposes. JetBlue Airways JBLU.O said on Tuesday it will redeploy capacity away from New York to high-margin leisure destinations with business travel demand 20% below pre-pandemic levels.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. By Rajesh Kumar Singh CHICAGO, Aug 3 (Reuters) - U.S. airlines are enjoying strong leisure travel demand, but corporate travelers are still not back in full force, compelling airlines to restructure their networks to account for fewer people flying for business purposes. Corporate travel's recovery has been led by countries in Asia-Pacific and Europe, where more people returned to offices, compared with countries like the U.S. where companies are more amenable to remote-work arrangements, according to a MasterCard report on business travel trends.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. But now, with U.S. companies still seeking to persuade employees to return to offices, bookings have stagnated. Airline executives say hybrid work arrangements are allowing people to combine business and leisure trips, helping carriers fill high-margin seats previously booked by corporate travelers.
|
88844019-82c7-4b50-8efb-9aad6a50bae8
|
2369.0
|
2023-08-03 00:00:00 UTC
|
Sluggish return of business travelers forces US airlines to rejig their networks
|
AAL
|
https://www.nasdaq.com/articles/sluggish-return-of-business-travelers-forces-us-airlines-to-rejig-their-networks
|
nan
|
nan
|
By Rajesh Kumar Singh
CHICAGO, Aug 3 (Reuters) - U.S. airlines are enjoying strong leisure travel demand, but corporate travelers are still not back in full force, compelling airlines to restructure their networks to account for fewer people flying for business purposes.
Before the pandemic hit in 2020, corporate travel was the travel industry's cash cow. But now, with U.S. companies still seeking to persuade employees to return to offices, bookings have stagnated. Investors in travel companies are concerned that the spending from vacationers cannot make up the shortfall.
Business trips generated as much as half of passenger revenue at U.S. airlines before the global health crisis, according to industry group Airlines for America. This helped airlines sell high-margin premium seats and fill weekday flights.
For months, Alaska Air's ALK.N business bookings have been 25% below pre-pandemic levels. The Seattle-based carrier said it is hopeful of finally breaking through "the 75% recovered ceiling" next year when companies finalize new travel budgets, but it is wary of factoring that assumption into network planning.
"We are still waiting for the market to fully normalize," Alaska Air's chief financial officer, Shane Tackett, told Reuters. The company has been investing in leisure destinations like Mexico and Costa Rica, while its network in California remains 25% below 2019 levels.
JetBlue Airways JBLU.O said on Tuesday it will redeploy capacity away from New York to high-margin leisure destinations with business travel demand 20% below pre-pandemic levels.
Southwest Airlines LUV.N is shifting the frequency of its flights from mostly short-haul business routes to medium- and long-haul routes. It will also move flights from early morning or late-night hours and cut flights on Tuesdays and Wednesdays by up to 10% compared with Mondays, Thursdays and Fridays.
"I expect business to continue to come back, but it's going to trail the restoration of leisure here for a while," Southwest CEO Bob Jordan said on anearnings calllast week.
Hotels are also grappling with weak corporate demand. Marriott MAR.O on Tuesday said U.S. bookings from technology and accounting firms are still down significantly compared with 2019 levels, and room bookings by large companies are recovering more slowly.
Corporate travel's recovery has been led by countries in Asia-Pacific and Europe, where more people returned to offices, compared with countries like the U.S. where companies are more amenable to remote-work arrangements, according to a MasterCard report on business travel trends.
SHIFT IN TRAVEL PATTERNS
Airline executives say hybrid work arrangements are allowing people to combine business and leisure trips, helping carriers fill high-margin seats previously booked by corporate travelers.
Delta Air Lines DAL.N said revenue growth from premium cabins has been outpacing that from low-cost seats since the pandemic. American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers.
But some investors are skeptical that consumers can continue to travel at the same blistering pace. Recent passenger screening and fare data shows U.S. travel demand has peaked, hurting the carriers' pricing power. The NYSE Arca Airline index .XAL has lost about 10% in the current quarter compared with a gain of about 3% in the S&P 500 index .SPX.
Valuations for travel companies remain below historical levels which reflects investor uncertainty beyond the summer, said Kevin Kopelman, an analyst covering hotels and online travel at Cowen.
Some executives expect corporate travel to gather steam in September. Luis Gallego, CEO of British Airways owner IAG ICAG.L, last week said corporate traffic was showing "some signs of recovery" in the third quarter.
Companies such as Alphabet's GOOGL.O Google, JPMorgan Chase JPM.N, Goldman Sachs GS.N and Morgan Stanley MS.N have been pushing employees to return to offices.
But as companies hold down costs in an uncertain macroeconomic environment, a full business travel recovery in 2023 and beyond is at risk, MasterCard said in its annual travel report.
(Reporting by Rajesh Kumar Singh in Chicago, Additional reporting by Doyinsola Oladipo in New York, Sarah Young and Joanna Plucinska in London Editing by David Gaffen and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. JetBlue Airways JBLU.O said on Tuesday it will redeploy capacity away from New York to high-margin leisure destinations with business travel demand 20% below pre-pandemic levels. "I expect business to continue to come back, but it's going to trail the restoration of leisure here for a while," Southwest CEO Bob Jordan said on anearnings calllast week.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. By Rajesh Kumar Singh CHICAGO, Aug 3 (Reuters) - U.S. airlines are enjoying strong leisure travel demand, but corporate travelers are still not back in full force, compelling airlines to restructure their networks to account for fewer people flying for business purposes. JetBlue Airways JBLU.O said on Tuesday it will redeploy capacity away from New York to high-margin leisure destinations with business travel demand 20% below pre-pandemic levels.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. By Rajesh Kumar Singh CHICAGO, Aug 3 (Reuters) - U.S. airlines are enjoying strong leisure travel demand, but corporate travelers are still not back in full force, compelling airlines to restructure their networks to account for fewer people flying for business purposes. Corporate travel's recovery has been led by countries in Asia-Pacific and Europe, where more people returned to offices, compared with countries like the U.S. where companies are more amenable to remote-work arrangements, according to a MasterCard report on business travel trends.
|
American Airlines AAL.O is generating higher revenue from customers combining business and leisure, prompting it to reset the terms of its contract with big corporate customers. But now, with U.S. companies still seeking to persuade employees to return to offices, bookings have stagnated. Airline executives say hybrid work arrangements are allowing people to combine business and leisure trips, helping carriers fill high-margin seats previously booked by corporate travelers.
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b72625d0-e65c-45b1-8890-224de8acbdf5
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2370.0
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2023-08-03 00:00:00 UTC
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Is It Time to Buy the Nasdaq's 5 Worst-Performing July Stocks?
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AAL
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https://www.nasdaq.com/articles/is-it-time-to-buy-the-nasdaqs-5-worst-performing-july-stocks
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nan
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nan
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If you're a bargain-hunting growth investor, you might want to browse last month's Nasdaq-listed laggards. Although the Nasdaq Composite (NASDAQINDEX: ^IXIC) itself logged a 4.1% gain in July, a bunch of its individual listings didn't follow suit. A few of them -- even some of its most popular large caps -- suffered double-digit percentage declines instead.
Or, perhaps these particular tickers tumbled for a reason and still have more downside in store to dish out. Let's take a look.
What went wrong for whom?
There's no need to belabor the point: Last's month's biggest losers among the Nasdaq's largest names are Enphase Energy (NASDAQ: ENPH), Willis Towers Watson (NASDAQ: WLTW), and SolarEdge Technologies (NASDAQ: SEDG). These stocks lost 9.4%, 10.3%, and 10.3% of their value in July, respectively. (Dis)honorable mentions go to Ryanair Holdings (NASDAQ: RYAAY) and American Airlines (NASDAQ: AAL), which fell 7.3% and 6.7% last month in spite of a turnaround effort late in the month.
^IXIC data by YCharts
In most cases, these kinds of setbacks aren't in and of themselves reasons to buy a stock. Such weakness is often just a reflection of fundamental trouble, after all.
Take Enphase Energy as an example. The bulk of its July stumble took shape in response to its third-quarter guidance, published in conjunction with its second-quarter results. Although sales of $711.1 million were up 34% year over year and per-share earnings improved to the tune of 37%, sales fell short of estimates.
Guidance for the quarter now underway was also lackluster, suggesting demand for solar power equipment isn't living up to expectations. SolarEdge hadn't yet reported last quarter's results but fell all the same on worries that it too is running into a demand headwind.
Shares of London-based insurance company Willis Towers Watson nosedived for a similar reason. That is, while revenue of $2.2 billion was up 6% and better than anticipated, earnings of $2.05 per share were down 12% year over year, falling short of expectations.
As for Ryanair and American Airlines, the setbacks are ultimately rooted in the same cause. Ireland's Ryanair downplayed last quarter's huge earnings growth by warning investors that the current swell of demand -- and pricing power -- might not persist to and through the end of the year. Likewise, while American Airlines' record-breaking top line of $14.1 billion was 4.7% better than the year-ago figure, it also offered guidance the market interpreted as being subpar.
The question remains, though: Are any (or all) of these sell-offs a mistake, and ultimately a buying opportunity rather than a red flag? It depends.
Don't ignore the same, repeated warning
For the record, while you should be looking to buy stocks you want to own while they're down, just because a stock's down in a particular calendar month doesn't inherently make it worth owning. Some companies are trainwrecks every 12 months of the year. Sometimes more than one month's worth of selling is in the cards. Sometimes, such a steep sell-off is a mistake that will be corrected sooner than later. There's always more to the story.
This particular month, with these particular stocks, however, there are bigger-picture themes to consider. Of these laggards, two different airlines loosely pointed to a looming headwind. And of these same laggards, two different solar power technology stocks are signaling slowing uptake of their products. What you don't see is that solar panel maker SunPower recently dialed back its full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance, as "Demand in the second quarter has weakened more than expected in the Southeast and Southwest."
That warning certainly underscores Enphase's lackluster expectations.
Oh, and since the end of July, airline JetBlue reduced its full-year profit forecast, citing (among other things) waning demand for domestic travel services. SolarEdge also served up revenue guidance of between $880 million and $920 million for the quarter now underway versus analyst estimates of $1.05 billion, sending the stock lower in response.
A couple of clear themes are starting to firm up here.
The point is, take these companies' worries at face value. None of them want to upend their stocks. But they're doing so anyway, and they're not alone when they are. It's conceivable these wider, bearish narratives could start taking on a life of their own -- even if just temporarily -- further fanning the selling flames.
Make a point of taking a step back sometimes
Veteran investors innately know this, of course, even if they don't overtly know they know it.
If you're a new investor feeling a little overwhelmed by the concept, though, don't be. It's not really all that complicated of an idea. In fact, it's a fairly simple premise that can make you a much better investor.
That is, most industries' companies (not to mention their stocks) move in a herd. They're all addressing the same customers, after all, under the same conditions. They're often using the same technology, know-how, and supply chains. If one or two of them are saying the exact same thing, there's probably something to it.
Continue to be company-specific about your picks, looking for unique edges and competitive advantages. Just don't forget to take a step back every now and then and assess the bigger picture. There's a lot of value from that perspective as well.
Find out why Enphase Energy is one of the 10 best stocks to buy now
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James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Enphase Energy, Nasdaq, and SolarEdge Technologies. 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.
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(Dis)honorable mentions go to Ryanair Holdings (NASDAQ: RYAAY) and American Airlines (NASDAQ: AAL), which fell 7.3% and 6.7% last month in spite of a turnaround effort late in the month. Ireland's Ryanair downplayed last quarter's huge earnings growth by warning investors that the current swell of demand -- and pricing power -- might not persist to and through the end of the year. What you don't see is that solar panel maker SunPower recently dialed back its full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance, as "Demand in the second quarter has weakened more than expected in the Southeast and Southwest."
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(Dis)honorable mentions go to Ryanair Holdings (NASDAQ: RYAAY) and American Airlines (NASDAQ: AAL), which fell 7.3% and 6.7% last month in spite of a turnaround effort late in the month. There's no need to belabor the point: Last's month's biggest losers among the Nasdaq's largest names are Enphase Energy (NASDAQ: ENPH), Willis Towers Watson (NASDAQ: WLTW), and SolarEdge Technologies (NASDAQ: SEDG). SolarEdge also served up revenue guidance of between $880 million and $920 million for the quarter now underway versus analyst estimates of $1.05 billion, sending the stock lower in response.
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(Dis)honorable mentions go to Ryanair Holdings (NASDAQ: RYAAY) and American Airlines (NASDAQ: AAL), which fell 7.3% and 6.7% last month in spite of a turnaround effort late in the month. There's no need to belabor the point: Last's month's biggest losers among the Nasdaq's largest names are Enphase Energy (NASDAQ: ENPH), Willis Towers Watson (NASDAQ: WLTW), and SolarEdge Technologies (NASDAQ: SEDG). Don't ignore the same, repeated warning For the record, while you should be looking to buy stocks you want to own while they're down, just because a stock's down in a particular calendar month doesn't inherently make it worth owning.
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(Dis)honorable mentions go to Ryanair Holdings (NASDAQ: RYAAY) and American Airlines (NASDAQ: AAL), which fell 7.3% and 6.7% last month in spite of a turnaround effort late in the month. This particular month, with these particular stocks, however, there are bigger-picture themes to consider. Make a point of taking a step back sometimes Veteran investors innately know this, of course, even if they don't overtly know they know it.
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21df7235-db6c-4626-9266-2aa01c9d49a2
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2371.0
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2023-08-02 00:00:00 UTC
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Why is JetBlue (JBLU) Stock Down Despite Q2 Earnings Beat?
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AAL
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https://www.nasdaq.com/articles/why-is-jetblue-jblu-stock-down-despite-q2-earnings-beat
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nan
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nan
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JetBlue Airways’ JBLU second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of 45 cents per share beat the Zacks Consensus Estimate of 40 cents. Results were aided by strong air-travel demand. In the year-ago quarter, JBLU incurred a loss of 47 cents per share.
Despite the earnings beat, shares of JBLU tumbled 8.3% on Aug 1, closing the trading session at $7.12 per share. The downside was due to the bearish guidance issued by management for third quarter as well as full-year 2023.
In third-quarter 2023, JBLU expects either breakeven earnings or loss up to 20 cents per share. The Zacks Consensus Estimate is currently pegged at 41 cents.
For the current year, the earnings forecast is also gloomy. Management now projects 2023 earnings in the range of 5-40 cents per share (earlier guidance: $0.7-$1). The Zacks Consensus Estimate is currently pegged at 74 cents. The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL following an adverse court ruling.
Coming back to the second-quarter earnings report, operating revenues of $2,610 million marginally missed the Zacks Consensus Estimate of $2,610.9 million. However, the top line increased 6.75% year over year on account of improving air-travel demand.
Passenger revenues, accounting for the bulk of the top line (94.25%), climbed to $2,460 million from $2,302 million a year ago when air-travel demand was not so robust. The metric fell short of our projection of $2,527.9 million. Other revenues rose 4.8% to $150 million.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue Airways Corporation price-consensus-eps-surprise-chart | JetBlue Airways Corporation Quote
Other Details
All comparisons are presented on a year-over-year basis.
Revenue per available seat mile (RASM: a key measure of unit revenues) improved 9% to 15.04 cents. Passenger revenue per available seat mile inched up 1% to 14.17 cents owing to better air-travel demand.
Average fare at JetBlue inched down 0.9% to $219.47. Yield per passenger mile inched up 0.8% to 16.62 cents, which fell short of our estimate of 17.56 cents.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) improved 5.9%. To cater to this increased demand, capacity (measured in available seat miles) rose 5.8% to 17,353 million. Consolidated load factor (percentage of seats filled by passengers) expanded 20 basis points to 85.3% as traffic growth outpaced capacity expansion. The actual value outperformed our projection of 83.6%.
Total operating expenses (on a reported basis) decreased 7.2% to $2,375 million, mainly due to 34.2% reduction in aircraft fuel expenses and related taxes. Average fuel price per gallon (including related taxes) declined to $2.63 from $4.24 a year ago, as oil prices move south. We expected the metric to be $2.76 per gallon.
JBLU’s operating expenses per available seat mile (CASM) fell 12.2% year over year. Excluding fuel, CASM increased 3.2% to 10 cents.
JetBlue, currently carrying a Zacks Rank #2 (Buy), exited the quarter with cash and cash equivalents of $1,462 million compared with $1,042 million at the end of 2022. Total debt at the end of the June quarter was $3,757 million compared with $3,647 million at 2022 end. During the quarter, JBLU paid off $200 million of debt and finance lease obligations.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Remaining Aspects of Outlook
While providing guidance for third-quarter 2023, management stated that all comparisons are made with respect to third-quarter 2022 figures.
Capacity is anticipated to increase in the 5.5-8.5% band. CASM, excluding fuel and special items, is predicted to rise 2.5-5.5%. Capital expenditures are likely to be roughly $400 million in the third quarter.
Total revenues are forecast to decrease in the range of 4-8%. Average fuel cost per gallon in the September quarter is estimated to be between $2.75 and $2.90. Interest expense is forecast in the $45-$55 million band.
For full-year 2023, capacity is expected to grow in the band of 5.5-8.5% from the 2022 actuals. CASM, excluding fuel and special items, is predicted to rise 1.5-4.5% from the 2022 actuals. Current-year interest expense is forecast in the $195-$205 million band. Total revenues for 2023 are anticipated to register year-over-year increase of 6-9%. Capital expenditures are likely to be roughly $1.3 billion in the current year.
A Sneak Peek Into Other Notable Airlines’ Results
American Airlines’ second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front. Demand was particularly strong in June on the back of growth in close-in bookings.
United Airlines (UAL) reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
4 Oil Stocks with Massive Upsides
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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL following an adverse court ruling. AAL’s results were aided by lower costs and higher revenues. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL following an adverse court ruling. AAL’s results were aided by lower costs and higher revenues.
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The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL following an adverse court ruling. AAL’s results were aided by lower costs and higher revenues. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The bearish views are primarily due to management’s decision to end its alliance with American Airlines AAL following an adverse court ruling. AAL’s results were aided by lower costs and higher revenues. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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6d625478-b9b4-42a4-bf26-e1b7a4bd44bd
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2372.0
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2023-08-02 00:00:00 UTC
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Biden admin split over ethanol's role in aviation fuel subsidy program
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AAL
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https://www.nasdaq.com/articles/biden-admin-split-over-ethanols-role-in-aviation-fuel-subsidy-program
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nan
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nan
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By Jarrett Renshaw, Stephanie Kelly and Leah Douglas
Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions.
The indecision has touched off a lobbying battle between two big stakeholders - Farm Belt backers who view sustainable aviation fuel (SAF) as crucial to ethanol's growth and environmental advocates who say clearing land to grow crops for fuel is counterproductive to solving global warming.
At issue is a requirement in last year's Inflation Reduction Act (IRA) that SAF producers seeking tax credits must demonstrate with an approved scientific model that their fuel generates 50% less greenhouse gas emissions over its lifecycle than petroleum fuel.
Midwest ethanol producers have asked the administration to adopt a model that would enable ethanol-based SAF to qualify while environmentalists want standards that would favor inputs like used cooking oil and animal fat.
Officials at the Environmental Protection Agency and agriculture and energy departments are divided over which model to use, and White House Climate Czar John Podesta is seeking to resolve the question, according to the sources.
A White House official said the administration’s SAF policy seeks to include ethanol, but “we are trying to seek alignment with stakeholders on the question of modeling.”
The EPA, Department of Agriculture and Department of Energy did not respond to requests for comment.
The administration's decision will determine who benefits from billions of dollars in subsidies expected under the program. It is meant to announce a decision by September.
The administration has a goal to supply at least 3 billion gallons of SAF per year by 2030 as part of its broader effort to decarbonize the transport sector. By 2050, it hopes the SAF industry - which is now miniscule - will meet 100% of aviation fuel demand at around 35 billion gallons per year.
LAND USE
The biofuels lobby, which has found allies among commercial airlines and farm state lawmakers, is arguing that the administration cannot meet those targets if it blocks ethanol as an SAF feedstock and would hurt farmers in the meantime.
"Barring the aviation industry from embracing the most accessible SAF options will not only deprive American farmers of the chance to contribute to a new clean energy market, but also severely delay adoption of promising low-emission energy sources," a bipartisan group of lawmakers wrote to Treasury Secretary Janet Yellen on Friday.
Environmental groups, meanwhile, say the administration must carefully assess which fuels to allow as SAF feedstocks given the climate risks of clearing land for fuel crops.
Nikita Pavlenko, the fuels team lead at International Council on Clean Transportation, said if the administration accepts the biofuel industry's position, "it would lead to throwing even more money away on additional corn and soy with dubious climate benefits."
President Joe Biden, who has made tackling climate change a central pillar of his administration, has raised expectations among farmers.
"Mark my words: the next 20 years, farmers are going to be providing 95% of all the sustainable airline fuel," Biden told a crowd in Maine last week.
The IRA says producers must use the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) developed by the International Civil Aviation Organization, or a "similar methodology", for measuring SAF's emissions.
The ethanol industry wants to use the U.S. Department of Energy's Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model.
CORSIA is more likely than GREET to exclude ethanol-based SAF from the subsidy program because of the way it evaluates the emissions of so-called indirect land-use change, the displacement of existing farmland or natural vegetation to grow crops.
The administration is considering a compromise that would incorporate certain aspects of the GREET system into a new methodology, a source familiar with the matter said. However, it was unclear how that would work.
(Reporting By Jarrett Renshaw, Stephanie Kelly and Leah Douglas; Editing by Cynthia Osterman and Marguerita Choy)
((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;))
The views and 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 Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. The biofuels lobby, which has found allies among commercial airlines and farm state lawmakers, is arguing that the administration cannot meet those targets if it blocks ethanol as an SAF feedstock and would hurt farmers in the meantime. CORSIA is more likely than GREET to exclude ethanol-based SAF from the subsidy program because of the way it evaluates the emissions of so-called indirect land-use change, the displacement of existing farmland or natural vegetation to grow crops.
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By Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. The indecision has touched off a lobbying battle between two big stakeholders - Farm Belt backers who view sustainable aviation fuel (SAF) as crucial to ethanol's growth and environmental advocates who say clearing land to grow crops for fuel is counterproductive to solving global warming. (Reporting By Jarrett Renshaw, Stephanie Kelly and Leah Douglas; Editing by Cynthia Osterman and Marguerita Choy) ((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;)) The views and 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 Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. The indecision has touched off a lobbying battle between two big stakeholders - Farm Belt backers who view sustainable aviation fuel (SAF) as crucial to ethanol's growth and environmental advocates who say clearing land to grow crops for fuel is counterproductive to solving global warming. A White House official said the administration’s SAF policy seeks to include ethanol, but “we are trying to seek alignment with stakeholders on the question of modeling.” The EPA, Department of Agriculture and Department of Energy did not respond to requests for comment.
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By Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. The administration's decision will determine who benefits from billions of dollars in subsidies expected under the program. The ethanol industry wants to use the U.S. Department of Energy's Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model.
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10e1de8e-533a-4fd8-915d-3ad575d31d9e
|
2373.0
|
2023-08-02 00:00:00 UTC
|
Biden administration split over ethanol's role in aviation fuel subsidy program
|
AAL
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https://www.nasdaq.com/articles/biden-administration-split-over-ethanols-role-in-aviation-fuel-subsidy-program
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nan
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nan
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By Jarrett Renshaw, Stephanie Kelly and Leah Douglas
Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions.
The indecision has touched off a lobbying battle between two big stakeholders - Farm Belt backers who view sustainable aviation fuel (SAF) as crucial to ethanol's growth and environmental advocates who say clearing land to grow crops for fuel is counterproductive to solving global warming.
At issue is a requirement in last year's Inflation Reduction Act (IRA) that SAF producers seeking tax credits must demonstrate with an approved scientific model that their fuel generates 50% less greenhouse gas emissions over its lifecycle than petroleum fuel.
Midwest ethanol producers have asked the Biden administration to adopt a model that would enable ethanol-based SAF to qualify while environmentalists want standards that would favor inputs like used cooking oil and animal fat.
Officials at the Environmental Protection Agency and agriculture and energy departments are divided over which model to use, and White House Climate Czar John Podesta is seeking to resolve the question, according to the sources.
A White House official said the administration’s SAF policy seeks to include ethanol, but “we are trying to seek alignment with stakeholders on the question of modeling.”
The EPA, Department of Agriculture and Department of Energy did not respond to requests for comment.
The administration's decision will determine who benefits from billions of dollars in subsidies expected under the program. The administration is meant to announce a decision by September.
The Biden administration has a goal to supply at least 3 billion gallons of SAF per year by 2030 as part of its broader effort to decarbonize the transport sector. By 2050, it hopes the SAF industry - which is now miniscule - will meet 100% of aviation fuel demand at around 35 billion gallons per year.
LAND USE
The biofuels lobby, which has found allies among commercial airlines and farm state lawmakers, is arguing that the Biden administration cannot meet those targets if it blocks ethanol as an SAF feedstock and would hurt farmers in the meantime.
"Barring the aviation industry from embracing the most accessible SAF options will not only deprive American farmers of the chance to contribute to a new clean energy market, but also severely delay adoption of promising low-emission energy sources," a bipartisan group of lawmakers wrote to Treasury Secretary Janet Yellen on Friday.
Environmental groups including the Environmental Defense Fund and Friends of the Earth, meanwhile, say including ethanol would undermine the administration's climate goals because clearing land for fuel crops releases carbon from the soil.
Biden, who has made tackling climate change a central pillar of his administration, has raised expectations among farmers.
"Mark my words: the next 20 years, farmers are going to be providing 95% of all the sustainable airline fuel," Biden told a crowd in Maine last week.
The IRA says producers must use the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) developed by the International Civil Aviation Organization, or a "similar methodology", for measuring SAF's emissions.
The ethanol industry wants to use the U.S. Department of Energy's Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model.
CORSIA is more likely than GREET to exclude ethanol-based SAF from the subsidy program because of the way it evaluates the emissions of so-called indirect land-use change, the displacement of existing farmland or natural vegetation to grow crops.
The administration is considering a compromise that would incorporate certain aspects of the GREET system into a new methodology, a source familiar with the matter said. However, it was unclear how that would work.
(Reporting By Jarrett Renshaw, Stephanie Kelly and Leah Douglas; Editing by Cynthia Osterman)
((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. Midwest ethanol producers have asked the Biden administration to adopt a model that would enable ethanol-based SAF to qualify while environmentalists want standards that would favor inputs like used cooking oil and animal fat. The biofuels lobby, which has found allies among commercial airlines and farm state lawmakers, is arguing that the Biden administration cannot meet those targets if it blocks ethanol as an SAF feedstock and would hurt farmers in the meantime.
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By Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. The indecision has touched off a lobbying battle between two big stakeholders - Farm Belt backers who view sustainable aviation fuel (SAF) as crucial to ethanol's growth and environmental advocates who say clearing land to grow crops for fuel is counterproductive to solving global warming. Environmental groups including the Environmental Defense Fund and Friends of the Earth, meanwhile, say including ethanol would undermine the administration's climate goals because clearing land for fuel crops releases carbon from the soil.
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By Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. The indecision has touched off a lobbying battle between two big stakeholders - Farm Belt backers who view sustainable aviation fuel (SAF) as crucial to ethanol's growth and environmental advocates who say clearing land to grow crops for fuel is counterproductive to solving global warming. A White House official said the administration’s SAF policy seeks to include ethanol, but “we are trying to seek alignment with stakeholders on the question of modeling.” The EPA, Department of Agriculture and Department of Energy did not respond to requests for comment.
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By Jarrett Renshaw, Stephanie Kelly and Leah Douglas Aug 2 (Reuters) - The Biden administration is divided over whether to grant a request from the U.S. biofuel industry that would make it easier for sustainable aviation fuel made from corn-based ethanol to qualify for subsidies under the White House's signature climate law, according to two sources familiar with the discussions. The administration's decision will determine who benefits from billions of dollars in subsidies expected under the program. The ethanol industry wants to use the U.S. Department of Energy's Greenhouse Gases, Regulated Emissions and Energy Use in Technologies (GREET) model.
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80c16b91-4122-4202-b785-0d54d64668c0
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2374.0
|
2023-08-02 00:00:00 UTC
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American Airlines Group (AAL) Price Target Increased by 8.29% to 19.26
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-price-target-increased-by-8.29-to-19.26
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nan
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nan
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The average one-year price target for American Airlines Group (NASDAQ:AAL) has been revised to 19.26 / share. This is an increase of 8.29% from the prior estimate of 17.79 dated July 5, 2023.
The price target is an average of many targets provided by analysts. The latest targets range from a low of 11.11 to a high of 27.30 / share. The average price target represents an increase of 15.00% from the latest reported closing price of 16.75 / share.
What is the Fund Sentiment?
There are 1032 funds or institutions reporting positions in American Airlines Group. This is an increase of 36 owner(s) or 3.61% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.90%. Total shares owned by institutions increased in the last three months by 4.42% to 410,719K shares.
The put/call ratio of AAL is 3.20, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Supplemental Agreement No. 19, dated as of April 23, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
Supplemental Agreement No. 29, dated as of May 23, 2023, to Purchase Agreement No. 03735 dated as of February 1, 2013, between American Airlines, Inc. and the Boeing Company.*
This story originally appeared on Fintel.
The views and 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 average one-year price target for American Airlines Group (NASDAQ:AAL) has been revised to 19.26 / share. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.90%. The put/call ratio of AAL is 3.20, indicating a bearish outlook.
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The average one-year price target for American Airlines Group (NASDAQ:AAL) has been revised to 19.26 / share. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.90%. The put/call ratio of AAL is 3.20, indicating a bearish outlook.
|
The average one-year price target for American Airlines Group (NASDAQ:AAL) has been revised to 19.26 / share. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.90%. The put/call ratio of AAL is 3.20, indicating a bearish outlook.
|
The average one-year price target for American Airlines Group (NASDAQ:AAL) has been revised to 19.26 / share. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 7.90%. The put/call ratio of AAL is 3.20, indicating a bearish outlook.
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aef1bc57-3fbc-4bf9-ab8d-b6778dc0bc02
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2375.0
|
2023-08-01 00:00:00 UTC
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US STOCKS-Wall St falls after mixed earnings, downbeat manufacturing data
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-after-mixed-earnings-downbeat-manufacturing-data
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
Aug 1 (Reuters) - Wall Street's main indexes fell on Tuesday as investors assessed mixed earnings from industry heavyweights and digested data that showed manufacturing activity slowed more than expected in July.
Keeping a lid on Dow's losses .DJI, CaterpillarCAT.N advanced 7.4% as the global economic bellwether reported a rise in second-quarter profit, though it warned of a sequential fall in current-quarter sales and margins.
UberUBER.N shed 5.4% after the ride-hailing company missed second-quarter revenue expectations.
Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker fell short of Wall Street expectations for quarterly revenue, hit by declining sales of its COVID-19 products.
MerckMRK.N eased 0.8% even as it raised its full-year profit forecast after posting a smaller-than-expected second-quarter loss.
U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, as per Refinitiv data on Tuesday, compared with a 7.9% decline estimated a week earlier.
"What we've seen is that most companies have beaten earnings expectations but when you peel that back a bit, the underlying expectation is that earnings are going to decline," said Mike Olsen, portfolio manager at Motley Fool Asset Management.
"Investors are digesting earnings and macro numbers and are weighing the possibility of a recession versus a soft landing and what that may mean for rate cuts."
On the economic data front, U.S. manufacturing appeared to have stabilized at weaker levels in July amid a gradual improvement in new orders, while a survey showed factory employment dropped to a three-year low, suggesting that layoffs were accelerating.
Hurting shares of megacap growth firms such as Tesla TSLA.O and Amazon.com AMZN.O, whose valuations come under pressure when borrowing costs rise, yield on the benchmark 10-year treasury note climbed over 4%. US/
Arista NetworksANET.N jumped 20.1% as the network gear maker forecast quarterly revenue above estimates after delivering better-than-expected results.
At 11:40 a.m. ET, the Dow Jones Industrial Average .DJI was down 15.93 points, or 0.04%, at 35,543.60, the S&P 500 .SPX was down 15.26 points, or 0.33%, at 4,573.70, and the Nasdaq Composite .IXIC was down 52.72 points, or 0.37%, at 14,293.30.
U.S. equities ended July on a strong footing, buoyed by better-than-expected earnings, and hopes of a soft landing for the economy that has stayed strong in the face of tighter credit conditions while inflation has cooled.
The benchmark S&P 500 .SPX hit a more than 15-month high on Monday, and is about 4.6% away from breaching its record high closing level, notched on Jan. 3, 2022.
Norwegian Cruise LineNCLH.N sank 12.8% after it forecast third-quarter profit below estimates on higher costs.
JetBlue AirwaysJBLU.O tumbled 8.8% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O.
Declining issues outnumbered advancers by a 3.14-to-1 ratio on the NYSE and a 2.10-to-1 ratio on the Nasdaq.
The S&P 500 recorded 20 new 52-week highs and three new lows, while the Nasdaq saw 57 new highs and 43 new lows.
S&P 500 Nears Record High https://tmsnrt.rs/44NixER
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
JetBlue AirwaysJBLU.O tumbled 8.8% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Johann M Cherian and Bansari Mayur Kamdar Aug 1 (Reuters) - Wall Street's main indexes fell on Tuesday as investors assessed mixed earnings from industry heavyweights and digested data that showed manufacturing activity slowed more than expected in July. Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker fell short of Wall Street expectations for quarterly revenue, hit by declining sales of its COVID-19 products.
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JetBlue AirwaysJBLU.O tumbled 8.8% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Johann M Cherian and Bansari Mayur Kamdar Aug 1 (Reuters) - Wall Street's main indexes fell on Tuesday as investors assessed mixed earnings from industry heavyweights and digested data that showed manufacturing activity slowed more than expected in July. Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker fell short of Wall Street expectations for quarterly revenue, hit by declining sales of its COVID-19 products.
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JetBlue AirwaysJBLU.O tumbled 8.8% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Johann M Cherian and Bansari Mayur Kamdar Aug 1 (Reuters) - Wall Street's main indexes fell on Tuesday as investors assessed mixed earnings from industry heavyweights and digested data that showed manufacturing activity slowed more than expected in July. U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, as per Refinitiv data on Tuesday, compared with a 7.9% decline estimated a week earlier.
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JetBlue AirwaysJBLU.O tumbled 8.8% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Johann M Cherian and Bansari Mayur Kamdar Aug 1 (Reuters) - Wall Street's main indexes fell on Tuesday as investors assessed mixed earnings from industry heavyweights and digested data that showed manufacturing activity slowed more than expected in July. MerckMRK.N eased 0.8% even as it raised its full-year profit forecast after posting a smaller-than-expected second-quarter loss.
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054235dd-85be-47f7-af8a-86d3d0b395ea
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2376.0
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2023-08-01 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq end lower on first day of August in busy earnings week
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-end-lower-on-first-day-of-august-in-busy-earnings-week-0
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nan
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nan
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By Echo Wang
Aug 1 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC closed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week.
U.S. stocks ended July on a strong footing, as investors welcomed better-than-expected earnings. Support also came from hopes of a soft landing for the economy which has stayed resilient as inflation has cooled with rising interest rates.
The benchmark S&P 500 .SPX hit a 16-month high on Monday, and is less than 5% away from breaching its record high closing level notched on Jan. 3, 2022.
"It's been a really good run in June, July. And everybody sort of knows that August was historically a pretty weak seasonal month," said Scott Ladner, chief investment officer of Horizon Investments. "So I think people are just taking the opportunity to lighten up a little bit."
UberUBER.Nshed 5.7% after the ride-hailing company missed second-quarter revenue expectations.
Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products.
U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier.
U.S. manufacturing appeared to have stabilized at weaker levels in July as new orders gradually improved, while a survey showed factory employment dropped to a three-year low, suggesting that layoffs were accelerating.
Shares of megacap growth companies such as Tesla TSLA.O and Amazon.com AMZN.O, whose valuations drop when borrowing costs rise, fell as the benchmark 10-year U.S. Treasury note yield climbed over 4%. US/
Arista NetworksANET.Nrose 19.7% as the network gear maker forecast quarterly revenue above estimates after delivering better-than-expected results.
The Dow Jones Industrial Average .DJI rose 71.15 points, or 0.2%, to 35,630.68. The S&P 500 .SPX lost 12.23 points, or 0.27%, at 4,576.73 and the Nasdaq Composite .IXIC dropped 62.11 points, or 0.43%, to 14,283.91.
Volume on U.S. exchanges was 10.45 billion shares, compared with the 10.72 billion average for the full session over the last 20 trading days.
Shares of Norwegian Cruise LineNCLH.Ntumbled 12.1% after it forecast third-quarter profit below estimates, citing higher costs.
JetBlue AirwaysJBLU.O stocks dropped 8.3% after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O.
Declining issues outnumbered advancers on the NYSE by a 2.16-to-1 ratio; on Nasdaq, a 1.67-to-1 ratio favored decliners.
The S&P 500 posted 23 new 52-week highs and three new lows; the Nasdaq Composite recorded 84 new highs and 70 new lows.
S&P 500 Nears Record High https://tmsnrt.rs/44NixER
(Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
JetBlue AirwaysJBLU.O stocks dropped 8.3% after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Echo Wang Aug 1 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC closed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week. Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products.
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JetBlue AirwaysJBLU.O stocks dropped 8.3% after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Echo Wang Aug 1 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC closed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week. The benchmark S&P 500 .SPX hit a 16-month high on Monday, and is less than 5% away from breaching its record high closing level notched on Jan. 3, 2022.
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JetBlue AirwaysJBLU.O stocks dropped 8.3% after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Echo Wang Aug 1 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC closed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week. U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier.
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JetBlue AirwaysJBLU.O stocks dropped 8.3% after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. The S&P 500 .SPX lost 12.23 points, or 0.27%, at 4,576.73 and the Nasdaq Composite .IXIC dropped 62.11 points, or 0.43%, to 14,283.91. Shares of Norwegian Cruise LineNCLH.Ntumbled 12.1% after it forecast third-quarter profit below estimates, citing higher costs.
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36656df4-6678-406f-9fac-19086e086680
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2377.0
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2023-08-01 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq end lower on first day of August in busy earnings week
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-end-lower-on-first-day-of-august-in-busy-earnings-week
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nan
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nan
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By Echo Wang
Aug 1 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week.
U.S. stocks ended July on a strong footing, as investors welcomed better-than-expected earnings. Support also came from hopes of a soft landing for the economy which has stayed resilient as inflation has cooled with rising interest rates.
The benchmark S&P 500 .SPX hit a 16-month high on Monday, and is less than 5% away from breaching its record high closing level notched on Jan. 3, 2022.
"It's been a really good run in June, July. And everybody sort of knows that August was historically a pretty weak seasonal month," said Scott Ladner, chief investment officer of Horizon Investments. "So I think people are just taking the opportunity to lighten up a little bit."
UberUBER.N fell after the ride-hailing company missed second-quarter revenue expectations.
Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products.
U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier.
U.S. manufacturing appeared to have stabilized at weaker levels in July as new orders gradually improved, while a survey showed factory employment dropped to a three-year low, suggesting that layoffs were accelerating.
Shares of megacap growth companies such as Tesla TSLA.O and Amazon.com AMZN.O, whose valuations drop when borrowing costs rise, fell as the benchmark 10-year U.S. Treasury note yield climbed over 4%. US/
Arista NetworksANET.Nstocks rose as the network gear maker forecast quarterly revenue above estimates after delivering better-than-expected results.
According to preliminary data, the S&P 500 .SPX lost 12.25 points, or 0.26%, to end at 4,576.94 points, while the Nasdaq Composite .IXIC lost 62.11 points, or 0.43%, to 14,284.20. The Dow Jones Industrial Average .DJI rose 69.04 points, or 0.19%, to 35,628.57.
Shares of Norwegian Cruise LineNCLH.Ntumbled after it forecast third-quarter profit below estimates, citing higher costs.
JetBlue AirwaysJBLU.O stocks dropped after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O.
S&P 500 Nears Record High https://tmsnrt.rs/44NixER
(Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
JetBlue AirwaysJBLU.O stocks dropped after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Echo Wang Aug 1 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week. Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products.
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JetBlue AirwaysJBLU.O stocks dropped after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier. According to preliminary data, the S&P 500 .SPX lost 12.25 points, or 0.26%, to end at 4,576.94 points, while the Nasdaq Composite .IXIC lost 62.11 points, or 0.43%, to 14,284.20.
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JetBlue AirwaysJBLU.O stocks dropped after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Echo Wang Aug 1 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed weaker on Tuesday, the first day of seasonally slow August, ahead of U.S. jobs data and major companies' earnings reports later this week. U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier.
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JetBlue AirwaysJBLU.O stocks dropped after it lowered its annual profit forecast due to a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. UberUBER.N fell after the ride-hailing company missed second-quarter revenue expectations. Shares of Norwegian Cruise LineNCLH.Ntumbled after it forecast third-quarter profit below estimates, citing higher costs.
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25efaadd-035d-4643-9f2d-0652ad401a6a
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2378.0
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2023-08-01 00:00:00 UTC
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S&P 500, Nasdaq start August lower ahead of busy earnings week
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AAL
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https://www.nasdaq.com/articles/sp-500-nasdaq-start-august-lower-ahead-of-busy-earnings-week
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nan
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nan
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By Echo Wang
Aug 1 (Reuters) - The S&P 500 .SPX fell on Tuesday, the first day of a historically weak month, as investors awaited U.S. jobs data and major companies' earnings reports later this week.
"It (August) is just a very illiquid period," said Scott Ladner, chief investment officer of Horizon Investments. "It might just because there's just a lack of staffing on the desk to really drive prices."
U.S. equities ended July on a strong footing, boosted by better-than-expected earnings, and hopes of a soft landing for the economy that has stayed strong in the face of tighter credit conditions while inflation has cooled.
The benchmark S&P 500 .SPX hit a 16-month high on Monday, and is less than 5% away from breaching its record high closing level notched on Jan. 3, 2022.
UberUBER.Ndropped 6.3% after the ride-hailing company missed second-quarter revenue expectations.
Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products.
U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier.
U.S. manufacturing appeared to have stabilized at weaker levels in July as new orders gradually improved, while a survey showed factory employment dropped to a three-year low, suggesting that layoffs were accelerating.
Shares of megacap growth companies such as Tesla TSLA.O and Amazon.com AMZN.O, whose valuations drop when borrowing costs rise, fell as the benchmark 10-year U.S. Treasury note yield climbed over 4%. US/
Arista NetworksANET.N jumped 19.2% as the network gear maker forecast quarterly revenue above estimates after delivering better-than-expected results.
At 2:20 p.m. ET, the Dow Jones Industrial Average .DJI rose 90.56 points, or 0.25%, to 35,650.09, the S&P 500 .SPX lost 7.42 points, or 0.16%, at 4,581.54 and the Nasdaq Composite .IXIC dropped 38.83 points, or 0.27%, to 14,307.19.
Norwegian Cruise LineNCLH.N sank 13.5% after it forecast third-quarter profit below estimates, citing higher costs.
JetBlue AirwaysJBLU.O tumbled 8.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O.
Declining issues outnumbered advancers on the NYSE by a 2.36-to-1 ratio; on Nasdaq, a 1.80-to-1 ratio favored decliners.
The S&P 500 posted 22 new 52-week highs and three new lows; the Nasdaq Composite recorded 71 new highs and 60 new lows.
S&P 500 Nears Record High https://tmsnrt.rs/44NixER
(Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
JetBlue AirwaysJBLU.O tumbled 8.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Echo Wang Aug 1 (Reuters) - The S&P 500 .SPX fell on Tuesday, the first day of a historically weak month, as investors awaited U.S. jobs data and major companies' earnings reports later this week. Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products.
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JetBlue AirwaysJBLU.O tumbled 8.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier. ET, the Dow Jones Industrial Average .DJI rose 90.56 points, or 0.25%, to 35,650.09, the S&P 500 .SPX lost 7.42 points, or 0.16%, at 4,581.54 and the Nasdaq Composite .IXIC dropped 38.83 points, or 0.27%, to 14,307.19.
|
JetBlue AirwaysJBLU.O tumbled 8.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. Among pharmaceutical heavyweights, PfizerPFE.N edged lower in choppy trading after the drugmaker's quarterly revenue fell short of Wall Street expectations, hit by declining sales of its COVID-19 products. U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, Refinitiv data on Tuesday showed, compared with a 7.9% decline estimated a week earlier.
|
JetBlue AirwaysJBLU.O tumbled 8.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. UberUBER.Ndropped 6.3% after the ride-hailing company missed second-quarter revenue expectations. Norwegian Cruise LineNCLH.N sank 13.5% after it forecast third-quarter profit below estimates, citing higher costs.
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ed3f2988-22ec-4603-aea5-ae22f549de3a
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2379.0
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2023-08-01 00:00:00 UTC
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JetBlue Airlines May Have Entered A Buy Zone, Check This First
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AAL
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https://www.nasdaq.com/articles/jetblue-airlines-may-have-entered-a-buy-zone-check-this-first
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nan
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nan
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Shares of JetBlue Airlines (NASDAQ: JBLU) are declining by as much as 8.5% during Tuesday's trading session; the significant move down is coming from the company's release of its second quarter 2023 earnings results. Markets may be overreacting by selling highly cyclical stocks, like JetBlue, as the United States manufacturing PMI index was reported below expectations this morning.
Understanding that the reaction to the stock is an overextension relative to what happened regarding the company's financials, as well as a relative valuation within the sector benefitting investors today, can begin to paint a picture of JetBlue being a value play in the making. JetBlue analyst ratings point to a potential double-digit upside from today's prices. This opinion is backed by factors that will become clear shortly.
Now that JetBlue's stock chart is showing signs of a potential pivot, backed by a new surprising management strategy, investors may be in for a treat. Being able to gain exposure in a turnaround story, which also happens to be the cheapest alternative in the airline sector, can be the right pocket to look into for outsized returns in a potential purchase.
Management's New Strategy
After other domestic airlines like Southwest Airlines (NYSE: LUV) reported a drying up of domestic travel volumes, alongside expected rises in underlying fueling and maintenance costs, JetBlue management has decided to jump the gun and pivot into a more diversified model. Despite lowering guidance and showcasing some contracting financials, investors have to give management a break for recognizing what needs to be done and acting toward its achievement.
Within the company's earnings release, JetBlue's management stated the intention of redeploying capacity in the coming months. The company began its daily service network to and from New York and Paris, expanding its transatlantic service options with further plans to develop into a Boston to and from Paris in 2024.
Furthermore, JetBlue has expanded its routes to the Caribbean via new service availability to Puerto Rico and other islands such as Belize and St. Kitts. Steering away from the concentration of U.S.-only domestic travel, the company will not only accrue to its top-line net sales figures but also diversify the cyclical risk that comes with relying on one single market.
Understanding that today's decline in JetBlue's stock may be coming from a tendency to judge the name based on its past and current business model rather than weighing the potential benefits of management's future pivot can lead contrarian investors into the promised land.
Only a few market participants are considering the pending merger with Spirit Airlines (NYSE: SAVE), which regulators may expedite and approve now that JetBlue's Northeast Alliance with American Airlines (NASDAQ: AAL) has been. The revenue expansion coming from this mix and cost savings are being underrated by markets today.
Speaking of costs, management made sure to highlight to investors their recent achievements in their cost-saving program. The company delivered over $75 million in cost reductions from their fleet modernization initiatives as the airline transitions into the Airbus A220 model. And referring to the fleet on hand is more efficient than ever and more considerable as the company grew capacity by 5.8% during the past twelve months.
The Perfect Storm
Net revenues grew by 6.7% over the year for JetBlue, nothing to punch the 'Buy' button at. However, investors can begin to wake up to reality when this growth rate is taken along with the 12.2% reported contraction in operating expenses. As margins expand and are expected to grow as the fleet is modernized and the benefits of a merger hover over the company's future, profitability and EPS growth are set to kick in soon.
Looking at the above chart, investors can see that the thick blue line, which has acted as a heavily traded support and accumulation level, is close to being tested after today's extraordinary decline. More importantly than this double - even triple - the bottom is the infamous 200-day moving average represented by the thick purple line across the price candles.
Now that the stock has crossed above the moving average, typically taken as a proxy for bull and bear markets, investors are beginning to get a taste of potential future momentum. Traveling above the moving average is one thing; however, seeing that the moving average has turned upward further confirms a pivot in the previous downtrend, opening the way for a potential new rally.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Only a few market participants are considering the pending merger with Spirit Airlines (NYSE: SAVE), which regulators may expedite and approve now that JetBlue's Northeast Alliance with American Airlines (NASDAQ: AAL) has been. Shares of JetBlue Airlines (NASDAQ: JBLU) are declining by as much as 8.5% during Tuesday's trading session; the significant move down is coming from the company's release of its second quarter 2023 earnings results. Steering away from the concentration of U.S.-only domestic travel, the company will not only accrue to its top-line net sales figures but also diversify the cyclical risk that comes with relying on one single market.
|
Only a few market participants are considering the pending merger with Spirit Airlines (NYSE: SAVE), which regulators may expedite and approve now that JetBlue's Northeast Alliance with American Airlines (NASDAQ: AAL) has been. Understanding that the reaction to the stock is an overextension relative to what happened regarding the company's financials, as well as a relative valuation within the sector benefitting investors today, can begin to paint a picture of JetBlue being a value play in the making. Management's New Strategy After other domestic airlines like Southwest Airlines (NYSE: LUV) reported a drying up of domestic travel volumes, alongside expected rises in underlying fueling and maintenance costs, JetBlue management has decided to jump the gun and pivot into a more diversified model.
|
Only a few market participants are considering the pending merger with Spirit Airlines (NYSE: SAVE), which regulators may expedite and approve now that JetBlue's Northeast Alliance with American Airlines (NASDAQ: AAL) has been. Understanding that the reaction to the stock is an overextension relative to what happened regarding the company's financials, as well as a relative valuation within the sector benefitting investors today, can begin to paint a picture of JetBlue being a value play in the making. Management's New Strategy After other domestic airlines like Southwest Airlines (NYSE: LUV) reported a drying up of domestic travel volumes, alongside expected rises in underlying fueling and maintenance costs, JetBlue management has decided to jump the gun and pivot into a more diversified model.
|
Only a few market participants are considering the pending merger with Spirit Airlines (NYSE: SAVE), which regulators may expedite and approve now that JetBlue's Northeast Alliance with American Airlines (NASDAQ: AAL) has been. Shares of JetBlue Airlines (NASDAQ: JBLU) are declining by as much as 8.5% during Tuesday's trading session; the significant move down is coming from the company's release of its second quarter 2023 earnings results. Management's New Strategy After other domestic airlines like Southwest Airlines (NYSE: LUV) reported a drying up of domestic travel volumes, alongside expected rises in underlying fueling and maintenance costs, JetBlue management has decided to jump the gun and pivot into a more diversified model.
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df0cac44-2306-4c24-8fdb-58748feacfb3
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2380.0
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2023-08-01 00:00:00 UTC
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US STOCKS-Wall St set to open lower ahead of manufacturing, jobs data
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-ahead-of-manufacturing-jobs-data
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
Aug 1 (Reuters) - Wall Street was set to open lower on Tuesday ahead of economic data that could clear the air on a soft landing for the U.S. economy, while investors assessed mixed earnings from pharmaceutical heavyweights Merck and Pfizer.
MerckMRK.N rose 1.5% in premarket trading as it raised its full-year profit forecast after posting a smaller-than-expected second-quarter loss, while PfizerPFE.N slipped as it missed estimates for quarterly revenue.
UberUBER.N climbed 2.3% after it forecast third-quarter operating profit above expectations, banking on a growing demand for ride hailing services.
CaterpillarCAT.N edged up 0.9% in choppy trading as the global economic bellwether reported a rise in second-quarter profit, though it warned of a sequential fall in current-quarter sales and margins.
U.S. second-quarter earnings are now expected to fall 6.4% from a year earlier, compared with a 7.9% decline estimated a week ago, as per Refinitiv data.
"So far things have played out well and we're looking forward to continued strengths and the outlook seems to be firming," said Peter Andersen, founder of Andersen Capital Management.
All eyes will be on the ISM Manufacturing survey which is expected to show that July U.S. factory activity contracted less than the month before. Labor Department's Job Openings and Labor Turnover Survey for June is also on tap.
The manufacturing and employment surveys are expected at 10 a.m. ET.
"It's a delicate balance, where we want to see some contraction, but not too much contraction, and then we also have to factor in the sense that rate increases have not fully played out," Andersen added.
Investors will also parse commentary by Chicago Fed President Austan Goolsbee, a voting member this year, for clues on the U.S. central bank's monetary policy path.
Hurting shares of megacap growth firms such as Tesla TSLA.O and Microsoft MSFT.O, whose valuations come under pressure when borrowing costs rise, yield on the benchmark 10-year treasury note climbed over 4%. US/
U.S. equities ended July on a strong footing, riding on the back of better-than-expected earnings, and hopes of a soft landing for the economy that has stayed strong in the face of tighter credit conditions while inflation has cooled.
The benchmark S&P 500 .SPX hit a more than 15-month high on Monday, and is 4.3% away from breaching its record high closing level, notched on Jan. 3, 2022.
At 8:24 a.m. ET, Dow e-minis 1YMcv1 were down 69 points, or 0.19%, S&P 500 e-minis EScv1 were down 15.5 points, or 0.34%, and Nasdaq 100 e-minis NQcv1 were down 77.5 points, or 0.49%.
JetBlue AirwaysJBLU.O tumbled 5.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O.
Arista NetworksANET.N jumped 15.4% as the network gear maker forecast quarterly revenue above estimates after delivering better-than-expected results.
U.S.-listed shares of Chinese firms such as Bilibili BILI.O and Alibaba BABA.N were off 1.7% and 3.3%, respectively, after a survey showed China's factory activity swung to contraction in July.
Global long/short hedge funds, which bet whether the stocks will fall or rise, were forced to unwind bearish positions that were dragging down performance in July, a Goldman Sachs report showed on Monday.
S&P 500 nears record high https://tmsnrt.rs/3DDuHUR
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue AirwaysJBLU.O tumbled 5.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Johann M Cherian and Bansari Mayur Kamdar Aug 1 (Reuters) - Wall Street was set to open lower on Tuesday ahead of economic data that could clear the air on a soft landing for the U.S. economy, while investors assessed mixed earnings from pharmaceutical heavyweights Merck and Pfizer. Investors will also parse commentary by Chicago Fed President Austan Goolsbee, a voting member this year, for clues on the U.S. central bank's monetary policy path.
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JetBlue AirwaysJBLU.O tumbled 5.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. CaterpillarCAT.N edged up 0.9% in choppy trading as the global economic bellwether reported a rise in second-quarter profit, though it warned of a sequential fall in current-quarter sales and margins. All eyes will be on the ISM Manufacturing survey which is expected to show that July U.S. factory activity contracted less than the month before.
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JetBlue AirwaysJBLU.O tumbled 5.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Johann M Cherian and Bansari Mayur Kamdar Aug 1 (Reuters) - Wall Street was set to open lower on Tuesday ahead of economic data that could clear the air on a soft landing for the U.S. economy, while investors assessed mixed earnings from pharmaceutical heavyweights Merck and Pfizer. All eyes will be on the ISM Manufacturing survey which is expected to show that July U.S. factory activity contracted less than the month before.
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JetBlue AirwaysJBLU.O tumbled 5.4% after lowering its annual profit forecast, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O. By Johann M Cherian and Bansari Mayur Kamdar Aug 1 (Reuters) - Wall Street was set to open lower on Tuesday ahead of economic data that could clear the air on a soft landing for the U.S. economy, while investors assessed mixed earnings from pharmaceutical heavyweights Merck and Pfizer. MerckMRK.N rose 1.5% in premarket trading as it raised its full-year profit forecast after posting a smaller-than-expected second-quarter loss, while PfizerPFE.N slipped as it missed estimates for quarterly revenue.
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ba4aaa35-cc51-489d-a290-7cebe52604e9
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2381.0
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2023-08-01 00:00:00 UTC
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JetBlue cuts profit view as it ends codeshare deal with American Airlines
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AAL
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https://www.nasdaq.com/articles/jetblue-cuts-profit-view-as-it-ends-codeshare-deal-with-american-airlines
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nan
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nan
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Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O that triggered an 8% fall in its shares in premarket trading.
The New York-based carrier now expects full-year adjusted profit of between 5 cents and 40 cents per share, compared with its previous forecast of between 70 cents and $1 per share.
American Airlines and JetBlue Airways, which is in the process of taking over Spirit Airlines, will begin to wind down their Northeast Alliance on July 21 following a U.S. judge's order in May that cited competition concerns.
JetBlue said on Tuesday its updated outlook for the year also reflects "a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period."
Excluding items, the company reported an adjusted net income for the second quarter of $152 million, or 45 cents per share, compared with a loss of $153 million, or 47 cents per share, a year earlier.
(Reporting by Kannaki Deka in Bengaluru; Editing by Anil D'Silva)
((Kannaki.Deka@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O that triggered an 8% fall in its shares in premarket trading. JetBlue said on Tuesday its updated outlook for the year also reflects "a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period." Excluding items, the company reported an adjusted net income for the second quarter of $152 million, or 45 cents per share, compared with a loss of $153 million, or 47 cents per share, a year earlier.
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Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O that triggered an 8% fall in its shares in premarket trading. The New York-based carrier now expects full-year adjusted profit of between 5 cents and 40 cents per share, compared with its previous forecast of between 70 cents and $1 per share. American Airlines and JetBlue Airways, which is in the process of taking over Spirit Airlines, will begin to wind down their Northeast Alliance on July 21 following a U.S. judge's order in May that cited competition concerns.
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Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O that triggered an 8% fall in its shares in premarket trading. The New York-based carrier now expects full-year adjusted profit of between 5 cents and 40 cents per share, compared with its previous forecast of between 70 cents and $1 per share. Excluding items, the company reported an adjusted net income for the second quarter of $152 million, or 45 cents per share, compared with a loss of $153 million, or 47 cents per share, a year earlier.
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Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O that triggered an 8% fall in its shares in premarket trading. The New York-based carrier now expects full-year adjusted profit of between 5 cents and 40 cents per share, compared with its previous forecast of between 70 cents and $1 per share. JetBlue said on Tuesday its updated outlook for the year also reflects "a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period."
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238455a6-a737-43f2-89d6-4ab0540c4bdc
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2382.0
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2023-08-01 00:00:00 UTC
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Diamond sales at Botswana's Debswana slump 17% on weak demand
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AAL
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https://www.nasdaq.com/articles/diamond-sales-at-botswanas-debswana-slump-17-on-weak-demand
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nan
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nan
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GABORONE, Aug 1 (Reuters) - The sale of rough diamonds at Botswana's Debswana Diamond Co fell 17% in the first six months of the year, data released by the central bank showed, amid a weak market underpinned by global macroeconomic uncertainty.
Debswana, a joint venture of Botswana and Anglo American Plc's AAL.L unit De Beers, sells 75% of its output to De Beers with the balance taken up by state-owned Okavango Diamond Co.
Botswana and De Beers in late June agreed a new diamond sales deal in which the African country, the world's No. 1 diamond producer by value, gradually increases the share of rough stones it gets from the joint venture over the next decade to 50%.
In the first half of the year, Debswana sold diamonds worth $2.179 billion from $2.622 billion in the same period last year, the Bank of Botswana said late on Monday.
In pula terms, the rough sales recorded an 8% fall to 28.621 billion pula, with central bank data showing the local currency depreciated 8.4% against the dollar in the 12 months to June.
Debswana, which produced 12.7 million carats in the first six months, accounts for almost all the diamonds produced in Botswana, with Lucara Diamond Corp's LUC.TO Karowe mine being the only other operating diamond mine in the country.
(Reporting by Brian Benza, Editing by Bhargav Acharya and Bernadette Baum)
((Bhargav.Acharya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Debswana, a joint venture of Botswana and Anglo American Plc's AAL.L unit De Beers, sells 75% of its output to De Beers with the balance taken up by state-owned Okavango Diamond Co. Botswana and De Beers in late June agreed a new diamond sales deal in which the African country, the world's No. GABORONE, Aug 1 (Reuters) - The sale of rough diamonds at Botswana's Debswana Diamond Co fell 17% in the first six months of the year, data released by the central bank showed, amid a weak market underpinned by global macroeconomic uncertainty. 1 diamond producer by value, gradually increases the share of rough stones it gets from the joint venture over the next decade to 50%.
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Debswana, a joint venture of Botswana and Anglo American Plc's AAL.L unit De Beers, sells 75% of its output to De Beers with the balance taken up by state-owned Okavango Diamond Co. Botswana and De Beers in late June agreed a new diamond sales deal in which the African country, the world's No. GABORONE, Aug 1 (Reuters) - The sale of rough diamonds at Botswana's Debswana Diamond Co fell 17% in the first six months of the year, data released by the central bank showed, amid a weak market underpinned by global macroeconomic uncertainty. In pula terms, the rough sales recorded an 8% fall to 28.621 billion pula, with central bank data showing the local currency depreciated 8.4% against the dollar in the 12 months to June.
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Debswana, a joint venture of Botswana and Anglo American Plc's AAL.L unit De Beers, sells 75% of its output to De Beers with the balance taken up by state-owned Okavango Diamond Co. Botswana and De Beers in late June agreed a new diamond sales deal in which the African country, the world's No. GABORONE, Aug 1 (Reuters) - The sale of rough diamonds at Botswana's Debswana Diamond Co fell 17% in the first six months of the year, data released by the central bank showed, amid a weak market underpinned by global macroeconomic uncertainty. Debswana, which produced 12.7 million carats in the first six months, accounts for almost all the diamonds produced in Botswana, with Lucara Diamond Corp's LUC.TO Karowe mine being the only other operating diamond mine in the country.
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Debswana, a joint venture of Botswana and Anglo American Plc's AAL.L unit De Beers, sells 75% of its output to De Beers with the balance taken up by state-owned Okavango Diamond Co. Botswana and De Beers in late June agreed a new diamond sales deal in which the African country, the world's No. GABORONE, Aug 1 (Reuters) - The sale of rough diamonds at Botswana's Debswana Diamond Co fell 17% in the first six months of the year, data released by the central bank showed, amid a weak market underpinned by global macroeconomic uncertainty. 1 diamond producer by value, gradually increases the share of rough stones it gets from the joint venture over the next decade to 50%.
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b963a506-3984-4ad0-8373-e46a0181898e
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2383.0
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2023-08-01 00:00:00 UTC
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Here's What To Expect From JetBlue's Q2
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AAL
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https://www.nasdaq.com/articles/heres-what-to-expect-from-jetblues-q2
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nan
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nan
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JetBlue Airways (NASDAQ: JBLU) will report its Q2 2023 results on Tuesday, Aug 1. We expect the company’s revenues to come in at $2.6 billion, aligning with the consensus estimate. This would mark year-over-year growth of about 7%. Earnings will likely come in at about $0.42 on a per-share and adjusted basis, slightly below the $0.44 consensus estimate. See our interactive dashboard analysis on JetBlue Airways Earnings Preview for more details on how the company’s revenues and earnings will likely trend for the quarter. So, what are some of the trends that are likely to drive JetBlue Airways’ results?
The company will likely continue to benefit from the robust travel demand. It should see a continued rise in total available seat miles (ASM), and the passenger load factor will likely remain strong. However, it will be a tough comparison with the prior-year quarter, which saw a record travel demand. The average ticket price has also cooled this year while overall capacity has expanded. Looking at Q1 2023, JetBlue Airways’ revenues were up 34%, led by a 9% rise in capacity and a 25% rise in average revenue per available seat mile to 13.88 cents.
Looking at the bottom line, JetBlue Airways reported a $0.34 loss per share on an adjusted basis in Q1, compared to a $0.80 loss per share in the prior-year quarter. The company’s average fuel price per gallon stood at $3.50 in Q1, and it should be lower in Q2 vs. its prior-year figure of $4.24. The average U.S. Gulf Coast Kerosene Jet fuel price per gallon fell from $3.90 (end of June last year) to $2.60 now. Now that fuel prices have cooled compared to last year, the company will likely see its operating margin expand. After seeing a sharp decline from 9.5% in 2019 to -63.2% in 2020 due to the impact of the pandemic, JetBlue Airways’ operating margin has recovered to -4.2% in 2022. Our JetBlue Airways’ Operating Income Comparison dashboard has more details.
Looking at JBLU’s stock price, we believe it is appropriately priced. We estimate JetBlue Airways’ valuation to be $8 per share, aligning with the current market price. Our forecast is based on an 11x P/E multiple for JBLU and expected earnings of $0.75 on a per-share and adjusted basis for the full-year 2023. The company has guided for adjusted EPS to be in the range of $0.70 to $1.00 for the full-year 2023. The company expects its fuel costs to be lower for the year, implying margin expansion in the coming quarters.
While JetBlue Airways’ stock looks fully valued, check out how JetBlue Airways Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
What if you’re looking for a portfolio that aims for long-term growth? Here’s a value portfolio that’s done much better than the market since 2016.
Returns Jul 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
JBLU Return -11% 21% -65%
S&P 500 Return 3% 19% 105%
Trefis Multi-Strategy Portfolio 7% 28% 310%
[1] Month-to-date and year-to-date as of 7/31/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and 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 should see a continued rise in total available seat miles (ASM), and the passenger load factor will likely remain strong. The average U.S. Gulf Coast Kerosene Jet fuel price per gallon fell from $3.90 (end of June last year) to $2.60 now. The company expects its fuel costs to be lower for the year, implying margin expansion in the coming quarters.
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JetBlue Airways (NASDAQ: JBLU) will report its Q2 2023 results on Tuesday, Aug 1. Looking at the bottom line, JetBlue Airways reported a $0.34 loss per share on an adjusted basis in Q1, compared to a $0.80 loss per share in the prior-year quarter. Total [2] JBLU Return -11% 21% -65% S&P 500 Return 3% 19% 105% Trefis Multi-Strategy Portfolio 7% 28% 310% [1] Month-to-date and year-to-date as of 7/31/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and 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 interactive dashboard analysis on JetBlue Airways Earnings Preview for more details on how the company’s revenues and earnings will likely trend for the quarter. While JetBlue Airways’ stock looks fully valued, check out how JetBlue Airways Peers fare on metrics that matter. Total [2] JBLU Return -11% 21% -65% S&P 500 Return 3% 19% 105% Trefis Multi-Strategy Portfolio 7% 28% 310% [1] Month-to-date and year-to-date as of 7/31/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now that fuel prices have cooled compared to last year, the company will likely see its operating margin expand. Our JetBlue Airways’ Operating Income Comparison dashboard has more details. Our forecast is based on an 11x P/E multiple for JBLU and expected earnings of $0.75 on a per-share and adjusted basis for the full-year 2023.
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b5bb7cdd-bc5a-4cab-b516-09e558db5589
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2384.0
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2023-08-01 00:00:00 UTC
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JetBlue cuts profit view after ending codeshare deal with American Airlines
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AAL
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https://www.nasdaq.com/articles/jetblue-cuts-profit-view-after-ending-codeshare-deal-with-american-airlines
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nan
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nan
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By Kannaki Deka
Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O and signs of slowing demand for domestic leisure travel.
Shares of JetBlue fell 8% in premarket trading after the carrier said it was now expecting a full-year adjusted profit of 5 cents to 40 cents per share, compared with its previous forecast of 70 cents to $1 per share.
Calling the forecast extremely disappointing, TD Cowen analysts said, "JetBlue is caught in the cross-hairs of slowing domestic leisure air travel demand, operating in some of the most constrained US airports, and dealing with idiosyncratic distractions (NEA wind-down, SAVE merger lawsuit)."
JetBlue is also dealing with the snag in Pratt & Whitney's engines that power Airbus' AIR.PA popular A320neo jets and could face the prospect of grounding planes and trimming flight capacity amid a busy summer travel season.
"While we remain on track to deliver a profitable year and record revenue performance, we are taking action, including redeploying capacity to mitigate these current challenges and improve margins," JetBlue Chief Operating Officer Joanna Geraghty said.
JetBlue, however, beat estimates for second-quarter profit, aided by strong travel demand amid a post-pandemic travel boom as flyers cut spending on goods to fund experiences.
"Overall leisure demand trends are healthy and we continue to see robust demand during peak periods," Geraghty said.
The company reported a profit of 45 cents per share for the quarter through ended June 30, compared with analysts' average estimate of 44 cents per share, as per Refinitiv data.
Its revenue increased by 6.7% to $2.61 billion, in line with expectations.
(Reporting by Kannaki Deka in Bengaluru; Editing by Anil D'Silva)
((Kannaki.Deka@thomsonreuters.com;))
The views and 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 Kannaki Deka Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O and signs of slowing demand for domestic leisure travel. Calling the forecast extremely disappointing, TD Cowen analysts said, "JetBlue is caught in the cross-hairs of slowing domestic leisure air travel demand, operating in some of the most constrained US airports, and dealing with idiosyncratic distractions (NEA wind-down, SAVE merger lawsuit)." "While we remain on track to deliver a profitable year and record revenue performance, we are taking action, including redeploying capacity to mitigate these current challenges and improve margins," JetBlue Chief Operating Officer Joanna Geraghty said.
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By Kannaki Deka Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O and signs of slowing demand for domestic leisure travel. Shares of JetBlue fell 8% in premarket trading after the carrier said it was now expecting a full-year adjusted profit of 5 cents to 40 cents per share, compared with its previous forecast of 70 cents to $1 per share. Calling the forecast extremely disappointing, TD Cowen analysts said, "JetBlue is caught in the cross-hairs of slowing domestic leisure air travel demand, operating in some of the most constrained US airports, and dealing with idiosyncratic distractions (NEA wind-down, SAVE merger lawsuit)."
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By Kannaki Deka Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O and signs of slowing demand for domestic leisure travel. Shares of JetBlue fell 8% in premarket trading after the carrier said it was now expecting a full-year adjusted profit of 5 cents to 40 cents per share, compared with its previous forecast of 70 cents to $1 per share. Calling the forecast extremely disappointing, TD Cowen analysts said, "JetBlue is caught in the cross-hairs of slowing domestic leisure air travel demand, operating in some of the most constrained US airports, and dealing with idiosyncratic distractions (NEA wind-down, SAVE merger lawsuit)."
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By Kannaki Deka Aug 1 (Reuters) - JetBlue Airways Corp JBLU.O cut its full-year profit forecast on Tuesday, citing a hit from the termination of its revenue-sharing deal with American Airlines AAL.O and signs of slowing demand for domestic leisure travel. Shares of JetBlue fell 8% in premarket trading after the carrier said it was now expecting a full-year adjusted profit of 5 cents to 40 cents per share, compared with its previous forecast of 70 cents to $1 per share. Calling the forecast extremely disappointing, TD Cowen analysts said, "JetBlue is caught in the cross-hairs of slowing domestic leisure air travel demand, operating in some of the most constrained US airports, and dealing with idiosyncratic distractions (NEA wind-down, SAVE merger lawsuit)."
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bc8632e2-c7ea-4dab-9e6c-29af85eaf61b
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2385.0
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2023-07-31 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAL
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AAL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-2
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nan
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 84% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
QUALITY: PASS
ACQUIRER'S MULTIPLE FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
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Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Tobias Carlisle Tobias Carlisle Portfolio About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing.
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8f814012-132c-4565-9d6f-c63f741af228
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2386.0
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2023-07-28 00:00:00 UTC
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Is It Time To Start Buying Southwest Airlines' Post-Earnings Dip?
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AAL
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https://www.nasdaq.com/articles/is-it-time-to-start-buying-southwest-airlines-post-earnings-dip
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nan
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nan
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Shares of Southwest Airlines (NYSE: LUV) are traded lower by as much as 9.0% during Thursday's trading session, a reaction that seems an exaggeration following the company's second quarter 2023 earnings results. Southwest stock has been enjoying some newfound momentum and sentiment, especially after making it to the 'popular' list.
The Goldman Sachs Group (NYSE: GS) had added the airline to its periodic 'conviction list,' which is the bank's chosen name that will likely do well in the coming months due to a variety of bullish factors. The stock had risen by as much as 33% since the announcement, as markets began to see just how much potential this airline holds.
Today's reaction may be coming from so-called profit-taking activities, which can be considered normal after such a massive rally in such a short period of time. However, some key developments need to be understood within the earnings release in order for investors to navigate today's turbulence best.
Management Highlights and Concerns
Recovering tailwinds pushing the travel industry higher were reflected in the company's top-line report, which pointed to a record in quarterly revenues amounting to $7.0 billion. An annual advance of 4.6% will seem like an average achievement for the industry. In many ways, it is when taken just by itself.
One factor that has grabbed negative attention from investors is a 10.6% annual contraction in the company's earnings per share, mainly driven by cyclically rising operating costs. A 25.5% increase in labor costs due to labor shortages and workers demanding better compensation packages severely compressed the company's ability to expand its operating profits.
Oil, oil, oil. Fuel costs seem to be a significant concern going forward, as market sentiment points to higher oil prices in expectation of an economic slowdown; rising fuel costs will have a direct negative impact on Southwest's profit center. Management renewed its full-year 2023 cost guidance to reflect a net rise in fueling costs, alongside heating maintenance and labor costs as well.
It is important to note that most of the airline's revenue comes from U.S. domestic leisure travel, and some rising costs have been offset by higher-than-expected leisure travel activity in the nation. More critical are the expected trends in travel activity, which can give investors a window into future expectations.
Management has deployed capital toward capacity expansion during the quarter, looking to grow the company's flying capacity by as much as 12% this quarter. A similar 16% increase has become the objective for the first quarter of 2024, allowing for potentially higher demand.
Taking a beat out of the negative focus on rising costs, increasing capacity due to rising demand expectations should be a cause for celebration. As more flights are available alongside a more extensive fleet, these elevated costs will be spread across a more significant number of operations. Going back to the concept of economies of scale, this new capacity will likely offset the expected rise in costs... good job Goldman.
Buy the Dip?
Southwest analyst ratings are pointing toward a consensus price target of $43.87, representing a total upside of 32.7% from today's prices. A double-digit upside on one of Wall Street's favorite airlines sounds like an excellent deal for any investor looking into a value play. Technically speaking, there are some lights flashing for the possibility of purchase soon.
The above image will showcase where investors may find sensible entries and support. The amber and red shaded areas will represent Southwest stock's key 'golden' Fibonacci retracements. The space between the 61.8% and the 78.6% retracements are typically zones where markets begin to pile in for a reversal. A significant landmine also fills this zone.
The thick purple line is attached to the infamous 200-day moving average, a proxy for whether a stock will invert its previous trend or extend it. Considering Southwest stock has been under this moving average for the better part of a year, crossing it for the first time this July marked a significantly bullish event.
Now that the stock is testing this moving average once more and perhaps looking to reload another bull run by briefly trading below it, investors should be on the lookout more than ever for a possible purchase. Leaning on the fact that this is the market's favorite airline will help with any lack of confidence after today's dip.
Traders typically gauge a stock's popularity in the market by analyzing where the future expected earnings are valued via the forward price-to-earnings ratio. Southwest stock trades at an 8.6x forward P/E, significantly superior to competitors like Delta Airlines (NYSE: DAL) and American Airlines (NASDAQ: AAL), who trade at a respective 6.0x and 4.9x multiple.
Some value investors may argue that this only makes Southwest the more expensive alternative for exposure in the sector; however, there is a reason why the market is making the stock more 'expensive.' When you want to be sure that a certain product or service is of top-notch quality/value, this usually comes with a premium price to other alternatives. Stocks are pretty close to this reality.
Now is not the time to get greedy; markets are placing a higher perceived quality on the future earnings of Southwest above its competitors. Technical factors and analyst ratings are all rooting for the stock to come back to previous highs, and when Goldman says it has a conviction on a particular company, investors better listen.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Southwest stock trades at an 8.6x forward P/E, significantly superior to competitors like Delta Airlines (NYSE: DAL) and American Airlines (NASDAQ: AAL), who trade at a respective 6.0x and 4.9x multiple. The Goldman Sachs Group (NYSE: GS) had added the airline to its periodic 'conviction list,' which is the bank's chosen name that will likely do well in the coming months due to a variety of bullish factors. Management Highlights and Concerns Recovering tailwinds pushing the travel industry higher were reflected in the company's top-line report, which pointed to a record in quarterly revenues amounting to $7.0 billion.
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Southwest stock trades at an 8.6x forward P/E, significantly superior to competitors like Delta Airlines (NYSE: DAL) and American Airlines (NASDAQ: AAL), who trade at a respective 6.0x and 4.9x multiple. Fuel costs seem to be a significant concern going forward, as market sentiment points to higher oil prices in expectation of an economic slowdown; rising fuel costs will have a direct negative impact on Southwest's profit center. It is important to note that most of the airline's revenue comes from U.S. domestic leisure travel, and some rising costs have been offset by higher-than-expected leisure travel activity in the nation.
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Southwest stock trades at an 8.6x forward P/E, significantly superior to competitors like Delta Airlines (NYSE: DAL) and American Airlines (NASDAQ: AAL), who trade at a respective 6.0x and 4.9x multiple. Fuel costs seem to be a significant concern going forward, as market sentiment points to higher oil prices in expectation of an economic slowdown; rising fuel costs will have a direct negative impact on Southwest's profit center. Management renewed its full-year 2023 cost guidance to reflect a net rise in fueling costs, alongside heating maintenance and labor costs as well.
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Southwest stock trades at an 8.6x forward P/E, significantly superior to competitors like Delta Airlines (NYSE: DAL) and American Airlines (NASDAQ: AAL), who trade at a respective 6.0x and 4.9x multiple. Fuel costs seem to be a significant concern going forward, as market sentiment points to higher oil prices in expectation of an economic slowdown; rising fuel costs will have a direct negative impact on Southwest's profit center. A similar 16% increase has become the objective for the first quarter of 2024, allowing for potentially higher demand.
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7f0f57ea-2ccf-4212-8e5f-1eee648cdfd5
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2387.0
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2023-07-27 00:00:00 UTC
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Stocks Give Up Early Gains as the 10-Year T-note Yield Jumps Above 4%
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AAL
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https://www.nasdaq.com/articles/stocks-give-up-early-gains-as-the-10-year-t-note-yield-jumps-above-4
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.64%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.67%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.22%.
Stocks on Thursday gave up early gains and settled moderately lower. Long liquidation emerged in stocks after 10-year T-notes yields jumped above 4.00% on a report that said the BOJ plans to discuss tweaking its yield curve control policy at Friday’s policy meeting. The Nikkei reported that the BOJ will consider letting long-term interest rates rise above the 0.5% upper limit of its 10-year JGB yield target by “a certain degree.”
Stocks Thursday initially moved higher, with the S&P 500 posting a nearly 16-month high, the Dow Jones Industrials posting a 17-1/2 month high, and the Nasdaq 100 posting a 1-week high on strength in technology stocks. Meta Platforms rose more than +4% after reporting better-than-expected Q2 revenue. Also, chip stocks rallied after Samsung Electronics said artificial intelligence will boost memory demand before the year’s end.
Stocks also found support Thursday on signs that the U.S. economy may achieve a soft landing after U.S. Q2 GDP expanded more than expected, boosted by stronger-than-expected consumer spending. Also, the Q2 core PCE price index advanced at a slower-than-expected pace.
Q2 corporate earnings season is off to a strong start, as nearly 80% of U.S. companies that have reported results have beaten profit estimates.
As expected, the ECB raised its main refinancing rate today by 25 bp to 4.25% and said, "The Governing Council's future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to the 2% medium-term target."
U.S. weekly initial unemployment claims unexpectedly fell -7,000 to a 5-month low of 221,000, showing a stronger labor market than expectations of an increase to 235,000.
U.S. Q2 GDP rose +2.4% (q/q annualized), stronger than expectations of +1.8%, as Q2 personal consumption rose +1.6%, stronger than expectations of +1.2%. The Q2 core PCE price index eased to +3.8% q/q from +4.9% q/q in Q1, better than expectations of +4.0% q/q and the slowest pace of increase since Q1 2021.
U.S. Jun capital goods new orders nondefense ex-aircraft and parts unexpectedly rose +0.2% m/m, stronger than expectations of a decline of -0.1% m/m.
U.S. Jun pending home sales unexpectedly rose +0.3% m/m, stronger than expectations of a -0.5% m/m decline.
The markets are discounting the odds at 20% for a +25 bp rate hike at the September 20 FOMC meeting.
Global bond yields on Thursday were mixed. The 10-year T-note yield jumped to a 2-1/2 week high of 4.022% and finished up +13.7 bp to 4.004%. The 10-year German bund yield fell -1.1 bp to 2.474%. The 10-year UK Gilt yield rose to a 1-week high of 4.324% and finished up +2.9 bp at 4.310%.
Overseas stock markets Thursday settled mixed. The Euro Stoxx 50 closed up +2.32%. China’s Shanghai Composite Index today closed down -0.20%. Japan’s Nikkei Stock Index closed up +0.68%.
Today’s stock movers…
Ebay (EBAY) closed down more than -10% to lead losers in the S&P 500 and Nasdaq 100 after forecasting Q3 adjusted EPS from continuing operations of 96 cents-$1.01, weaker than the consensus of $1.02.
Chipotle Mexican Grill (CMG) closed down more than -9% after reporting Q2 comparable same-store sales rose +7.4%, weaker than the consensus of +7.67%.
Edwards Lifesciences (EW) closed down more than -9% after forecasting Q3 adjusted EPS of 55 cents-61 cents, below the consensus of 63 cents.
Airline stocks retreated Thursday after Southwest Airlines raised its full-year non-fuel expenses to fly each seat a mile, an industry gauge of efficiency, to a decline of -1% to -2% from a previous estimate of as much as a -4% drop. As a result, Southwest Airlines (LUV) closed down more than -8%. Also, United Airlines Holdings (UAL) closed down by more than -2%, and American Airlines Group (AAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) closed down by more than -1%.
Willis Towers Watson Plc (WTW) closed down more than -8% after reporting Q2 adjusted EPS of $2.05, weaker than the consensus of $2.32, and cut its 2024 adjusted EPS forecast to $15.40-$17.00 from a previous estimate of $17.50-$20.50.
S&P Global (SPGI) closed down more than -7% after reporting Q2 adjusted EPS of $3.12, weaker than the consensus of $3.14.
Honeywell International (HON) closed down more than -5% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
Align Technology (ALGN) closed up more than +13% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue f $1.00 billion, stronger than the consensus of $990.4 million.
Textron (TXT) closed up more than +12% after reporting Q2 revenue of $3.42 billion, stronger than the consensus of $3.40 billion.
Lam Research (LRCX) closed up more than +9% after reporting Q4 adjusted EPS of $5,98, well above the consensus of $5.01.
Meta Platforms (META) closed up more than +4% after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion from a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion.
Semiconductor stocks rallied Thursday after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. As a result, Applied Materials (AMAT), Micron Technology (MU), and KLA Corp (KLAC) closed up more than +5%. Also, ASML Holding NV (ASML) closed up more than +3%, and Analog Devices (ADI), Microchip Technology (MCHP), and ON Semiconductor (ON) closed up more than +2%.
Cruise lines rallied Thursday after Royal Caribbean Cruises boosted its full-year adjusted EPS estimate to $6.00-$6.20 from a previous estimate of $4.40-$4.80, well above the consensus of $4.73. As a result, Royal Caribbean Cruises (RCL) closed up more than +8%, Carnival (CCL) closed up more than +3%, and Norwegian Cruise Line Holdings (NCLH) closed up more than +2%.
Comcast Corp (CMCSA) closed up more than +5% after reporting Q2 revenue of $30.51 billion, stronger than the consensus of $30.09 billion.
Carrier Global (CARR) closed up more than +4% after reporting Q2 sales of $6.0 billion, better than the consensus of $5.81 billion.
Across the markets…
September 10-year T-notes (ZNU23) Thursday closed down -1-4/32 points and the 10-year T-note yield rose +13.7 bp to 4.004%. Sep T-notes Thursday tumbled to a 2-1/2 week low, and the 10-year T-note yield jumped to a 2-1/2 week high of 4.022%. T-notes sold off Thursday from stronger-than-expected U.S. economic reports on Q2 GDP, weekly jobless claims, Jun pending home sales, and Jun capital goods new orders, which are hawkish for Fed policy.
Selling in T-notes intensified Thursday afternoon on a report from the Nikkei that said the BOJ was considering tweaking its yield curve control and allowing long-term interest rates to climb above its 0.5% yield cap by “a certain degree.” Also, slack demand for the Treasury’s $35 billion auction of 7-year T-notes undercut T-notes as the auction had a 2.48 bid-to-cover ratio, weaker than the 10-auction average of 2.50.
More Stock Market News from Barchart
Don’t Let the EV Hype Train Dissuade You From HF Sinclair (DINO) Is UnitedHealth Group a Good Dow Stock to Buy Now? Dollar Rallies on Signs of U.S. Economic Strength Crude Rallies on U.S. Energy Demand Optimism
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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Also, United Airlines Holdings (UAL) closed down by more than -2%, and American Airlines Group (AAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) closed down by more than -1%. Stocks also found support Thursday on signs that the U.S. economy may achieve a soft landing after U.S. Q2 GDP expanded more than expected, boosted by stronger-than-expected consumer spending. Align Technology (ALGN) closed up more than +13% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue f $1.00 billion, stronger than the consensus of $990.4 million.
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Also, United Airlines Holdings (UAL) closed down by more than -2%, and American Airlines Group (AAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) closed down by more than -1%. Honeywell International (HON) closed down more than -5% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion. Cruise lines rallied Thursday after Royal Caribbean Cruises boosted its full-year adjusted EPS estimate to $6.00-$6.20 from a previous estimate of $4.40-$4.80, well above the consensus of $4.73.
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Also, United Airlines Holdings (UAL) closed down by more than -2%, and American Airlines Group (AAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) closed down by more than -1%. What you need to know… The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.64%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.67%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.22%. Honeywell International (HON) closed down more than -5% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
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Also, United Airlines Holdings (UAL) closed down by more than -2%, and American Airlines Group (AAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) closed down by more than -1%. As a result, Southwest Airlines (LUV) closed down more than -8%. Across the markets… September 10-year T-notes (ZNU23) Thursday closed down -1-4/32 points and the 10-year T-note yield rose +13.7 bp to 4.004%.
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a6136a54-3c9d-43f4-be47-da1e655ecb00
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2388.0
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2023-07-27 00:00:00 UTC
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After a 13-Day Winning Streak, the Dow Jones Moves Lower
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AAL
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https://www.nasdaq.com/articles/after-a-13-day-winning-streak-the-dow-jones-moves-lower
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.51%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.46%.
Stocks have given back their morning gains and are trending lower this afternoon. If the Dow Jones Industrial Average closes negative today, it will put an end to it's 13 consecutive day winning streak.
Meta Platforms is up more than +4% after reporting better-than-expected Q2 revenue. Chip stocks are rallying after Samsung Electronics said artificial intelligence will boost memory demand before the year’s end.
U.S. Q2 GDP expanded more than expected, boosted by stronger-than-expected consumer spending. Also, the Q2 core PCE price index advanced at a slower-than-expected pace.
Q2 corporate earnings season is off to a strong start, as nearly 80% of U.S. companies that have reported results have beaten profit estimates.
As expected, the ECB raised its main refinancing rate today by 25 bp to 4.25% and said, "The Governing Council's future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to the 2% medium-term target."
U.S. weekly initial unemployment claims unexpectedly fell -7,000 to a 5-month low of 221,000, showing a stronger labor market than expectations of an increase to 235,000.
U.S. Q2 GDP rose +2.4% (q/q annualized), stronger than expectations of +1.8%, as Q2 personal consumption rose +1.6%, stronger than expectations of +1.2%. The Q2 core PCE price index eased to +3.8% q/q from +4.9% q/q in Q1, better than expectations of +4.0% q/q and the slowest pace of increase since Q1 2021.
U.S. Jun capital goods new orders nondefense ex-aircraft and parts unexpectedly rose +0.2% m/m, stronger than expectations of a decline of -0.1% m/m.
U.S. Jun pending home sales unexpectedly rose +0.3% m/m, stronger than expectations of a -0.5% m/m decline.
The markets are discounting the odds at 24% for a +25 bp rate hike at the September 20 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield jumped to a 2-week high of 3.958% and is up +8.4 bp to 3.950%. The 10-year German bund yield is down -0.3 bp at 2.482%. The 10-year UK Gilt yield rose to a 1-week high of 4.323% and is up +4.1 at 4.322%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +2.30%. China’s Shanghai Composite Index today closed down -0.20%. Japan’s Nikkei Stock Index closed up +0.68%.
Today’s stock movers…
Align Technology (ALGN) is up more than +17% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue f $1.00 billion, stronger than the consensus of $990.4 million.
Textron (TXT) is up more than +10% after reporting Q2 revenue of $3.42 billion, stronger than the consensus of $3.40 billion.
Lam Research (LRCX) is up more than +8% after reporting Q4 adjusted EPS of $5,98, well above the consensus of $5.01.
Meta Platforms (META) is up more than +6% after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion from a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion.
Semiconductor stocks are climbing today after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. As a result, Applied Materials (AMAT) and KLA Corp (KLAC) are up more than +5%. Also, Micron Technology (MU), ASML Holding NV (ASML), and Globalfoundries (GFS) are up more than +3%. In addition, Microchip Technology (MCHP), Marvell Technology (MRVL), NXP Semiconductor NV (NXPI), Nvidia (NVDA), Analog Devices (ADI), and ON Semiconductor (ON) are up more than +2%.
AbbVie (ABBV) is up more than +6% after reporting Q2 adjusted EPS of $2.91, better than the consensus of $2.79, and raised its full-year adjusted EPS estimate to $10.90-$11.10 from a prior view of $10.57-$10.97.
Comcast Corp (CMCSA) is up more than +5% after reporting Q2 revenue of $30.51 billion, stronger than the consensus of $30.09 billion.
McDonald’s Corp (MCD) is up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q2 comparable same-store sales rose +11.7%, stronger than the consensus of +9.36%.
Chipotle Mexican Grill (CMG) is down more than -8% after reporting Q2 comparable same-store sales rose +7.4%, weaker than the consensus of +7.67%.
Willis Towers Watson Plc (WTW) is down more than -8% to lead lowers in the S&P 500 after reporting Q2 adjusted EPS of $2.05, weaker than the consensus of $2.32, and cut its 2024 adjusted EPS forecast to $15.40-$17.00 from a previous estimate of $17.50-$20.50.
Airline stocks are falling today after Southwest Airlines raised its full-year non-fuel expenses to fly each seat a mile, an industry gauge of efficiency, to a decline of -1% to -2% from a previous estimate of as much as a -4% drop. As a result, Southwest Airlines (LUV) is down more than -9% to lead losers in the S&P 500. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%.
Ebay (EBAY) is down more than -8% to lead losers in the Nasdaq 100 after forecasting Q3 adjusted EPS from continuing operations of 96 cents-$1.01, weaker than the consensus of $1.02.
Edwards Lifesciences (EW) is down more than -7% after forecasting Q3 adjusted EPS of 55 cents-61 cents, below the consensus of 63 cents.
S&P Global (SPGI) is down more than -6% after reporting Q2 adjusted EPS of $3.12, weaker than the consensus of $3.14.
Honeywell International (HON) is down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
Across the markets…
September 10-year T-notes (ZNU23) today are down -25 ticks, and the 10-year T-note yield is up +8.4 bp to 3.950%. Sep T-notes today fell to a 2-week low, and the 10-year T-note yield climbed to a 2-week high of 3.956%. T-notes are selling off today from stronger-than-expected U.S. economic reports on Q2 GDP, weekly jobless claims, Jun pending home sales, and Jun capital goods new orders, which are hawkish for Fed policy. Also, supply pressures are weighing on T-notes as the Treasury will auction $35 billion of 7-year T-notes later today.
The dollar index (DXY00) today recovered from early losses and is up by +0.76% at a 2-week high. Stronger-than-expected U.S. economic news today on Q2 GDP and weekly jobless claims boosted T-note yields and supported the dollar. Also, weakness in the euro supports the dollar as EUR/USD fell to a 2-week low on dovish comments from ECB President Lagarde.
EUR/USD (^EURUSD) today is down by -0.69%. The euro relinquished early gains today and tumbled to a 2-week low, even after the ECB raised its main refinancing rate by 25 bp as expected. EUR/USD retreated after ECB President Lagarde said, "The near-term economic outlook for the Eurozone has deteriorated,” and ECB officials "have an open mind as to what decisions will be in September,” signaling the ECB may pause its rate hike cycle.
ECB President Lagarde said, "The near-term economic outlook for the Eurozone has deteriorated owing largely to weaker domestic demand." She added that ECB officials "have an open mind as to what decisions will be in September and in subsequent meetings, so we might hike, and we might hold" interest rates.
USD/JPY (^USDJPY) is up by +0.37%. The yen today gave up overnight gains and turned lower after stronger-than-expected U.S. economic reports pushed T-note yields higher. Also, central bank divergence is weighing on the yen after the Fed and ECB raised interest rates this week, while the BOJ on Friday is expected to maintain its ultra-easy monetary policies.
August gold (GCQ3) today is down -26.7 (-1.36%), and Sep silver (SIU23) is down -0.705 (-2.82%). Precious metals prices this morning are sharply lower, with gold and silver falling to 2-week lows. A rally in the dollar index today to a 2-week high is bearish for metals. Precious metals are also under pressure from today’s stronger-than-expected U.S. economic news on Q2 GDP, weekly initial unemployment claims, and Jun pending home sales that signal strength in the economy, which may prompt the Fed to keep raising interest rates. In addition, fund liquidation of long gold holdings is weighing on gold prices after long gold holdings in ETFs fell to a new 3-year low Wednesday.
More Stock Market News from Barchart
Markets Today: Stocks Soar on the Outlook for a Soft LandingGet An Income Boost From This Popular REITStocks Climb Before the Open as Investors Await Key U.S. GDP Data, Meta Results Boost SentimentStocks Settle Mixed as Powell Signals a Skip in Rate Hikes is on the Table
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. Semiconductor stocks are climbing today after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. Also, central bank divergence is weighing on the yen after the Fed and ECB raised interest rates this week, while the BOJ on Friday is expected to maintain its ultra-easy monetary policies.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. T-notes are selling off today from stronger-than-expected U.S. economic reports on Q2 GDP, weekly jobless claims, Jun pending home sales, and Jun capital goods new orders, which are hawkish for Fed policy. Stronger-than-expected U.S. economic news today on Q2 GDP and weekly jobless claims boosted T-note yields and supported the dollar.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. Meta Platforms (META) is up more than +6% after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion from a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion. Honeywell International (HON) is down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. AbbVie (ABBV) is up more than +6% after reporting Q2 adjusted EPS of $2.91, better than the consensus of $2.79, and raised its full-year adjusted EPS estimate to $10.90-$11.10 from a prior view of $10.57-$10.97. Sep T-notes today fell to a 2-week low, and the 10-year T-note yield climbed to a 2-week high of 3.956%.
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4743a618-7df2-48b4-91f0-f6eebb3a662c
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2389.0
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2023-07-27 00:00:00 UTC
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After a 13-Day Winning Streak, the Dow Jones Move Lower
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AAL
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https://www.nasdaq.com/articles/after-a-13-day-winning-streak-the-dow-jones-move-lower
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.51%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.46%.
Stocks have given back their morning gains and are trending lower this afternoon. If the Dow Jones Industrial Average closes negative today, it will put an end to it's 13 consecutive day winning streak.
Meta Platforms is up more than +4% after reporting better-than-expected Q2 revenue. Chip stocks are rallying after Samsung Electronics said artificial intelligence will boost memory demand before the year’s end.
U.S. Q2 GDP expanded more than expected, boosted by stronger-than-expected consumer spending. Also, the Q2 core PCE price index advanced at a slower-than-expected pace.
Q2 corporate earnings season is off to a strong start, as nearly 80% of U.S. companies that have reported results have beaten profit estimates.
As expected, the ECB raised its main refinancing rate today by 25 bp to 4.25% and said, "The Governing Council's future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to the 2% medium-term target."
U.S. weekly initial unemployment claims unexpectedly fell -7,000 to a 5-month low of 221,000, showing a stronger labor market than expectations of an increase to 235,000.
U.S. Q2 GDP rose +2.4% (q/q annualized), stronger than expectations of +1.8%, as Q2 personal consumption rose +1.6%, stronger than expectations of +1.2%. The Q2 core PCE price index eased to +3.8% q/q from +4.9% q/q in Q1, better than expectations of +4.0% q/q and the slowest pace of increase since Q1 2021.
U.S. Jun capital goods new orders nondefense ex-aircraft and parts unexpectedly rose +0.2% m/m, stronger than expectations of a decline of -0.1% m/m.
U.S. Jun pending home sales unexpectedly rose +0.3% m/m, stronger than expectations of a -0.5% m/m decline.
The markets are discounting the odds at 24% for a +25 bp rate hike at the September 20 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield jumped to a 2-week high of 3.958% and is up +8.4 bp to 3.950%. The 10-year German bund yield is down -0.3 bp at 2.482%. The 10-year UK Gilt yield rose to a 1-week high of 4.323% and is up +4.1 at 4.322%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +2.30%. China’s Shanghai Composite Index today closed down -0.20%. Japan’s Nikkei Stock Index closed up +0.68%.
Today’s stock movers…
Align Technology (ALGN) is up more than +17% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue f $1.00 billion, stronger than the consensus of $990.4 million.
Textron (TXT) is up more than +10% after reporting Q2 revenue of $3.42 billion, stronger than the consensus of $3.40 billion.
Lam Research (LRCX) is up more than +8% after reporting Q4 adjusted EPS of $5,98, well above the consensus of $5.01.
Meta Platforms (META) is up more than +6% after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion from a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion.
Semiconductor stocks are climbing today after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. As a result, Applied Materials (AMAT) and KLA Corp (KLAC) are up more than +5%. Also, Micron Technology (MU), ASML Holding NV (ASML), and Globalfoundries (GFS) are up more than +3%. In addition, Microchip Technology (MCHP), Marvell Technology (MRVL), NXP Semiconductor NV (NXPI), Nvidia (NVDA), Analog Devices (ADI), and ON Semiconductor (ON) are up more than +2%.
AbbVie (ABBV) is up more than +6% after reporting Q2 adjusted EPS of $2.91, better than the consensus of $2.79, and raised its full-year adjusted EPS estimate to $10.90-$11.10 from a prior view of $10.57-$10.97.
Comcast Corp (CMCSA) is up more than +5% after reporting Q2 revenue of $30.51 billion, stronger than the consensus of $30.09 billion.
McDonald’s Corp (MCD) is up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q2 comparable same-store sales rose +11.7%, stronger than the consensus of +9.36%.
Chipotle Mexican Grill (CMG) is down more than -8% after reporting Q2 comparable same-store sales rose +7.4%, weaker than the consensus of +7.67%.
Willis Towers Watson Plc (WTW) is down more than -8% to lead lowers in the S&P 500 after reporting Q2 adjusted EPS of $2.05, weaker than the consensus of $2.32, and cut its 2024 adjusted EPS forecast to $15.40-$17.00 from a previous estimate of $17.50-$20.50.
Airline stocks are falling today after Southwest Airlines raised its full-year non-fuel expenses to fly each seat a mile, an industry gauge of efficiency, to a decline of -1% to -2% from a previous estimate of as much as a -4% drop. As a result, Southwest Airlines (LUV) is down more than -9% to lead losers in the S&P 500. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%.
Ebay (EBAY) is down more than -8% to lead losers in the Nasdaq 100 after forecasting Q3 adjusted EPS from continuing operations of 96 cents-$1.01, weaker than the consensus of $1.02.
Edwards Lifesciences (EW) is down more than -7% after forecasting Q3 adjusted EPS of 55 cents-61 cents, below the consensus of 63 cents.
S&P Global (SPGI) is down more than -6% after reporting Q2 adjusted EPS of $3.12, weaker than the consensus of $3.14.
Honeywell International (HON) is down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
Across the markets…
September 10-year T-notes (ZNU23) today are down -25 ticks, and the 10-year T-note yield is up +8.4 bp to 3.950%. Sep T-notes today fell to a 2-week low, and the 10-year T-note yield climbed to a 2-week high of 3.956%. T-notes are selling off today from stronger-than-expected U.S. economic reports on Q2 GDP, weekly jobless claims, Jun pending home sales, and Jun capital goods new orders, which are hawkish for Fed policy. Also, supply pressures are weighing on T-notes as the Treasury will auction $35 billion of 7-year T-notes later today.
The dollar index (DXY00) today recovered from early losses and is up by +0.76% at a 2-week high. Stronger-than-expected U.S. economic news today on Q2 GDP and weekly jobless claims boosted T-note yields and supported the dollar. Also, weakness in the euro supports the dollar as EUR/USD fell to a 2-week low on dovish comments from ECB President Lagarde.
EUR/USD (^EURUSD) today is down by -0.69%. The euro relinquished early gains today and tumbled to a 2-week low, even after the ECB raised its main refinancing rate by 25 bp as expected. EUR/USD retreated after ECB President Lagarde said, "The near-term economic outlook for the Eurozone has deteriorated,” and ECB officials "have an open mind as to what decisions will be in September,” signaling the ECB may pause its rate hike cycle.
ECB President Lagarde said, "The near-term economic outlook for the Eurozone has deteriorated owing largely to weaker domestic demand." She added that ECB officials "have an open mind as to what decisions will be in September and in subsequent meetings, so we might hike, and we might hold" interest rates.
USD/JPY (^USDJPY) is up by +0.37%. The yen today gave up overnight gains and turned lower after stronger-than-expected U.S. economic reports pushed T-note yields higher. Also, central bank divergence is weighing on the yen after the Fed and ECB raised interest rates this week, while the BOJ on Friday is expected to maintain its ultra-easy monetary policies.
August gold (GCQ3) today is down -26.7 (-1.36%), and Sep silver (SIU23) is down -0.705 (-2.82%). Precious metals prices this morning are sharply lower, with gold and silver falling to 2-week lows. A rally in the dollar index today to a 2-week high is bearish for metals. Precious metals are also under pressure from today’s stronger-than-expected U.S. economic news on Q2 GDP, weekly initial unemployment claims, and Jun pending home sales that signal strength in the economy, which may prompt the Fed to keep raising interest rates. In addition, fund liquidation of long gold holdings is weighing on gold prices after long gold holdings in ETFs fell to a new 3-year low Wednesday.
More Stock Market News from Barchart
Markets Today: Stocks Soar on the Outlook for a Soft LandingGet An Income Boost From This Popular REITStocks Climb Before the Open as Investors Await Key U.S. GDP Data, Meta Results Boost SentimentStocks Settle Mixed as Powell Signals a Skip in Rate Hikes is on the Table
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. Semiconductor stocks are climbing today after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. Also, central bank divergence is weighing on the yen after the Fed and ECB raised interest rates this week, while the BOJ on Friday is expected to maintain its ultra-easy monetary policies.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. T-notes are selling off today from stronger-than-expected U.S. economic reports on Q2 GDP, weekly jobless claims, Jun pending home sales, and Jun capital goods new orders, which are hawkish for Fed policy. Stronger-than-expected U.S. economic news today on Q2 GDP and weekly jobless claims boosted T-note yields and supported the dollar.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. Meta Platforms (META) is up more than +6% after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion from a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion. Honeywell International (HON) is down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. AbbVie (ABBV) is up more than +6% after reporting Q2 adjusted EPS of $2.91, better than the consensus of $2.79, and raised its full-year adjusted EPS estimate to $10.90-$11.10 from a prior view of $10.57-$10.97. Sep T-notes today fell to a 2-week low, and the 10-year T-note yield climbed to a 2-week high of 3.956%.
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2023-07-27 00:00:00 UTC
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Company Updates and Marketing Lessons From the Grateful Dead
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https://www.nasdaq.com/articles/company-updates-and-marketing-lessons-from-the-grateful-dead
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In this podcast, Motley Fool senior analyst Ron Gross, Chief Investment Officer Andy Cross, and host Dylan Lewis discuss:
The reasons Netflix is doing away with its lowest-cost plan.
What investors should make of the Johnson & Johnson/Kenvue split off.
Why concerns over Tesla's tightening margins might be overblown.
Trends in travel and consumer spending based on results from United Airlines, American Airlines, Discover, and American Express.
Two stocks on their radar: Toro and Mueller Industries.
Motley Fool Money's Alex Friedman caught up with author David Scott about the lessons he and Hubspot co-founder Brian Halligan think businesses can borrow from the Grateful Dead.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on July 21, 2023.
Dylan Lewis: The earnings rush is on and consumer spending keeps climbing, Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Dylan Lewis joining me over the airwaves, Motley Fool senior analysts, Andy Cross and Ron Gross. Great to have you both here guys.
Andy Cross: Hey Dylan.
Ron Gross: How are you doing Dylan?
Dylan Lewis: We've got updates from tons of companies, Marketing Lessons from the Grateful Dead and stocks on our radar, and we're going to dive right in because there are a lot of big names that reported this week. Andy, let's start with Netflix. Shares of the streamer down nearly 10% after it reported six million new customers during Q2. But Q3 forecasts were not as rosy as the market was expecting. Do you think the reaction here is fair?
Andy Cross: Well, let's talk it down so well. Dylan, it's up 50% the other day, so a lot of enthusiasm going into the quarter. Very healthy member growth as that page sharing, which we'll get into in a second kicks in. But the revenue growth was a little lacking because the advertising business they're investing into is not material. It won't be material this year, not until next year. Then higher growth in their lower fee regions, so they see more members growing in that area and it's because they don't charge as much. The revenue growth wasn't quite as high. The revenue at 8.2 billion was a little bit below estimates, but still up about 3% revenue from advertising, as I mentioned, really not material. Then growth a year ago was 8.6%, so you are seeing this deceleration. Average revenue per member, Dylan, was down 3%. Like I mentioned, higher members from those lower average revenue per user. Countries like Europe, Middle East, and Asia, they saw 2.4 million new members, which was twice as high as other regions, but they don't charge as much as they do here in the US, so they had some timing of those additions a little bit off. They lowered some of the prices in those less penetrated areas, and they saw a drop in those average revenue per users across every region, except the US and Canada, but that was really only up about 1%. Overall, the revenue side a little bit lacking, but what was impressive is the operating income and the operating profits. Operating income was up almost 16%, operating margin at 22% versus 20%. A year ago they saw some lower head count. They saw better expense managing and cost of goods sold was down a little bit and tech spend was down a little bit. Overall, expense management, lower cost on the production side, they're dealing with the writers' strike, they're dealing with the actors' strike. That's going to slow down some of the content spend over the year, and they're rolling out that page sharing across more than a hundred countries, their cancel rate was low and they're seeing strong conversions from those shared memberships going into paid members. That's encouraging for shareholders like me.
Ron Gross: I don't want to seem frugal or anything, but for me Netflix is getting expensive with a standard plan of, I think I'm paying 15.50 right now, and I don't want ads, so I don't want downgrade to the six dollar one. I guess my question is, when do they bump up against pricing power here, and people start to bark at 18, $20 a month?
Andy Cross: Well, I think it's funny, Ron, because I was thinking the same thing as I was going through some of our subscription plans. When you said frugal, I thought you were talking as an investor from [laughs] the stock side. [inaudible] It's less than 35 times earnings for this years earnings. I think that's right, Ron, I think because they are such a leader in this space, and also they're profitable, they generate free cash flow, so that's a big advantage for them. They'd be able to continue to invest and put those profits back into the content slate. I think that's the big concern, if they can't get fresh new content coming in. Now they do have a lot of international content, which is great. That isn't necessarily subject to some of the writers' strike and the actors' strikes here in the US, but they need to continue to innovate into that content to be able to charge what they can charge.
Dylan Lewis: Ron to your point, one of the things that slipped in with the earnings release was the update that Netflix is removing it's least expensive basic content plan this month. It seems like they're trying to push people to this ad supported model, Andy.
Andy Cross: I think that's right. They're investing a lot into the ad market, into that business, Dylan. They talked a lot about the investment taking time to pay off. They know they're new to this, they know that they have a lot to work through about and partnering with Nielsen to figure out some of the demographics, figuring out the targeting. They're very patient with this investment and they want it to pay off, and I think they are recognizing that we have an opportunity to push people into the ad part of the market and raise the prices and keep that price high for the ad-free subscription tier that Ron is now whining a little bit about. [laughs]
Dylan Lewis: There's some budget tightening going on at the gross household. [laughs] Sticking with the big names, Johnson & Johnson shares up to 6% after the company reported strong earnings and guidance. Thanks in large part to its MedTech division, which hit nearly eight billion in revenue, good for 15% year-over-year growth. Ron, it seems like this segment is becoming a lot more important to J&J.
Ron Gross: Well, for sure, Pharmaceuticals has continued to be by far the largest segment. But MedTech in a post COVID world where people are getting back to hip replacements and knee replacements, that segment is really surging and it showed up in the results of this report, which was a pretty solid report. In my mind, they beat expectations on both top and bottom lines. Growth didn't knock the cover off the ball. It's not a very high-growth company at this point, but you did have sales growth up 6%, 8% in the US. All segments, as you said, including MedTech were up, Pharmaceutical being the biggest, was only up 3.1%, so that does tend to bring a drag to the overall numbers because it is so much larger than the other segments, but it's still a healthy growth. If we remove COVID-19 comparisons, which it's hard to anniversary those comparisons, Pharma was actually up 6.2%, so just to give people an indication about the health of that business. You take that all into account and you have adjusted earnings up about 8%. That allowed them to raise 2023 guidance, they see strong demand for cancer drugs, recovery in medical devices due to, as we said, an uptake in surgical procedures, they expect Pharma sales to grow more in the second half of 2023 compared to the first half, so a lot of good indications there for management. If we pivot for a second to their consumer health unit, which recently went public, Kenvue, that also reported and beat analyst estimates for their first quarterly reports since being a public company. J&J still holds about 90% of that company, and they announced that they're going to be doing what is called a split off, which is a little bit different than the spin-off. J&J Shareholders will be able to choose to exchange their shares for Kenvue once the predetermined exchange rate is determined. We don't have the exact information yet. We know this is probably going to happen in the near term which spooks some people, send the stock down a bit, rebounded subsequently later in the week. But we will be seeing that soon. Kenvue $24 per share,19 times forward earnings, not the cheapest, it's not the fastest growing company in the world. I like regular J&J much better at 16 times, raised dividends 61 straight years 3% yield. I'm getting interested in J&J.
Dylan Lewis: Wow, Andy, I'm curious looking at J&J and looking at Kenvue here, do you agree with Ron, is the pharmaceutical and med tech business a little bit more interesting to you than this consumer brands business.
Ron Gross: I think so because just the healthcare market in general, from the investing side hasn't performed all that well, just overall. From a valuation perspective, as Ron pointed out, interested, I am interested in getting those Kenvue shares and will certainly explore getting those J&J shareholders. Adding those to help diversify the portfolio a little bit into the consumer side. I'm excited to see that part of the business. But I think in general, I'm agreeing with Ron as always a smart thing. I think I'm going to do that this round too.
Dylan Lewis: It's good alignment there. [laughs] We love to see it. Tesla also reported this week in shares down 10% after the company beat expectations on the top and bottom line. But Andy, the market zoomed in on shrinking margins, which came in at the lowest level in over a year. You have followed this company for quite some time. Is this something to be worried about?
Andy Cross: Well, I think there's a lot of focus obviously on the margin side, and we've talked about this with Tesla. They've been very upfront. Elon Musk and Zach Kirkhorn, the CFO talking about the margin picture and the fact that they're not shying away from that, they are cutting prices to be able to grow their fleet. What is interesting to me is the success Dylan they've been having in lowering their cost per vehicle. In fact, they recognize lower cost per unit in just about every category of their manufacturing. If you see the strategy, what Tesla's going after here, they are continuing to grow their fleet because they're excited about self-driving, fleet, robotaxis, a lot of that future stuff. The revenues were up 50%, automotive sales were up 46%. Obviously that's the big drove. The bulk of the driver energy sales was up 74% in the quarter. Their gross profit was only up 7%, which gets to your margin picture. But the profitability on the per unit vehicle is what really attracting me to what they are trying to do because they are the most profitable car company by a landslide. They are scaling out their EV business. They are growing that fleet and they're using it to do it in a way that on a per unit basis is more profitable and hopefully that scale can continue to widen their lead. Now you have a billion-dollar market cap. They've loads of cash. They generated one billion dollars in free cash flow this quarter. They have that model that is just light years ahead of the other car companies. But there is that margin picture that they've seen this compression over the last couple quarters. That is a little bit concerning, but they're benefiting in on the cost per unit side, which I think is impressive.
Dylan Lewis: You mentioned the robotaxi ambitions and I'm curious for a company that has so many forward-looking elements to it, robotaxis being one, I think the Cybertruck being another. How do you factor those into the valuation for this business and just what to expect for this business.
Ron Gross: Well, guys, if you listened to whether it's Elon Musk and he had pointed out to Cathie Wood's ARK Investment as a place to go and look at some of the future state potential with their FSD, their full self-driving vehicles and the robotaxis and the advantage there, they have more than 300 million miles of SSD driven to date. That's so impressive. It's also, by the way, there's lot of talk about the investments into Dojo, which is their quantum computing world. Because of their ability to be able to handle all of the data that they're collecting. I think that's clearly part of the valuation story and I still think that what he's trying to do is if you're a believer in Elon Musk, you got to be a believer in Tesla too.
Dylan Lewis: After the break, we've got to look at travel trends and credit card companies. Stay right here. This is Motley Fool Money.
Welcome back to Motley Fool Money. I'm Dylan Lewis, join on air by Andy Cross and Ron Gross. It's summertime and I'm guessing people are either on vacation or thinking about it. This week, American Airlines and United both reported giving us a sense of the summer travel picture and Andy, looking through the results, we have record quarterly earnings for these companies. The main thing that hit me with jealousy, mostly that we are at our homes recording here [laughs] and the people out there seem to be taking a lot of international trips this summertime.
Andy Cross: Well, it's true the international is the big driver, Dylan, and the stories are very similar. They both saw very nice healthy revenue growth. They saw some benefit from fuel prices and lower their cost basis. United is a little bit more internationally focused, so they saw a little bit higher than the revenue grows, have up 17%, American Airlines, revenue growth of about 5%. Both of those were ahead of consensus and both ahead of their own estimates. Cargo continues to be the weakness, which is not surprising. We're not buying as many stuff. We know that piece really doing co-bids, they can both continue to see cargo revenues drop pretty aggressively, but it's the excitement around the travel deal and it's excitement around international, especially around business travel. International passenger revenues for United was up more than 40% and their international passenger revenue per available seat miles, that's the unit revenue was up more than 13%, international business was up 40%. Both companies have done very well. Their stocks have performed very well. United is up more than 54% year-to-date. It's on a little bit better because the international focus guidance is still pretty strong going forward. The cyclical stocks, both sale somewhere in the high single-digits from a PE basis. Maybe you have a little bit of cyclicality working through there and a lot of excitement from the airline travel and Robert Isom the CEO of American Airlines, must be Iran gross fan because he said [laughs] on the call, yes, we are firing on all cylinders.
Ron Gross: I don't buy all cylinders. First of all, flights are extremely expensive. Have you flown recently? You're lucky if you even get off the ground because they all get canceled. There's got to be some backlash here at some point. I think consumers are getting a little fed up with what seems to be a very healthy earnings report for these companies, but the customer service is lacking.
Andy Cross: Yeah, and the domestic side Ron, we've already started to see some of the airline prices go down, but they're not seeing on international. International continues to be the strength. United had a lot of challenges in new work with the Canadian forest fires that put some real challenges into them and both of them continue to recognize some of the challenges and invest into their technology, into their hubs system.
Dylan Lewis: We also saw record results from some credit card providers this week, American Express and Discover, both reporting in Amex's case, Ron, revenue for the quarter hitting 15 billion, thanks to all time highs in consumer spending. Doesn't seem to matter what's going on. People continue to pull out the card.
Ron Gross: But yet there's some caution here from both companies because when I say both companies, American Express and Discover, they're both increasing their provisions for credit losses and that is actually what investors are mostly focused on here, sending stocks of both of these companies down. Even though, as you said for like American Express, for example, reported earnings at an all-time high. We look to the future in the stock market and we have to see how healthy actually is the consumer and how will this show up in defaults. But overall, American Express did a fine job. Revenue up 12%. That was actually lower than investors were hoping for, what analysts were hoping for, but still relatively healthy card member spending was up 8%. Travel and entertainment, which we talked about with the airlines, was a very strong category up 14% for the quarter. Millennial and Gen Z consumers remain the fastest-growing customer cohort. Overall, quite a good report. Then come in a $1.2 billion provision for credit losses. That's up from 410 million a year earlier and people get a little nervous. Stocks down. Management did reaffirm full-year guidance shows 15 times earnings 1.4% yield. I think American Express is a wonderful company. We're just going to have to keep an eye on the consumer.
Dylan Lewis: Despite strong results from discover, the credit card company was down 10% after reporting earnings because it was disclosing an FDIC probe. Ron, how seriously should we be looking at this?
Ron Gross: It's actually not going to have a material impact on the financial statements, but we still have to wonder about how is this company being run or do they have a good handle on the various regulatory matters? The quarter was fine. We did see, again some more defaulting loans and provisions for loan losses and that impacted results. Net income was actually down 18%. Earnings-per-share down only 10% because they buy stock back. Not as bad there, but the controversy is what all the investors were focused on. They said they misclassified certain credit card accounts into its highest pricing tier. That seems like something you shouldn't probably do. Merchants were charged more than they should have. They say their revenue impact will not be material. They're setting up a fund to compensate merchants, I think to the tune of $30,065 million. They're going to have some work to do to extricate themselves from this. You never want to see regulatory actions taken. They also have another action from the FDIC that is completely separate from this related to consumer compliance issue. Let them work through this. Eight times earnings 2.7% yield. It's not an expensive stock, but I'd like to see them work through some of these regulatory issues before I get interested.
Dylan Lewis: Andy, putting a bow on this earnings discussion, travel spending up. But we're also seeing those loan loss provisions creep up as well as Ron was talking about. How are you feeling about the health of the consumer right now?
Andy Cross: Well Dylan, we also have the student loan issue that's just sitting out there that I think still hasn't really gotten a lot of attention there. There's definitely some risks that consumer, there's pockets of strength in there and we're spending, but overall, I think be a little bit cautious going forward on the consumer side.
Dylan Lewis: Andy Cross, Ron Gross, fellas, we'll see a little bit later in the show. Up next we've got another look at experienced spending summer concerts and how one legendary act made a big by not trying to chase down every dollar they could.
Welcome back to Motley Fool Money. I'm Dylan Lewis. This summer, one long strange trip is coming to an end. Grateful Dead spin-off. Dead & Company wrapped its final toward this week, capping off an epic run for one of the most bankable and fun summer concert series. Motley Fool Money is Alex Friedman caught the band at Fenway Park and caught up with author and dead fan David Scott about the lessons he and HubSpot Co-Founder Brian Halligan, think businesses can borrow from one of music's most unique acts.
Alex Friedman: David, you and I both love the Grateful Dead. A lot of our listeners, they may not be fans of the Grateful Dead and some of them may even have negative feelings about the Grateful Dead. For folks who are not deadheads. Why even look to this band for inspiration on marketing and business?
David Scott: Oh my. We jump right in, don't we? Alex. [laughs]
Alex Friedman: Yes sir.
David Scott: I think it's super cool because they've done so many things throughout their long history since 1965, differently than most other bands have done. They've managed to have an eclectic group of people who follow them all along the way. I'm one of them and I had my shops on my first concert, in 1979 when I was 17 years old and my most recent concert last weekend in Boulder Colorado. People like me are constantly wanting to experience this music, this band this experience, this tribe of like-minded people because they've really created something that's super unique and a very important part of the lives of people who become fans of the band.
Alex Friedman: The grateful dead broke a ton of different industry rules as abandoned. One that really stands out is letting and even encouraging fans to tape their concerts so that they could have those shows for life. Basically, this is one of the first examples of a freemium business model. I'm sure a lot of folks can think of. When you think about the band making this decision, what do you imagine the lasting impact was on them for doing this and for the world?
David Scott: It was super interesting how this came about. I had a chance to briefly speak with Bob. We're about it quite a number of years ago. They were noticing that fans were bringing recording devices into shows. This is serious recording gear with microphone stands and so on. In the very early days, they tried to police it like every other band did and say, no recording allowed. Then they had a band meeting and said, wait a minute, let's rethink this. Why do we want to be the police and telling people what they can't do, why don't we just let them do it? Then they realize the band that those recording devices, especially the tall microphones that stood 6,8 or 10 feet tall, were destroying other people's viewing sight lines. They created a tapers section typically it was behind the mixing board, so it's a good place for sound. They sold tapers seats where tapers could consent. It was a brilliant form of marketing, like you said, it's an early freemium model. I also call it in the trading. Initially, it was cassette tapes back in the day now people trade MP3 files, but back in the day trading of cassette tapes was a social network before Mark Zuckerberg was even born. Because if you had a great show on a cassette tape, you might make a copy of it for your friend and trade it with them or give it to them as a gift. The ban was cool with that. Feel free to share it with people. We just don't want you to sell it. It turns out that the band didn't think of it as marketing per se. They thought of it as just let's be nice to the fans and let them do what they want to do. But it actually turned out to be brilliant marketing because that's how many people were first exposed to the Grateful Dead with this free content and that's how I was exposed. My next-door neighbor was playing Grateful Dead cassette tapes from shows in his bedroom that I could hear from my house. I'm like that's really cool. What's that? I started to ask them what the band was Grateful Dead or that's super cool. This is in the late 1970s when I was a teenager and Brian Halligan told me the same thing. He was on a painting crew in high school and painted houses. The leader of the crew would play Grateful Dead through a boom box-style cassette player and that's how he got exposed. There's two out of two who got exposed as a result of these cassette tapes that were played in college dorms and in-car stereos and on painting crews and from people's bedroom windows. That led more people to want to see the band live and they sold lots and lots and lots of concert tickets as a result.
Alex Friedman: That's clearly one way that the band prioritize their fans. In the book, you talked about how there are lots of other examples of how they prioritize their fans in different ways. When you think about businesses looking to build and strengthen their brand, why do you think prioritizing your most loyal customers is so significant?
David Scott: Because I think especially now, but certainly back then as well. It's the humanity of it. It's the idea that we are all part of a community. That's really what the Grateful Dead did in such an important way as they realize that, we're a corporation, we're the creators of this music, we're the ones on stage, we're the ones selling the tickets. But if it weren't for the fans, this thing wouldn't happen. If it weren't for the entire community coming together at the shows and experiencing this together, none of this would be happening. They didn't think of it as marketing and several members of the band who I had a chance to ask about it always told me that no, we didn't think of it as a way to make more money, as a way to do marketing, as a way to do branding. What we thought of constantly was, how can we be human? How can we do the best for the fans? The taper thing is such a cool example, but another example of that is the band was finding that people were creating T-shirts and other things that they were selling in the parking lots or in the parks nearby the stadiums and arenas where the shows were happening. It was mostly fans who were just creating 20 or 30 or 40 T-shirts to sell. They were using a license logo, the Grateful Dead steal your face logo. We call it the Steely for short.
At first the band was like, what do we want to do about this? They're taking our intellectual property, they're taking our copyrighted logo and they're creating T-shirts, and they're creating posters and they're doing other things with this material. Belts and belt buckles and all sorts of things. What should we do? What they ended up doing, which I think is another example of this cool humanity, this cool idea of branding and letting the community be a part of it was, they said if you're selling a few items to make a little money to buy a ticket to go the show we're cool with that. But if you become a big business and you bring a truck to a show and you set up a tent or you're selling mail order, then we want to get paid and we will officially license your merchandise. Even today, there's hundreds of officially licensed Grateful Dead merchants out there who are selling many millions of dollars worth of Grateful Dead logoed gear and all different things. That's generating revenue for the band, of course now, when they do that official licensed, but they're also getting that logo out, so people see it. They're still allowing very small-time people to sell a few things at a share with no problem at all.
Alex Friedman: When you think about the band and their partnerships and creating affiliate merchandise, are there any other partnerships that other businesses have developed in a way that's kind of a similar playbook from the dead?
David Scott: It was interesting because the Grateful Dead had this amazing logo and they wanted people to get it out there. They created these partnerships to do that. There's a number of companies that have programs like Amazon comes to mind where you can sell merchandise through Amazon as an official partner and Amazon of course, takes a cut and you have to follow their rules. That comes to mind I also think of the Apple ecosystem where there's all of those apps and other companies are doing that model as well, where you're not part of Apple in the sense that you're not part of the Apple as the company, but you can become an affiliate, and you can sell your app through the app store and it's kind of a similar model. I think that's interesting that many of these things at the Grateful Dead did back in the day in an analog world, are now pointing to how in a digital world we do sales and marketing. That's fascinating to me because I love this idea of digital marketing and digital promotion and digital sales and many of the things Grateful Dead pioneered or things that we are doing today in the digital world.
Alex Friedman: I know HubSpot, that's a company that a lot of us here at the Fool really admire. You wrote your book marketing lessons from the Grateful Dead with your friend and co-founder of HubSpot, Brian Halligan. I'm curious as somebody who's been able to watch HubSpot evolve over the years, are there any clear ways that Brian and HubSpot have been able to take inspiration from the dead?
David Scott: Lots of them, yes. I've been on the HubSpot Board of Advisors since 2007. I was the initial, very first advisor to the company and still am involved with it. Super great. I think one of the most important things that Brian did and Brian's done many of the things that we wrote about in our book. But one of the most important things that Brian did was initially to carve out a new niche in the software space because prior to HubSpot, there wasn't a great way that small-to-medium-sized businesses could manage their marketing. Initially it was marketing. Now they're doing sales and customer support and other things. But initially with marketing and Brian said, well no we're going to create something new. We are going to create something brand new, just like the Grateful Dead did and then they marketed that through content. Just like the Grateful Dead allowed fans to record their concerts and the content of those concert in the form of cassette tapes grew the Grateful Dead's business, HubSpot did a fabulous job and still are by the way, 17 or 18 years, whatever it is later doing a fabulous job to create the content that will generate fans first. Then maybe some of those fans will want to buy something.
Again, that's what the Grateful Dead did. You can listen to cassette tapes and never have to spend a penny with the Grateful Dead and be perfectly happy listening to the cassette tapes that your friends gave you. But maybe over time you wanted to go see a show and then you bought a concert ticket. The same with HubSpot is they had so much great content in the form of blogs, YouTube videos. They have HubSpot Academy where you can take free courses about marketing and other subjects and all of that free content built fans for HubSpot. There's millions and millions of people who have been exposed to that content, most of them didn't become clients. But if you decided, I think I need some marketing software that will help me to run my business then, well, of course I'm going to go with HubSpot because they're the company been providing me with all of this great content.
Dylan Lewis: Free content for people who are interested in what you do. What an amazing idea. A reminder that Motley Fool Money is also available daily wherever you listen to podcasts. If you're looking for stock ideas, we do that too. You can get information about our flagship investing service and five-stock picks, totally free. I go to fool.com/report. You get David Scott's book, Marketing Lessons from the Grateful Dead on Amazon and elsewhere online. We'll be back with stocks on our radar in just a minute. Stay right here. You're listening to Motley Fool Money. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against. So don't buy or sell stocks based solely on what you hear. I'm Dylan Lewis, joined again by Andy Cross and Ron Gross. We're going to get over to stocks on our radar in a minute. But this is my first time talking with both you guys during earnings season, we've touched on some of the themes that are visible already. Hot travel market, consumer spending holding up so far. But something for us to be keeping an eye on. Ron, what's on your radar this earnings season?
Ron Gross: Probably the same thing that's always on my radar. I'm looking at earnings growth for the companies that I'm most interested in and management's forward guidance. I'm looking for clues as to the health of the consumer and for companies willingness to spend, which may help me form an opinion as to the likelihood of a recession either later this year or in 2024. I'm hoping there won't be or and if there is one, it will be shallow and short. I'm also looking to see if the rally that we've been experiencing in the S&P 500 broadens out. So far it's really been because of the performance of five or ten very large cap tech stocks, Apple, Microsoft, Nvidia, Tesla. But the equal-weighted S&P 500 index is only up about 9.5% versus the regular S&P 500 up 19%. The rally has not been broad. If it does broaden out and we start to see the other 490 stocks and the index start to rally, we could have a very interesting back half of the year.
Dylan Lewis: Andy, what about you? What are you watching this earnings season?
Andy Cross: The equal-weight, it's hard to catch up, Ron. We're starting to see a little bit of progress, which is great, but I agree with you, we need to see some broadening out. For me a lot of it to echo Ron's on the consumer side, a lot in the pipeline from the enterprise spending on the tech side, we saw a lot of commentary over the past couple of conference call quarters about some of the enterprise customers lengthening out their sales cycle, pushing out some orders. The second half of the year, a little bit cautious. That impacted a little bit Ford's growth rates and the expectations and at the enterprise level for some of those large clients, that can be very profitable growth for the companies providing that like cybersecurity, whatever you may have. I'm looking to see commentary from that about are they starting to see more interests in the pipeline and the activity that they saw got pushed out or maybe cautious come back into the fold.
Dylan Lewis: All right, Let's get over to stocks on our radar. Our man behind the glass, Rick Engdahl is going to hit you with a question. Ron, you're at first, what are you watching this week?
Ron Gross: I'm watching Toro TTC, leading outdoor equipment company with brands and equipments such as lawnmowers, professional turf equipment, irrigation systems, snow removers. They serve both residential and professional markets. Nowadays, more than three-quarters of their sales are to professional customers, including landscaping companies, golf courses, and stadiums. Their net sales have more than tripled over the last 10 years. Selected acquisitions have helped that. The business is less seasonal than it used to be. We've got a lot of large government spending programs that are going to help this company going forward. They have strong operating cash flow, raised their dividends for 14 consecutive years, 1.3% yield only, but that should continue to keep growing. I think it's worth looking at Toro.
Dylan Lewis: Rick, a question about Toro.
Rick Engdahl: Who would win in a fight, a self-driving lawnmower or a self-driving Tesla.
Ron Gross: [laughs] I got to give it to Tesla. Come on.
Dylan Lewis: I'd like to point out, by the way that Ron and Matt Argersinger our colleague, might slowly be becoming the same person.
Ron Gross: This is a mad company by the way. This is a recommendation in our dividend investor service which Matt runs.
Dylan Lewis: [laughs] Andy, what is on your radar this week?
Andy Cross: I'm looking at Mueller Industries, symbol MLI. It's a five billion dollars industrial manufacturer of copper, brass, aluminium, and plastic products that targets the plumbing, the air conditioning, the heating, and the refrigeration markets. Dylan, I don't know if you've been outside recently, but it's quite hot and it's unfortunately climate change is real as we've seen over the past couple of years and this company helps provide, so building solutions and products that target refrigeration markets. Then like I mentioned, the air conditioning markets, industrial plumbing, and they've been around since 1917. They've grown revenues over the past five years by 11% per-year and profits by more than 50% well more, but the long-term growth targets of 10% growth in operating income. It's very profitable, it generates high returns on capital. Boosted their dividend by 20% recently, now yields 1.3%. It is a cyclical company the stocks up more than 50% year-to-date. We are seeing a lot of excitement in this company, especially around some of the issues that they are helping to solve and with their tubing and their products. I'm looking for a little bit of a pullback before I get too excited to Mueller Industries, but boy, it's been a long-term winner and very exciting to see how they are growing the business, MLI.
Dylan Lewis: You're dead on. I'm a huge fan of central air, even if I have [laughs] to turn it off while we're recording to avoid that low hum in our audio. Rick, a question about Mueller Industries.
Rick Engdahl: Not a question just to comment that as side-hustles good, Jim Mueller is really he's firing all soldiers here.
Rick Engdahl: His hand in other parts there. Rick, which company is going on your watchlist this week?
Rick Engdahl: I'm going to go with Toro just because I want to see that fight.
Dylan Lewis: That'll be a future debate. We'll have Ron Gross and we'll have Matt Argersinger to debate the merits of Toro agreeing with each other. Rick, thank you so much for joining us for this segment. Andy, Ron, thanks so much for joining me for today's episode.
Ron Gross: Thanks, Dylan.
Andy Cross: Thanks, Dylan.
Dylan Lewis: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Rick Engdahl. Thanks for listening. We'll see you next time.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Alex Friedman has positions in Apple, HubSpot, Netflix, and Nvidia. Andy Cross has positions in Amazon.com, Johnson & Johnson, Microsoft, Netflix, Nvidia, and Tesla. Dylan Lewis has no position in any of the stocks mentioned. Rick Engdahl has positions in Amazon.com, Apple, Microsoft, Netflix, Nvidia, and Tesla. Ron Gross has positions in Amazon.com, Apple, HubSpot, and Microsoft. The Motley Fool has positions in and recommends Amazon.com, Apple, HubSpot, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Discover Financial Services and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool senior analyst Ron Gross, Chief Investment Officer Andy Cross, and host Dylan Lewis discuss: The reasons Netflix is doing away with its lowest-cost plan. Ron Gross: Well, guys, if you listened to whether it's Elon Musk and he had pointed out to Cathie Wood's ARK Investment as a place to go and look at some of the future state potential with their FSD, their full self-driving vehicles and the robotaxis and the advantage there, they have more than 300 million miles of SSD driven to date. Dylan Lewis: We also saw record results from some credit card providers this week, American Express and Discover, both reporting in Amex's case, Ron, revenue for the quarter hitting 15 billion, thanks to all time highs in consumer spending.
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Motley Fool Money's Alex Friedman caught up with author David Scott about the lessons he and Hubspot co-founder Brian Halligan think businesses can borrow from the Grateful Dead. Dylan Lewis: We also saw record results from some credit card providers this week, American Express and Discover, both reporting in Amex's case, Ron, revenue for the quarter hitting 15 billion, thanks to all time highs in consumer spending. Motley Fool Money is Alex Friedman caught the band at Fenway Park and caught up with author and dead fan David Scott about the lessons he and HubSpot Co-Founder Brian Halligan, think businesses can borrow from one of music's most unique acts.
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Dylan Lewis: We've got updates from tons of companies, Marketing Lessons from the Grateful Dead and stocks on our radar, and we're going to dive right in because there are a lot of big names that reported this week. Ron Gross: But yet there's some caution here from both companies because when I say both companies, American Express and Discover, they're both increasing their provisions for credit losses and that is actually what investors are mostly focused on here, sending stocks of both of these companies down. Just like the Grateful Dead allowed fans to record their concerts and the content of those concert in the form of cassette tapes grew the Grateful Dead's business, HubSpot did a fabulous job and still are by the way, 17 or 18 years, whatever it is later doing a fabulous job to create the content that will generate fans first.
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I started to ask them what the band was Grateful Dead or that's super cool. They didn't think of it as marketing and several members of the band who I had a chance to ask about it always told me that no, we didn't think of it as a way to make more money, as a way to do marketing, as a way to do branding. What they ended up doing, which I think is another example of this cool humanity, this cool idea of branding and letting the community be a part of it was, they said if you're selling a few items to make a little money to buy a ticket to go the show we're cool with that.
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b7dcb86d-93a7-415e-8c6c-99957a047d9b
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2391.0
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2023-07-27 00:00:00 UTC
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If You Can Only Buy One Growth Stock, It Better Be One of These 7 Names
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AAL
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https://www.nasdaq.com/articles/if-you-can-only-buy-one-growth-stock-it-better-be-one-of-these-7-names
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Markets continue to trend higher, with the Dow Jones Industrial Average now on the longest win streak in history. The Nasdaq index is up 35% on the year, with the S&P 500 up nearly 20% since Jan. The upsurge is being driven by a number of growth stocks, many of which just reported strong second-quarter earnings. Yes, technology stocks have led the way thanks to artificial intelligence.
Moving through the second half of this year, equities look to continue trending higher, lifted by a surge in growth stocks. Knowing which stocks to take a position in as the rally gathers steam will be important for investors. If you can only buy one growth stock, it better be one of these seven top growth stocks.
Top Growth Stocks: Alphabet (GOOG, GOOGL)
Source: Khakimullin Aleksandr / Shutterstock
Alphabet (NASDAQ:GOOGL/NASDAQ:GOOG) just reported exceptionally strong second-quarter earnings. Driven largely by growth in its cloud-computing unit, Alphabet posted an EPS of $1.44, as compared to expectations for $1.34. Revenue came in at $74.6 billion, as compared to $72.82 billion. Better, its YouTube advertising revenue totaled $7.67 billion, as compared to expectations for $7.43 billion. Google Cloud’s revenue came in at $8.03 billion, as compared to a forecast for $7.87 billion. Other Bets, which include the Waymo self-driving car, reported a 48% increase in revenue to $285 million. These strong results show that Alphabet is back on track after last year’s downturn.
With the Q2 earnings bump, GOOGL stock has gained 46% this year, making it a top growth stock.
Top Growth Stocks: American Airlines (AAL)
Source: MEE KO DONG / Shutterstock
Travel is back and airlines are flying high as a result. Chief among the carriers that are benefitting from rising travel demand is American Airlines (NASDAQ:AAL). The world’s largest international carrier just reported Q2 earnings that crushed Wall Street forecasts across the board. The company announced an EPS of $1.92 versus the $1.59 that was expected. Revenue came in at $14.06 billion compared to $13.74 billion which had been the consensus forecast on Wall Street.
The airline also raised its forward guidance for all of this year, saying it now expects the current travel boom to continue throughout this year’s second half and into 2024. American Airlines’ strong Q2 print came after rival carrier United Airlines (NASDAQ:UAL) announced record earnings for the April through June period. With us now in the midst of the busy summer travel season, American Airlines can be expected to post even stronger Q3 results. AAL stock has rallied 31% this year, but analysts see more gains ahead for the carrier’s stock.
Top Growth Stocks: Netflix (NFLX)
Source: smshoot/ShutterStock.com
Shares of streaming giant Netflix (NASDAQ:NFLX) are down 6% after the company recently reported its Q2 earnings. However, the stock is not likely to be down long and investors should buy the dip. For one, Netflix’s latest print wasn’t really bad at all. Two, the stock is being weighed down by concerns about the actors and writers’ strike in Hollywood, which has shut down the production of TV shows and movies. However, the strike is likely to be temporary and Netflix is more immune than most studios to the strike’s impact.
The main problem with Netflix’s Q2 print was the forward guidance. The company’s revenue in Q2 rose 2.7% from a year earlier to $8.19 billion, matching analysts’ expectations. EPS of $3.29 beat consensus forecasts for earnings of $2.86 a share. Most impressive, Netflix added 5.9 million net new subscribers during the quarter, which handily beat the 1.9 million that was expected. Netflix ended the quarter with 238.4 million paying subscribers worldwide.
Unfortunately, Netflix called for revenue of $8.52 billion in the current third quarter, which was lower than the $8.67 billion that had been anticipated, sending the stock lower. If it weren’t for that guidance, NFLX stock would likely be rising. Despite the current pullback, the company’s share price is still up 96% over the last 12 months, proving that this is an essential growth stock.
American Express (AXP)
Source: Shutterstock
Another company that is benefitting from a resurgence in travel is American Express (NYSE:AXP). The credit card company said in its Q2 earnings statement that it saw record levels of spending on its credit cards between April and June of this year, notably from purchases related to travel and entertainment. This led American Express to report Q2 EPS of $2.89, which was better than the consensus forecast of $2.81 among Wall Street analysts.
While revenue for the quarter ended June 30 came in a little light at $15.05 billion, which was below the consensus estimate of $15.41 billion, American Express reaffirmed its full-year 2023 guidance. The company continues to expect earnings of $11.00 to $11.40 a share, which is strong and reflects the continued resilience of consumer spending. While AXP stock has pulled back 5% since the Q2 print, the stock is still up 13% on the year. Make no mistake, American Express remains a high-potential growth stock.
Morgan Stanley (MS)
Source: Freedom365day / Shutterstock.com
Among U.S. banks, Morgan Stanley (NYSE:MS) stood out with its second-quarter results. The leading investment bank announced earnings that beat consensus expectations on both the top and bottom lines, with EPS of $1.24, which was better than expectations for $1.15, and revenue of $13.46 billion versus $13.08 billion that was forecast. Morgan Stanley continues to focus on wealth management, which has helped distinguish the investment bank from its peers and carry it through the current drought in Wall Street deals.
While rival investment banks such as Goldman Sachs (NYSE:GS) have suffered due to a continued lack of mergers and acquisitions (M&A) and initial public offerings (IPOs), Morgan Stanley’s diversified approach and growth in wealth management has made it more resilient. News that Morgan Stanley’s CEO James Gorman plans to retire in early 2024 has raised some concerns at the bank. But long term, the investment house should be fine. MS stock has gained 16% in the last 12 months, including a 10% increase this year.
Tesla (TSLA)
Source: Shutterstock
While the stock continues to be volatile, it just doesn’t make sense to bet against Tesla (NASDAQ:TSLA). The electric vehicle maker has proven just about every bear on Wall Street wrong, forcing many to cover their short bets against its stock. This year alone, TSLA stock is up 144% following a steep decline last fall after CEO Elon Musk acquired the company formerly known as Twitter, and concerns were raised about his focus on electric cars.
More recently, TSLA stock has slumped 5% since the company issued its latest earnings on July 19. Judging by past performance, TSLA stock won’t be down for long. The company beat Wall Street forecasts on the top and bottom lines with revenue of $24.93 billion and EPS of 91 cents. The issue was the margins, with Tesla reporting that its operating margins came in at 9.6%, the lowest level in five quarters. That was due to price discounts and other incentives offered on its EVs. But don’t fret. TSLA stock has gained more than 1,200% in the last five years.
PepsiCo (PEP)
Source: REDPIXEL.PL / Shutterstock.com
While it’s often not thought of as a growth stock, beverage, and snack giant PepsiCo (NASDAQ:PEP) continues to post impressive earnings and growth in its core business. The company, which makes consumer products such as the Pepsi soft drink and Lay’s potato chips, reported better-than-expected Q2 earnings and raised its full-year guidance. Specifically, Pepsi said it earned $2.09 a share for the quarter ended June 30. That was much better than the consensus Wall Street forecasts for EPS of $1.96.
Revenue in Q2 totaled $22.32 billion compared to $21.73 billion which was expected by analysts. Revenue was up 10% year-over-year during the April through June period. In terms of forward guidance, PepsiCo said it now expects its full-year revenues to grow a further 10%, up from a previous forecast of 8% growth. EPS is forecast to come in at $7.47 for the entire year, up from an earlier forecast of $7.27. PEP stock has gained 12% over the last year and would be great to own in a recession.
On the date of publication, Joel Baglole held a long position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post If You Can Only Buy One Growth Stock, It Better Be One of These 7 Names appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Growth Stocks: American Airlines (AAL) Source: MEE KO DONG / Shutterstock Travel is back and airlines are flying high as a result. Chief among the carriers that are benefitting from rising travel demand is American Airlines (NASDAQ:AAL). AAL stock has rallied 31% this year, but analysts see more gains ahead for the carrier’s stock.
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Top Growth Stocks: American Airlines (AAL) Source: MEE KO DONG / Shutterstock Travel is back and airlines are flying high as a result. Chief among the carriers that are benefitting from rising travel demand is American Airlines (NASDAQ:AAL). AAL stock has rallied 31% this year, but analysts see more gains ahead for the carrier’s stock.
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Top Growth Stocks: American Airlines (AAL) Source: MEE KO DONG / Shutterstock Travel is back and airlines are flying high as a result. Chief among the carriers that are benefitting from rising travel demand is American Airlines (NASDAQ:AAL). AAL stock has rallied 31% this year, but analysts see more gains ahead for the carrier’s stock.
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Top Growth Stocks: American Airlines (AAL) Source: MEE KO DONG / Shutterstock Travel is back and airlines are flying high as a result. Chief among the carriers that are benefitting from rising travel demand is American Airlines (NASDAQ:AAL). AAL stock has rallied 31% this year, but analysts see more gains ahead for the carrier’s stock.
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83040096-e9a1-4aa1-8ac8-65756731c888
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2392.0
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2023-07-27 00:00:00 UTC
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Interesting AAL Put And Call Options For September 8th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-september-8th
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 8th contracts and identified one put and one call contract of particular interest.
The put contract at the $15.50 strike price has a current bid of 33 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.50, but will also collect the premium, putting the cost basis of the shares at $15.17 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $16.47/share today.
Because the $15.50 strike represents an approximate 6% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.13% return on the cash commitment, or 18.07% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $15.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $17.00 strike price has a current bid of 52 cents. If an investor was to purchase shares of AAL stock at the current price level of $16.47/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $17.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.38% if the stock gets called away at the September 8th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $17.00 strike highlighted in red:
Considering the fact that the $17.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.16% boost of extra return to the investor, or 26.80% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $16.47) to be 41%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
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GURE market cap history
ZBRA Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 8th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 8th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 8th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 8th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 8th contracts and identified one put and one call contract of particular interest.
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41ad02ca-8a59-490c-bb19-a87bd4239a52
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2393.0
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2023-07-27 00:00:00 UTC
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Stocks Rally as Economic News Shows a Resilient U.S. Economy
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AAL
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https://www.nasdaq.com/articles/stocks-rally-as-economic-news-shows-a-resilient-u.s.-economy
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.62%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.34%.
Stocks this morning are moderately higher, with the S&P 500 climbing to a nearly 16-month high and the Nasdaq 100 posting a 1-week high. Strength in technology stocks today is leading the overall market higher, with Meta Platforms up more than +6% after reporting better-than-expected Q2 revenue. In addition, chip stocks are rallying after Samsung Electronics said artificial intelligence will boost memory demand before the year’s end.
Stock indexes extended their gains this morning on signs that the U.S. economy may achieve a soft landing after U.S. Q2 GDP expanded more than expected, boosted by stronger-than-expected consumer spending. Also, the Q2 core PCE price index advanced at a slower-than-expected pace.
Q2 corporate earnings season is off to a strong start, as nearly 80% of U.S. companies that have reported results have beaten profit estimates.
As expected, the ECB raised its main refinancing rate today by 25 bp to 4.25% and said, "The Governing Council's future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to the 2% medium-term target."
U.S. weekly initial unemployment claims unexpectedly fell -7,000 to a 5-month low of 221,000, showing a stronger labor market than expectations of an increase to 235,000.
U.S. Q2 GDP rose +2.4% (q/q annualized), stronger than expectations of +1.8%, as Q2 personal consumption rose +1.6%, stronger than expectations of +1.2%. The Q2 core PCE price index eased to +3.8% q/q from +4.9% q/q in Q1, better than expectations of +4.0% q/q and the slowest pace of increase since Q1 2021.
U.S. Jun capital goods new orders nondefense ex-aircraft and parts unexpectedly rose +0.2% m/m, stronger than expectations of a decline of -0.1% m/m.
U.S. Jun pending home sales unexpectedly rose +0.3% m/m, stronger than expectations of a -0.5% m/m decline.
The markets are discounting the odds at 24% for a +25 bp rate hike at the September 20 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield jumped to a 2-week high of 3.958% and is up +8.4 bp to 3.950%. The 10-year German bund yield is down -0.3 bp at 2.482%. The 10-year UK Gilt yield rose to a 1-week high of 4.323% and is up +4.1 at 4.322%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +2.30%. China’s Shanghai Composite Index today closed down -0.20%. Japan’s Nikkei Stock Index closed up +0.68%.
Today’s stock movers…
Align Technology (ALGN) is up more than +17% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue f $1.00 billion, stronger than the consensus of $990.4 million.
Textron (TXT) is up more than +10% after reporting Q2 revenue of $3.42 billion, stronger than the consensus of $3.40 billion.
Lam Research (LRCX) is up more than +8% after reporting Q4 adjusted EPS of $5,98, well above the consensus of $5.01.
Meta Platforms (META) is up more than +6% after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion from a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion.
Semiconductor stocks are climbing today after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. As a result, Applied Materials (AMAT) and KLA Corp (KLAC) are up more than +5%. Also, Micron Technology (MU), ASML Holding NV (ASML), and Globalfoundries (GFS) are up more than +3%. In addition, Microchip Technology (MCHP), Marvell Technology (MRVL), NXP Semiconductor NV (NXPI), Nvidia (NVDA), Analog Devices (ADI), and ON Semiconductor (ON) are up more than +2%.
AbbVie (ABBV) is up more than +6% after reporting Q2 adjusted EPS of $2.91, better than the consensus of $2.79, and raised its full-year adjusted EPS estimate to $10.90-$11.10 from a prior view of $10.57-$10.97.
Comcast Corp (CMCSA) is up more than +5% after reporting Q2 revenue of $30.51 billion, stronger than the consensus of $30.09 billion.
McDonald’s Corp (MCD) is up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q2 comparable same-store sales rose +11.7%, stronger than the consensus of +9.36%.
Chipotle Mexican Grill (CMG) is down more than -8% after reporting Q2 comparable same-store sales rose +7.4%, weaker than the consensus of +7.67%.
Willis Towers Watson Plc (WTW) is down more than -8% to lead lowers in the S&P 500 after reporting Q2 adjusted EPS of $2.05, weaker than the consensus of $2.32, and cut its 2024 adjusted EPS forecast to $15.40-$17.00 from a previous estimate of $17.50-$20.50.
Airline stocks are falling today after Southwest Airlines raised its full-year non-fuel expenses to fly each seat a mile, an industry gauge of efficiency, to a decline of -1% to -2% from a previous estimate of as much as a -4% drop. As a result, Southwest Airlines (LUV) is down more than -9% to lead losers in the S&P 500. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%.
Ebay (EBAY) is down more than -8% to lead losers in the Nasdaq 100 after forecasting Q3 adjusted EPS from continuing operations of 96 cents-$1.01, weaker than the consensus of $1.02.
Edwards Lifesciences (EW) is down more than -7% after forecasting Q3 adjusted EPS of 55 cents-61 cents, below the consensus of 63 cents.
S&P Global (SPGI) is down more than -6% after reporting Q2 adjusted EPS of $3.12, weaker than the consensus of $3.14.
Honeywell International (HON) is down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
Across the markets…
September 10-year T-notes (ZNU23) today are down -25 ticks, and the 10-year T-note yield is up +8.4 bp to 3.950%. Sep T-notes today fell to a 2-week low, and the 10-year T-note yield climbed to a 2-week high of 3.956%. T-notes are selling off today from stronger-than-expected U.S. economic reports on Q2 GDP, weekly jobless claims, Jun pending home sales, and Jun capital goods new orders, which are hawkish for Fed policy. Also, supply pressures are weighing on T-notes as the Treasury will auction $35 billion of 7-year T-notes later today.
The dollar index (DXY00) today recovered from early losses and is up by +0.76% at a 2-week high. Stronger-than-expected U.S. economic news today on Q2 GDP and weekly jobless claims boosted T-note yields and supported the dollar. Also, weakness in the euro supports the dollar as EUR/USD fell to a 2-week low on dovish comments from ECB President Lagarde.
EUR/USD (^EURUSD) today is down by -0.69%. The euro relinquished early gains today and tumbled to a 2-week low, even after the ECB raised its main refinancing rate by 25 bp as expected. EUR/USD retreated after ECB President Lagarde said, "The near-term economic outlook for the Eurozone has deteriorated,” and ECB officials "have an open mind as to what decisions will be in September,” signaling the ECB may pause its rate hike cycle.
ECB President Lagarde said, "The near-term economic outlook for the Eurozone has deteriorated owing largely to weaker domestic demand." She added that ECB officials "have an open mind as to what decisions will be in September and in subsequent meetings, so we might hike, and we might hold" interest rates.
USD/JPY (^USDJPY) is up by +0.37%. The yen today gave up overnight gains and turned lower after stronger-than-expected U.S. economic reports pushed T-note yields higher. Also, central bank divergence is weighing on the yen after the Fed and ECB raised interest rates this week, while the BOJ on Friday is expected to maintain its ultra-easy monetary policies.
August gold (GCQ3) today is down -26.7 (-1.36%), and Sep silver (SIU23) is down -0.705 (-2.82%). Precious metals prices this morning are sharply lower, with gold and silver falling to 2-week lows. A rally in the dollar index today to a 2-week high is bearish for metals. Precious metals are also under pressure from today’s stronger-than-expected U.S. economic news on Q2 GDP, weekly initial unemployment claims, and Jun pending home sales that signal strength in the economy, which may prompt the Fed to keep raising interest rates. In addition, fund liquidation of long gold holdings is weighing on gold prices after long gold holdings in ETFs fell to a new 3-year low Wednesday.
More Stock Market News from Barchart
Markets Today: Stocks Soar on the Outlook for a Soft Landing Get An Income Boost From This Popular REIT Stocks Climb Before the Open as Investors Await Key U.S. GDP Data, Meta Results Boost Sentiment Stocks Settle Mixed as Powell Signals a Skip in Rate Hikes is on the Table
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. Semiconductor stocks are climbing today after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. Also, central bank divergence is weighing on the yen after the Fed and ECB raised interest rates this week, while the BOJ on Friday is expected to maintain its ultra-easy monetary policies.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. T-notes are selling off today from stronger-than-expected U.S. economic reports on Q2 GDP, weekly jobless claims, Jun pending home sales, and Jun capital goods new orders, which are hawkish for Fed policy. Stronger-than-expected U.S. economic news today on Q2 GDP and weekly jobless claims boosted T-note yields and supported the dollar.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. Meta Platforms (META) is up more than +6% after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion from a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion. Honeywell International (HON) is down more than -4% to lead losers in the Dow Jones Industrials after reporting Q2 sales of $9.15 billion, weaker than the consensus of $9.16 billion, and forecasting Q3 sales of $9.1 billion-$9.3 billion, the midpoint below the consensus $9.27 billion.
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Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Alaska Air Group (ALK), and Delta Air Lines (DAL) are down more than -1%. AbbVie (ABBV) is up more than +6% after reporting Q2 adjusted EPS of $2.91, better than the consensus of $2.79, and raised its full-year adjusted EPS estimate to $10.90-$11.10 from a prior view of $10.57-$10.97. Sep T-notes today fell to a 2-week low, and the 10-year T-note yield climbed to a 2-week high of 3.956%.
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7c49c889-bbe8-4a71-96d8-da09f7c18ce7
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2394.0
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2023-07-27 00:00:00 UTC
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Strong Data: Claims, Goods, GDP and Q2 Earnings
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AAL
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https://www.nasdaq.com/articles/strong-data%3A-claims-goods-gdp-and-q2-earnings
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Don’t look now, but the Dow is looking to notch its 14th straight trading day higher — something that hasn’t happened since 1897, back in the nascent days of the index. And pre-market reports, both on Q2 earnings and economic segments, are helping push pre-market futures higher at this hour: the Dow is currently up +160 points, the S&P 500 is +39 and the Nasdaq +230 points.
Being Thursday, Initial Jobless Claims are out this morning, surprising to the downside yet again. A headline of 221K was well below the 235K expected, and even beneath the unrevised 228K from the previous week. We’re well off the mid-June cycle highs north of 260K, and haven’t seen a headline this low since February of this year. Continuing Claims came in at by far the lowest level of the past 12 weeks at 1.69 million. In late April, we were seeing results above 1.8 million.
The advanced read on Q2 Gross Domestic Product (GDP) was higher than the +2% expected (and +2.0% reported in Q1) to +2.4%, the highest since the +2.6% in Q4 of last year. (So much for a mid-year recession.) Meanwhile, Consumption came way down quarter over quarter to +1.6% (from +4.2% in Q1) on a +2.2% pricing index and +3.8% on core Personal Consumption Expenditures (PCE), the lowest since Q4 of 2020. This is really the best of both worlds: a stronger economy that’s less reliant on the consumer spending a lot more. A full PCE report comes out tomorrow before the bell.
Durable Goods Orders for June — also a preliminary number — were also well ahead of expectations: +4.7% was more than 3x analyst estimates, and more than double the upwardly revised +2.0% for May. Ex-transportation, we see this come way down to +0.6%, though half a point higher than expected and only 10 basis points (bps) off the previous month’s +0.7%. Non-defense, ex-aircraft (a proxy for “regular” business spending) was a scant +0.2%, notably below the previous month’s downwardly revised +0.5%. Shipments were unchanged month over month.
Advance Trade Balance on Goods for June posted a narrower deficit than anticipated: -$87.8 billion, from -$97.5 billion previously. Advance Retail Industries notched +0.7% — easily ahead of the +0.4% estimate, and down 10 bps month over month. Advance Wholesale Industries came in -0.3%, beneath the 0.0% registered for May. Again, we see evidence of a cooling economy; the good news is we’re still growing in its most advantageous areas, at least for the near term.
McDonald’s MCD posted a strong Q2, with earnings and sales both well above estimates: earnings of $3.17 per share were +14.4% higher than the $2.77 expected (and $2.55 per share reported in the year-ago quarter), on revenues of $6.5 billion, which outpaced the $6.23 billion estimate by +4.3%. The quick-service restaurant giant saw double-digit comps in each of its segments, including China, which rose higher than expected. Shares are up +1.6% on the news in today’s pre-market, but still underperforming the S&P 500 year to date. For more on MCD’s earnings, click here.
Southwest Airlines LUV technically beat estimates on both top and bottom lines this morning: by a penny to earnings of $1.09 per share and to a record-high $7.04 billion in revenues, higher than the $6.99 billion in the Zacks consensus. This is a smaller beat than we saw last week by airline competitors United UAL and American AAL, as operating expenses rose +12% in the quarter (+7.5% ex-fuel prices) and the company has pilot negotiations to which it must attend. Shares are down -6% in early trading.
Royal Caribbean RCL shares are way up in today’s pre-market, +9%, on its robust Q2 results this morning: earnings of $1.82 per share was well ahead of the $1.58 expected (and another stratosphere from the -$2.08 per share reported in the year-ago quarter). Revenues reached a record high to $3.5 billion, above the $3.38 billion anticipated. Adjusted EBITDA was also a record high at $1.2 billion. In short, business is booming; pent-up demand panned out big-time this quarter for the cruise line major.
Questions or comments about this article and/or author? Click here>>
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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is a smaller beat than we saw last week by airline competitors United UAL and American AAL, as operating expenses rose +12% in the quarter (+7.5% ex-fuel prices) and the company has pilot negotiations to which it must attend. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Durable Goods Orders for June — also a preliminary number — were also well ahead of expectations: +4.7% was more than 3x analyst estimates, and more than double the upwardly revised +2.0% for May.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is a smaller beat than we saw last week by airline competitors United UAL and American AAL, as operating expenses rose +12% in the quarter (+7.5% ex-fuel prices) and the company has pilot negotiations to which it must attend. McDonald’s MCD posted a strong Q2, with earnings and sales both well above estimates: earnings of $3.17 per share were +14.4% higher than the $2.77 expected (and $2.55 per share reported in the year-ago quarter), on revenues of $6.5 billion, which outpaced the $6.23 billion estimate by +4.3%.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is a smaller beat than we saw last week by airline competitors United UAL and American AAL, as operating expenses rose +12% in the quarter (+7.5% ex-fuel prices) and the company has pilot negotiations to which it must attend. McDonald’s MCD posted a strong Q2, with earnings and sales both well above estimates: earnings of $3.17 per share were +14.4% higher than the $2.77 expected (and $2.55 per share reported in the year-ago quarter), on revenues of $6.5 billion, which outpaced the $6.23 billion estimate by +4.3%.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is a smaller beat than we saw last week by airline competitors United UAL and American AAL, as operating expenses rose +12% in the quarter (+7.5% ex-fuel prices) and the company has pilot negotiations to which it must attend. Continuing Claims came in at by far the lowest level of the past 12 weeks at 1.69 million.
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b4226533-e1d2-417d-9fe1-f69746efe323
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2395.0
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2023-07-27 00:00:00 UTC
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Markets Today: Stocks Soar on the Outlook for a Soft Landing
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AAL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-soar-on-the-outlook-for-a-soft-landing
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nan
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nan
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Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are up +0.83% at a 16-month high, and Sep Nasdaq 100 E-Mini futures (NQU23) are up +1.47%.
Stock indexes this morning are climbing on speculation the Federal Reserve may be close to ending its 16-month-long policy-tightening cycle. Also, technology stocks are rallying, led by an +8% jump in Meta Platforms after it reported better-than-expected Q2 revenue. In addition, chip stocks are moving higher in pre-market trading after Samsung Electronics said artificial intelligence will provide a boost to memory demand before the year’s end.
Stock indexes extended their gains this morning on signs that the U.S. economy may achieve a soft landing after U.S. Q2 GDP expanded more than expected, boosted by stronger-than-expected consumer spending. Also, the Q2 core PCE price index advanced at a slower-than-expected pace.
Q2 corporate earnings season is off to a strong start, as nearly 80% of U.S. companies that have reported results have beaten profit estimates.
As expected, the ECB raised its main refinancing rate today by 25 bp to 4.25% and said, "The Governing Council's future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to the 2% medium-term target."
U.S. weekly initial unemployment claims unexpectedly fell -7,000 to a 5-month low of 221,000, showing a stronger labor market than expectations of an increase to 235,000.
U.S. Q2 GDP rose +2.4% (q/q annualized), stronger than expectations of +1.8%, as Q2 personal consumption rose +1.6%, stronger than expectations of +1.2%. The Q2 core PCE price index eased to +3.8% q/q from +4.9% q/q in Q1, better than expectations of +4.0% q/q and the slowest pace of increase since Q1 2021.
U.S. Jun capital goods new orders nondefense ex-aircraft and parts unexpectedly rose +0.2% m/m, stronger than expectations of a decline of -0.1% m/m.
The markets are discounting the odds at 23% for a +25 bp rate hike at the September 20 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield is up +4.2 bp to 3.909%. The 10-year German bund yield is down -3.3 bp at 2.452%. The 10-year UK Gilt yield is up +1.2 at 4.293%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +1.87%. China’s Shanghai Composite Index today closed down -0.20%. Japan’s Nikkei Stock Index closed up +0.68%.
The Euro Stoxx 50 today climbed to a 15-year high and is sharply higher. Positive corporate earnings results are boosting the overall market, with BNP Paribas SA, Nestle SA, and Carrefour SA all climbing after reporting stronger-than-expected earnings results. Also, speculation that the ECB and Fed are close to the end of their interest rate hiking cycles is giving stocks a lift. On the negative side, Shell Plc retreated after its profits slowed and Barclays Plc tumbled after it reported a -41% decline in quarterly trading revenue.
The German Aug GfK consumer confidence index rose +0.8 to -24.4, stronger than expectations of -24.8.
China’s Shanghai Composite today fell back from a 1-1/2 week high and closed moderately lower. A slide in telecom stocks and their suppliers weighed on the overall market after Chinese smartphone shipments fell -2.1% in Q2. Smartphone shipments in China have now fallen every quarter since the start of 2022. The Shanghai Composite today initially moved up to a 1-1/2 week high on a rally in technology stocks as electric-vehicle shares surged on news that Volkswagen AG plans to invest in China’s XPeng. Also, property stocks extended their recent gains after a Securities Times report said analysts are expecting the government to continuously ease property policies in the second half of this year.
China Jun industrial profits fell -8.3% y/y, the fourth straight monthly decline.
Japan’s Nikkei Stock Index today rallied to a 3-week high and finished moderately higher. Japanese stocks rose on speculation the Fed may be close to the end of its 16-month-long tightening cycle. Also, stronger-than-expected earnings results from Samsung Electronics sparked a rally in Japanese electronics makers. Gains in the overall market were limited as the yen moved higher against the dollar, undercutting exporter stocks. The yen rose on short covering ahead of Friday’s BOJ meeting in case policymakers decide to tweak the BOJ’s ultra-loose monetary policy. The BOJ is said to be considering a sharp increase to their inflation forecast for this fiscal year, a move that may lead to a tightening of monetary policy in coming meetings.
Pre-Market U.S. Stock Movers
Meta Platforms (META) rallied more than +8% in pre-market trading after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion form a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion.
Semiconductor stocks are climbing in pre-market trading after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end. As a result, Micron Technology (MU), Nvidia (NVDA), Applied Materials (AMAT), KLA Corp (KLAC), Advanced Micro Devices (AMD), and Qualcomm (QCOM) are up +1% or more.
Lam Research (LRCX) rose more than +4% in pre-market trading after reporting Q4 adjusted EPS of $5,98, well above the consensus of $5.01.
Electric vehicle makers are moving higher in pre-market trading after Volkswagen AG said it plans to invest $700 million in Chinese EV maker XPeng. As a result, Tesla (TSLA), Rivian Automotive (RIVN), and Lucid Group (LCID) are up +1% or more.
McDonald’s Corp (MCD) gained more than +1% in pre-market trading after reporting Q2 comparable same-store sales rose +11.7%, stronger than the consensus of +9.36%.
Textron (TXT) jumped more than +8% in pre-market trading after reporting Q2 revenue of $3.42 billion, stronger than the consensus of $3.40 billion.
Align Technology (ALGN) surged more than +14% in pre-market trading after reporting Q2 net revenue f $1.00 billion, stronger than the consensus of $990.4 million.
AbbVie (ABBV) rose more than +1% in pre-market trading after reporting Q2 adjusted EPS of $2.91, better than the consensus of $2.79, and raised its full-year adjusted EPS estimate to $10.90-$11.10 from a prior view of $10.57-$10.97.
Airline stocks are falling in pre-market trading after Southwest Airlines raised its full-year non-fuel expenses to fly each seat a mile, an industry gauge of efficiency, to a decline of -1% to -2% from a previous estimate of as much as a -4% drop. As a result, Southwest Airlines (LUV) is down more than-6%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%.
Ebay (EBAY) tumbled more than -5% in pre-market trading after forecasting Q3 adjusted EPS from continuing operations of 96 cents-$1.01, weaker than the consensus of $1.02.
Bristol-Myers Squibb (BMY) dropped more than -2% in pre-market trading after reporting Q2 revenue of $11.23 billion, below the consensus of $11.79 billion.
Chipotle Mexican Grill (CMG) sank more than -8% in pre-market trading after reporting Q2 comparable same-store sales rose +7.4%, weaker than the consensus of +7.67%.
Edwards Lifesciences (EW) dropped more than -5% in pre-market trading after forecasting Q3 adjusted EPS of 55 cents-61 cents, below the consensus of 63 cents.
Harley Davidson (HOG) fell more than -4% in pre-market trading after reporting Q2 EPS of $1.22, below the consensus of $.125, and cutting its full-year HDMC revenue estimate to 0% to 3% from a previous estimate of up +4% to +7%.
Today’s U.S. Earnings Reports (7/27/2023)
A O Smith Corp (AOS), AbbVie Inc (ABBV), American Electric Power Co Inc (AEP), American Tower Corp (AMT), Arthur J Gallagher & Co (AJG), Baxter International Inc (BAX), Boston Scientific Corp (BSX), Bristol-Myers Squibb Co (BMY), Carrier Global Corp (CARR), CBRE Group Inc (CBRE), CenterPoint Energy Inc (CNP), Cincinnati Financial Corp (CINF), CMS Energy Corp (CMS), Comcast Corp (CMCSA), Dexcom Inc (DXCM), Digital Realty Trust Inc (DLR), DTE Energy Co (DTE), Eastman Chemical Co (EMN), Edison International (EIX), Enphase Energy Inc (ENPH), Equity Residential (EQR), Essex Property Trust Inc (ESS), First Solar Inc (FSLR), Ford Motor Co (F), Hartford Financial Services Group (HIG), HCA Healthcare Inc (HCA), Healthpeak Properties Inc (PEAK), Hershey Co/The (HSY), Honeywell International Inc (HON), Intel Corp (INTC), International Paper Co (IP), Juniper Networks Inc (JNPR), Keurig Dr Pepper Inc (KDP), Kimco Realty Corp (KIM), KLA Corp (KLAC), Laboratory Corp of America Hol (LH), Linde PLC (LIN), Live Nation Entertainment Inc LYV), LKQ Corp (LKQ), Martin Marietta Materials Inc (MLM), Masco Corp (MAS), Mastercard Inc (MA), McDonald's Corp (MCD), Mettler-Toledo International Inc (MTD), Mohawk Industries Inc (MHK), Mondelez International Inc (MDLZ), Norfolk Southern Corp (NSC), Northrop Grumman Corp (NOC), Pentair PLC (PNR), PG&E Corp (PCG), Principal Financial Group Inc (PFG), Royal Caribbean Cruises Ltd (RCL), S&P Global Inc (SPGI), Southwest Airlines Co (LUV), Textron Inc (TXT), T-Mobile US Inc (TMUS), Tractor Supply Co (TSCO), Valero Energy Corp (VLO), VeriSign Inc (VRSN), West Pharmaceutical Services I (WST), Westinghouse Air Brake Technol (WAB), Weyerhaeuser Co (WY), Willis Towers Watson PLC (WTW), WW Grainger Inc (GWW), Xcel Energy Inc (XEL).
More Stock Market News from Barchart
Get An Income Boost From This Popular REIT Stocks Climb Before the Open as Investors Await Key U.S. GDP Data, Meta Results Boost Sentiment Stocks Settle Mixed as Powell Signals a Skip in Rate Hikes is on the Table Investors Need to Think Very Carefully Before Buying the Hanesbrands (HBI) Rumor
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy 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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As a result, Southwest Airlines (LUV) is down more than-6%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%. The Shanghai Composite today initially moved up to a 1-1/2 week high on a rally in technology stocks as electric-vehicle shares surged on news that Volkswagen AG plans to invest in China’s XPeng. Semiconductor stocks are climbing in pre-market trading after Samsung Electronics, South Korea’s largest company, reported better-than-expected Q2 net income and said artificial intelligence will boost memory demand before the year’s end.
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As a result, Southwest Airlines (LUV) is down more than-6%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%. The Shanghai Composite today initially moved up to a 1-1/2 week high on a rally in technology stocks as electric-vehicle shares surged on news that Volkswagen AG plans to invest in China’s XPeng. Pre-Market U.S. Stock Movers Meta Platforms (META) rallied more than +8% in pre-market trading after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion form a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion.
|
As a result, Southwest Airlines (LUV) is down more than-6%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%. Pre-Market U.S. Stock Movers Meta Platforms (META) rallied more than +8% in pre-market trading after reporting Q2 revenue of $32.00 billion, better than the consensus of $31.06 billion, and cut its full-year capex estimate to $27 billion-$30 billion form a prior estimate of $30 billion-$33 billion, below the consensus of $31.71 billion. Today’s U.S. Earnings Reports (7/27/2023) A O Smith Corp (AOS), AbbVie Inc (ABBV), American Electric Power Co Inc (AEP), American Tower Corp (AMT), Arthur J Gallagher & Co (AJG), Baxter International Inc (BAX), Boston Scientific Corp (BSX), Bristol-Myers Squibb Co (BMY), Carrier Global Corp (CARR), CBRE Group Inc (CBRE), CenterPoint Energy Inc (CNP), Cincinnati Financial Corp (CINF), CMS Energy Corp (CMS), Comcast Corp (CMCSA), Dexcom Inc (DXCM), Digital Realty Trust Inc (DLR), DTE Energy Co (DTE), Eastman Chemical Co (EMN), Edison International (EIX), Enphase Energy Inc (ENPH), Equity Residential (EQR), Essex Property Trust Inc (ESS), First Solar Inc (FSLR), Ford Motor Co (F), Hartford Financial Services Group (HIG), HCA Healthcare Inc (HCA), Healthpeak Properties Inc (PEAK), Hershey Co/The (HSY), Honeywell International Inc (HON), Intel Corp (INTC), International Paper Co (IP), Juniper Networks Inc (JNPR), Keurig Dr Pepper Inc (KDP), Kimco Realty Corp (KIM), KLA Corp (KLAC), Laboratory Corp of America Hol (LH), Linde PLC (LIN), Live Nation Entertainment Inc LYV), LKQ Corp (LKQ), Martin Marietta Materials Inc (MLM), Masco Corp (MAS), Mastercard Inc (MA), McDonald's Corp (MCD), Mettler-Toledo International Inc (MTD), Mohawk Industries Inc (MHK), Mondelez International Inc (MDLZ), Norfolk Southern Corp (NSC), Northrop Grumman Corp (NOC), Pentair PLC (PNR), PG&E Corp (PCG), Principal Financial Group Inc (PFG), Royal Caribbean Cruises Ltd (RCL), S&P Global Inc (SPGI), Southwest Airlines Co (LUV), Textron Inc (TXT), T-Mobile US Inc (TMUS), Tractor Supply Co (TSCO), Valero Energy Corp (VLO), VeriSign Inc (VRSN), West Pharmaceutical Services I (WST), Westinghouse Air Brake Technol (WAB), Weyerhaeuser Co (WY), Willis Towers Watson PLC (WTW), WW Grainger Inc (GWW), Xcel Energy Inc (XEL).
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As a result, Southwest Airlines (LUV) is down more than-6%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%. China’s Shanghai Composite Index today closed down -0.20%. McDonald’s Corp (MCD) gained more than +1% in pre-market trading after reporting Q2 comparable same-store sales rose +11.7%, stronger than the consensus of +9.36%.
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6435f35d-d07b-498e-b65d-1eb9497cd7a5
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2396.0
|
2023-07-27 00:00:00 UTC
|
Anglo American cuts dividend after missing earnings estimates
|
AAL
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https://www.nasdaq.com/articles/anglo-american-cuts-dividend-after-missing-earnings-estimates
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nan
|
nan
|
By Clara Denina
LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.1 billion for the six months to June 30, down from $8.7 billion a year earlier and below the $5.3 billion expected on average by eight analysts polled by research firm Vuma.
Anglo joined rival miners Rio Tinto RIO.L, RIO.AX and Freeport-McMoRan FCX.N in reporting lower profits, and said the short-term economic environment, including growth in major consumer China's economy, remained challenging.
"We have been a bit surprised by how slow the reopening of China has been and the lack of stimulus that everybody expected. The good news is the politburo in the last couple of days has indicated quite strongly that it will take some action," Chief Executive Duncan Wanblad told reporters.
"What we are certain about is that there will be a recovery, what we are not certain about is the length of time that it is going to take to get from here to that recovery," Wanblad said.
On Monday, China pledged more support for its slowing economy.
Anglo, however, said it is on track to deliver on 2023 production guidance, which includes a significant increase in volumes for the metals it mines during the later half of the year.
"Earnings estimates for the second half should remain broadly unchanged given no change to operational guidance while the performance is expected to improve in the second half of the year," said Citi analysts in a note.
In the first half, a 42% increase in copper production, underpinned by the ramp-up of the group's Quellaveco mine operations in Peru, was offset by lower output for coking coal, used in steelmaking, and platinum group metals.
Anglo declared an interim dividend of $0.55 per share, down 56% from $1.24 a year earlier and far below record levels of 2021, and said net debt was $8.8 billion by June 30, compared with $4.85 billion a year earlier and a consensus estimate of $8.7 billion.
(Reporting by Clara Denina and Richard Rohan Francis; editing by Jason Neely, Miral Fahmy and Susan Fenton)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Clara Denina LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. Anglo joined rival miners Rio Tinto RIO.L, RIO.AX and Freeport-McMoRan FCX.N in reporting lower profits, and said the short-term economic environment, including growth in major consumer China's economy, remained challenging. Anglo, however, said it is on track to deliver on 2023 production guidance, which includes a significant increase in volumes for the metals it mines during the later half of the year.
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By Clara Denina LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.1 billion for the six months to June 30, down from $8.7 billion a year earlier and below the $5.3 billion expected on average by eight analysts polled by research firm Vuma. Anglo joined rival miners Rio Tinto RIO.L, RIO.AX and Freeport-McMoRan FCX.N in reporting lower profits, and said the short-term economic environment, including growth in major consumer China's economy, remained challenging.
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By Clara Denina LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.1 billion for the six months to June 30, down from $8.7 billion a year earlier and below the $5.3 billion expected on average by eight analysts polled by research firm Vuma. Anglo joined rival miners Rio Tinto RIO.L, RIO.AX and Freeport-McMoRan FCX.N in reporting lower profits, and said the short-term economic environment, including growth in major consumer China's economy, remained challenging.
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By Clara Denina LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. On Monday, China pledged more support for its slowing economy. Anglo, however, said it is on track to deliver on 2023 production guidance, which includes a significant increase in volumes for the metals it mines during the later half of the year.
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249c8db9-86b9-48bf-9d3a-21449c381a55
|
2397.0
|
2023-07-27 00:00:00 UTC
|
SA's Amplats appoints finance director Miller as CEO
|
AAL
|
https://www.nasdaq.com/articles/sas-amplats-appoints-finance-director-miller-as-ceo
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nan
|
nan
|
Adds detail
July 27 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Thursday appointed finance director Craig Miller as CEO to replace Natascha Viljoen, effective from Oct. 1.
Miller has been Amplats' finance director since 2019 and has over 23 years of mining industry experience gained in South Africa, Brazil and the UK. He has worked across the Anglo American Plc AAL.L group’s PGMs, base metals and bulk commodities businesses.
Viljoen, who has been at the helm of the world's top platinum group metal (PGM) miner by value since April 2020, is leaving to join Newmont CorpNEM.N as chief operating officer.
(Reporting by Yadarisa Shabong in Bengaluru and Nelson Banya in Harare; editing by Sonia Cheema and Jason Neely)
((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He has worked across the Anglo American Plc AAL.L group’s PGMs, base metals and bulk commodities businesses. Adds detail July 27 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Thursday appointed finance director Craig Miller as CEO to replace Natascha Viljoen, effective from Oct. 1. Miller has been Amplats' finance director since 2019 and has over 23 years of mining industry experience gained in South Africa, Brazil and the UK.
|
He has worked across the Anglo American Plc AAL.L group’s PGMs, base metals and bulk commodities businesses. Adds detail July 27 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Thursday appointed finance director Craig Miller as CEO to replace Natascha Viljoen, effective from Oct. 1. Miller has been Amplats' finance director since 2019 and has over 23 years of mining industry experience gained in South Africa, Brazil and the UK.
|
He has worked across the Anglo American Plc AAL.L group’s PGMs, base metals and bulk commodities businesses. Adds detail July 27 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Thursday appointed finance director Craig Miller as CEO to replace Natascha Viljoen, effective from Oct. 1. Viljoen, who has been at the helm of the world's top platinum group metal (PGM) miner by value since April 2020, is leaving to join Newmont CorpNEM.N as chief operating officer.
|
He has worked across the Anglo American Plc AAL.L group’s PGMs, base metals and bulk commodities businesses. Adds detail July 27 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Thursday appointed finance director Craig Miller as CEO to replace Natascha Viljoen, effective from Oct. 1. Miller has been Amplats' finance director since 2019 and has over 23 years of mining industry experience gained in South Africa, Brazil and the UK.
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ea102c14-9387-439c-b042-cdc43c90bc43
|
2398.0
|
2023-07-27 00:00:00 UTC
|
Anglo American misses H1 earning estimates, cuts dividend
|
AAL
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https://www.nasdaq.com/articles/anglo-american-misses-h1-earning-estimates-cuts-dividend
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nan
|
nan
|
LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.1 billion for the six months to June 30, down from $8.7 billion a year earlier and below the $5.3 billion expected on average by eight analysts polled by research firm Vuma.
Anglo declared an interim dividend of $0.55 per share, down 56% from $1.24 a year earlier and far below record levels of 2021.
(Reporting by Clara Denina; editing by Jason Neely)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. Anglo declared an interim dividend of $0.55 per share, down 56% from $1.24 a year earlier and far below record levels of 2021. (Reporting by Clara Denina; editing by Jason Neely) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.1 billion for the six months to June 30, down from $8.7 billion a year earlier and below the $5.3 billion expected on average by eight analysts polled by research firm Vuma. Anglo declared an interim dividend of $0.55 per share, down 56% from $1.24 a year earlier and far below record levels of 2021.
|
LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.1 billion for the six months to June 30, down from $8.7 billion a year earlier and below the $5.3 billion expected on average by eight analysts polled by research firm Vuma. (Reporting by Clara Denina; editing by Jason Neely) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
LONDON, July 27 (Reuters) - Global miner Anglo American AAL.L cut payouts to shareholders on Thursday after lower commodity prices and higher costs hurt its first-half earnings. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.1 billion for the six months to June 30, down from $8.7 billion a year earlier and below the $5.3 billion expected on average by eight analysts polled by research firm Vuma. Anglo declared an interim dividend of $0.55 per share, down 56% from $1.24 a year earlier and far below record levels of 2021.
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6019f818-fb8d-4e84-aecc-d517fd4114d4
|
2399.0
|
2023-07-26 00:00:00 UTC
|
Judge rejects US bid to restrict American Airlines, JetBlue deals
|
AAL
|
https://www.nasdaq.com/articles/judge-rejects-us-bid-to-restrict-american-airlines-jetblue-deals
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nan
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nan
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By Nate Raymond and David Shepardson
BOSTON/WASHINGTON, July 26 (Reuters) - A federal judge on Wednesday rejected the Justice Department's bid to restrict JetBlue Airways JBLU.O and American Airlines AAL.O from entering into any partnerships with other carriers akin to their now-scrapped Northeast Alliance.
U.S. Judge Leo Sorokin of the District Court of Massachusetts in May sided with the Justice Department and six states in a lawsuit challenging the partnership, finding that it violated federal antitrust law.
JetBlue subsequently decided to terminate the alliance, while preparing to defend a planned $3.8 billion purchase of Spirit Airlines SAVE.N in court in a separate Justice Department antitrust case seeking to block that deal.
While the Northeast Alliance is set to be fully wound down by January, the Justice Department has been pushing for further restrictions on the two airlines.
At a Wednesday hearing, Justice Department attorney William Jones had urged Sorokin to restrict JetBlue and American Airlines from not just reentering into a similar alliance together for the next two years but also with any other domestic air carrier.
Sorokin ruled on Wednesday "a prohibition is not necessary to achieve the appropriate aims of antitrust relief, which depend considerably on the particular circumstances of the case."
The airlines did not immediately comment following Sorokin's ruling.
Sorokin said "appointment of a monitor is unnecessary."
Daniel Wall, a lawyer for American Airlines, called the appointment of monitor highly unusual and said restrictions on deals with other airlines was a step too far.
(Reporting by Nate Raymond in Boston and David Shepardson in Washington; Editing by Richard Chang and Diane Craft)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Nate Raymond and David Shepardson BOSTON/WASHINGTON, July 26 (Reuters) - A federal judge on Wednesday rejected the Justice Department's bid to restrict JetBlue Airways JBLU.O and American Airlines AAL.O from entering into any partnerships with other carriers akin to their now-scrapped Northeast Alliance. JetBlue subsequently decided to terminate the alliance, while preparing to defend a planned $3.8 billion purchase of Spirit Airlines SAVE.N in court in a separate Justice Department antitrust case seeking to block that deal. At a Wednesday hearing, Justice Department attorney William Jones had urged Sorokin to restrict JetBlue and American Airlines from not just reentering into a similar alliance together for the next two years but also with any other domestic air carrier.
|
By Nate Raymond and David Shepardson BOSTON/WASHINGTON, July 26 (Reuters) - A federal judge on Wednesday rejected the Justice Department's bid to restrict JetBlue Airways JBLU.O and American Airlines AAL.O from entering into any partnerships with other carriers akin to their now-scrapped Northeast Alliance. JetBlue subsequently decided to terminate the alliance, while preparing to defend a planned $3.8 billion purchase of Spirit Airlines SAVE.N in court in a separate Justice Department antitrust case seeking to block that deal. At a Wednesday hearing, Justice Department attorney William Jones had urged Sorokin to restrict JetBlue and American Airlines from not just reentering into a similar alliance together for the next two years but also with any other domestic air carrier.
|
By Nate Raymond and David Shepardson BOSTON/WASHINGTON, July 26 (Reuters) - A federal judge on Wednesday rejected the Justice Department's bid to restrict JetBlue Airways JBLU.O and American Airlines AAL.O from entering into any partnerships with other carriers akin to their now-scrapped Northeast Alliance. JetBlue subsequently decided to terminate the alliance, while preparing to defend a planned $3.8 billion purchase of Spirit Airlines SAVE.N in court in a separate Justice Department antitrust case seeking to block that deal. At a Wednesday hearing, Justice Department attorney William Jones had urged Sorokin to restrict JetBlue and American Airlines from not just reentering into a similar alliance together for the next two years but also with any other domestic air carrier.
|
By Nate Raymond and David Shepardson BOSTON/WASHINGTON, July 26 (Reuters) - A federal judge on Wednesday rejected the Justice Department's bid to restrict JetBlue Airways JBLU.O and American Airlines AAL.O from entering into any partnerships with other carriers akin to their now-scrapped Northeast Alliance. JetBlue subsequently decided to terminate the alliance, while preparing to defend a planned $3.8 billion purchase of Spirit Airlines SAVE.N in court in a separate Justice Department antitrust case seeking to block that deal. Sorokin ruled on Wednesday "a prohibition is not necessary to achieve the appropriate aims of antitrust relief, which depend considerably on the particular circumstances of the case."
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6c27e8a9-92ed-4e6c-b7e6-04684204549e
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