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6900.0
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2018-10-11 00:00:00 UTC
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Thursday’s Vital Data: American Airlines, Alibaba and Microsoft
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AAL
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https://www.nasdaq.com/articles/thursdays-vital-data-american-airlines-alibaba-and-microsoft-2018-10-11
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. stock futures are still looking uneasy after suffering one of the worst days of 2018.
Rising interest rates continues to bear the blame for the markets tempter tantrum. Adding further fuel to these concerns is the momentum unwind. Tech stocks, which include the largest gainers this year, bore the brunt of the damage yesterday and delivered a sucker punch to market sentiment.
Ahead of the Bell, futures on the Dow Jones Industrial Average are down 0.21% and S&P 500 futures and Nasdaq-100 futures are roughly flat.
In the options pits, panic ruled the day driving volume levels through the stratosphere. Specifically, about 26.2 million calls and 30.5 million puts changed hands on the session.
Curiously, over at the CBOE, the single-session equity put/call volume ratio didn't rise as much as you would have expected. It sits at 0.74 which is lower than last week's jump. The 10-day moving average climbed to a five-month high at 0.65.
One Thing You Must Do to Become a Better Trader
Options activity heavily favored puts on the equities front as well yesterday. American Airlines (NYSE: AAL ) shares are suffering over rising fuel costs and Hurricane worries. Alibaba (NASDAQ: BABA ) continued its slide amid trade war fears. Finally, Microsoft (NASDAQ: MSFT ) succumbed to the rout in tech stocks.
Let's take a closer look:
American Airlines (AAL)
American Airlines shares extended their losses yesterday, falling 5.8%. The slide comes after the ailing airliner had fallen in seven of the past eight trading sessions. Year-to-date, AAL is now down 40%.
Blame for the selling pressures lies partly with rising jet fuel prices, which are eating into profit expectations. Also flight cancellations from Hurricane Florence and potentially Hurricane Michael are worrying investors.
On the options trading front, activity swelled to 243% of the average daily volume, with 108,013 total contracts traded. Despite the drubbing, calls accounted for 77% of the total.
In light of the high volatility descending on the stock, options premiums have expanded dramatically. At 53%, the implied volatility now stands at its highest level of the past year.
Alibaba (BABA)
The pain in Alibaba was particularly acute yesterday, with the Chinese internet giant falling 6% on heavy volume. Chinese stocks continue to be hampered by the ongoing tariff issues between America and China. On top of that, tech stocks are seeing massive distribution as traders abandon the sector in search of safety elsewhere.
On the options trading front, the ratio of calls versus puts was balanced on the day as activity lifted to 226% of the average daily volume, with 581,462 total contracts traded. Calls accounted for 52% of the total, slightly outpacing puts.
As with most stocks after yesterday's bloodbath, BABA options premiums now sit at their highest levels of the year. The implied volatility is 52% and sits at the 100th percentile.
Microsoft (MSFT)
The news was lacking for MSFT yesterday, so I suspect the culprit for the increased interest was simply the fleeing of investors from all things technology related. The stock had been holding up well, but finally succumbed to the pressure on Wednesday falling 5.4%.
On the options trading front, activity lifted to 207% of the average daily volume, with 274,623 total contracts traded. Like its predecessors, MSFT saw call options steal the show accounting for 64% of the day's take.
The volatility surge is being felt in MSFT options as well. Implied volatility lifted to 34% and now stands at the 84th percentile of its one-year range.
As of this writing, Tyler Craig didn't hold positions in any of the aforementioned securities. Want insightful education on how to trade? Check out his trading blog, Tales of a Technician.
More From InvestorPlace
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The post Thursday's Vital Data: American Airlines, Alibaba and Microsoft appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NYSE: AAL ) shares are suffering over rising fuel costs and Hurricane worries. Let's take a closer look: American Airlines (AAL) American Airlines shares extended their losses yesterday, falling 5.8%. Year-to-date, AAL is now down 40%.
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Let's take a closer look: American Airlines (AAL) American Airlines shares extended their losses yesterday, falling 5.8%. American Airlines (NYSE: AAL ) shares are suffering over rising fuel costs and Hurricane worries. Year-to-date, AAL is now down 40%.
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American Airlines (NYSE: AAL ) shares are suffering over rising fuel costs and Hurricane worries. Let's take a closer look: American Airlines (AAL) American Airlines shares extended their losses yesterday, falling 5.8%. Year-to-date, AAL is now down 40%.
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American Airlines (NYSE: AAL ) shares are suffering over rising fuel costs and Hurricane worries. Let's take a closer look: American Airlines (AAL) American Airlines shares extended their losses yesterday, falling 5.8%. Year-to-date, AAL is now down 40%.
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9f447dab-fd35-4fbf-b8c4-a250f9b84d5d
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6901.0
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2018-10-11 00:00:00 UTC
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Implied Volatility Surging for American Airlines (AAL) Stock Options
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AAL
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https://www.nasdaq.com/articles/implied-volatility-surging-for-american-airlines-aal-stock-options-2018-10-11
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nan
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nan
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 12, 2018 $35.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for American Airlines shares, but what is the fundamental picture for the company? Currently, American Airlines is a Zacks Rank #3 (Hold) in the Transportation - Airline industry that ranks in the Bottom 16% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.18 per share to $1.22 in that period.
Given the way analysts feel about American Airlines right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLX earnings report completely free. See it here: Bartosiak: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
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3b3193c6-31aa-425b-abc9-6985f2edb145
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6902.0
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2018-10-10 00:00:00 UTC
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Airline Stock Roundup: AAL's Investor Update, LUV, UAL's September Traffic & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aals-investor-update-luv-uals-september-traffic-more-2018-10-10
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nan
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nan
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In the past week, American Airlines Group Inc. AAL stated that Hurricane Florence is likely to hurt its third-quarter revenues and pre-tax income by approximately $55 million and $50 million, respectively. This apart, high fuel costs are anticipated to weigh on its third-quarter earnings. Following the update, shares of this airline behemoth tumbled to a 52-week low of $33.55 on Oct 9.
Also, sector heavyweights like Southwest Airlines Co. LUV , United Continental Holdings Inc.'s UAL wholly owned subsidiary United Airlines and Hawaiian Holdings, Inc.'s HA subsidiary Hawaiian Airlines unveiled their respective September traffic figures in the afore-mentioned period.
While load factor (% of seats filled by passengers) declined at Southwest Airlines and Hawaiian Airlines due to capacity expansion outweighing traffic growth, the metric increased at United Airlines owing to higher traffic growth.
(Read the last Airline Stock Roundup for Oct 3, 2018 )
Recap of the Past Week's Most Important Stories
1. At Southwest Airlines, traffic (measured in revenue passenger miles or RPMs) rose 5.3% to around 9.99 billion, while capacity or available seat miles (ASMs) expanded 6.8% to 12.41 billion. The company expects fuel costs to be $2.25 per gallon in the third quarter of 2018, results of which should be out on Oct 25 (read more: Southwest Airlines' September Traffic Up, Load Factor Down ).
Southwest Airlines carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. Traffic at GOL Linhas Aereas Inteligentes S.A. GOL declined 1% to 2.96 billion in September. On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) expanded 1.8% to 3.79 billion. Load factor dipped to 78.1% from 80.2% in the year-ago period due to decrease in traffic, despite capacity expansion. Departures in the month declined 2% (read more: Gol Linhas' September Traffic Down, Unveils Q3 Outlook ).
3. At Hawaiian Airlines, traffic increased 5.8% while capacity expanded 9.6% in September.Due to Hurricane Olivia and Typhoon Jebi, the airline trimmed its projections for third-quarter operating revenue per available seat mile (RASM). Currently, RASM is expected to decline between 1.5% and 2.5% (read more: Hawaiian Holdings' Arm Posts Drop in September Load Factor ).
4. At United Airlines, traffic increased 6.7% while capacity expanded 6.1% in September. Load factor increased to 81% from 80.5% a year ago. Backed by solid demand for air travel, the company transported 8.5% more passengers in the month. Mainline completion factor increased to 99.4% from 97.3% registered in September 2017.
5. American Airlines expects Hurricane Florence to weigh on its third-quarter unit revenues to the tune of roughly 50 basis points. Notably, the carrier had to cancel roughly 2,100 flights due to weather disruption. Pre-tax margin is expected between 5% and 7%. Moreover, significant rise in fuel prices over the past 12 months is expected to limit bottom-line growth. Fuel cost per gallon is now anticipated between $2.28 and $2.33 (the previous view had projected the metric in the $2.22-$2.27 band). Despite high fuel costs, the carrier expects adjusted total revenue per available seat miles (TRASM: a key measure of unit revenue) to increase year over year between 2% and 3% in the third quarter (the previous view had projected the metric to increase in the 1-3% band). Strong domestic yields contributed to the bullish forecast.
6. SkyWest, Inc. SKYW reported a 4.4% (6,300) year-over-year decrease in block hours (a measure of aircraft utilization) to 138,900 in September. According to this regional carrier, decline in the metric was in sync with its fleet transition plans. Notably, SkyWest's dual class aircraft (E175, CRJ 900 and CRJ700) accounted for approximately 53.9% of the carrier's total block-hour production for the month compared with approximately 53.1% a year ago. Load factor improved 10 basis points to 79.6% in September (read more: SkyWest September Block Hours Fall, Load Factor Rises ).
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
What's Next in the Airline Space?
Investors will look forward to third-quarter earnings reports from Delta Air Lines, Inc. DAL and United Continental Holdings on Oct 11 and Oct 16, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In the past week, American Airlines Group Inc. AAL stated that Hurricane Florence is likely to hurt its third-quarter revenues and pre-tax income by approximately $55 million and $50 million, respectively. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects fuel costs to be $2.25 per gallon in the third quarter of 2018, results of which should be out on Oct 25 (read more: Southwest Airlines' September Traffic Up, Load Factor Down ).
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, American Airlines Group Inc. AAL stated that Hurricane Florence is likely to hurt its third-quarter revenues and pre-tax income by approximately $55 million and $50 million, respectively. Also, sector heavyweights like Southwest Airlines Co. LUV , United Continental Holdings Inc.'s UAL wholly owned subsidiary United Airlines and Hawaiian Holdings, Inc.'s HA subsidiary Hawaiian Airlines unveiled their respective September traffic figures in the afore-mentioned period.
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, American Airlines Group Inc. AAL stated that Hurricane Florence is likely to hurt its third-quarter revenues and pre-tax income by approximately $55 million and $50 million, respectively. Also, sector heavyweights like Southwest Airlines Co. LUV , United Continental Holdings Inc.'s UAL wholly owned subsidiary United Airlines and Hawaiian Holdings, Inc.'s HA subsidiary Hawaiian Airlines unveiled their respective September traffic figures in the afore-mentioned period.
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In the past week, American Airlines Group Inc. AAL stated that Hurricane Florence is likely to hurt its third-quarter revenues and pre-tax income by approximately $55 million and $50 million, respectively. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. While load factor (% of seats filled by passengers) declined at Southwest Airlines and Hawaiian Airlines due to capacity expansion outweighing traffic growth, the metric increased at United Airlines owing to higher traffic growth.
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0aa9e605-3e0b-4196-8b12-83ca7a6f400f
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6903.0
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2018-10-10 00:00:00 UTC
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American Airlines Slides 6% on Raised Q3 Fuel Costs View
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AAL
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https://www.nasdaq.com/articles/american-airlines-slides-6-on-raised-q3-fuel-costs-view-2018-10-10
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American Airlines Group Inc . AAL has revised its outlook for the third quarter of 2018. Following the altered guidance, shares the company declined more than 6% to a 52-week low of $33.41 on Oct 9. The stock closed the trading session a little higher at $33.55, the lowest since August 2016.
Q3 TRASM View Upbeat, Fuel Costs View Bearish
The company anticipates total revenue per available seat mile (TRASM) to increase approximately 2-3%. Previous guidance had projected the metric to rise 1-3% year over year. The upside, despite adversities from Hurricane Florence, has been attributed to stronger domestic yields.
Hurricane Florence caused approximately 2,100 flight cancellations this September, dampening revenues by nearly $55 million, TRASM by 50 basis points and pre-tax income to the tune of $50 million.
With fuel prices shooting up continually, the company has raised guidance pertaining to the same. Average fuel price per gallon is now expected to be between $2.28 and $2.33 compared with $2.22 and $2.27 expected earlier.
The carrier continues to expect unit costs (excluding fuel and special items) to increase in the range of 0-2% year over year. Additionally, pre-tax margin is estimated in the 5-7% band, unchanged from the previous forecast.
With the overall guidance otherwise upbeat, the sharp drop in share price is perhaps due to the raised fuel costs view.
Amid struggles, especially pertaining to escalating fuel prices, shares of the company have declined more than 35% so far this year.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL and Canadian Pacific Railway Limited CP , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Shares of Southwest Airlines, United Continental and Canadian Pacific have rallied more than 11%, 25% and 24%, respectively, in the past six months.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL has revised its outlook for the third quarter of 2018. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader Transportation sector are Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL and Canadian Pacific Railway Limited CP , each carrying a Zacks Rank #2 (Buy).
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. AAL has revised its outlook for the third quarter of 2018. Q3 TRASM View Upbeat, Fuel Costs View Bearish The company anticipates total revenue per available seat mile (TRASM) to increase approximately 2-3%.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. AAL has revised its outlook for the third quarter of 2018. Q3 TRASM View Upbeat, Fuel Costs View Bearish The company anticipates total revenue per available seat mile (TRASM) to increase approximately 2-3%.
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AAL has revised its outlook for the third quarter of 2018. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. Q3 TRASM View Upbeat, Fuel Costs View Bearish The company anticipates total revenue per available seat mile (TRASM) to increase approximately 2-3%.
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7f3d2c97-0e7b-4d1f-accd-b120c67b4175
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6904.0
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2018-10-09 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 7,738.02 up 2.07 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-773802-207-points-2018-10-09
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Tuesday's session closes with the NASDAQ Composite Index at 7,738.02. The total shares traded for the NASDAQ was over 2.42 billion. Declining stocks led advancers by 1.51 to 1 ratio. There were 1231 advancers and 1860 decliners for the day. On the NASDAQ Stock Exchange 11 stocks reached a 52 week high and 86 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .26% for the day; a total of 18.8 points. The current value is 7,371.62. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.55%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 4.89%.
The Dow Jones index closed down -.21% for the day; a total of -56.21 points. The current value is 26,430.57. DowDuPont Inc. ( DWDP ) had the largest percent change down (-3.67%) while Walmart Inc. ( WMT ) had the largest percent change gain rising 2.52%.
NASDAQ Market Wrap
As of 10/9/2018 4:44:01 PM
BILLIONS OF 2.42 NASDAQ SHARES TRADED TODAY 11 STOCKS REACHED A 52 WEEK HIGH 86 THOSE REACHING LOWS TOTALEDTesla, Inc. [TSLA]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.89 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.55%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 4.89%. The NASDAQ 100 index closed up .26% for the day; a total of 18.8 points. The Dow Jones index closed down -.21% for the day; a total of -56.21 points.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.55%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 4.89%. On the NASDAQ Stock Exchange 11 stocks reached a 52 week high and 86 those reaching lows totaled. NASDAQ Market Wrap As of 10/9/2018 4:44:01 PM BILLIONS OF 2.42 NASDAQ SHARES TRADED TODAY 11 STOCKS REACHED A 52 WEEK HIGH 86 THOSE REACHING LOWS TOTALEDTesla, Inc. [TSLA]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.89 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.55%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 4.89%. On the NASDAQ Stock Exchange 11 stocks reached a 52 week high and 86 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.55%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 4.89%. There were 1231 advancers and 1860 decliners for the day. The NASDAQ 100 index closed up .26% for the day; a total of 18.8 points.
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1c4a1d5e-d1db-406d-8f17-3b57259908ba
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6905.0
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2018-10-09 00:00:00 UTC
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Here Are the Numerous Developments Pressuring American Airlines' Stock Today
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AAL
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https://www.nasdaq.com/articles/here-are-numerous-developments-pressuring-american-airlines-stock-today-2018-10-09
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nan
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What happened?
Shares of American Airlines (NASDAQ: AAL) , an airline operator offering roughly 6,700 flights per day to nearly 350 destinations in more than 50 countries, are down nearly 6% as of 2:55 p.m. EDT as investors digested a number of developments ranging from fuel cost concerns to hurricane impacts.
So what
American Airlines shares have had an up-and-down Tuesday in trading. Despite shares moving higher during premarket trading , things quickly reversed when the market opened, and investors digested a couple of developments. American Airlines noted Hurricane Florence caused roughly 2,100 cancelled flights, which reduced third-quarter revenue by roughly $55 million and reduced pretax income by roughly $50 million. Despite those cancellations also lowering total revenue per available seat mile (TRASM) by 50 basis points, management still increased its low-end TRASM outlook to growth of 2% to 3%, compared to the prior guidance of 1% to 3% growth. American Airlines also announced it would record $230 million in special items during the third quarter due to merger expenses and fleet restructuring, among other factors.
AAL data by YCharts.
Now what
That wasn't all investors had to digest, either. Federal forecasters issued a warning that Hurricane Michael was growing stronger and could cause severe flooding across the Florida Panhandle as well as Alabama's coast. That prompted American Airlines to issue a fee waiver so travelers will not have to pay a change fee, with stipulations , if flights are disrupted. Delta Air Lines also capped fares and eliminated change fees for flyers booked on Tuesday or Wednesday from certain cities.
As if that wasn't enough, investors also had rising fuel costs to consider . "Increased revenue in the third quarter wasn't enough to offset higher fuel costs, suggesting that margin expansion is unlikely to occur until 2019," Helane Becker, a Cowen & Co. analyst, noted in a report, according to Bloomberg .
While there's plenty of negative news swirling around American Airlines, among others, it's important for investors to recognize much of it is short term in nature and to avoid making any knee-jerk reactions despite Tuesday's 6% decline as long as your long-term thesis remains intact.
10 stocks we like better than American Airlines Group
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines (NASDAQ: AAL) , an airline operator offering roughly 6,700 flights per day to nearly 350 destinations in more than 50 countries, are down nearly 6% as of 2:55 p.m. EDT as investors digested a number of developments ranging from fuel cost concerns to hurricane impacts. AAL data by YCharts. Federal forecasters issued a warning that Hurricane Michael was growing stronger and could cause severe flooding across the Florida Panhandle as well as Alabama's coast.
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Shares of American Airlines (NASDAQ: AAL) , an airline operator offering roughly 6,700 flights per day to nearly 350 destinations in more than 50 countries, are down nearly 6% as of 2:55 p.m. EDT as investors digested a number of developments ranging from fuel cost concerns to hurricane impacts. AAL data by YCharts. American Airlines noted Hurricane Florence caused roughly 2,100 cancelled flights, which reduced third-quarter revenue by roughly $55 million and reduced pretax income by roughly $50 million.
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Shares of American Airlines (NASDAQ: AAL) , an airline operator offering roughly 6,700 flights per day to nearly 350 destinations in more than 50 countries, are down nearly 6% as of 2:55 p.m. EDT as investors digested a number of developments ranging from fuel cost concerns to hurricane impacts. AAL data by YCharts. American Airlines noted Hurricane Florence caused roughly 2,100 cancelled flights, which reduced third-quarter revenue by roughly $55 million and reduced pretax income by roughly $50 million.
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Shares of American Airlines (NASDAQ: AAL) , an airline operator offering roughly 6,700 flights per day to nearly 350 destinations in more than 50 countries, are down nearly 6% as of 2:55 p.m. EDT as investors digested a number of developments ranging from fuel cost concerns to hurricane impacts. AAL data by YCharts. As if that wasn't enough, investors also had rising fuel costs to consider .
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54558255-5c19-4a6f-8689-d4a734121d1a
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6906.0
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2018-10-09 00:00:00 UTC
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American Airlines Group is Now Oversold (AAL)
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-now-oversold-aal-2018-10-09
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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 Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $34.3099 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 47.0. A bullish investor could look at AAL's 28.5 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 $34.3099 per share, with $59.08 as the 52 week high point - that compares with a last trade of $34.77.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $34.3099 per share. A bullish investor could look at AAL's 28.5 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 $34.3099 per share, with $59.08 as the 52 week high point - that compares with a last trade of $34.77.
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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 $34.3099 per share, with $59.08 as the 52 week high point - that compares with a last trade of $34.77. In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $34.3099 per share. A bullish investor could look at AAL's 28.5 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 Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $34.3099 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 $34.3099 per share, with $59.08 as the 52 week high point - that compares with a last trade of $34.77. A bullish investor could look at AAL's 28.5 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 Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $34.3099 per share. A bullish investor could look at AAL's 28.5 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 $34.3099 per share, with $59.08 as the 52 week high point - that compares with a last trade of $34.77.
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b1bd029a-3e5c-4e44-8024-63cdda1ba0a2
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6907.0
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2018-10-09 00:00:00 UTC
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Delta Stock Has Become a Buy Regardless of Earnings
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AAL
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https://www.nasdaq.com/articles/delta-stock-has-become-a-buy-regardless-of-earnings-2018-10-09
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Delta Air Lines (NYSE: DAL ) will report earnings on Oct. 11 before the bell. The Atlanta-based air carrier has long since recovered from the disasters of the last decade that forced the company to declare bankruptcy. Though Delta has struggled amid rising oil prices, its high profit growth and a low valuation bode well for the future of Delta stock. And given its recent history regarding earnings, the upcoming report will likely do little to change the valuation proposition of DAL stock.
Expect Higher Revenue and Earnings Despite Oil Prices
Analysts expect third-quarter Delta earnings to come in at $1.76 per share. This would represent a 12.2% increase from the same quarter last year when the company reported earnings per share (EPS) of $1.57. Revenues of $11.97 billion would also show an 8.2% improvement from the year-ago number of $11.06 billion.
The stock has struggled to gain traction this year. Rising oil prices have inspired negative investor sentiment. The stock trades about 9% above its 52-week high. However, it has lost about 6.4% of its value since Jan. 1.
DAL Stock Stands as the Best Legacy-Carrier Stock
Despite rising oil prices, I believe DAL stock has become the best equity to own among the legacy carriers. For this reason, I think investors should if not buy, at least look for the right time to buy.
5 Marijuana Stocks to Stay Far Away From
I do not say this because of earnings. The company has beaten analyst estimates for the last several quarters. I see no reason why they will not report a higher number again. Honestly, I expect to hear little noteworthy news from the upcoming report.
Moreover, the negative sentiment has also given DAL stock a low price-to-earnings (P/E) ratio. If annual estimates hold, the stock currently trades at a forward PE of around 9.5. Moreover, Wall Street forecasts earnings growth of 12.6% and 16.6% for this year and next year respectively. They also expect this growth to remain in the double-digits for the next five years as well. This has continued as Delta raised fares to counter rising fuel costs. They also increased baggage fees by $5 per bag.
Such increases help on the dividend front as well. After years of struggle, Delta resumed paying dividends in 2013. The company has increased this payout every year, and substantial increases at that. For 2018, the annual dividend comes in at $1.40 per share, or around 2.65%. The dividend has more than doubled from the 2016 payout of 68 cents per share.
Delta also appears to have become Warren Buffett's favorite legacy airline. During the year, he has added more DAL stock as well as the stock of Southwest Airlines (NYSE: LUV ). Stakes in fellow legacy peers American Airlines (NASDAQ: AAL ) and United Continental Holdings (NYSE: UAL ) have seen cuts in the heavily-watched Berkshire Hathaway (NYSE: BRK.A , NYSE: BRK.B ) portfolio during the same period.
The Bottom Line on DAL Stock
Rising oil prices may slow, but cannot stop, the impressive profit growth of DAL stock. Delta, like its peers, has come under pressure amid rising oil prices. While this has increased costs, the company mitigated the increases through increased fares and higher baggage fees.
As a result, the company expects double-digit profit increases to continue. Assuming the pattern holds, the substantial dividend increases holders of DAL stock have enjoyed since 2013 will likely remain.
Warren Buffett has likely seen these same things, as his stake in DAL stock continues to grow. Delta offers a single-digit forward P/E ratio, a rising dividend and profit growth that will likely continue in a high-oil-price environment. For these reasons, I believe the upcoming earnings report will do little to change the company's value proposition.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You canfollow Will on Twitterat @HealyWriting.
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The post Delta Stock Has Become a Buy Regardless of Earnings appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stakes in fellow legacy peers American Airlines (NASDAQ: AAL ) and United Continental Holdings (NYSE: UAL ) have seen cuts in the heavily-watched Berkshire Hathaway (NYSE: BRK.A , NYSE: BRK.B ) portfolio during the same period. The Atlanta-based air carrier has long since recovered from the disasters of the last decade that forced the company to declare bankruptcy. Assuming the pattern holds, the substantial dividend increases holders of DAL stock have enjoyed since 2013 will likely remain.
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Stakes in fellow legacy peers American Airlines (NASDAQ: AAL ) and United Continental Holdings (NYSE: UAL ) have seen cuts in the heavily-watched Berkshire Hathaway (NYSE: BRK.A , NYSE: BRK.B ) portfolio during the same period. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE: DAL ) will report earnings on Oct. 11 before the bell. Though Delta has struggled amid rising oil prices, its high profit growth and a low valuation bode well for the future of Delta stock.
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Stakes in fellow legacy peers American Airlines (NASDAQ: AAL ) and United Continental Holdings (NYSE: UAL ) have seen cuts in the heavily-watched Berkshire Hathaway (NYSE: BRK.A , NYSE: BRK.B ) portfolio during the same period. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines (NYSE: DAL ) will report earnings on Oct. 11 before the bell. DAL Stock Stands as the Best Legacy-Carrier Stock Despite rising oil prices, I believe DAL stock has become the best equity to own among the legacy carriers.
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Stakes in fellow legacy peers American Airlines (NASDAQ: AAL ) and United Continental Holdings (NYSE: UAL ) have seen cuts in the heavily-watched Berkshire Hathaway (NYSE: BRK.A , NYSE: BRK.B ) portfolio during the same period. Though Delta has struggled amid rising oil prices, its high profit growth and a low valuation bode well for the future of Delta stock. Expect Higher Revenue and Earnings Despite Oil Prices Analysts expect third-quarter Delta earnings to come in at $1.76 per share.
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cb2957b1-a02b-43e8-a819-2371cd400a82
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6908.0
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2018-10-05 00:00:00 UTC
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Call buyers look for American Airlines to take off
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AAL
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https://www.nasdaq.com/articles/call-buyers-look-american-airlines-take-2018-10-05
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nan
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nan
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Call buyers are making a long bet Friday on shares of American Airlines Group ( AAL ). So far, 1,975 contracts of the Oct. 41.50 call have changed hands, against open interest of 661 contracts. Pricing on today's trades indicates that these new contracts are likely being initiated from the buy side.
InvestorsKeyhole Trade Alert
IK-> The technicals for AAL ($36.86 down $1.06) are bearish with a downward trend. The stock has support around $36.25. Look at the Nov. 30/32 bull-put spread for a 22-cent credit. That's a 12.4% return and the stock has to fall by 13.4% to cause a problem. [InvestorsKeyhole, various news and data services]
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.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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Call buyers are making a long bet Friday on shares of American Airlines Group ( AAL ). InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($36.86 down $1.06) are bearish with a downward trend. Pricing on today's trades indicates that these new contracts are likely being initiated from the buy side.
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InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($36.86 down $1.06) are bearish with a downward trend. Call buyers are making a long bet Friday on shares of American Airlines Group ( AAL ). [InvestorsKeyhole, various news and data services] The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Call buyers are making a long bet Friday on shares of American Airlines Group ( AAL ). InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($36.86 down $1.06) are bearish with a downward trend. So far, 1,975 contracts of the Oct. 41.50 call have changed hands, against open interest of 661 contracts.
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Call buyers are making a long bet Friday on shares of American Airlines Group ( AAL ). InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($36.86 down $1.06) are bearish with a downward trend. So far, 1,975 contracts of the Oct. 41.50 call have changed hands, against open interest of 661 contracts.
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2ee4ac9d-a3e8-45f3-8ea3-3261329d8610
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6909.0
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2018-10-04 00:00:00 UTC
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JetBlue Hurt by High Fuel Costs Amid Unit Revenue Growth
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AAL
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https://www.nasdaq.com/articles/jetblue-hurt-by-high-fuel-costs-amid-unit-revenue-growth-2018-10-04
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nan
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nan
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Shares of JetBlue Airways CorporationJBLU have struggled so far this year, shedding 17% of their value on a year-to-date basis.
YTD Price Performance
The main reason for this dismal price performance is the rise in fuel costs as oil prices have increased almost 20% year to date. Since expenses on fuel are significant for airlines, rise in oil prices are detrimental to bottom-line growth.
High fuel costs are likely to hurt JetBlue's third-quarter 2018 results as has been the case in the past few quarters. Third-quarter fuel cost, net of hedges, is anticipated to be $2.33 per gallon, higher than the $2.28 registered in the second quarter.
High labor costs are also likely to limit JetBlue's bottom-line growth in the third quarter. Earlier this year, JetBlue ratified a four-year agreement with its pilots represented by Air Line Pilots Association. Following ratification of the deal, this low-cost carrier raised its non-fuel unit costs view for the third quarter. It now anticipates the metric to rise in the band of 3-5%. The previous guidance had called for a 1-3% increase in the metric. Woes related to capacity overexpansion also represent a further challenge for JetBlue.
To counter the threat posed by high fuel costs and augment its top line, JetBlue increased fees for checked bags and ticket changes in August 2018. The carrier raised the fee to $30 from $25 for the first checked bag. Fees for the second and third checked bags have also been increased.
Apart from JetBlue, the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL have raised fees for checked bags.
Not All Brickbats, Some Roses Too
JetBlue is being aided by strong demand for air travel. To this end, this Long Island City, New York-based company unveiled an improved projection for third-quarter revenue per available seat mile (RASM: a key measure of unit revenues) in September. The carrier now anticipates RASM to grow between 1% and 3% (the earlier view had called for the key metric to grow in the 0-3% range). JetBlue cited robust close-in demand as one of the factors behind its decision to issue an improved guidance.
We are also impressed by the carriers' efforts to reward its shareholders. To this end, the company's board of directors approved a new share repurchase program in December 2017. This apart, the company's efforts to modernize its fleet are commendable. In July 2018, the carrier placed an order for 60 Airbus A220-300 planes (previously known as Bombardier CS300).
The above write-up clearly suggests that high costs are a bane for JetBlue. However, the carrier does have its share of positives and is taking steps to mitigate the impact of high fuel costs. Now, only time will tell the extent to which the efforts can bear fruit. Therefore, in the present scenario, we advise investors to wait for a better entry point before investing in JetBlue. The company's Zacks Rank #3 (Hold) seems to suggest the same. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from JetBlue, the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL have raised fees for checked bags. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. High fuel costs are likely to hurt JetBlue's third-quarter 2018 results as has been the case in the past few quarters.
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Apart from JetBlue, the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL have raised fees for checked bags. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from JetBlue, the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL have raised fees for checked bags. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. To counter the threat posed by high fuel costs and augment its top line, JetBlue increased fees for checked bags and ticket changes in August 2018.
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Apart from JetBlue, the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL have raised fees for checked bags. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Following ratification of the deal, this low-cost carrier raised its non-fuel unit costs view for the third quarter.
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e9dad860-c7b1-426c-9b4b-b51368324993
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6910.0
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2018-10-04 00:00:00 UTC
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Will American Airlines (AAL) Beat Estimates Again in Its Next Earnings Report?
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AAL
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https://www.nasdaq.com/articles/will-american-airlines-aal-beat-estimates-again-in-its-next-earnings-report-2018-10-04
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nan
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nan
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry.
When looking at the last two reports, this world's largest airline has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 1.93%, on average, in the last two quarters.
For the last reported quarter, American Airlines came out with earnings of $1.63 per share versus the Zacks Consensus Estimate of $1.59 per share, representing a surprise of 2.52%. For the previous quarter, the company was expected to post earnings of $0.74 per share and it actually produced earnings of $0.75 per share, delivering a surprise of 1.35%.
Price and EPS Surprise
For American Airlines, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time . In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
American Airlines currently has an Earnings ESP of +3.15%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 25, 2018.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, American Airlines came out with earnings of $1.63 per share versus the Zacks Consensus Estimate of $1.59 per share, representing a surprise of 2.52%.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, American Airlines came out with earnings of $1.63 per share versus the Zacks Consensus Estimate of $1.59 per share, representing a surprise of 2.52%.
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c01fa889-22cd-4f21-9953-aba60516e5b2
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6911.0
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2018-10-03 00:00:00 UTC
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Airline Stock Roundup: RYAAY's FY19 Profit View Cut, DAL's Traffic Report & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-ryaays-fy19-profit-view-cut-dals-traffic-report-more-2018-10-03
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nan
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nan
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In the past week, Ryanair Holdings plc RYAAY slashed its profit guidance (excluding Laudamotion) for fiscal 2019 (ending Mar 31, 2020) due to high fuel costs, labor strife, low fares and other headwinds. This Irish low-cost carrier also witnessed a 24-hour walkout on Sep 28, mainly by its cabin crew members in multiple countries across Europe. German pilots also went on strike on the same day. Consequently, travel plans of more than 40,000 passengers across Europe were thrown haywire.
Delta Air Lines, Inc. DAL too featured in the news when it unveiled its September traffic report. Load factor (percentage of seats filled by passengers) declined in the month as capacity expansion outweighed traffic growth. Moreover, the company stated that Hurricane Florence is likely to hurt its third-quarter pre-tax income by approximately $30 million.
Meanwhile, JetBlue Airways Corporation JBLU announced its intention to sell Basic Economy (cheapest) tickets from next year in a bid to stay afloat in the competitive airline space. Also, Southwest Airlines Co. LUV extended its bookable flight schedule through Jun 8, 2019 as it aims to add new routes and resume some. Expansion-related updates from JetBlue and United Continental Holdings, Inc. UAL too hit the headlines over the past five trading days.
(Read the last Airline Stock Roundup for Sep 27, 2018 )
Recap of the Past Week's Most Important Stories
1. Delta expects Hurricane Florence to weigh on its third-quarter unit revenues to the tune of roughly 0.5 points. Moreover, significant rise in fuel prices over the past 12 months are expected to limit bottom-line growth. Despite high fuel costs, Delta expects adjusted total revenue per available seat miles (TRASM: a key measure of unit revenue) to increase year over year between 4% and 5% in the third quarter (the previous view had projected the metric to increase in the 3.5-5.5% band). Strong demand for air travel and improving yields contributed to the bullish forecast.
According to Delta, these favorable factors partially mitigated the adverse impact of sharp rise in fuel prices per gallon, which are expected to be between $2.22 and $2.27 in the third quarter. Adjusted pre-tax margin is anticipated to be approximately 13% (mid-point of the guided range in July). Non-fuel unit costs are anticipated to be roughly flat year over year. The company envisions third-quarter earnings per share in the band of $1.70-$1.80 (the previous view had projected the metric in the $1.65-$1.85 range).
Delta carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. Joining the likes of Delta and American Airlines Group Inc. AAL , JetBlue has decided to introduce a fare class that will offer the cheapest tickets starting next year. Passengers booking tickets under the fare class will naturally have fewer options than those opting for the regular economy tickets (read more: JetBlue Follows Rivals to Offer Basic Economy Fares in 2019 ).
In a separate development, JetBlue announced plans to bump up its Palm Springs service with new nonstop flights to Boston. Additionally, the carrier will extend the duration of its current seasonal service to New York JFK (read more: JetBlue Boosts Palm Springs Service for Winter Travel ).
3. In a customer-friendly move, Southwest Airlines intends to begin a new nonstop service between San Jose and El Paso on Sundays, effective Apr 14, 2019. Additionally, the airline will launch seasonal nonstop flights connecting Cleveland with Orlando, and Milwaukee with Fort Myers. The Saturday service will start on Oct 6. While the next day, the company will initiate flights connecting Oklahoma City and Nashville, Denver and El Paso plus Oakland and Tucson. These flights will be operational only on Sundays (read more: Southwest Airlines to Add Flights & Resume Few Services ).
4. For fiscal 2019, beleaguered airline Ryanair Holdings expects profit after tax between €1.10 billion and €1.20 billion (the earlier guidance had projected the metric between €1.25 billion and €1.35 billion). Fuel bill is expected to be €460 million higher in fiscal 2019 compared with fiscal 2018 (the earlier guidance had projected a €430 million year-over-year increase). In the second half of fiscal 2019, air fares are expected to decline approximately 2% year over year. Traffic in the fiscal year is also likely to suffer due to the strikes. Winter capacity has too been trimmed by 1% due to the headwinds. Adding to the gloom, Ryanair stated that it might have to trim its fiscal 2019 outlook further in the event of more disruptions in the third quarter of fiscal 2019.
5. United Continental's wholly owned subsidiary, United Airlines, announced plans to enhance travel experience for customers during the upcoming ski season. The carrier will be offering more than 100 flights with 10,000 plus seats daily to reach 12 top ski destinations across the United States (read more: United Continental Proposes More Flights for Ski Travel ).
In a separate development, the carrier introduced additional flights on its transcontinental routes connecting New York/Newark with Los Angeles and San Francisco.
Price Performance
The following table shows the price movement of the major airline players over the last week and during the past six months.
The table above shows that almost all airline stocks traded in the red over the past week leading to the NYSE ARCA Airline Index decreasing 4%. Over the course of six months, the sector tracker decreased 11.1% due to multiple headwinds including high fuel costs.
What's Next in the Airline Space?
September traffic reports from the likes of United Continental and Allegiant Travel Company ALGT are expected in the coming days.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock 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
Southwest Airlines Co. (LUV): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Joining the likes of Delta and American Airlines Group Inc. AAL , JetBlue has decided to introduce a fare class that will offer the cheapest tickets starting next year. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, Ryanair Holdings plc RYAAY slashed its profit guidance (excluding Laudamotion) for fiscal 2019 (ending Mar 31, 2020) due to high fuel costs, labor strife, low fares and other headwinds.
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Joining the likes of Delta and American Airlines Group Inc. AAL , JetBlue has decided to introduce a fare class that will offer the cheapest tickets starting next year. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, Ryanair Holdings plc RYAAY slashed its profit guidance (excluding Laudamotion) for fiscal 2019 (ending Mar 31, 2020) due to high fuel costs, labor strife, low fares and other headwinds.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. Joining the likes of Delta and American Airlines Group Inc. AAL , JetBlue has decided to introduce a fare class that will offer the cheapest tickets starting next year. Despite high fuel costs, Delta expects adjusted total revenue per available seat miles (TRASM: a key measure of unit revenue) to increase year over year between 4% and 5% in the third quarter (the previous view had projected the metric to increase in the 3.5-5.5% band).
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Joining the likes of Delta and American Airlines Group Inc. AAL , JetBlue has decided to introduce a fare class that will offer the cheapest tickets starting next year. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. Despite high fuel costs, Delta expects adjusted total revenue per available seat miles (TRASM: a key measure of unit revenue) to increase year over year between 4% and 5% in the third quarter (the previous view had projected the metric to increase in the 3.5-5.5% band).
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08ae869a-abf9-4804-99fa-e536c4597b87
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6912.0
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2018-10-03 00:00:00 UTC
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4 Best Warren Buffett Stocks to Buy for Q4
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AAL
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https://www.nasdaq.com/articles/4-best-warren-buffett-stocks-buy-q4-2018-10-03
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nan
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nan
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Berkshire Hathaway Inc. BRK.B Chairman and CEO Warren Buffett is a great role model if you want to be an astute investor. He has accumulated a fortune of more than $87 billion over his career after getting into the investing game pretty early.
Buffett's investing style is quite simple. He uses a more qualitative approach in selecting companies that have stood the test of time. These companies have solid business models and have the ability to record significant growth. In other words, these companies have good earnings potential and are not concerned whether the market will recognize its worth. By the way, they also generate plenty of cash and provide dividends, which are indicators of a strong and sustainable business.
Let us, thus, focus on the Oracle of Omaha's favored companies that are likely to make the most of the fourth quarter. Most of these companies belong to sectors such as financials, technology, communication services and airlines.
Why Not Berkshire Hathaway?
Way back in 1962, Warren Buffett began acquiring stakes in Berkshire Hathaway after he figured a pattern in the price direction of its stock whenever the company closed a mill. Buffett acknowledged that the textile mill was losing money, which led him to expand into the insurance industry. The insurance business definitely paid off as evident from Berkshire's staggering return of more than 800% since inception.
To top it, the insurance business should do well in the current fourth quarter. After all, policymakers under Chairman Jerome Powell unanimously decided to hike the federal funds rate by 25 basis points to 2-2.25% after the end of the two-day meet on Sep 26. The Fed has also signaled another hike in December and three more next year (read more: Fed Issues Third Rate Hike of 2018: Top 5 Gainers ).
Needless to say, that insurer derives its investment income from investing premiums, which are received from policyholders in corporate and government bonds. Yields and coupons on these bonds rise in response to a rise in interest rates. This enables insurers to invest their premiums at higher yields and earn more investment income, expanding their profit margins.
Berkshire currently has a Zacks Rank #2 (Buy). In the last 60 days, three earnings estimates moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 12.5% in the same period. The company's expected earnings growth rate for the current year is 68.9% compared with the Insurance - Property and Casualty industry's expected rally of 22.9%. Berkshire has already outperformed the broader industry so far this year (+8.4% vs +6.4%).
Why Buffett Keeps Buying Apple?
Buffett already owns more than 110 million shares of Apple Inc. AAPL . Thus, Apple now represents more than 20% of Berkshire's portfolio. But why does Buffett keep increasing his stake in Apple? This is because he believes Apple is a phenomenal company that is driven by innovation and key initiatives taken by the founder and former CEO Steve Jobs. Buffett described Apple as a "very, very special product, which has an enormously widespread ecosystem, and the product is extremely sticky."
The iPhone is the most important product of Apple as its sales represent more than half of the total revenues. But what has changed in the recent years is its sales composition. Per Magellan Asset Management, 45% of iPhone sales were to new users going back to 2012. But now, heading into the fourth quarter, 20% of iPhone sales are to new users, while 80% are sold as replacement handsets to existing users. This means there will more steady earnings in the form of recurring earnings, rather than one-off handset sales. This has again prompted the legendary investor to place his bet on the Cupertino, CA-based tech giant.
Apple, recently, became the first U.S. company with a market cap of more than $1 trillion and has a Zacks Rank #2. In the last 60 days, three earnings estimates moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings increased 0.2% in the same period. The company's expected earnings growth rate for the current year is 27.7% compared with the Computer - Mini computers industry's expected rally of 25%. Apple has at present outdone the broader industry on a year-to-date basis (+34.3% vs +33.1%).
Buffett is Delving Deeper Into the Telecom Space
After purchasing shares of big names from the telecommunication space including Verizon Communications Inc. VZ , DISH Network Corporation DISH and Charter Communications, Inc. CHTR to name a few, he has taken the global plunge and bought Liberty Latin America Ltd. LILA . He now owns more than $1 billion worth of the broadband Internet, fixed-line telephone and mobile and other communications service provider's total equity.
Buffett has shown interest in the telecommunication space, something which he avoided in the past. After all, historically, the broader tech sector has been a winner in the fourth quarter. In the last two decades, tech rose more than two-third of the times in the fourth quarter per market pundits.
Liberty Latin America currently has a Zacks Rank #2. In the last 60 days, one earnings estimate moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings soared 38% in the same period. The company's expected earnings growth rate for the next quarter is 90.5% while the Wireless National industry is expected to tank 78.3%. Liberty Latin America has already outperformed the broader industry so far this year (+4.8% vs -3.9%).
Buffett is Hungry for Airlines
Time and again, Buffett has shown considerable interest in buying stakes in airlines. In fact, Buffett once said that he "wouldn't rule out owning an entire airline." He already owns stakes in large airlines such as American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Delta Air Lines, Inc. DAL . These airlines are currently charging more for checked bags and those fees should certainly boost their bottom lines in the fourth quarter. These three legacy players have announced increased prices for first and second checked bags.
But, the one among them that stands out is Southwest Airlines. After all, it carries a Zacks Rank #2. In the last 60 days, four earnings estimates moved up, while one moved down for the current year. The Zacks Consensus Estimate for earnings improved 0.5% in the same period. The company's expected earnings growth rate for the current year is 20% in contrast to the Transportation - Airline industry's expected decline of 7.2%. Southwest Airlines has already outperformed the broader industry in the last one year period (+4.8% vs -11.1%).
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock 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
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): Free Stock Analysis Report
DISH Network Corporation (DISH): Free Stock Analysis Report
Liberty Global PLC (LILA): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He already owns stakes in large airlines such as American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report DISH Network Corporation (DISH): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. Way back in 1962, Warren Buffett began acquiring stakes in Berkshire Hathaway after he figured a pattern in the price direction of its stock whenever the company closed a mill.
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He already owns stakes in large airlines such as American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report DISH Network Corporation (DISH): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. Buffett is Delving Deeper Into the Telecom Space After purchasing shares of big names from the telecommunication space including Verizon Communications Inc. VZ , DISH Network Corporation DISH and Charter Communications, Inc. CHTR to name a few, he has taken the global plunge and bought Liberty Latin America Ltd. LILA .
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report DISH Network Corporation (DISH): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. He already owns stakes in large airlines such as American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Delta Air Lines, Inc. DAL . The company's expected earnings growth rate for the current year is 68.9% compared with the Insurance - Property and Casualty industry's expected rally of 22.9%.
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He already owns stakes in large airlines such as American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report DISH Network Corporation (DISH): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. To top it, the insurance business should do well in the current fourth quarter.
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33946c78-ed86-4720-bb7a-66ee18e0a364
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6913.0
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2018-10-03 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Berkshire Hathaway, Apple, Liberty Latin America and American Airlines Group
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-berkshire-hathaway-apple-liberty-latin-america-and
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nan
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nan
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For Immediate Release
Chicago, IL - October 3, 2018 - 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 Berkshire Hathaway Inc. BRK.B , Apple Inc. AAPL , Liberty Latin America Ltd. LILA and American Airlines Group Inc. AAL .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
4 Best Warren Buffett Stocks to Buy for Q4
Berkshire Hathaway Inc. Chairman and CEO Warren Buffett is a great role model if you want to be an astute investor. He has accumulated a fortune of more than $87 billion over his career after getting into the investing game pretty early.
Buffett's investing style is quite simple. He uses a more qualitative approach in selecting companies that have stood the test of time. These companies have solid business models and have the ability to record significant growth. In other words, these companies have good earnings potential and are not concerned whether the market will recognize its worth. By the way, they also generate plenty of cash and provide dividends, which are indicators of a strong and sustainable business.
Let us, thus, focus on the Oracle of Omaha's favored companies that are likely to make the most of the fourth quarter. Most of these companies belong to sectors such as financials, technology, communication services and airlines.
Why Not Berkshire Hathaway?
Way back in 1962, Warren Buffett began acquiring stakes in Berkshire Hathaway after he figured a pattern in the price direction of its stock whenever the company closed a mill. Buffett acknowledged that the textile mill was losing money, which led him to expand into the insurance industry. The insurance business definitely paid off as evident from Berkshire's staggering return of more than 800% since inception.
To top it, the insurance business should do well in the current fourth quarter. After all, policymakers under Chairman Jerome Powell unanimously decided to hike the federal funds rate by 25 basis points to 2-2.25% after the end of the two-day meet on Sep 26. The Fed has also signaled another hike in December and three more next year (read more: Fed Issues Third Rate Hike of 2018: Top 5 Gainers ).
Needless to say, that insurer derives its investment income from investing premiums, which are received from policyholders in corporate and government bonds. Yields and coupons on these bonds rise in response to a rise in interest rates. This enables insurers to invest their premiums at higher yields and earn more investment income, expanding their profit margins.
Berkshire currently has a Zacks Rank #2 (Buy). In the last 60 days, three earnings estimates moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 12.5% in the same period. The company's expected earnings growth rate for the current year is 68.9% compared with the Insurance - Property and Casualty industry's expected rally of 22.9%. Berkshire has already outperformed the broader industry so far this year (+8.4% vs +6.4%).
Why Buffett Keeps Buying Apple
Buffett already owns more than 110 million shares of Apple Inc. Thus, Apple now represents more than 20% of Berkshire's portfolio. But why does Buffett keep increasing his stake in Apple? This is because he believes Apple is a phenomenal company that is driven by innovation and key initiatives taken by the founder and former CEO Steve Jobs. Buffett described Apple as a "very, very special product, which has an enormously widespread ecosystem, and the product is extremely sticky."
The iPhone is the most important product of Apple as its sales represent more than half of the total revenues. But what has changed in the recent years is its sales composition. Per Magellan Asset Management, 45% of iPhone sales were to new users going back to 2012. But now, heading into the fourth quarter, 20% of iPhone sales are to new users, while 80% are sold as replacement handsets to existing users. This means there will more steady earnings in the form of recurring earnings, rather than one-off handset sales. This has again prompted the legendary investor to place his bet on the Cupertino, CA-based tech giant.
Apple, recently, became the first U.S. company with a market cap of more than $1 trillion and has a Zacks Rank #2. In the last 60 days, three earnings estimates moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings increased 0.2% in the same period. The company's expected earnings growth rate for the current year is 27.7% compared with the Computer - Mini computers industry's expected rally of 25%. Apple has at present outdone the broader industry on a year-to-date basis (+34.3% vs +33.1%).
Buffett Delving Deeper into the Telecom Space
After purchasing shares of big names from the telecommunication space, he has taken the global plunge and bought Liberty Latin America Ltd. He now owns more than $1 billion worth of the broadband Internet, fixed-line telephone and mobile and other communications service provider's total equity.
Buffett has shown interest in the telecommunication space, something which he avoided in the past. After all, historically, the broader tech sector has been a winner in the fourth quarter. In the last two decades, tech rose more than two-third of the times in the fourth quarter per market pundits.
Liberty Latin America currently has a Zacks Rank #2. In the last 60 days, one earnings estimate moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings soared 38% in the same period. The company's expected earnings growth rate for the next quarter is 90.5% while the Wireless National industry is expected to tank 78.3%. Liberty Latin America has already outperformed the broader industry so far this year (+4.8% vs -3.9%).
Buffett is Hungry for Airlines
Time and again, Buffett has shown considerable interest in buying stakes in airlines. In fact, Buffett once said that he "wouldn't rule out owning an entire airline." He already owns stakes in large airlines such as American Airlines Group Inc. These airlines are currently charging more for checked bags and those fees should certainly boost their bottom lines in the fourth quarter. These three legacy players have announced increased prices for first and second checked bags.
But, the one among them that stands out is Delta. After all, its total unit revenues, excluding refinery sales, is already anticipated to increase in the band of 3.5-5.5% in the third quarter. At the same time, it carries a Zacks Rank #2. In the last 60 days, four earnings estimates moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings improved 0.4% in the same period. The company's expected earnings growth rate for the current year is 13.6% in contrast to the Transportation - Airline industry's expected decline of 9.9%. Delta has already outperformed the broader industry on a year-to-date basis (+1.1% vs -16.7%).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Liberty Global PLC (LILA): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Berkshire Hathaway Inc. BRK.B , Apple Inc. AAPL , Liberty Latin America Ltd. LILA and American Airlines Group Inc. AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. Way back in 1962, Warren Buffett began acquiring stakes in Berkshire Hathaway after he figured a pattern in the price direction of its stock whenever the company closed a mill.
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Stocks recently featured in the blog include Berkshire Hathaway Inc. BRK.B , Apple Inc. AAPL , Liberty Latin America Ltd. LILA and American Airlines Group Inc. AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Tuesday's Analyst Blog: 4 Best Warren Buffett Stocks to Buy for Q4 Berkshire Hathaway Inc. Chairman and CEO Warren Buffett is a great role model if you want to be an astute investor.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Berkshire Hathaway Inc. BRK.B , Apple Inc. AAPL , Liberty Latin America Ltd. LILA and American Airlines Group Inc. AAL . The company's expected earnings growth rate for the current year is 13.6% in contrast to the Transportation - Airline industry's expected decline of 9.9%.
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Stocks recently featured in the blog include Berkshire Hathaway Inc. BRK.B , Apple Inc. AAPL , Liberty Latin America Ltd. LILA and American Airlines Group Inc. AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Liberty Global PLC (LILA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report To read this article on Zacks.com click here. Why Buffett Keeps Buying Apple Buffett already owns more than 110 million shares of Apple Inc.
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2e5114ab-c907-4cf2-a763-02aa3378757a
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6914.0
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2018-10-02 00:00:00 UTC
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3 Airline Stocks to Buy Following Recent Turbulence
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-to-buy-following-recent-turbulence-2018-10-02
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For decades, investors regarded airline stocks as a poor investment. Forty years ago, the Airline Deregulation Act of 1978 turned airlines from a highly-regulated oligopoly to a competitive industry.
While this brought air travel to the masses, it also turned airline stocks into losing investments. Iconic airlines such as Pan Am, Eastern, and TWA ultimately shut down or sold out amid the competition. Even the three surviving legacy airlines, American (NASDAQ: AAL ), Delta (NYSE: DAL ), and United (NYSE: UAL ), had to reorganize in bankruptcy.
However, beginning with Southwest Airlines (NYSE: LUV ), a new generation of non-legacy airlines emerged. Today, these newer airlines continue to claim larger shares of the domestic market. Some have even brought the market profitable airline stocks. In fact, those who bought LUV stock in 1975 got into the equity at the split-adjusted price of one cent per share!
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That's not to say these stocks have overcome all their challenges. In fact, airline stocks have fallen in recent weeks as rising costs weigh on profit margins. However, fuel prices constantly fluctuate, and such drops usually amount to buying opportunities. For continued profits in airline stocks, investors should look to these carriers for gains going forward:
LATAM Airlines Group S.A. (LTM)
Source: Shutterstock
LATAM Airlines Group (NYSE: LTM ) offers many benefits to investors in airline stocks. Based in Santiago, Chile, it connects what arguably stands as Latin America's strongest economy to both its neighbors and the rest of the world. It offers both passenger and cargo services. The airline also operates a loyalty program called Multiplus, which allows for the exchange of points for trips and other benefits.
Formerly LAN Airlines, LATAM operated as Chile's national airline until the 1990's. A merger between LAN and Brazil's TAM airlines formed the LATAM Airlines Group - the merger was completed in 2012. Today, LATAM dominates in Chile as well as Peru. It also has become the second-largest airline in Argentina, Colombia, and Ecuador.
Moreover, LATAM has set its sights beyond its core region. The airline inaugurated service to Melbourne, Australia last year. Plans are also in place to serve destinations such as Washington, D.C., London, and Tel Aviv. LATAM currently serves the U.S. through code-sharing arrangements with other airlines.
This expansion should go far in driving its massive profit growth. Analysts expect profits to grow by 34.6% this year and 91.4% the next. They also predict an average annual growth rate of 53.8% per year over the next five years. Despite the massive profit increases, the airline trades at a forward price-to-earnings ratio of about 26. While that may come in high for an airline, this P/E stands only slightly higher than the S&P 500 average.
Even better for new investors, the stock has fallen by close to 50% from its 52-week high. This gives buyers the opportunity to get in at a substantial discount. With massive growth and an emerging global presence in the foreseeable future, investors should do well with LTM stock.
SkyWest (SKYW)
Source: Cory W. Watts via Flickr
SkyWest (NASDAQ: SKYW ) has become the largest regional carrier in the U.S. - measured in passenger loads. The St. George, Utah-based airline contracts with larger carriers and usually operates under their name. By offering these flights, it carries passengers from smaller regional airports into the large hubs. Under this model, it serves 247 destinations utilizing 453 aircraft. Last year, SkyWest carried about 35.9 million passengers.
SkyWest has also seen massive growth, especially compared to most airline stocks. Despite the move higher, its forward P/E comes in at about 11.2. SKYW traded in the $7 per share range as recently as 2014. But after a sustained move higher for the last few years, SKYW now trades in the $55+ range - an increase of over 600%.
The move higher looks poised to continue. This year, analysts forecast 44% profit growth. The company has also seen double-digit profit growth in the previous five years. Wall Street predicts a 17.9% average annual growth rate in the next five years.
SKYW also will see a reduction in income tax expenses from the corporate tax cuts. This, along with improvements in efficiency, has allowed the company to raise dividend payments by 25%. Currently, however, this 40 cent payout yields only about 0.7% for new investors.
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Still, ongoing improvements should take profits higher. With its recent track record and the indications that growth will continue, SKYW stock should outperform most of its industry peers.
Spirit Airlines (SAVE)
Source: Shutterstock
Few airline stocks have enjoyed the success offered by Spirit Airlines (NYSE: SAVE ). The Miramar, Florida-based ultra-low-fare carrier continues its growth path as passenger opt for low fares over frills.
The airline's stream of profit growth was interrupted this year, however. Labor issues related to pay and a pilot shortage forced Spirit to give its pilots a substantial pay raise. Due to these costs, analysts forecast only 1.5% profit growth for the year. As a result, SAVE stock trades close to where it stood at the beginning of the year.
However, I view the challenges of 2018 as one-time events. Wall Street predicts 28.1% profit growth for next year. And with a 13.2 forward P/E, SAVE stock is attractively valued.
I also believe the growth will continue. The airline recently added service to Greensboro and Asheville, North Carolina. The expansion into South America also continues with service to Cali, Colombia slotted to begin this December.
Another possible growth catalyst involves a plan to serve smaller markets within the U.S.
Spirit has considered adding a second aircraft type to facilitate such a move. Although I like when airlines such as Spirit stay with one aircraft type, I believe these regional markets would justify the expenses and hassles associated with a second plane type.
Spirit could also bring these markets something they rarely see - low fares. Larger markets saw the so-called "Southwest effect" when Southwest's market entrance brought lower fares and more flights. In theory, Spirit could do the same thing for smaller markets. Such a move along with its deeper push into South America should continue to push SAVE stock higher for years to come.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You canfollow Will on Twitterat @HealyWriting.
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The post 3 Airline Stocks to Buy Following Recent Turbulence appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even the three surviving legacy airlines, American (NASDAQ: AAL ), Delta (NYSE: DAL ), and United (NYSE: UAL ), had to reorganize in bankruptcy. Based in Santiago, Chile, it connects what arguably stands as Latin America's strongest economy to both its neighbors and the rest of the world. With its recent track record and the indications that growth will continue, SKYW stock should outperform most of its industry peers.
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Even the three surviving legacy airlines, American (NASDAQ: AAL ), Delta (NYSE: DAL ), and United (NYSE: UAL ), had to reorganize in bankruptcy. For continued profits in airline stocks, investors should look to these carriers for gains going forward: LATAM Airlines Group S.A. (LTM) Source: Shutterstock LATAM Airlines Group (NYSE: LTM ) offers many benefits to investors in airline stocks. Wall Street predicts a 17.9% average annual growth rate in the next five years.
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Even the three surviving legacy airlines, American (NASDAQ: AAL ), Delta (NYSE: DAL ), and United (NYSE: UAL ), had to reorganize in bankruptcy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips For decades, investors regarded airline stocks as a poor investment. For continued profits in airline stocks, investors should look to these carriers for gains going forward: LATAM Airlines Group S.A. (LTM) Source: Shutterstock LATAM Airlines Group (NYSE: LTM ) offers many benefits to investors in airline stocks.
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Even the three surviving legacy airlines, American (NASDAQ: AAL ), Delta (NYSE: DAL ), and United (NYSE: UAL ), had to reorganize in bankruptcy. Some have even brought the market profitable airline stocks. For continued profits in airline stocks, investors should look to these carriers for gains going forward: LATAM Airlines Group S.A. (LTM) Source: Shutterstock LATAM Airlines Group (NYSE: LTM ) offers many benefits to investors in airline stocks.
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c95d32b9-8eaf-4088-a90d-f5fa4a1b2a85
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6915.0
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2018-10-01 00:00:00 UTC
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With Flannery Out, Is General Electric Stock a Winner?
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AAL
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https://www.nasdaq.com/articles/flannery-out-general-electric-stock-winner-2018-10-01
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
General Electric (NYSE: GE ) has jettisoned CEO John Flannery and GE stock holders are rejoicing. The press release announcing the change barely mentioned Flannery, and the shares reacted with a 15% gain in the pre-market, opening for trade Oct. 1 at $13.
The new CEO is former lead director Larry Culp, who had settled into a sinecure lecturing at Harvard Business School on corporate strategy . Culp was replaced as GE's lead director by former American Airlines (NYSE: AAL ) CEO Thomas Horton.
Flannery had taken over from Jeff Immelt in June 2017. That press release included effusive praise for Immelt "transforming" GE, and a quote from him. Along with the new hire, GE said it would take a $23 billion "impairment charge" on its power unit. The company's fall began with Immelt's purchase of the French engine company Alstom in 2015, which he called its "best deal in a century" at the time.
However, GE's board was not happy with the slow pace of change under John Flannery. Can Larry Culp do what Flannery couldn't?
Flannery Fail
Flannery had been given the unenviable task of fixing what Immelt broke, a "transformation" from the financial-and-entertainment giant built by Jack Welch into a faltering industrial conglomerate making engines, oil rigs and healthcare equipment.
10 Triple-A Stocks to Buy for the Rest of 2018
Flannery responded to the financial crisis by halving the GE dividend and breaking General Electric into pieces, selling what he could and refocusing GE on the power unit. That proved his undoing, as concerns that its gas turbine blades were breaking were apparently the final straw for the board. The turbines apparently have an "oxidation issue" that means they may not last as advertised to customers.
The turbine troubles were also the last straw for many GE shareholders. The problem was announced in the middle of September and, within two weeks, a successor had been recruited and Flannery was out the door. The company was worth less than $100 billion at the end of September, less than half what it was worth when Flannery was appointed from GE Healthcare.
GE had announced in June it would look to sell GE Healthcare to focus on power and aviation. While Flannery announced these two major re-organizations of the company, he was criticized for not moving quickly enough . It is now possible those plans may be revisited.
The New Guy
Culp is a true outsider, having been CEO of Danaher (NYSE: DHR ) from 2000 to 2014. There, according to GE's press release, "he led the highly successful transformation of the company from an industrial manufacturer into a leading science and technology company," increasing its market cap five-fold. This hints at Culp's strategy.
Culp is quoted in the press release calling GE "fundamentally strong" and promising to deleverage the balance sheet. He also said he will work on "opportunities for continued board renewal," an indication that more board members may soon be replaced. The current 11-member board consists almost entirely of outsiders, with three from financial companies and only one from technology, Cognizant (NASDAQ: CTSH ) CEO Francisco D'Souza.
Culp, a 1990 graduate of Harvard Business School, was profiled by the school's magazine in 2017 . He helped integrate industrial testing company Fluke into Danaher before becoming its COO, then CEO after the man who hired him, George Sherman, retired.
When Culp left Danaher at age 51, after 14 years in charge, he said he wanted to seek new challenges "outside the C-suite."
That's because at Danaher, Culp had turned an industrial company into a healthcare company, and it's hope for that kind of transformation that is behind the stock's rise in the pre-market. Immelt had moved GE headquarters from Stamford, Connecticut to Boston, and if Culp can turn it around, that may prove to have been the best thing he ever did.
Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family , available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn . As of this writing, he owned no shares in companies mentioned in this article.
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The post With Flannery Out, Is General Electric Stock a Winner? appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Culp was replaced as GE's lead director by former American Airlines (NYSE: AAL ) CEO Thomas Horton. The press release announcing the change barely mentioned Flannery, and the shares reacted with a 15% gain in the pre-market, opening for trade Oct. 1 at $13. The new CEO is former lead director Larry Culp, who had settled into a sinecure lecturing at Harvard Business School on corporate strategy .
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Culp was replaced as GE's lead director by former American Airlines (NYSE: AAL ) CEO Thomas Horton. InvestorPlace - Stock Market News, Stock Advice & Trading Tips General Electric (NYSE: GE ) has jettisoned CEO John Flannery and GE stock holders are rejoicing. The press release announcing the change barely mentioned Flannery, and the shares reacted with a 15% gain in the pre-market, opening for trade Oct. 1 at $13.
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Culp was replaced as GE's lead director by former American Airlines (NYSE: AAL ) CEO Thomas Horton. InvestorPlace - Stock Market News, Stock Advice & Trading Tips General Electric (NYSE: GE ) has jettisoned CEO John Flannery and GE stock holders are rejoicing. 10 Triple-A Stocks to Buy for the Rest of 2018 Flannery responded to the financial crisis by halving the GE dividend and breaking General Electric into pieces, selling what he could and refocusing GE on the power unit.
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Culp was replaced as GE's lead director by former American Airlines (NYSE: AAL ) CEO Thomas Horton. InvestorPlace - Stock Market News, Stock Advice & Trading Tips General Electric (NYSE: GE ) has jettisoned CEO John Flannery and GE stock holders are rejoicing. The new CEO is former lead director Larry Culp, who had settled into a sinecure lecturing at Harvard Business School on corporate strategy .
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6505aa23-416b-4523-94b3-7afb36ecd71f
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6916.0
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2018-10-01 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 8,037.30 down -9.05 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-803730-down-905-points-2018-10-01
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Monday's session closes with the NASDAQ Composite Index at 8,037.30. The total shares traded for the NASDAQ was over 2.22 billion. Declining stocks led advancers by 1.83 to 1 ratio. There were 1106 advancers and 2020 decliners for the day. On the NASDAQ Stock Exchange 34 stocks reached a 52 week high and 70 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .23% for the day; a total of 17.8 points. The current value is 7,645.45. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.16%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 17.35%.
The Dow Jones index closed up .73% for the day; a total of 192.9 points. The current value is 26,651.21. Intel Corporation ( INTC ) had the largest percent change down (-1.78%) while Boeing Company (The) ( BA ) had the largest percent change gain rising 2.79%.
NASDAQ Market Wrap
As of 10/1/2018 4:44:02 PM
BILLIONS OF 2.22 NASDAQ SHARES TRADED TODAY 34 STOCKS REACHED A 52 WEEK HIGH 70 THOSE REACHING LOWS TOTALEDTesla, Inc. [TSLA]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 17.35 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.16%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 17.35%. The Dow Jones index closed up .73% for the day; a total of 192.9 points. Intel Corporation ( INTC ) had the largest percent change down (-1.78%) while Boeing Company (The) ( BA ) had the largest percent change gain rising 2.79%.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.16%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 17.35%. On the NASDAQ Stock Exchange 34 stocks reached a 52 week high and 70 those reaching lows totaled. NASDAQ Market Wrap As of 10/1/2018 4:44:02 PM BILLIONS OF 2.22 NASDAQ SHARES TRADED TODAY 34 STOCKS REACHED A 52 WEEK HIGH 70 THOSE REACHING LOWS TOTALEDTesla, Inc. [TSLA]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 17.35 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.16%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 17.35%. On the NASDAQ Stock Exchange 34 stocks reached a 52 week high and 70 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.16%) while Tesla, Inc. ( TSLA ) had the largest percent change gain rising 17.35%. There were 1106 advancers and 2020 decliners for the day. The NASDAQ 100 index closed up .23% for the day; a total of 17.8 points.
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78d589e4-7b23-4699-84bd-d712b9949f68
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6917.0
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2018-10-01 00:00:00 UTC
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Why General Electric Company’s Stock Is Soaring Today
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AAL
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https://www.nasdaq.com/articles/why-general-electric-companys-stock-soaring-today-2018-10-01
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What happened
Shares of General Electric Company (NYSE: GE) took off on Monday, rising more than 11% by 10:30 a.m. EDT after its board of directors ousted CEO John Flannery.
So what
GE's board voted unanimously to elect Lawrence Culp, the former CEO of Danaher Corp. (NYSE: DHR) , as its CEO and chairman, replacing John Flannery after just 14 months on the job. In addition to that, the board named Thomas Horton, the former CEO of American Airlines , as its lead director. Both men had been members of the industrial giant's board since April of this year.
GE is replacing Flannery after the company's stock plunged 55% during his tenure. Taking his place is Culp, who created significant shareholder value during his time as CEO at Danaher from 2000 through 2014. Shares of the diversified conglomerate gained 600% during that time frame versus just a 40% return from the S&P 500. Among his many achievements at Danaher was leading it to make several value-creating acquisitions.
GE's deal making, on the other hand, has destroyed shareholder value. One of its biggest blunders was its $10 billion deal to buy Alstom in 2015 , a deal driven by Flannery, who was head of GE's business development at the time. That's one reason why the company also said that it would record a $23 billion noncash impairment charge relating to its GE Power business, effectively writing down all the goodwill on its balance sheet from prior acquisitions in the segment, including Alstom. Meanwhile, the company stated that the continued troubles within its power business would cause it to miss its 2018 earnings and free cash flow guidance.
Now what
GE investors seem enthused to be putting the tumultuous tenure of John Flannery in the rearview mirror. They didn't like his deliberate style, which hadn't delivered any tangible results. Culp, on the other hand, stated that he would "move with urgency" to turn the company around, focusing on strengthening the balance sheet in the near term. While it's unclear yet what actions he will take, given his stated desire to move forward quickly, investors likely won't need to wait too long to see his turnaround plan for the company.
10 stocks we like better than General Electric
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Matthew DiLallo owns shares of General Electric. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of General Electric Company (NYSE: GE) took off on Monday, rising more than 11% by 10:30 a.m. EDT after its board of directors ousted CEO John Flannery. That's one reason why the company also said that it would record a $23 billion noncash impairment charge relating to its GE Power business, effectively writing down all the goodwill on its balance sheet from prior acquisitions in the segment, including Alstom. While it's unclear yet what actions he will take, given his stated desire to move forward quickly, investors likely won't need to wait too long to see his turnaround plan for the company.
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What happened Shares of General Electric Company (NYSE: GE) took off on Monday, rising more than 11% by 10:30 a.m. EDT after its board of directors ousted CEO John Flannery. So what GE's board voted unanimously to elect Lawrence Culp, the former CEO of Danaher Corp. (NYSE: DHR) , as its CEO and chairman, replacing John Flannery after just 14 months on the job. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.
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What happened Shares of General Electric Company (NYSE: GE) took off on Monday, rising more than 11% by 10:30 a.m. EDT after its board of directors ousted CEO John Flannery. So what GE's board voted unanimously to elect Lawrence Culp, the former CEO of Danaher Corp. (NYSE: DHR) , as its CEO and chairman, replacing John Flannery after just 14 months on the job. GE is replacing Flannery after the company's stock plunged 55% during his tenure.
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GE's deal making, on the other hand, has destroyed shareholder value. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and General Electric wasn't one of them! *Stock Advisor returns as of August 6, 2018 Matthew DiLallo owns shares of General Electric.
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09954804-4a52-4486-b251-cbea3e453be8
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6918.0
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2018-09-27 00:00:00 UTC
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Airline Stock Roundup: DAL, AAL Hike Baggage Fees, RYAAY in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-dal-aal-hike-baggage-fees-ryaay-in-focus-2018-09-27
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In the past week, American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL joined United Continental Holdings, Inc. UAL and JetBlue Airways Corporation JBLU in increasing fees for checked bags. Apart from the update on baggage fees, Delta was also in news due to a computer glitch, which affected its domestic operations on Sep 25. The problem has now been resolved.
Meanwhile, the labor unrest at low-cost carrier Ryanair Holdings plc RYAAY intensified as pilots in Germany expressed their intention to join the Sep 28 strike across several European nations. The imminent strike prompted Ryanair to cancel approximately 150 flights of the scheduled 2,400, affecting multiple customers.
On the price front, the NYSE ARCA Airline Index declined 1.7% over the past week as oil prices escalated.
(Read the last Airline Stock Roundup for Sep 19, 2018 )
Recap of the Past Week's Most Important Stories
1. In a bid to counter the challenges posed by escalating fuel costs, Delta hiked its first checked bag fee to $30 from the previous $25, and the second checked bag fee to $40 from $35 initially on domestic routes. Earlier in April, the carrier started charging $60 for the first checked bag from basic-economy class passengers travelling to and from Europe.
Although the hour-long computer glitch at Delta has been resolved, the carrier's record with respect to such disruptions has been disappointing. The company had encountered similar issues in 2017 and 2016 as well. In fact, technical glitches have been massive impediments for companies in the airline space. Since airlines spend a lot on technological infrastructure, their profitability might be hurt in the event of any such malfunctions.
Delta carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. American Airlines raised its checked bag fee by $5 each for both the first and the second bags. Per the renewed fee structure, passengers will have to pay $30 for the first checked bag fee and $40 for the second. The revamped fee policy is applicable on domestic routes, Puerto Rico, the US Virgin Islands and the Caribbean with immediate effect. However, certain privileged members will continue to enjoy free baggage checking (read more: American Airlines Now Jumps on the Bag Fee Hike Bandwagon ).
3. In a bid to expand further, Spirit Airlines, Inc. SAVE has decided to operate nonstop flights connecting Jacksonville International Airport to Chicago O'Hare International Airport and Detroit Metro Airport. The new flights will start operating from Dec 20, 2018. Once operational, Jacksonville will become the 69th destination for this Miramar, FL-based ultra low-cost carrier (read more: Spirit Airlines to Strengthen its Base in Florida ).
4. Ryanair is expected to face another strike by cabin crew across Spain, Belgium, Holland, Portugal, Italy and Germany. In this regard, the unions representing the respective countries' cabin crew have sent a joint letter to the company, threatening to start the largest ever protest at month-end in case it does not improve work environment. Per the company's chief marketing officer Kenny Jacobs, these back-to-back strikes, especially at a time of soaring crude oil prices , are hampering Ryanair's business and resulting in soft bookings (read more: Ryanair Cancels Flights as Cabin Crew Strike Date Approaches ).
5. The U.S. Congress withdrew its plans to reauthorize the Federal Aviation Administration to regulate airlines' current fee structure pertaining to baggage and ticket change prices. However, it has included certain rules promoting passengers' interest. Some directives include setting a specific dimension for passenger seats with sufficient legroom and width as well as forbidding airlines from offloading passengers from flights after clearing the boarding gate.
Price Performance
The following table shows the price movement of the major airline players over the last week and during the past six months.
The table above shows that most airline stocks traded in the red over the last week, leading to decline in the NYSE ARCA Airline Index. Shares of Alaska Airlines Group, Inc. ALK decreased the most during the period. Over the course of six months, the sector tracker declined 6.5% on multiple headwinds due to high fuel costs. Shares of Latin American carriers, Copa Holdings and GOL Linhas, shed the maximum value during the period.
What's Next in the Airline Space?
Investors will look forward to JetBlue's Investor Day on Oct 2. September traffic reports from the likes of Delta are also expected in the coming days.
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Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week, American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL joined United Continental Holdings, Inc. UAL and JetBlue Airways Corporation JBLU in increasing fees for checked bags. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, the labor unrest at low-cost carrier Ryanair Holdings plc RYAAY intensified as pilots in Germany expressed their intention to join the Sep 28 strike across several European nations.
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In the past week, American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL joined United Continental Holdings, Inc. UAL and JetBlue Airways Corporation JBLU in increasing fees for checked bags. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. On the price front, the NYSE ARCA Airline Index declined 1.7% over the past week as oil prices escalated.
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In the past week, American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL joined United Continental Holdings, Inc. UAL and JetBlue Airways Corporation JBLU in increasing fees for checked bags. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. In a bid to counter the challenges posed by escalating fuel costs, Delta hiked its first checked bag fee to $30 from the previous $25, and the second checked bag fee to $40 from $35 initially on domestic routes.
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In the past week, American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL joined United Continental Holdings, Inc. UAL and JetBlue Airways Corporation JBLU in increasing fees for checked bags. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. On the price front, the NYSE ARCA Airline Index declined 1.7% over the past week as oil prices escalated.
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31015004-ebee-4ee4-8e2a-9b3177c97c20
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6919.0
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2018-09-27 00:00:00 UTC
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American Airlines Can't Afford Surging Fuel Prices
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AAL
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https://www.nasdaq.com/articles/american-airlines-cant-afford-surging-fuel-prices-2018-09-27
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nan
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nan
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In recent years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most adamant proponents of the thesis that consolidation has permanently transformed the U.S. airline industry, leading to a new era of prosperity for the sector.
If Parker is right, you wouldn't know it from his company's flagging results. The U.S. economy is stronger than it's been in over a decade, yet American Airlines' pre-tax profit is set to plunge for a third consecutive year in 2018. A recent surge in oil prices will make matters worse in the fourth quarter and in 2019 -- particularly if fuel costs continue to move higher.
As a result, even though American Airlines stock has plunged more than 20% year to date, it still doesn't look particularly attractive.
American Airlines year-to-date stock performance; data by YCharts .
Fuel costs rising again
The price of Brent crude, the global oil benchmark, has surged nearly 50% over the past year, recently surpassing $80 per barrel. The last time it approached that level, back in May, I warned that higher oil prices could spell disaster for American Airlines' profitability.
Oil prices moderated over the summer months, yet American Airlines was still compelled to slash its earnings guidance for the second time this year in late July. Revenue per available seat mile (RASM) has been growing, but not fast enough to make up for the carrier's higher fuel bill. As a result, American now expects to produce earnings per share between $4.50 and $5.00 for the full year, down from its original 2018 EPS forecast range of $5.50 to $6.50.
By Monday, the price of Gulf Coast jet fuel had reached $2.22 per gallon. After factoring in fuel taxes and transportation costs, this likely translates to an "all-in" fuel price of at least $2.40 per gallon. For comparison, American Airlines' most recent guidance assumed an average fuel price between $2.18 per gallon and $2.23 per gallon for the fourth quarter.
If fuel prices remain at today's level, American will face roughly 2 percentage points of incremental margin pressure from higher fuel costs next quarter (compared to the July forecast). That could put the company's full-year EPS forecast in jeopardy yet again.
Can unit revenue keep up?
American Airlines' adjusted pre-tax margin peaked at 15.3% in 2015 before falling to 12.6% in 2016 and 9.1% last year. Based on the company's most recent guidance, adjusted pre-tax margin is set to come in between 6% and 7% this year.
In that context, it's more critical than ever for American Airlines to achieve strong unit revenue growth to offset the impact of fuel costs on its profitability. Unfortunately, the company's third quarter outlook called for RASM to rise just 1% to 3% year over year: in line with to slightly below the 2.8% increase recorded in the first half of 2018.
American is making a number of important adjustments to improve its unit revenue trend. For example, it recently joined most of its top competitors by raising checked-bag fees . On a more customer-friendly note, it now allows people who buy basic economy tickets to bring full-size carry-on bags, unlike United Continental .
From a network standpoint, American Airlines is eliminating some unprofitable flights to Asia in favor of more promising European markets. It is also focusing its domestic growth on its three most profitable hubs: Dallas-Fort Worth, Charlotte, and Washington, D.C.
However, while these are steps in the right direction, American will face tougher year-over-year comparisons going forward. Indeed, RASM rose just 1.1% in the third quarter of 2017 but surged 5.6% in the fourth quarter. This situation makes it very unlikely that RASM growth will accelerate next quarter relative to Q3.
A bad situation for a heavily indebted company
American Airlines expects non-fuel unit costs to increase 1% to 2% next year. If that forecast is accurate, and if jet fuel prices remain near current levels, the carrier will need unit revenue to rise 2% to 3% year over year for its pre-tax margin to hold steady in the 6% to 7% range in 2019.
Yet several recent reports have suggested that oil prices could rise as high as $90 per barrel or even $100 per barrel next year, largely because of the impact of U.S. sanctions on Iranian crude oil. For each $10 increase in the cost of a barrel of crude oil, American Airlines would need more than 2 percentage points of incremental RASM growth to hold its pre-tax margin steady.
While American Airlines could improve its profitability again in 2019 if oil prices stay at current levels or decline from here, another uptick in oil prices could cause its pre-tax margin to fall even more. That situation would send free cash flow further into negative territory.
American Airlines Free Cash Flow (TTM) , data by YCharts . TTM = trailing 12 months.
A further downturn in free cash flow could be particularly unpleasant because American Airlines has more than $8 billion of debt maturing between 2019 and 2021. The combination of rising interest rates and American's declining profitability could make it expensive to refinance this debt.
On average, analysts expect American Airlines' adjusted EPS to rebound to $5.74 next year, up from an estimated $4.67 in 2018. This is certainly a plausible outcome if fuel price pressure eases. However, it's possible that fuel prices will continue rising instead. American Airlines is in a poor position to cope with such a situation, because of its low profitability and high debt load. As a result, shares of the largest U.S. airline are still a no-fly zone for investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most adamant proponents of the thesis that consolidation has permanently transformed the U.S. airline industry, leading to a new era of prosperity for the sector. Fuel costs rising again The price of Brent crude, the global oil benchmark, has surged nearly 50% over the past year, recently surpassing $80 per barrel. Oil prices moderated over the summer months, yet American Airlines was still compelled to slash its earnings guidance for the second time this year in late July.
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In recent years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most adamant proponents of the thesis that consolidation has permanently transformed the U.S. airline industry, leading to a new era of prosperity for the sector. If fuel prices remain at today's level, American will face roughly 2 percentage points of incremental margin pressure from higher fuel costs next quarter (compared to the July forecast). If that forecast is accurate, and if jet fuel prices remain near current levels, the carrier will need unit revenue to rise 2% to 3% year over year for its pre-tax margin to hold steady in the 6% to 7% range in 2019.
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In recent years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most adamant proponents of the thesis that consolidation has permanently transformed the U.S. airline industry, leading to a new era of prosperity for the sector. For comparison, American Airlines' most recent guidance assumed an average fuel price between $2.18 per gallon and $2.23 per gallon for the fourth quarter. If fuel prices remain at today's level, American will face roughly 2 percentage points of incremental margin pressure from higher fuel costs next quarter (compared to the July forecast).
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In recent years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most adamant proponents of the thesis that consolidation has permanently transformed the U.S. airline industry, leading to a new era of prosperity for the sector. For comparison, American Airlines' most recent guidance assumed an average fuel price between $2.18 per gallon and $2.23 per gallon for the fourth quarter. If that forecast is accurate, and if jet fuel prices remain near current levels, the carrier will need unit revenue to rise 2% to 3% year over year for its pre-tax margin to hold steady in the 6% to 7% range in 2019.
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f5487fa6-c715-4de2-b446-d78463ed2eb3
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6920.0
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2018-09-27 00:00:00 UTC
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AAL November 9th Options Begin Trading
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AAL
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https://www.nasdaq.com/articles/aal-november-9th-options-begin-trading-2018-09-27
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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 November 9th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new November 9th contracts and identified one put and one call contract of particular interest.
The put contract at the $41.50 strike price has a current bid of $1.58. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $41.50, but will also collect the premium, putting the cost basis of the shares at $39.92 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $41.76/share today.
Because the $41.50 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. 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 3.81% return on the cash commitment, or 32.29% 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 $41.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $42.00 strike price has a current bid of $1.75. If an investor was to purchase shares of AAL stock at the current price level of $41.76/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $42.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.77% if the stock gets called away at the November 9th 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 $42.00 strike highlighted in red:
Considering the fact that the $42.00 strike represents an approximate 1% 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 49%. 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 4.19% boost of extra return to the investor, or 35.54% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 37%, while the implied volatility in the call contract example is 38%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $41.76) to be 32%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $42.00 strike highlighted in red: Considering the fact that the $42.00 strike represents an approximate 1% 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 November 9th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $42.00 strike highlighted in red: Considering the fact that the $42.00 strike represents an approximate 1% 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 November 9th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new November 9th 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 $42.00 strike highlighted in red: Considering the fact that the $42.00 strike represents an approximate 1% 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 November 9th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new November 9th 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 November 9th 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 $42.00 strike highlighted in red: Considering the fact that the $42.00 strike represents an approximate 1% 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 November 9th expiration.
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c70db39b-3014-44c0-bfa3-39dd6a29c013
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6921.0
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2018-09-27 00:00:00 UTC
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Nasdaq 100 Movers: JBHT, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-jbht-aal-2018-09-27
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nan
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nan
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, American Airlines Group has lost about 19.2% of its value.
And the worst performing Nasdaq 100 component thus far on the day is J.B. Hunt Transport Services ( JBHT ), trading down 2.3%. J.B. Hunt Transport Services is showing a gain of 2.9% looking at the year to date performance.
Two other components making moves today are Dollar Tree ( DLTR ), trading down 1.9%, and Apple ( AAPL ), trading up 2.4% on the day.
VIDEO: Nasdaq 100 Movers: JBHT, AAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. VIDEO: Nasdaq 100 Movers: JBHT, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is J.B. Hunt Transport Services ( JBHT ), trading down 2.3%.
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VIDEO: Nasdaq 100 Movers: JBHT, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, American Airlines Group has lost about 19.2% of its value.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. VIDEO: Nasdaq 100 Movers: JBHT, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is J.B. Hunt Transport Services ( JBHT ), trading down 2.3%.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. VIDEO: Nasdaq 100 Movers: JBHT, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is J.B. Hunt Transport Services ( JBHT ), trading down 2.3%.
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d293c7b9-04ed-49f0-ae05-3a258784374b
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6922.0
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2018-09-25 00:00:00 UTC
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Airline Stocks Plummet in Monday's Trading: Take a Look
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AAL
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https://www.nasdaq.com/articles/airline-stocks-plummet-mondays-trading-take-look-2018-09-25
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nan
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nan
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Airline stocks have been grappling with high cost woes since the start of 2018 with crude oil prices trending upward. Needless to mention, fuel prices account for a major chunk of airline expenses. Thus, a rise in the price of this commodity certainly does not bode well for the industry.
On account of steep fuel costs, airline major American Airlines Group Inc. AAL trimmed its 2018 earnings per share guidance. Adjusted earnings are now expected between $4.50 and $5.00 (previous outlook had hinted at earnings between $5 and $6).
Moreover, the International Air Transport Association's ("IATA") lowered profitability forecast for airlines in 2018 was primarily due to the same reason. The research firm now predicts global net profit for the industry to be $33.8 billion, much lower than the earlier forecast of $38.4 billion, unveiled last December.
Why Airlines Tumbled Yesterday?
The reason behind airline stocks' dramatic fall yesterday is nothing new. Brent crude oil rose to $81 per barrel yesterday, up 3% intraday. The price of the commodity reached an all-time high in four years. Meanwhile, WTI crude increased by the same level to $72. The sudden spike in oil prices caused shares of major U.S airlines to decline significantly. Carriers like Delta Air Lines, Inc. DAL , JetBlue Airways Corporation JBLU , American Airlines, Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL and Spirit Airlines, Inc. SAVE declined approximately 3.7%, 2%, 3.7%, 2.7%, 2.3% and 3.8%, respectively, at the close of business on Sep 24. Consequently, the NYSE ARCA Airline Index slid 2.6%.
Each stock mentioned above carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The Joint OPEC (Organization of the Petroleum Exporting Countries)-non-OPEC Ministerial Monitoring Committee held a formal meeting during the weekend. However, the participants failed to draw up a plan to boost oil supply so as to dampen the adversity arising from the potential shortfall of around 2 million barrels of oil per day with full-fledged U.S. sanctions on Iran's exports expected to be effective Nov 4.
According to some market watchers, oil prices are likely to touch $100 per barrel , in the event of U.S. sanctions completely cutting off Iranian oil supply.
Labor Costs: Another Headwind
Apart from escalating fuel prices, mounting labor costs are weighing on the airlines' bottom line. Of late, the carriers have been striking frequent labor contracts in a bid to meet employee needs. However, the move ended up in pushing up labor costs. In fact, high labor costs also put pressure on the IATA's reduced profitability forecast for 2018.
Dismal Price Performance
Due to the above downsides, the Zacks Airline Industry has declined 11% so far this year against the broader Transportation sector 's 1.3% rise.
Bearish Industry Rank
The Zacks Industry Rank of 210 (of 250 plus groups) carried by the Zacks Airline industry further highlights the pessimism revolving around the stocks. This unfavorable rank places the companies within the bottom 18% of the Zacks industries.
We classify the total 250-plus industries into two groups: the top half (i.e. industries with the best average Zacks Rank) and the bottom half (industries with the worst average Zacks Rank).
Over the past 10 years, the top half beat the bottom half by a factor of more than 2 to 1 using a week's rebalance.
Click here to know more: About Zacks Industry Rank
Our proprietary Heat Map also shows the industry's rank in the bottom 50% over the past eight weeks.
Measures to Counter the Challenges
With high operating expenses (especially fuel) taking a toll on profitability, airlines are trying hard to mitigate its impact. To this end, carriers like Delta, JetBlue, United Continental and American Airlines recently hiked checked baggage fees. The carriers are now charging $30 for the first checked bag and $40 for the second, up from the previous $25 and $35, respectively. Meanwhile, JetBlue also levied an increase in fees to change tickets. The carrier now charges $200 for changing or canceling a ticket valued at more than $200. Earlier, it used to charge $150 for the same. However, passengers belonging to the highest fare class are exempted from the renewed fee structure.
What Lies Ahead?
With fuel prices shooting up continually, airlines seem to have little respite. Only a few days into the baggage-fee hike move, a sharp rise in oil prices caused shares of major airlines to tumble.
Nonetheless, we expect the baggage-fee hike effort to partly offset the negativities associated with airline expenditures. After all, the U.S. airline industry generated approximately $7.5 billion revenues from baggage and reservation change fees in 2017, a big leap from $5.7 billion in 2010. Change fees alone contributed $2.9 billion to total revenues.
More Stock News: This Is Bigger than the iPhone!
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Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On account of steep fuel costs, airline major American Airlines Group Inc. AAL trimmed its 2018 earnings per share guidance. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Dismal Price Performance Due to the above downsides, the Zacks Airline Industry has declined 11% so far this year against the broader Transportation sector 's 1.3% rise.
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Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. On account of steep fuel costs, airline major American Airlines Group Inc. AAL trimmed its 2018 earnings per share guidance. Carriers like Delta Air Lines, Inc. DAL , JetBlue Airways Corporation JBLU , American Airlines, Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL and Spirit Airlines, Inc. SAVE declined approximately 3.7%, 2%, 3.7%, 2.7%, 2.3% and 3.8%, respectively, at the close of business on Sep 24.
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Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. On account of steep fuel costs, airline major American Airlines Group Inc. AAL trimmed its 2018 earnings per share guidance. Carriers like Delta Air Lines, Inc. DAL , JetBlue Airways Corporation JBLU , American Airlines, Southwest Airlines Co. LUV , United Continental Holdings, Inc. UAL and Spirit Airlines, Inc. SAVE declined approximately 3.7%, 2%, 3.7%, 2.7%, 2.3% and 3.8%, respectively, at the close of business on Sep 24.
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On account of steep fuel costs, airline major American Airlines Group Inc. AAL trimmed its 2018 earnings per share guidance. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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c83af487-4b6c-444e-b5c2-124d7386cb20
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6923.0
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2018-09-24 00:00:00 UTC
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United Continental Rides High on Upbeat Forecasts, Up 33% YTD
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AAL
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https://www.nasdaq.com/articles/united-continental-rides-high-on-upbeat-forecasts-up-33-ytd-2018-09-24
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nan
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nan
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Shares of United Continental Holdings, Inc . UAL have surged more than 33% so far this year against the industry 's 11% decline.
The company provided a bullish third-quarter 2018 guidance at the Cowen and Company 11th Annual Global Transportation Conference on Sep 5. The carrier now anticipates third-quarter consolidated passenger unit revenues at the high end of the past guided range of 4-6% increase. Also, it expects pre-tax margin excluding special charges and the mark-to-market impact of equity investments in the high end of the earlier estimate of 8-10%.
The impressive unit revenues and pre-tax margin predictions despite rising fuel prices certainly signify a big upside. Notably, the carrier has been making efforts to offset the negative impact of high fuel costs. To this end, it recently increased fees for checked baggage. The carrier now charges $30 and $40 for checking the first and second bags, respectively. The earlier charges were $25 for the first bag and $35 for the second. This elevated fee structure, effective Aug 31, is applicable on flights operating on the North American, Caribbean and Central American routes.
Apart from United Continental, other major U.S. carriers like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Delta Air Lines, Inc. DAL have announced baggage fee hikes on the same ground. Thus with several U.S. carriers engaged in the baggage fee-hike activity, the U.S. Congress had initially planned to reauthorize the Federal Aviation Administration to regulate the airlines' current fee structure pertaining to baggage and ticket change prices, in case the fee policy was found unreasonable to passengers' interest.
Ending the uncertainty, the Congress recently changed its mind to control the same. However, it has included certain rules in favor of passengers' interest. Some directives include setting a specific dimension for passenger seats with sufficient legroom and width as well as forbidding airlines from removing passengers from flights on clearing the boarding gate.
The Congress' decision not to impose regulatory measures on airlines is a huge positive for the industry players. Notably, the U.S. airline industry generated approximately $7.5 billion revenues from baggage and reservation change fees last year compared with $5.7 billion in 2010. Had the regulation been levied, the airline companies' top-line growth would have been significantly hampered.
Coming back to the company's upbeat projections, not only are its third-quarter estimates encouraging, its full-year forecasts are equally promising. The company expects adjusted earnings per share in the $7.25-$8.75 band for 2018, higher than the previous outlook between $7 and $8.50.
Owing to this positivity, the Zacks Consensus Estimate for current-quarter earnings has been revised 8.3% upward over the past 60 days. Further, the same for full-year earnings has been moved 3.8% north in the same time period.
Each stock mentioned above carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from United Continental, other major U.S. carriers like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Delta Air Lines, Inc. DAL have announced baggage fee hikes on the same ground. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier now anticipates third-quarter consolidated passenger unit revenues at the high end of the past guided range of 4-6% increase.
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Apart from United Continental, other major U.S. carriers like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Delta Air Lines, Inc. DAL have announced baggage fee hikes on the same ground. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the U.S. airline industry generated approximately $7.5 billion revenues from baggage and reservation change fees last year compared with $5.7 billion in 2010.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from United Continental, other major U.S. carriers like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Delta Air Lines, Inc. DAL have announced baggage fee hikes on the same ground. Thus with several U.S. carriers engaged in the baggage fee-hike activity, the U.S. Congress had initially planned to reauthorize the Federal Aviation Administration to regulate the airlines' current fee structure pertaining to baggage and ticket change prices, in case the fee policy was found unreasonable to passengers' interest.
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Apart from United Continental, other major U.S. carriers like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Delta Air Lines, Inc. DAL have announced baggage fee hikes on the same ground. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Also, it expects pre-tax margin excluding special charges and the mark-to-market impact of equity investments in the high end of the earlier estimate of 8-10%.
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4f64d803-8bd2-43b1-8f78-b4b13db6a0ad
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6924.0
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2018-09-24 00:00:00 UTC
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Zacks.com featured highlights include: Verso, Bed Bath, American Airlines, Avis Budget and Dillard's
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AAL
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include%3A-verso-bed-bath-american-airlines-avis-budget-and
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nan
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nan
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For Immediate Release
Chicago, IL - September 24, 2018 - Stocks in this week's article are Verso Corp.VRS , Bed Bath & Beyond Inc.BBBY , American Airlines Group Inc.AAL , Avis Budget Group Inc.CAR and Dillard's Inc.DDS .
Recent Analyst Upgrades Make These 5 Stocks Attractive
With a deluge of stocks flooding the market at any point of time, investors might end up making a wrong choice while designing their portfolio in the absence of proper know-how.
Moreover, time constraint makes the task more difficult. Choice of improper stocks can adversely impact returns, thereby ruining the objective of investing hard-earned money in the highly unpredictable stock market.
Broker Advice - The Way Out
To avoid such confusion, investors, more often than not rely guidance provided by brokers- who are deemed to be experts in the field. The opinion of brokers is highly sought after by investors as they have a clear insight into the nitty gritty of the investment world. Individual investors, more often than not, do not have access to such detailed and well-researched information.
Out of the three types of brokers (sell-side, buy-side and independent) present, sell-side analysts are the most common. They are employed by various brokerage firms to provide unbiased opinion on stocks. Meanwhile, buy-side analysts are employed by hedge funds, mutual funds and others while independent analysts directly sell their reports to investors.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/324211/recent-analyst-upgrades-make-these-5-stocks-attractive
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: www.Zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
Verso Corporation (VRS): Free Stock Analysis Report
Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
Dillard's, Inc. (DDS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - September 24, 2018 - Stocks in this week's article are Verso Corp.VRS , Bed Bath & Beyond Inc.BBBY , American Airlines Group Inc.AAL , Avis Budget Group Inc.CAR and Dillard's Inc.DDS . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. Broker Advice - The Way Out To avoid such confusion, investors, more often than not rely guidance provided by brokers- who are deemed to be experts in the field.
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For Immediate Release Chicago, IL - September 24, 2018 - Stocks in this week's article are Verso Corp.VRS , Bed Bath & Beyond Inc.BBBY , American Airlines Group Inc.AAL , Avis Budget Group Inc.CAR and Dillard's Inc.DDS . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/324211/recent-analyst-upgrades-make-these-5-stocks-attractive Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - September 24, 2018 - Stocks in this week's article are Verso Corp.VRS , Bed Bath & Beyond Inc.BBBY , American Airlines Group Inc.AAL , Avis Budget Group Inc.CAR and Dillard's Inc.DDS . Recent Analyst Upgrades Make These 5 Stocks Attractive With a deluge of stocks flooding the market at any point of time, investors might end up making a wrong choice while designing their portfolio in the absence of proper know-how.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - September 24, 2018 - Stocks in this week's article are Verso Corp.VRS , Bed Bath & Beyond Inc.BBBY , American Airlines Group Inc.AAL , Avis Budget Group Inc.CAR and Dillard's Inc.DDS . Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016.
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c4126417-03e1-4c7e-8f96-1784bc41d250
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6925.0
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2018-09-21 00:00:00 UTC
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Recent Analyst Upgrades Make These 5 Stocks Attractive
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AAL
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https://www.nasdaq.com/articles/recent-analyst-upgrades-make-these-5-stocks-attractive-2018-09-21
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nan
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nan
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With a deluge of stocks flooding the market at any point of time, investors might end up making a wrong choice while designing their portfolio in the absence of proper know-how.
Moreover, time constraint makes the task more difficult. Choice of improper stocks can adversely impact returns, thereby ruining the objective of investing hard-earned money in the highly unpredictable stock market.
Broker Advice - The Way Out
To avoid such confusion, investors, more often than not rely guidance provided by brokers- who are deemed to be experts in the field. The opinion of brokers is highly sought after by investors as they have a clear insight into the nitty gritty of the investment world. Individual investors, more often than not, do not have access to such detailed and well-researched information.
Out of the three types of brokers (sell-side, buy-side and independent) present, sell-side analysts are the most common. They are employed by various brokerage firms to provide unbiased opinion on stocks. Meanwhile, buy-side analysts are employed by hedge funds, mutual funds and others while independent analysts directly sell their reports to investors.
Brokers revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. Naturally, their stock related actions (upgrade or downgrade) serve as an invaluable guide as far as fixing target price of stock (s) is concerned.
Making the Most of Broker Opinions
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions to earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company's top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75 : This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10 : This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10 : The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5 : A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days : Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000 : This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com : This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Verso CorporationVRS : Founded in 2006 and headquartered in Miamisburg, OH, Verso is a leading North American producer of coated paper. This Zacks Rank #1 (Strong Buy) stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward to the tune of a massive 105% over the last 60 days. You can see the complete list of today's Zacks #1 Rank stocks here .
Bed Bath & Beyond Inc. BBBY , an omnichannel retailer of domestics merchandise and home furnishings, carries a Zacks Rank #3 (Hold). The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 0.9% upward over the last 60 days.
American Airlines Group Inc.AAL operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. This Zacks Rank #3 airline behemoth is headquartered in Fort Worth, TX. The company has an impressive history with respect to earnings per share. It outshined the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 2.3%.
Avis Budget Group Inc.CAR provides vehicle rental services through a network of approximately 10,000 car and truck rental locations in the United States, Canada, Australia, New Zealand, Latin America, the Caribbean, and parts of Asia. This Zacks Rank #3 stock has seen the Zacks Consensus Estimate for current-year earnings being revised 0.6% upward over the last 30 days.
Dillard's Inc. DDS is a large departmental store chain featuring fashion apparel and home furnishings. This Zacks Rank #3 stock has an impressive expected earnings per share growth rate of 9.7% for three to five years.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance.
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
Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
Verso Corporation (VRS): Free Stock Analysis Report
Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
Dillard's, Inc. (DDS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc.AAL operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. With a deluge of stocks flooding the market at any point of time, investors might end up making a wrong choice while designing their portfolio in the absence of proper know-how.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. This Zacks Rank #1 (Strong Buy) stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward to the tune of a massive 105% over the last 60 days.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. This Zacks Rank #1 (Strong Buy) stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward to the tune of a massive 105% over the last 60 days.
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American Airlines Group Inc.AAL operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Verso Corporation (VRS): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report To read this article on Zacks.com click here. The price/sales ratio takes care of the company's top line, making the strategy foolproof.
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ed22875b-93bf-40d9-a9a7-17ddebcd5d0f
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6926.0
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2018-09-21 00:00:00 UTC
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Nasdaq 100 Movers: MU, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-mu-aal-2018-09-21
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nan
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nan
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. Year to date, American Airlines Group has lost about 17.2% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Micron Technology ( MU ), trading down 2.9%. Micron Technology is showing a gain of 8.7% looking at the year to date performance.
Two other components making moves today are Incyte ( INCY ), trading down 1.8%, and Take-Two Interactive Software ( TTWO ), trading up 2.2% on the day.
VIDEO: Nasdaq 100 Movers: MU, AAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. VIDEO: Nasdaq 100 Movers: MU, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Micron Technology ( MU ), trading down 2.9%.
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VIDEO: Nasdaq 100 Movers: MU, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. Year to date, American Airlines Group has lost about 17.2% of its value.
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. VIDEO: Nasdaq 100 Movers: MU, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Micron Technology ( MU ), trading down 2.9%.
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In early trading on Friday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. VIDEO: Nasdaq 100 Movers: MU, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Micron Technology ( MU ), trading down 2.9%.
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e2b79c3d-8229-4c49-8721-946ea2f4b6c1
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6927.0
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2018-09-21 00:00:00 UTC
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Stock Market News For Sep 21, 2018
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-21-2018-2018-09-21
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nan
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nan
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Wall Street ended sharply higher on Thursday as blue-chip stocks induced broad-based rally leading to record high closes for the Dow and S&P 500. The Nasdaq Composite also posted impressive gains. Strong U.S. economic fundamentals, robust labor market and growing confidence of investors that trade-related conflicts may not be as worse as was earlier believed to be fueled market uptrend.
The Dow Jones Industrial Average (DJI) closed at 26,656.98, climbing 1% or 251.22 points. The S&P 500 Index (INX) advanced 0.8% to close at 2,930.75. The Nasdaq Composite Index (IXIC) closed at 8,028.23, gaining 1%. A total of 6.88 billion shares were traded on Thursday, higher than the last 20-session average of 6.31 billion shares. Advancers outnumbered decliners on the NYSE by 2.15-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 2.68-to-1 ratio. The CBOE VIX increased 0.4% to close at 11.80.
How Did the Benchmarks Perform?
The Dow closed in positive territory for the third straight day closing at an all-time high closing. The previous record high was set in Jan 26. Notably, 28 components of the 30-stock blue-chip index finished in the green while two ended in the red.
The S&P 500 finished in the green for the third straight day also closing at an all-time high. The last record high was set in Aug 29. The benchmark index's gain was led by an increase of 1.3% in Consumer Staples Select Sector SPDR (XLP) and a 1.2% rise in Technology Select Sector SPDR (XLK). Notably, all the 11 sectors of the broad-market index ended in the green.
The tech-heavy Nasdaq Composite ended in the green reversing its previous day's loss due to strong showing by large-cap tech giants. The tech-laded index has regained its psychologically important 8,000 level and is just 1.3% away from its all-time high set in Aug 30.
Blue-chip Stocks Fueled Market Rally
Recent strong momentum in stock markets has been primarily fueled by large-cap blue-chip stocks with investors shrugging off trade war jitters. A strong U.S. economy, robust job market and record corporate profits in the first half of 2018 are more than offsetting trade inflicted wounds.
Moreover, relatively soft retaliatory measures taken by China against the latest round of U.S. tariffs were welcomed by investors. On Sep 17, President Trump announced of levying a tariffs worth $200 billion on Chinese goods. The new tariffs will be implemented from Sep 24. However, on Sep 18, China retaliated with tariffs on just $60 billion of U.S. goods. Notably, the rate of tariff was kept within the range of 5% to 10% compared with 20% to 25% stated earlier.
Meanwhile, the U.S. government set the tariff rate at 10% which will be increased to 25% from Jan 1, 2019. This was in contrast to Trump administration's earlier stand of imposing 25% tariff from the beginning. The market anticipates that by lowering tariff rate for the time being the government has given time to corporates to adjust to the changed scenario.
Consequently, shares of trade-sensitive stocks like The Boeing Co. BA , Caterpillar Inc. CAT , Apple Inc. AAPL and Amazon.com Inc. AMZN were up 0.6%, 2.1%, 0.8% and 0.9%, respectively. Apple carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Economic Data
The Department of Labor reported that initial jobless claims fell by 3,000 to a seasonally adjusted level of 201,000 for the week ended Sep. 15, marking its lowest level since November 1969. The figure was lower than the consensus estimate of 203,000.
The National Association of Realtors reported that the level of seasonally adjusted existing-home sales was registered at 5.34 million in August, remaining flat sequentially. However, the figure missed the consensus estimate of 5.37 million.
The Philadelphia Fed reported that its manufacturing index in September jumped to a two-month high at 22.9. The reading was a major improvement from the August reading of 11.9.
Stock That Made Headline
American Airlines Now Jumps on the Bag Fee Hike Bandwagon
Putting all speculations to rest, American Airlines Group Inc. AAL has finally joined its rivals in increasing its baggage fees. ( Read More )
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stock That Made Headline American Airlines Now Jumps on the Bag Fee Hike Bandwagon Putting all speculations to rest, American Airlines Group Inc. AAL has finally joined its rivals in increasing its baggage fees. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street ended sharply higher on Thursday as blue-chip stocks induced broad-based rally leading to record high closes for the Dow and S&P 500.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stock That Made Headline American Airlines Now Jumps on the Bag Fee Hike Bandwagon Putting all speculations to rest, American Airlines Group Inc. AAL has finally joined its rivals in increasing its baggage fees. Blue-chip Stocks Fueled Market Rally Recent strong momentum in stock markets has been primarily fueled by large-cap blue-chip stocks with investors shrugging off trade war jitters.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Stock That Made Headline American Airlines Now Jumps on the Bag Fee Hike Bandwagon Putting all speculations to rest, American Airlines Group Inc. AAL has finally joined its rivals in increasing its baggage fees. The Dow closed in positive territory for the third straight day closing at an all-time high closing.
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Stock That Made Headline American Airlines Now Jumps on the Bag Fee Hike Bandwagon Putting all speculations to rest, American Airlines Group Inc. AAL has finally joined its rivals in increasing its baggage fees. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. The Nasdaq Composite Index (IXIC) closed at 8,028.23, gaining 1%.
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88e28377-7285-4501-b7dd-3ec1b6da606a
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6928.0
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2018-09-21 00:00:00 UTC
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Market Close Report: NASDAQ trading volume joins the top ten ranking for the year. NASDAQ Composite Index closes at 7,986.96
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-trading-volume-joins-top-ten-ranking-year-nasdaq-composite-0
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Today's session closes with the NASDAQ Composite Index volume reaching the 10th place in the top ten list for this year. The last time the index closed above 3.19 billion shares was on Apr 04 2018. The total shares traded for the NASDAQ was over 3.33 billion. Declining stocks led advancers by 1.21 to 1 ratio. There were 1399 advancers and 1691 decliners for the day. On the NASDAQ Stock Exchange 41 stocks reached a 52 week high and 20 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -.5% for the day; a total of -37.96 points. The current value is 7,531.07. Micron Technology, Inc. ( MU ) had the largest percent change down (-2.93%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.06%.
The Dow Jones index closed up .32% for the day; a total of 86.52 points. The current value is 26,743.5. Intel Corporation ( INTC ) had the largest percent change down (-1.17%) while McDonald's Corporation ( MCD ) had the largest percent change gain rising 2.8%.
NASDAQ Market Wrap
As of 9/21/2018 4:45:02 PM
NASDAQ COMPOSITE INDEX 10th VOLUME MILESTONE3.33 billion JOINS 2018TOP TEN 41 STOCKS REACHED A 52 WEEK HIGH 20 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.06 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NASDAQ Market Wrap As of 9/21/2018 4:45:02 PM NASDAQ COMPOSITE INDEX 10th VOLUME MILESTONE3.33 billion JOINS 2018TOP TEN 41 STOCKS REACHED A 52 WEEK HIGH 20 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.06 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Micron Technology, Inc. ( MU ) had the largest percent change down (-2.93%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.06%. Today's session closes with the NASDAQ Composite Index volume reaching the 10th place in the top ten list for this year.
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Micron Technology, Inc. ( MU ) had the largest percent change down (-2.93%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.06%. NASDAQ Market Wrap As of 9/21/2018 4:45:02 PM NASDAQ COMPOSITE INDEX 10th VOLUME MILESTONE3.33 billion JOINS 2018TOP TEN 41 STOCKS REACHED A 52 WEEK HIGH 20 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.06 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. On the NASDAQ Stock Exchange 41 stocks reached a 52 week high and 20 those reaching lows totaled.
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NASDAQ Market Wrap As of 9/21/2018 4:45:02 PM NASDAQ COMPOSITE INDEX 10th VOLUME MILESTONE3.33 billion JOINS 2018TOP TEN 41 STOCKS REACHED A 52 WEEK HIGH 20 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.06 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Micron Technology, Inc. ( MU ) had the largest percent change down (-2.93%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.06%. On the NASDAQ Stock Exchange 41 stocks reached a 52 week high and 20 those reaching lows totaled.
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NASDAQ Market Wrap As of 9/21/2018 4:45:02 PM NASDAQ COMPOSITE INDEX 10th VOLUME MILESTONE3.33 billion JOINS 2018TOP TEN 41 STOCKS REACHED A 52 WEEK HIGH 20 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.06 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Micron Technology, Inc. ( MU ) had the largest percent change down (-2.93%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.06%. There were 1399 advancers and 1691 decliners for the day.
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c9cc43a5-7c9e-464e-9fe1-8ffcfea657a2
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6929.0
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2018-09-21 00:00:00 UTC
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Why Did U.S. Airlines Stocks--AAL, DAL, LUV--Climb Today?
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AAL
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https://www.nasdaq.com/articles/why-did-us-airlines-stocks-aal-dal-luv-climb-today-2018-09-21
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Shares of the biggest U.S. airline companies surged on Friday amid a turbulent period for the industry as rising fuel costs weigh on profits and investor confidence. The recent gains stem from a move that many of the airlines have made to help combat rising costs.
Baggage Fees
JetBlue Airways JBLU was the first major U.S. carrier to announce higher fees for checked luggage at the end of August. The company, which was one of the last airlines to offer free checked bags, lifted its price for the first checked bag from $25 to $30. This move made it one of the highest fees in the entire industry. JetBlue also upped its fees for the second bag by $5 to $40. The cost of a third checked bag on JetBlue jumped from $100 to $150.
United Airlines UAL quickly followed JetBlue's lead and upped its baggage fee from $25 to $30. The airline giant also matched JetBlue's new price point for a second checked bag. United said in a statement that the change allows the company to "continue investing in the overall customer experience in today's marketplace."
It took fellow power's Delta DAL and American Airlines AAL roughly three weeks to commit to new checked bag fees. Delta announced on Wednesday that it upped its fees for the first and second bags by $5 each to match United and JetBlue's $30 and $40 price points. American joined the party Thursday to match the price points of its rivals.
Investors should note that these fees have become increasingly important to airlines in recent years. Plus, these checked bag fees are often charged on both ends of a round-trip flight. U.S. airlines reportedly make about a quarter of their revenue from fees. These carriers pulled in a total of $7.4 billion from fees on checked bags and ticket changes last year. American, Delta, and United brought in a bulk of this revenue.
Shares of American jumped over 4% Friday on the back of its baggage fee hike announcement. DAL popped over 3%, while UAL climbed 0.80%. Meanwhile, Southwest Airlines LUV saw its stock price surge over 2.2%. Southwest is an outlier among its airline peers as the company still offers customers two free checked bags.
Friday's gains come amid a downturn for the U.S. airline industry. Despite strong quarterly passenger totals, airlines weren't able to raise their prices quickly enough to make up for what was a roughly 55% increase in fuel costs from a year ago. Rising fuel costs have forced many airlines to lower their profit guidance. But these higher baggage fees might help offset fuel prices.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It took fellow power's Delta DAL and American Airlines AAL roughly three weeks to commit to new checked bag fees. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of the biggest U.S. airline companies surged on Friday amid a turbulent period for the industry as rising fuel costs weigh on profits and investor confidence.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. It took fellow power's Delta DAL and American Airlines AAL roughly three weeks to commit to new checked bag fees. United Airlines UAL quickly followed JetBlue's lead and upped its baggage fee from $25 to $30.
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It took fellow power's Delta DAL and American Airlines AAL roughly three weeks to commit to new checked bag fees. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company, which was one of the last airlines to offer free checked bags, lifted its price for the first checked bag from $25 to $30.
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It took fellow power's Delta DAL and American Airlines AAL roughly three weeks to commit to new checked bag fees. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. The cost of a third checked bag on JetBlue jumped from $100 to $150.
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679a6bcf-95eb-45af-8c2a-9041ca83b6bb
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6930.0
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2018-09-21 00:00:00 UTC
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American Airlines Now Jumps on the Bag Fee Hike Bandwagon
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AAL
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https://www.nasdaq.com/articles/american-airlines-now-jumps-on-the-bag-fee-hike-bandwagon-2018-09-21
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Putting all speculations to rest, American Airlines Group Inc . AAL has finally joined its rivals in increasing its baggage fees. The carrier has raised its checked bag fee by $5 each for both the first and the second bags. Per the renewed fee structure, passengers will have to pay $30 for the first checked bag fee and $40 for the second. The revamped fee policy is applicable on domestic routes, Puerto Rico, the US Virgin Islands and the Caribbean with immediate effect. However, certain privileged members will continue to enjoy free baggage checking.
JetBlue Airways Corporation JBLU is the first airline to initiate this move late last month for its domestic services. Other major U.S. carriers like United Continental Holdings, Inc. UAL and most recently, Delta Air Lines, Inc. DAL too increased their respective baggage fees on operations across the United States. Also, each carrier has hiked its bag fee by the same amount and followed the same structure. However, carriers like JetBlue increased fees to change tickets. The carrier now charges $200 for changing or canceling a ticket priced above $200. Earlier, the charge was $150 for the same. However, passengers belonging to the highest fare class category are exempted from this renewed fee structure.
Each of the carriers mentioned above carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Following JetBlue's footsteps, Canadian carriers like Air Canada and WestJet Airlines raised rates for bag checking in late August.
American Airlines Group Inc. Price
American Airlines Group Inc. Price | American Airlines Group Inc. Quote
With crude oil prices persistently at a high level, it is not surprising that the airlines are trying hard to offset the impact by hiking checked bag fees. Adding to the woes are rising labor costs. Of late, airlines have been striking frequent labor contracts in a bid to satisfy employee needs. However, the move ended up in pushing up labor costs.
On the other hand, with several U.S. carriers raising baggage fees successively, the Congress is debating on whether the airline baggage and ticket change prices are "reasonable and proportional to the costs incurred by the air carrier." If the existing fee structure is found unreasonable, the Congress will pass a provision to reauthorize the Federal Aviation Administration (FAA) for regulating the airlines' current fee structure. The U.S. House of Representatives and the Senate have been holding sessions on getting a compromise bill passed by Sep 30.
Amid the controversy, American Airlines chairman and CEO Doug Parker has warned of not allowing customers to change nonrefundable tickets in case the FAA starts controlling airline fees pertaining to cancellation, change, baggage and other ancillary fees.
Notably, U.S. carriers generated approximately $2.9 billion in change fees last year with American Airlines contributing the maximum share.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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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
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL has finally joined its rivals in increasing its baggage fees. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. The revamped fee policy is applicable on domestic routes, Puerto Rico, the US Virgin Islands and the Caribbean with immediate effect.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL has finally joined its rivals in increasing its baggage fees. Other major U.S. carriers like United Continental Holdings, Inc. UAL and most recently, Delta Air Lines, Inc. DAL too increased their respective baggage fees on operations across the United States.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL has finally joined its rivals in increasing its baggage fees. American Airlines Group Inc. Price American Airlines Group Inc. Price | American Airlines Group Inc. Quote With crude oil prices persistently at a high level, it is not surprising that the airlines are trying hard to offset the impact by hiking checked bag fees.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL has finally joined its rivals in increasing its baggage fees. However, carriers like JetBlue increased fees to change tickets.
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67b0e585-0604-4300-adb4-ae7b4b544022
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6931.0
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2018-09-20 00:00:00 UTC
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Airlines Attempt to Offset Rising Costs Via Baggage Fee Hike
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AAL
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https://www.nasdaq.com/articles/airlines-attempt-to-offset-rising-costs-via-baggage-fee-hike-2018-09-20
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In a bid to counter the challenges posed by escalating costs, airlines are on a spree to raise fees for checked bags. Delta Air Lines, Inc. DAL is the latest carrier to have joined the bandwagon, following similar moves by other industry participants, namely JetBlue Airways Corporation JBLU and United Continental Holdings, Inc. UAL late in August.
Delta has hiked its first checked bag fee to $30 from the previous $25 and the second checked bag fee to $40 from $35 earlier on domestic routes. Earlier in April, the carrier started charging $60 for the first checked bag from basic-economy class passengers travelling to and from Europe.
United Continental and JetBlue too follow the same fee structure for domestic services except that the latter also levied an increase in fees to change tickets. JetBlue now charges $200 for changing or canceling a ticket valued at more than $200. Earlier it used to charge $150 for the same. However, passengers belonging to the highest fare class category are exempted from the renewed fee structure. The low-cost carrier's fee policy for changing nonrefundable tickets on domestic routes matches that of the likes of American Airlines Group Inc. AAL , Delta and United Continental.
While Delta generated nearly $908 million in baggage fees last year (thrice the 2008 figure), the U.S. airline industry's revenues from baggage and reservation change fees jumped to $7.5 billion in 2017 from $5.7 billion in 2010.
Following the footsteps of JetBlue, the first to make the fee-hike move, Canadian carriers like Air Canada and WestJet Airlines, too increased charges for bag checking.
Rising Fuel Prices Behind the Trend
The prime reason behind this strategic move by airlines can be attributed to escalating fuel prices. Oil prices have risen roughly 20% year over year. Since fuel expenses are significant for airlines, an increase in oil prices is detrimental to the health of the industry. Apart from fuel expenses, high labor costs are a drag on the sector participants. Of late, airlines have been engaging in frequent labor deals with pilots and crew members, giving in to their demands for a better pay structure among other benefits. In this regard, it is worth mentioning the recent struggles of the European carrier Ryanair Holdings plc RYAAY pertaining to a fair deal with its pilots and cabin crew. (Read more: Ryanair Faces Risk of Another Major Strike at Month-End )
US Congress Intervention in Baggage Fee Hikes
Amid several U.S. carriers raising baggage fees successively, the Congress is debating on whether the airline baggage and ticket change prices are "reasonable and proportional to the costs incurred by the air carrier." If the existing fee structure is found unreasonable, the Congress will pass a provision that will reauthorize the Federal Aviation Administration to regulate the airlines' current fee structure. The U.S. House of Representatives and the Senate have been holding sessions on getting a compromise bill passed by Sep 30.
Dismal Price Performance
The Zacks Airline Industry has declined 13.9% in the past six months against the broader Transportation sector 's 3.2% growth. This underperformance can be linked to the industry's persistent battle due to rising operating expenses, mainly fuel.
Will American Airlines Follow Suit?
The immediate focus is now on whether American Airlines walks the path of its rivals in hiking baggage fees. Meanwhile, low-cost carrier Southwest Airlines Co. LUV exempts fee for two checked bags and executives further confirm the carrier's intention not to change the same for the time being.
Other low-cost carriers like Spirit Airlines, Inc. SAVE and Allegiant Travel Company already charge $30 for the first checked bag on some routes. These airlines have separate bag fees on different routes.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The low-cost carrier's fee policy for changing nonrefundable tickets on domestic routes matches that of the likes of American Airlines Group Inc. AAL , Delta and United Continental. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. DAL is the latest carrier to have joined the bandwagon, following similar moves by other industry participants, namely JetBlue Airways Corporation JBLU and United Continental Holdings, Inc. UAL late in August.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. The low-cost carrier's fee policy for changing nonrefundable tickets on domestic routes matches that of the likes of American Airlines Group Inc. AAL , Delta and United Continental. Delta Air Lines, Inc. DAL is the latest carrier to have joined the bandwagon, following similar moves by other industry participants, namely JetBlue Airways Corporation JBLU and United Continental Holdings, Inc. UAL late in August.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. The low-cost carrier's fee policy for changing nonrefundable tickets on domestic routes matches that of the likes of American Airlines Group Inc. AAL , Delta and United Continental. While Delta generated nearly $908 million in baggage fees last year (thrice the 2008 figure), the U.S. airline industry's revenues from baggage and reservation change fees jumped to $7.5 billion in 2017 from $5.7 billion in 2010.
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The low-cost carrier's fee policy for changing nonrefundable tickets on domestic routes matches that of the likes of American Airlines Group Inc. AAL , Delta and United Continental. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental and JetBlue too follow the same fee structure for domestic services except that the latter also levied an increase in fees to change tickets.
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22efc865-4adb-4670-b2bc-8e35c6424608
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6932.0
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2018-09-20 00:00:00 UTC
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Zacks Market Edge Highlights: Global X Greek ETF, Royal Caribbean, Norwegian Cruise Line Holdings, American Airlines and International Consolidated
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AAL
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https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-global-x-greek-etf-royal-caribbean-norwegian-cruise-line
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For Immediate Release
Chicago, IL - September 20, 2018 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/323895/is-the-greek-crisis-finally-over )
Is the Greek Crisis Finally Over?
Welcome to Episode #147 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Zacks intern Afree Mian and Zacks Product Manager Harry Kougias for the annual Market Edge podcast on Greece.
Harry is Greek, so he has volunteered to be Zacks resident expert on all things Greece. He also just recently returned from a summer on the mainland. He visits Greece every year and is glad to provide an update on the economic recovery going on there.
Afree just recently took his first trip to Greece, so he has a tourist eye on all things Greece as he spent time on Naxos and Mykonos, just as the summer hordes were heading home.
What Economic Challenges Face Greece?
While its economy has improved, the unemployment rate still hovers around 20%, the highest in the European Union.
It also still faces brain drain from its top professionals who graduate college and then head to Germany, the Netherlands or other countries for more opportunities.
Additionally, there are still refugees coming into the country as a first stop towards a new life in Europe.
Can Tourism Save Greece?
2018 should be another record year for Greek tourism. In 2017, a record 27 million went to Greece prompting some locations, such as Santorini, to actually restrict the number of cruise ships that could dock on any given day. There was a fear of over tourism.
But 2018 is expected to see even more, as 32 million travelers are expected. For comparison purposes, the country saw just 15 million visitors in 2010.
Tourism is now big business and many new hotels and restaurants are opening as a result. But tourism is a mostly seasonal business, at least on most of the islands.
Can this be translated into year-round gains on the mainland?
How Investors Can Own a Piece of Greece
There aren't many publicly traded Greek companies that are listed on the American exchanges. Therefore, investors have to use other means if they want to invest in Greece's turnaround.
1. The Global X Greek ETF (GREK) is the easiest way for investors to buy a piece of Greece. The top holdings are mostly banks and telecom. After rallying in 2017, the ETF has taken a dive in 2018 thanks to the weakness in emerging market stocks. It's down 20.8% year-to-date. The ETF could be a deal for those looking to make some emerging markets bets.
2. Investors could also invest in travel and leisure companies that are doing business in Greece such as Royal Caribbean (RCL) and Norwegian Cruise Line Holdings (NCLH) which operate many cruises in the Greek islands.
3. Also look at the airlines. American Airlines (AAL) recently announced the first non-stop from Chicago to Athens in years. There is also non-stop Athens flights out of Newark on the Emirates. International Consolidated (ICAGY) operates British Airways, which has many flights into Greece and the islands.
No one has mentioned the "Greek Crisis" on Wall Street for quite some time. Yet, the pain of the budget and pension cuts still linger for the locals.
What else should you know about Greece's economic recovery?
Tune into this week's podcast to find out.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast . You can also catch her on Twitter at @TraceyRyniec .
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
GLBL-X/F GREC20 (GREK): ETF Research Reports
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) recently announced the first non-stop from Chicago to Athens in years. Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report To read this article on Zacks.com click here. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
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Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) recently announced the first non-stop from Chicago to Athens in years. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
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Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) recently announced the first non-stop from Chicago to Athens in years. Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
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American Airlines (AAL) recently announced the first non-stop from Chicago to Athens in years. Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report To read this article on Zacks.com click here. In this episode, Tracey is joined by Zacks intern Afree Mian and Zacks Product Manager Harry Kougias for the annual Market Edge podcast on Greece.
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d47763fd-5e79-4fdb-bb14-2febd4c80e9b
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6933.0
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2018-09-20 00:00:00 UTC
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Notable Thursday Option Activity: RL, WDC, AAL
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AAL
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https://www.nasdaq.com/articles/notable-thursday-option-activity-rl-wdc-aal-2018-09-20
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Ralph Lauren Corp (Symbol: RL), where a total of 4,654 contracts have traded so far, representing approximately 465,400 underlying shares. That amounts to about 54.4% of RL's average daily trading volume over the past month of 854,735 shares. Particularly high volume was seen for the $155 strike call option expiring October 19, 2018 , with 2,023 contracts trading so far today, representing approximately 202,300 underlying shares of RL. Below is a chart showing RL's trailing twelve month trading history, with the $155 strike highlighted in orange:
Western Digital Corp (Symbol: WDC) options are showing a volume of 23,281 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 53.2% of WDC's average daily trading volume over the past month, of 4.4 million shares. Particularly high volume was seen for the $60 strike call option expiring September 28, 2018 , with 2,374 contracts trading so far today, representing approximately 237,400 underlying shares of WDC. Below is a chart showing WDC's trailing twelve month trading history, with the $60 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 29,028 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 51.1% of AAL's average daily trading volume over the past month, of 5.7 million shares. Particularly high volume was seen for the $23 strike put option expiring January 17, 2020 , with 6,055 contracts trading so far today, representing approximately 605,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange:
For the various different available expirations for RL options , WDC options , or AAL options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $23 strike put option expiring January 17, 2020 , with 6,055 contracts trading so far today, representing approximately 605,500 underlying shares of AAL. Below is a chart showing WDC's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 29,028 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 51.1% of AAL's average daily trading volume over the past month, of 5.7 million shares.
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That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 51.1% of AAL's average daily trading volume over the past month, of 5.7 million shares. Below is a chart showing WDC's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 29,028 contracts thus far today. Particularly high volume was seen for the $23 strike put option expiring January 17, 2020 , with 6,055 contracts trading so far today, representing approximately 605,500 underlying shares of AAL.
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Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: For the various different available expirations for RL options , WDC options , or AAL options , visit StockOptionsChannel.com. Below is a chart showing WDC's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 29,028 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 51.1% of AAL's average daily trading volume over the past month, of 5.7 million shares.
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Particularly high volume was seen for the $23 strike put option expiring January 17, 2020 , with 6,055 contracts trading so far today, representing approximately 605,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: For the various different available expirations for RL options , WDC options , or AAL options , visit StockOptionsChannel.com. Below is a chart showing WDC's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 29,028 contracts thus far today.
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2efa9902-ff0e-456f-be70-48ab31a1fef4
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6934.0
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2018-09-19 00:00:00 UTC
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2 Stocks to Consider Buying Instead of Ryanair Stock
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AAL
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https://www.nasdaq.com/articles/2-stocks-consider-buying-instead-ryanair-stock-2018-09-19
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Is Ryanair (OTCMKTS: RYAAY ) the worst stock investors can buy? Of course not! But there are plenty of other names to consider over Ryanair stock, even in the same industry.
7 Small-Cap ETFs Powering the Markets
A Closer Look at Ryanair Stock
The problem with Ryanair? For starters, it's not the most well-known airline company to investors. Not that the U.S. is the only country with investors, but names like Spirit Airlines (NYSE: SAVE ), Delta Air Lines (NYSE: DAL ), United Continental (NYSE: UAL ), American Airlines (NASDAQ: AAL ) and Southwest Airlines (NYSE: LUV ) are much more familiar.
Second, this is not an expensive group of stocks. Not long ago, I wrote a piece looking at the four best airline stocks to buy . Each name on the list had positive earnings growth, while three of the four had a current price-to-earnings (P/E) ratio in the single digits.
That's not the case with Ryanair stock. Currently, RYAAY stock trades at about 15.3 times this year's earnings. While estimates call for 8.7% revenue growth this year and 11% growth next year - which is better than all of the companies on our linked list above - the 10.5% expected earnings decline this year is worse than all of them.
While expectations call for an impressive rebound in 2019 of 14% growth, that's also below all four stocks we previously examined. Finally, Ryanair stock doesn't pay a dividend, while three of the four others do.
To sum it up: the revenue growth is superior, but earnings growth is not. The valuation is higher and the yield is lower. This spells "pass" in my book, as long as I'm looking to buy stocks in this industry.
As for the charts, RYAAY stock is doing anything but taking flight. This $94 level is acting as decent support, while $100 to $102.50 is likely resistance. Should support fail, the next significant level is down near $87.
Click to Enlarge
Delta Air Lines
Click to Enlarge
Our favorite pick from the linked article above remains Delta. At the time, shares were trading near $50, while range resistance was near $56. After pushing through resistance, DAL stock topped out near its prior high, around $60. Aggressive bulls can justify a position now just below $58. Patient bulls will wait for another retest of prior resistance at $56, which successfully held as support earlier this month.
After the rally, shares trade at just 10.3 times this year's earnings. Expectations call for 13.2% earnings growth this year and an acceleration to 19% growth in 2019. On the revenue front, analysts expect 7.5% growth this year and 4.6% growth in 2019. As earnings growth outpaces revenue growth, it's clear that margins are set to expand over the next 18 months.
With a PEG ratio of just 0.62, solid profitability and impressive growth, it's clear that DAL stock is pretty darn cheap. Shares pay out a 2.5% dividend yield - hardly a negligible mark. Finally, management remains quite committed to returning plenty of cash to shareholders, given the company's impressive cash-flow generation.
Southwest Airlines Over RYAAY Stock?
Click to Enlarge
Should you buy LUV stock over RYAAY stock? Most signs point to yes. We were watching LUV stock near $50 to see if support would hold and whether it would break out of its downtrend. Both came to fruition and even though LUV stock is now at $62, I would rather bet on a stock with the wind at its back than on one that's struggling to take off.
Shares are doing a nice job consolidating around the $62 level, but a slight pullback to $60 is more attractive. Prior resistance should come into play as support, while the 50-day moving average should help as well.
10 Best High-Growth Stocks for Young Investors
At this mark, LUV stock will yield about 1.1% and trade at 14.4 times this year's earnings. While those marks may not be all that impressive, Southwest is doing better than its peers like AAL and SAVE. And while its valuation is among the highest in the group (but still lower than RYAAY), LUV boasts expectations for 19% earnings growth this year and almost 22% next year.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
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The post 2 Stocks to Consider Buying Instead of Ryanair Stock appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Not that the U.S. is the only country with investors, but names like Spirit Airlines (NYSE: SAVE ), Delta Air Lines (NYSE: DAL ), United Continental (NYSE: UAL ), American Airlines (NASDAQ: AAL ) and Southwest Airlines (NYSE: LUV ) are much more familiar. While those marks may not be all that impressive, Southwest is doing better than its peers like AAL and SAVE. Patient bulls will wait for another retest of prior resistance at $56, which successfully held as support earlier this month.
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Not that the U.S. is the only country with investors, but names like Spirit Airlines (NYSE: SAVE ), Delta Air Lines (NYSE: DAL ), United Continental (NYSE: UAL ), American Airlines (NASDAQ: AAL ) and Southwest Airlines (NYSE: LUV ) are much more familiar. While those marks may not be all that impressive, Southwest is doing better than its peers like AAL and SAVE. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is Ryanair (OTCMKTS: RYAAY ) the worst stock investors can buy?
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Not that the U.S. is the only country with investors, but names like Spirit Airlines (NYSE: SAVE ), Delta Air Lines (NYSE: DAL ), United Continental (NYSE: UAL ), American Airlines (NASDAQ: AAL ) and Southwest Airlines (NYSE: LUV ) are much more familiar. While those marks may not be all that impressive, Southwest is doing better than its peers like AAL and SAVE. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is Ryanair (OTCMKTS: RYAAY ) the worst stock investors can buy?
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Not that the U.S. is the only country with investors, but names like Spirit Airlines (NYSE: SAVE ), Delta Air Lines (NYSE: DAL ), United Continental (NYSE: UAL ), American Airlines (NASDAQ: AAL ) and Southwest Airlines (NYSE: LUV ) are much more familiar. While those marks may not be all that impressive, Southwest is doing better than its peers like AAL and SAVE. Click to Enlarge Should you buy LUV stock over RYAAY stock?
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87b9696b-7b2e-4e82-862d-ee12b545c3e6
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6935.0
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2018-09-19 00:00:00 UTC
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Is the Greek Crisis Finally Over?
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AAL
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https://www.nasdaq.com/articles/greek-crisis-finally-over-2018-09-19
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nan
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nan
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(1: 00 ) - First Hand Look At Greece's Economics
(6: 10 ) - Tourist Outlook On Greece
(9: 20 ) - What Forms Of Payment Are Popular?
(12: 00 ) - Foreign Property Investment
(15: 40 ) - Is Greece Finally Turning Around?
(21: 30 ) - Brexit Impact and Where to Invest
(27: 15 ) - Episode Roundup: GREK, RCL, NCL, BEL, RYAAY, ICAGY, AAL
Podcast@Zacks.com
Welcome to Episode #147 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Zacks intern Afree Mian and Zacks Product Manager Harry Kougias for the annual Market Edge podcast on Greece.
Harry is Greek, so he has volunteered to be Zacks resident expert on all things Greece. He also just recently returned from a summer on the mainland. He visits Greece every year and is glad to provide an update on the economic recovery going on there.
Afree just recently took his first trip to Greece, so he has a tourist eye on all things Greece as he spent time on Naxos and Mykonos, just as the summer hordes were heading home.
What Economic Challenges Face Greece?
While its economy has improved, the unemployment rate still hovers around 20%, the highest in the European Union.
It also still faces brain drain from its top professionals who graduate college and then head to Germany, the Netherlands or other countries for more opportunities.
Additionally, there are still refugees coming into the country as a first stop towards a new life in Europe.
Can Tourism Save Greece?
2018 should be another record year for Greek tourism. In 2017, a record 27 million went to Greece prompting some locations, such as Santorini, to actually restrict the number of cruise ships that could dock on any given day. There was a fear of over tourism.
But 2018 is expected to see even more, as 32 million travelers are expected. For comparison purposes, the country saw just 15 million visitors in 2010.
Tourism is now big business and many new hotels and restaurants are opening as a result. But tourism is a mostly seasonal business, at least on most of the islands.
Can this be translated into year-round gains on the mainland?
How Investors Can Own a Piece of Greece
There aren't many publicly traded Greek companies that are listed on the American exchanges. Therefore, investors have to use other means if they want to invest in Greece's turnaround.
1. The Global X Greek ETF GREK is the easiest way for investors to buy a piece of Greece. The top holdings are mostly banks and telecom. After rallying in 2017, the ETF has taken a dive in 2018 thanks to the weakness in emerging market stocks. It's down 20.8% year-to-date. The ETF could be a deal for those looking to make some emerging markets bets.
2. Investors could also invest in travel and leisure companies that are doing business in Greece such as Royal Caribbean RCL and Norwegian Cruise Line Holdings NCLH which operate many cruises in the Greek islands.
3. Also look at the airlines. American Airlines AAL recently announced the first non-stop from Chicago to Athens in years. There is also non-stop Athens flights out of Newark on the Emirates. International Consolidated ICAGY operates British Airways, which has many flights into Greece and the islands.
No one has mentioned the "Greek Crisis" on Wall Street for quite some time. Yet, the pain of the budget and pension cuts still linger for the locals.
What else should you know about Greece's economic recovery?
Tune into this week's podcast to find out.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
GLBL-X/F GREC20 (GREK): ETF Research Reports
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(21: 30 ) - Brexit Impact and Where to Invest (27: 15 ) - Episode Roundup: GREK, RCL, NCL, BEL, RYAAY, ICAGY, AAL Podcast@Zacks.com Welcome to Episode #147 of the Zacks Market Edge Podcast. American Airlines AAL recently announced the first non-stop from Chicago to Athens in years. Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report To read this article on Zacks.com click here.
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(21: 30 ) - Brexit Impact and Where to Invest (27: 15 ) - Episode Roundup: GREK, RCL, NCL, BEL, RYAAY, ICAGY, AAL Podcast@Zacks.com Welcome to Episode #147 of the Zacks Market Edge Podcast. Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL recently announced the first non-stop from Chicago to Athens in years.
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Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report To read this article on Zacks.com click here. (21: 30 ) - Brexit Impact and Where to Invest (27: 15 ) - Episode Roundup: GREK, RCL, NCL, BEL, RYAAY, ICAGY, AAL Podcast@Zacks.com Welcome to Episode #147 of the Zacks Market Edge Podcast. American Airlines AAL recently announced the first non-stop from Chicago to Athens in years.
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(21: 30 ) - Brexit Impact and Where to Invest (27: 15 ) - Episode Roundup: GREK, RCL, NCL, BEL, RYAAY, ICAGY, AAL Podcast@Zacks.com Welcome to Episode #147 of the Zacks Market Edge Podcast. American Airlines AAL recently announced the first non-stop from Chicago to Athens in years. Click to get this free report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GLBL-X/F GREC20 (GREK): ETF Research Reports Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report To read this article on Zacks.com click here.
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8eacc2d6-f3e4-4b94-aa63-1e6369211a05
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6936.0
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2018-09-19 00:00:00 UTC
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Interesting AAL Put And Call Options For January 2021
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-january-2021-2018-09-19
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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 this week, for the January 2021 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 849 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 January 2021 contracts and identified one put and one call contract of particular interest.
The put contract at the $40.00 strike price has a current bid of $5.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $40.00, but will also collect the premium, putting the cost basis of the shares at $34.05 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $41.51/share today.
Because the $40.00 strike represents an approximate 4% 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 65%. 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 14.88% return on the cash commitment, or 6.39% 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 $40.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $45.00 strike price has a current bid of $6.65. If an investor was to purchase shares of AAL stock at the current price level of $41.51/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $45.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 24.43% if the stock gets called away at the January 2021 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 $45.00 strike highlighted in red:
Considering the fact that the $45.00 strike represents an approximate 8% 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 44%. 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 16.02% boost of extra return to the investor, or 6.89% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 39%, while the implied volatility in the call contract example is 38%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $41.51) to be 32%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $45.00 strike highlighted in red: Considering the fact that the $45.00 strike represents an approximate 8% 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 this week, for the January 2021 expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $45.00 strike highlighted in red: Considering the fact that the $45.00 strike represents an approximate 8% 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 this week, for the January 2021 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new January 2021 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 $45.00 strike highlighted in red: Considering the fact that the $45.00 strike represents an approximate 8% 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 this week, for the January 2021 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new January 2021 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 January 2021 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 $45.00 strike highlighted in red: Considering the fact that the $45.00 strike represents an approximate 8% 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 this week, for the January 2021 expiration.
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be9818f1-112f-4323-be00-aa50f49a65ed
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6937.0
|
2018-09-16 00:00:00 UTC
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Is United Airlines' Bag-Fee Increase Sustainable?
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AAL
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https://www.nasdaq.com/articles/united-airlines-bag-fee-increase-sustainable-2018-09-16
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nan
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nan
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Late last month, JetBlue Airways (NASDAQ: JBLU) increased a variety of fees , including the cost to check a bag. For fares that don't include a checked-bag allowance, JetBlue now charges $30 for the first checked bag and $40 for the second one, up by $5 in each case. This move gave it the highest checked-baggage fees in the U.S. airline industry.
United Continental (NYSE: UAL) quickly moved to match its smaller rival with a $30 fee for the first checked bag and $40 for the second checked bag. However, unless American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) increase their baggage fees as well, this move could backfire for United Airlines.
United has been on a roll
Year to date, United Continental has been the best-performing U.S. airline stock. While United spooked investors earlier this year with a plan to accelerate its capacity growth to regain market share, that strategy hasn't sparked an all-out fare war, as many analysts and investors had feared.
Indeed, United Airlines posted solid unit revenue growth in the first half of 2018, and passenger revenue per available seat mile is set to rise about 6% year over year in Q3. The improving unit revenue outlook has caused United Continental stock to spike 30% just since July 11.
United Continental Stock Performance, data by YCharts .
Raising baggage fees may seem like an attractive way to drive further unit revenue growth, as long as most airlines join the fee increase. Unlike fares -- which can fluctuate wildly based on supply, demand, and airlines' pricing strategies -- fee revenue tends to be quite stable.
American and Delta haven't joined in
After United announced that it would match JetBlue's bag-fee increase, many people expected American Airlines and Delta Air Lines to quickly jump on the bandwagon. Yet two full weeks have now passed without any action by either carrier.
At the very least, it appears that American and Delta are taking a wait-and-see attitude to evaluate if booking trends change in their favor because of United's higher bag fees. They may even be planning to use their (slightly) lower checked baggage fees as a point of differentiation for marketing purposes.
United is out on a limb
Many air travelers are extremely price-sensitive, such that very small differences in fares can drive their purchase decisions. While fees don't have the same level of pricing transparency as airfares, United Airlines still risks losing its market share momentum by being out of step with its two largest rivals in terms of fees.
Moreover, JetBlue sells its "Blue Plus" fares (which include a checked bag) for a $25 premium over its baseline "Blue" fares. The $30 first-bag fee applies only if you buy a Blue fare but later decide to bring a bag anyway. Thus, in effect, JetBlue still charges the same amount as American Airlines and Delta Air Lines for the first checked bag -- unlike United.
Further complicating matters, United Airlines is now the only major airline (excluding ultra-low cost carriers) to charge extra for domestic travelers who want to bring a full-sized carry-on bag.
Initially, United and American both barred most basic economy-ticket holders from using the overhead bins. By contrast, Delta's basic economy fares had a regular carry-on bag allowance. However, a policy change went into effect at American Airlines earlier this month. After finding that it was losing customers -- presumably to Delta -- because of its basic economy carry-on bag restrictions, American decided to allow all customers to bring full-size carry-on bags once again.
In other words, in the past two weeks, United Airlines has diverged from its closest competitor, American Airlines, in terms of carry-on bag policies and checked bag fees. Perhaps the extra fee revenue it generates will more than offset the potential loss of customers to American and Delta. But it seems more likely that United will endure unacceptable market share losses if it maintains its current baggage policies and fees. This situation could lead to a hiccup in its unit revenue results as soon as next quarter -- and eventually force the carrier to adopt policies more in line with its top rivals.
10 stocks we like better than United Continental Holdings
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Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and has the following options: long January 2019 $10 calls on JetBlue Airways. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, unless American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) increase their baggage fees as well, this move could backfire for United Airlines. At the very least, it appears that American and Delta are taking a wait-and-see attitude to evaluate if booking trends change in their favor because of United's higher bag fees. Thus, in effect, JetBlue still charges the same amount as American Airlines and Delta Air Lines for the first checked bag -- unlike United.
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However, unless American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) increase their baggage fees as well, this move could backfire for United Airlines. After finding that it was losing customers -- presumably to Delta -- because of its basic economy carry-on bag restrictions, American decided to allow all customers to bring full-size carry-on bags once again. In other words, in the past two weeks, United Airlines has diverged from its closest competitor, American Airlines, in terms of carry-on bag policies and checked bag fees.
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However, unless American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) increase their baggage fees as well, this move could backfire for United Airlines. Thus, in effect, JetBlue still charges the same amount as American Airlines and Delta Air Lines for the first checked bag -- unlike United. In other words, in the past two weeks, United Airlines has diverged from its closest competitor, American Airlines, in terms of carry-on bag policies and checked bag fees.
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However, unless American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) increase their baggage fees as well, this move could backfire for United Airlines. Raising baggage fees may seem like an attractive way to drive further unit revenue growth, as long as most airlines join the fee increase. Thus, in effect, JetBlue still charges the same amount as American Airlines and Delta Air Lines for the first checked bag -- unlike United.
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ec4c3209-3142-45d4-b490-f06e1029a98b
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6938.0
|
2018-09-13 00:00:00 UTC
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FTA's Holdings Could Mean 12% Gain Potential
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AAL
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https://www.nasdaq.com/articles/ftas-holdings-could-mean-12-gain-potential-2018-09-13
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Large Cap Value AlphaDEX Fund ETF (Symbol: FTA), we found that the implied analyst target price for the ETF based upon its underlying holdings is $61.42 per unit.
With FTA trading at a recent price near $54.62 per unit, that means that analysts see 12.45% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FTA's underlying holdings with notable upside to their analyst target prices are Affiliated Managers Group Inc. (Symbol: AMG), Invesco Ltd (Symbol: IVZ), and American Airlines Group Inc (Symbol: AAL). Although AMG has traded at a recent price of $142.15/share, the average analyst target is 37.53% higher at $195.50/share. Similarly, IVZ has 36.75% upside from the recent share price of $24.05 if the average analyst target price of $32.89/share is reached, and analysts on average are expecting AAL to reach a target price of $52.83/share, which is 34.57% above the recent price of $39.26. Below is a twelve month price history chart comparing the stock performance of AMG, IVZ, and AAL:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of AMG, IVZ, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTA's underlying holdings with notable upside to their analyst target prices are Affiliated Managers Group Inc. (Symbol: AMG), Invesco Ltd (Symbol: IVZ), and American Airlines Group Inc (Symbol: AAL). Similarly, IVZ has 36.75% upside from the recent share price of $24.05 if the average analyst target price of $32.89/share is reached, and analysts on average are expecting AAL to reach a target price of $52.83/share, which is 34.57% above the recent price of $39.26.
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Three of FTA's underlying holdings with notable upside to their analyst target prices are Affiliated Managers Group Inc. (Symbol: AMG), Invesco Ltd (Symbol: IVZ), and American Airlines Group Inc (Symbol: AAL). Similarly, IVZ has 36.75% upside from the recent share price of $24.05 if the average analyst target price of $32.89/share is reached, and analysts on average are expecting AAL to reach a target price of $52.83/share, which is 34.57% above the recent price of $39.26. Below is a twelve month price history chart comparing the stock performance of AMG, IVZ, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, IVZ has 36.75% upside from the recent share price of $24.05 if the average analyst target price of $32.89/share is reached, and analysts on average are expecting AAL to reach a target price of $52.83/share, which is 34.57% above the recent price of $39.26. Below is a twelve month price history chart comparing the stock performance of AMG, IVZ, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTA's underlying holdings with notable upside to their analyst target prices are Affiliated Managers Group Inc. (Symbol: AMG), Invesco Ltd (Symbol: IVZ), and American Airlines Group Inc (Symbol: AAL).
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Below is a twelve month price history chart comparing the stock performance of AMG, IVZ, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTA's underlying holdings with notable upside to their analyst target prices are Affiliated Managers Group Inc. (Symbol: AMG), Invesco Ltd (Symbol: IVZ), and American Airlines Group Inc (Symbol: AAL). Similarly, IVZ has 36.75% upside from the recent share price of $24.05 if the average analyst target price of $32.89/share is reached, and analysts on average are expecting AAL to reach a target price of $52.83/share, which is 34.57% above the recent price of $39.26.
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549ed54b-4e27-4877-8ec8-09c357756b0d
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6939.0
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2018-09-12 00:00:00 UTC
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An Airline Pairs Play: United and American Airlines
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AAL
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https://www.nasdaq.com/articles/airline-pairs-play-united-and-american-airlines-2018-09-12
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It has been a year of very different flight paths for airline stocks United Continental (NYSE: UAL ) and American Airlines (NASDAQ: AAL ). But that relationship looks overdue for change and a nice opportunity for an options-based pairs trade in UAL stock and AAL stock. Let me explain.
UAL stock has been flying high of late. Long gone are worries and investor backlash aimed at parent company United Continental after a high-profile incident involving the improper removal of a passenger from one of its flights. In fact, UAL is up 29% this year and near recent record highs.
The same can't be said for AAL stock.
While Wall Street can be quick to shake off scandalous behavior like United's as a one-off-type event, continued problems for American Airlines ranging from unhedged and rising fuel costs to a massive computer failure causing more than 2,500 flights to be cancelled this summer has hurt and are still impacting the carrier's bottom line.
Wall Street has certainly noticed American Airlines problems as AAL stock is off a sizable 17% in 2018.
9 Marijuana Stocks to Play the Pot Craze
The good news in all of this, as the provided price chart suggests, is that it could be time for bulls and bears to change seating assignments in both stocks - or at least provide a nice opportunity for an options-based pairs trade in UAL stock and AAL.
Weekly Comparison Chart of UAL Stock vs. AAL Stock
A weekly chart overlay of AAL stock onto the UAL chart shows a strong correlation over time in the two airline carriers. When one goes up, the other is almost certain to follow and vice versa. But 2018 has seen an unusual widening of the spread between the shares of both companies, which if history is any indicator, is unlikely to continue.
If we're right, the actual narrowing of the price performance in United stock and American Airlines can occur in more than one way. But the way I like taking advantage of this pairs situation today is by selling a below-the-market put spread in UAL and buying a bull call spread in AAL stock.
Pairs Options Strategy for These Airline Stocks
With UAL at $89.10, selling the Oct $82.50/$77.50 put spread for a credit of around 55 cents and buying the AAL Oct $41/$43 call vertical for up to 65 cents looks interesting.
In a nutshell, if the bearish narrative in AAL begins to lose its appeal, shares of American are in a good position technically to outperform. My view is AAL stock could easily move higher even if UAL begins to stall or consolidate its own recent gains. That could lead to a profit of $1.90 for this pairs trade if AAL is able to rally about 7% into October expiration.
If both UAL and AAL rally, this pairs trade is in good position to profit too. Again though, this will be tied to American Airlines being the workhorse. But even if the spread between the two stocks narrows as both decline in price, this strategy may still walk away mostly unscathed.
For larger losses to occur, United's put spread will need to trade in-the-money. If that doesn't happen, the most this pairs trade can lose is the paid debit of around 10 cents. That said, as the UAL put spread is stationed within a band of sturdy chart support, getting long with contained risk during a corrective grounding in United Continental shares doesn't sound like a bad idea either.
Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits .
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The post An Airline Pairs Play: United and American Airlines appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has been a year of very different flight paths for airline stocks United Continental (NYSE: UAL ) and American Airlines (NASDAQ: AAL ). But that relationship looks overdue for change and a nice opportunity for an options-based pairs trade in UAL stock and AAL stock. The same can't be said for AAL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has been a year of very different flight paths for airline stocks United Continental (NYSE: UAL ) and American Airlines (NASDAQ: AAL ). But that relationship looks overdue for change and a nice opportunity for an options-based pairs trade in UAL stock and AAL stock. Weekly Comparison Chart of UAL Stock vs. AAL Stock A weekly chart overlay of AAL stock onto the UAL chart shows a strong correlation over time in the two airline carriers.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has been a year of very different flight paths for airline stocks United Continental (NYSE: UAL ) and American Airlines (NASDAQ: AAL ). Weekly Comparison Chart of UAL Stock vs. AAL Stock A weekly chart overlay of AAL stock onto the UAL chart shows a strong correlation over time in the two airline carriers. But that relationship looks overdue for change and a nice opportunity for an options-based pairs trade in UAL stock and AAL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It has been a year of very different flight paths for airline stocks United Continental (NYSE: UAL ) and American Airlines (NASDAQ: AAL ). If both UAL and AAL rally, this pairs trade is in good position to profit too. But that relationship looks overdue for change and a nice opportunity for an options-based pairs trade in UAL stock and AAL stock.
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ca9aef11-86ca-45eb-b17b-6a737e98d6fd
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6940.0
|
2018-09-12 00:00:00 UTC
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Noteworthy Wednesday Option Activity: NBIX, SKX, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-nbix-skx-aal-2018-09-12
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Neurocrine Biosciences, Inc. (Symbol: NBIX), where a total volume of 4,641 contracts has been traded thus far today, a contract volume which is representative of approximately 464,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 80.6% of NBIX's average daily trading volume over the past month, of 575,680 shares. Especially high volume was seen for the $120 strike call option expiring September 21, 2018 , with 2,184 contracts trading so far today, representing approximately 218,400 underlying shares of NBIX. Below is a chart showing NBIX's trailing twelve month trading history, with the $120 strike highlighted in orange:
Skechers USA Inc (Symbol: SKX) options are showing a volume of 13,817 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 74.5% of SKX's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $26 strike put option expiring September 21, 2018 , with 1,898 contracts trading so far today, representing approximately 189,800 underlying shares of SKX. Below is a chart showing SKX's trailing twelve month trading history, with the $26 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 42,486 contracts thus far today. That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 70.7% of AAL's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $37 strike call option expiring October 19, 2018 , with 17,798 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $37 strike highlighted in orange:
For the various different available expirations for NBIX options , SKX options , or AAL options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $37 strike call option expiring October 19, 2018 , with 17,798 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing SKX's trailing twelve month trading history, with the $26 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 42,486 contracts thus far today. That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 70.7% of AAL's average daily trading volume over the past month, of 6.0 million shares.
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That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 70.7% of AAL's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing SKX's trailing twelve month trading history, with the $26 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 42,486 contracts thus far today. Particularly high volume was seen for the $37 strike call option expiring October 19, 2018 , with 17,798 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL.
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That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 70.7% of AAL's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing SKX's trailing twelve month trading history, with the $26 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 42,486 contracts thus far today. Particularly high volume was seen for the $37 strike call option expiring October 19, 2018 , with 17,798 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL.
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That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 70.7% of AAL's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $37 strike highlighted in orange: For the various different available expirations for NBIX options , SKX options , or AAL options , visit StockOptionsChannel.com. Below is a chart showing SKX's trailing twelve month trading history, with the $26 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 42,486 contracts thus far today.
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e6c746e1-0852-4806-b465-2b326f62e526
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6941.0
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2018-09-10 00:00:00 UTC
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How to Prepare for Hurricane Season With ETFs & Stocks
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AAL
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https://www.nasdaq.com/articles/how-prepare-hurricane-season-etfs-stocks-2018-09-10
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nan
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nan
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The first major storm of this year - Hurricane Florence - started brewing in the Atlantic. The threat has been accredited the Category 4 status (notably category 5 indicates the strongest), meaning winds are likely to blow at speed as fast as 130 mph and can ravage property and lives.
Though the hurricane is expected to weaken in the coming days, recent computer-simulated predictions show there's a possibility that Florence could hit southeastern coasts by late this week. Apart from this, storm Gordon hit the Gulf Coast region on Sep 5, after it lashed on the west of the Alabama-Mississippi border.
Whatever the case, investors can keep track of the below-mentioned sector ETFs and stocks before every Atlantic Hurricane season, which spans from June to November .
Likely Gainers from Hurricanes
Home Retailers
The condition of houses in an area ravaged by a massive storm can well be imagined. So, home improvement retailers like Home Depot Inc.HD and Lowe's Companies Inc.LOW may benefit this season depending on the strength of the storm. ETFs like Consumer Discretionary Select Sector SPDR FundXLY should also benefit (read: Home Retailer ETFs Set to Gain After Harvey ).
Infrastructure
This should shower gains on infrastructure stocks as re-building will push up their demand. So, companies dealing in building materials should see a surge. The Materials Select Sector SPDR FundXLB , SPDR S&P Homebuilders ETFXHB and Invesco Dynamic Building & ConstructionPKB have high chances of outperforming.
Likely Losers from Hurricanes
Insurance
If destruction is massive, insured losses could be as high. Property and casualty insurance companies may thus be hit hard as these are likely to shell out handsomely on claims in such catastrophic storms. Insurance stocks normally decline after such events. Shares of property and casualty homeowners' insurance companies like Universal Insurance Holdings Inc.UVE and Heritage Insurance Holdings Inc. HRTG .
iShares U.S. Insurance ETFIAK should also be tracked closely this season. Having said all, investors should note that the sector performs well in rising rate environment, which currently is the case in the United States.
Transportation
Severe hurricanes could roil rail and container activity, and crush infrastructure for transportation. So, airline companies like American Airlines AAL , JetBlue JBLU and Southwest (LUV) and US Global Jets ETFJETS could feel the pinch. Transportation ETFs like SPDR S&P Transportation ETF XTN also deserve attention (read: Airlines ETF Gains in 1-Month Period Despite Mixed Results ).
Restaurants
Restaurants may see considerable sales reduction and destruction due to hurricanes. Per an article published on MarketWatch, Morgan Stanley's analysis shows that some restaurants have considerable exposure to hurricane prone areas. These are the likes of Fiesta Restaurant Group Inc.FRGI , Dunkin' Brands Group Inc.DNKN , Bloomin' BrandsBLMN and BJ's RestaurantsBJRI .
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Lowe's Companies, Inc. (LOW): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
SPDR-SP TRANSPT (XTN): ETF Research Reports
SPDR-SP HOMEBLD (XHB): ETF Research Reports
PWRSH-DYN BLDG (PKB): ETF Research Reports
ISHARS-US INSUR (IAK): ETF Research Reports
SPDR-MATLS SELS (XLB): ETF Research Reports
SPDR-CONS DISCR (XLY): ETF Research Reports
US GLOBAL JETS (JETS): ETF Research Reports
Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report
BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report
Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So, airline companies like American Airlines AAL , JetBlue JBLU and Southwest (LUV) and US Global Jets ETFJETS could feel the pinch. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report SPDR-SP TRANSPT (XTN): ETF Research Reports SPDR-SP HOMEBLD (XHB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-CONS DISCR (XLY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. Though the hurricane is expected to weaken in the coming days, recent computer-simulated predictions show there's a possibility that Florence could hit southeastern coasts by late this week.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report SPDR-SP TRANSPT (XTN): ETF Research Reports SPDR-SP HOMEBLD (XHB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-CONS DISCR (XLY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. So, airline companies like American Airlines AAL , JetBlue JBLU and Southwest (LUV) and US Global Jets ETFJETS could feel the pinch. Shares of property and casualty homeowners' insurance companies like Universal Insurance Holdings Inc.UVE and Heritage Insurance Holdings Inc. HRTG .
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report SPDR-SP TRANSPT (XTN): ETF Research Reports SPDR-SP HOMEBLD (XHB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-CONS DISCR (XLY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. So, airline companies like American Airlines AAL , JetBlue JBLU and Southwest (LUV) and US Global Jets ETFJETS could feel the pinch. Shares of property and casualty homeowners' insurance companies like Universal Insurance Holdings Inc.UVE and Heritage Insurance Holdings Inc. HRTG .
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report SPDR-SP TRANSPT (XTN): ETF Research Reports SPDR-SP HOMEBLD (XHB): ETF Research Reports PWRSH-DYN BLDG (PKB): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-CONS DISCR (XLY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report To read this article on Zacks.com click here. So, airline companies like American Airlines AAL , JetBlue JBLU and Southwest (LUV) and US Global Jets ETFJETS could feel the pinch. Whatever the case, investors can keep track of the below-mentioned sector ETFs and stocks before every Atlantic Hurricane season, which spans from June to November .
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3d46030b-5cfb-4b86-9015-b6687d328f6d
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6942.0
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2018-09-06 00:00:00 UTC
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JetBlue (JBLU) Unveils Improved Q3 Unit Revenue View
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AAL
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https://www.nasdaq.com/articles/jetblue-jblu-unveils-improved-q3-unit-revenue-view-2018-09-06
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nan
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nan
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Shares of JetBlue Airways CorporationJBLU have been struggling this year mainly due to high fuel costs and have shed 14.6% on a year-to-date basis.
However, this Long Island City, New York based company received some encouraging news on Sep 5, when it unveiled an improved projection for current-quarter revenue per available seat mile (RASM: a key measure of unit revenues). The carrier now anticipates RASM to grow between 1% and 3% for the third quarter of 2018 (the earlier view had called for the key metric to grow in the 0-3% range). JetBlue cited robust close-in demand as one of the factors behind its decision to issue an improved guidance.
Expansion Plan
Apart from issuing a fresh unit revenue guidance, JetBlue was also in the news when it announced its decision to add transcontinental routes. As part of its expansion initiative, the carrier started operating non-stop flights connecting New York's John F. Kennedy Airport and Southern California's Ontario International Airport.
Ontario is the tenth city to be served in California by JetBlue. Moreover, the destination is the 73rd nonstop one from New York-JFK as far as this Zacks Rank #4 (Sell) low-cost carrier is concerned. All flights on the new route are being operated by its Airbus A320 aircraft. The jets are equipped with all modern facilities.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
We note that JetBlue served Ontario in the 2000-2008 duration. The carrier has decided to return a decade later, primarily in response to a surge in demand. This low-cost carrier stated that it offers service to more cities in California than any other airline courtesy of its nonstop flights to New York. We believe that the addition of the above new route is a prudent move by JetBlue as transcontinental flights, which account for approximately 15% of its operations, have boosted its profitability.
We remind investors that JetBlue apart, other U.S. carriers including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL and American Airlines Group Inc. AAL announced their decisions to broaden network over the past month.
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See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We remind investors that JetBlue apart, other U.S. carriers including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL and American Airlines Group Inc. AAL announced their decisions to broaden network over the past month. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of JetBlue Airways CorporationJBLU have been struggling this year mainly due to high fuel costs and have shed 14.6% on a year-to-date basis.
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We remind investors that JetBlue apart, other U.S. carriers including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL and American Airlines Group Inc. AAL announced their decisions to broaden network over the past month. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. As part of its expansion initiative, the carrier started operating non-stop flights connecting New York's John F. Kennedy Airport and Southern California's Ontario International Airport.
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We remind investors that JetBlue apart, other U.S. carriers including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL and American Airlines Group Inc. AAL announced their decisions to broaden network over the past month. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Expansion Plan Apart from issuing a fresh unit revenue guidance, JetBlue was also in the news when it announced its decision to add transcontinental routes.
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We remind investors that JetBlue apart, other U.S. carriers including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL and American Airlines Group Inc. AAL announced their decisions to broaden network over the past month. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Expansion Plan Apart from issuing a fresh unit revenue guidance, JetBlue was also in the news when it announced its decision to add transcontinental routes.
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2167a96f-0924-48db-a319-9c8e86b863e0
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6943.0
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2018-09-05 00:00:00 UTC
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Noteworthy Wednesday Option Activity: AAL, STI, MO
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-aal-sti-mo-2018-09-05
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,153 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.7% of AAL's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $40 strike call option expiring January 18, 2019 , with 5,222 contracts trading so far today, representing approximately 522,200 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange:
SunTrust Banks Inc (Symbol: STI) options are showing a volume of 11,468 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 54.2% of STI's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $85 strike call option expiring September 21, 2018 , with 10,100 contracts trading so far today, representing approximately 1.0 million underlying shares of STI. Below is a chart showing STI's trailing twelve month trading history, with the $85 strike highlighted in orange:
And Altria Group Inc (Symbol: MO) options are showing a volume of 24,652 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 46% of MO's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $59.50 strike call option expiring September 07, 2018 , with 4,179 contracts trading so far today, representing approximately 417,900 underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $59.50 strike highlighted in orange:
For the various different available expirations for AAL options , STI options , or MO options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $40 strike call option expiring January 18, 2019 , with 5,222 contracts trading so far today, representing approximately 522,200 underlying shares of AAL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,153 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.7% of AAL's average daily trading volume over the past month, of 5.7 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,153 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.7% of AAL's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $40 strike call option expiring January 18, 2019 , with 5,222 contracts trading so far today, representing approximately 522,200 underlying shares of AAL.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,153 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.7% of AAL's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $40 strike call option expiring January 18, 2019 , with 5,222 contracts trading so far today, representing approximately 522,200 underlying shares of AAL.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,153 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing MO's trailing twelve month trading history, with the $59.50 strike highlighted in orange: For the various different available expirations for AAL options , STI options , or MO options , visit StockOptionsChannel.com. That number works out to 59.7% of AAL's average daily trading volume over the past month, of 5.7 million shares.
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783ae254-6358-4549-a4b3-b1892e9c7619
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6944.0
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2018-08-31 00:00:00 UTC
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United Continental (UAL) to Expand Transatlantic Network
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AAL
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https://www.nasdaq.com/articles/united-continental-ual-to-expand-transatlantic-network-2018-08-31
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nan
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nan
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In a bid to expand internationally, United Continental Holdings, Inc.UAL has decided to broaden its transatlantic network next year. Toward this end, this Chicago-based carrier not only announced additional flights but also decided to resume nonstop seasonal operations on some routes.
Under its route expansion plan in Europe, the carrier has decided to introduce three new routes, namely San Francisco-Amsterdam, New York/Newark-Naples and New York/Newark-Prague. The year-round flights connecting San Francisco and Amsterdam will operate from Mar 30, marking the carrier's fifth nonstop service to the Netherlands from the United States. Notably, once the flights become operational, United Continental will be the first U.S. carrier to operate on the route.
The New York/Newark-Naples nonstop flights will operate in the May 22-Oct 4 timeframe to cater to the surge in demand during the summer season. This will be the carrier's sixth nonstop service to Italy.
These apart, the carrier has decided to introduce summer service in the New York/Newark-Prague route between Jun 6 and Oct 4. Also, United Continental has decided to resume operating nonstop seasonal flights between eight U.S. airports and multiple destinations in Europe, the Caribbean and Mexico from next year.
We note that shares of United Continental have outperformed its industry on a year-to-date basis. The stock has gained 28.9% against the industry's 13% decline.
Notably, United Continental is the third major U.S. carrier to announce changes to its international routes in the past few days after Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL .
Zacks Rank & Key Pick
United Continental carries a Zacks Rank #3 (Hold). A better-ranked airline stock is SkyWest, Inc. SKYW sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of SkyWest have gained more than 21% year to date.
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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
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Notably, United Continental is the third major U.S. carrier to announce changes to its international routes in the past few days after Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The year-round flights connecting San Francisco and Amsterdam will operate from Mar 30, marking the carrier's fifth nonstop service to the Netherlands from the United States.
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Notably, United Continental is the third major U.S. carrier to announce changes to its international routes in the past few days after Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Also, United Continental has decided to resume operating nonstop seasonal flights between eight U.S. airports and multiple destinations in Europe, the Caribbean and Mexico from next year.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, United Continental is the third major U.S. carrier to announce changes to its international routes in the past few days after Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Notably, once the flights become operational, United Continental will be the first U.S. carrier to operate on the route.
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Notably, United Continental is the third major U.S. carrier to announce changes to its international routes in the past few days after Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Toward this end, this Chicago-based carrier not only announced additional flights but also decided to resume nonstop seasonal operations on some routes.
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f9989348-3095-404d-adb6-9d6733dace30
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6945.0
|
2018-08-30 00:00:00 UTC
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ETFs Buoy on Booming Q2 Corporate Profits: 5 Best Charts
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AAL
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https://www.nasdaq.com/articles/etfs-buoy-booming-q2-corporate-profits-5-best-charts-2018-08-30
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nan
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nan
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Corporate profits in America have been soaring this year thanks to the historic tax cuts, improving consumer confidence and an accelerating economy. Per the data from the Commerce Department, the broadest measure of after-tax profits across the United States rose 16.1% (or $47.3 billion) in the second quarter, marking the largest year-over-year gain in six years. However, profits have declined from the $150 billion increase reported in the first quarter.
Taxes paid by U.S. companies were down 33% from the year-ago quarter. The American economy has been growing at the fastest clip in nearly four years. The second estimate of the Bureau of Economic Analysis shows that GDP growth was a bit stronger at 4.2% than 4.1% initially thought of.
Total earnings per share for companies on the S&P 500 increased 24.8% year over year, marking the second-fastest growth since late 2010, trailing the first quarter. Meanwhile, revenues climbed at the fastest rate since the fall of 2011 at 9.5%.
According to the latest Earnings Trends , the Q2 earnings season for 93.4% of the S&P 500 index market capitalization are up 25.5% on 9.9% revenue growth, with 79.2% beating EPS estimates and 72.8% surpassing top-line expectations. Earnings and revenue growth as well as the proportion of companies beating EPS estimates are tracking above other recent periods. For the quarter as a whole, total Q2 earnings for the index are expected to be up 24.9% on 9.7% higher revenues. This represents the highest quarterly growth pace in almost eight years, exceeding the Q1 earnings growth of 24.6% (read: 5 Sector ETFs to Benefit from Q2 Revenue Growth ).
Given this, several equity ETFs impressed with their performances and generated handsome returns in the Q2 earnings season despite trade war worries and geopolitical tensions. While there are winners in many corners of the space, below are five ETFs that buoyed on robust earnings results.
In addition, we have given a chart for their performances since Jul 13 and compared them with the broad market fund SPY and the broad sector.
ETRACS Alerian MLP Index ETN Series B AMUB
Though the energy sector lagged in terms of earnings and revenue surprises, it remains the top contributor to total S&P 500 earnings, with earnings growth of 122.4%. Within the sector, master limited partnerships (MLPs) have outperformed, with most players outpacing the Zacks Consensus Estimate on either the top or bottom line or both. Additionally, the new Federal Energy Regulatory Commission (FERC) ruling related to the treatment of income taxes for interstate natural gas pipeline operators has spread optimism into the space. As such, AMUB, linked to the performance of the Alerian MLP Index, has surged in double-digits in the same time frame (read: MLPs on Rise: Best ETFs & Stocks Over One Month ).
VanEck Vectors Retail ETF RTH
This fund provides exposure to the 25 largest retail firms. Total earnings from 85.1% of the sector's total market capitalization are up 34.9%% on 9.7% higher revenues, with 91.7% of the companies beating on earnings and 75% exceeding top-line estimates. Both growth rates and beat ratios are encouraging, given that these are tracking above historical periods. As a result, RTH has gained 7.1%. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 6 Reasons to Bet on Retail ETFs Now ).
SPDR S&P Pharmaceuticals ETF XPH
This fund provides equal-weighted exposure to 44 pharma companies and has surged 9.1% since Jul 13. Total earnings for 95.9% of the total healthcare market capitalization are up 15.8% on revenue growth of 7.5%, with 90.6% beating EPS and 83% beating revenue estimates. Notably, earnings beat ratio is encouraging. XPH has a Zacks ETF Rank #3 with a High risk outlook (read: Q2 Earnings Drive Pharma ETFs Higher ).
Invesco DWA Technology Momentum ETF PTF
This fund provides investors exposure to 43 companies that are showing relative strength (momentum) and is up 7.1% in the same time frame. A slew of strong earnings results from large-capitalization technology and Internet firms such as Alphabet GOOGL , Apple AAPL and Microsoft MSFT rekindled investors' interest in the sector. Any dip from the weak results of Netflix NFLX , Facebook FB and Twitter TWTR led to good buying opportunity. The fund has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
U.S. Global Jets ETF JETS
This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world. Holding 34 stocks in its basket, it has climbed 9.4% in the same time frame. In particular, results from Delta airlines DAL and United Continental UAL have been solid, while others like American Airlines AAL , Southwest Airlines LUV beat on the earnings estimates but missed on revenues. Overall, the airline industry came up with 67% earnings beat in Q2. However, JETS has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Airlines ETF Gains in 1-Month Period Despite Mixed Results ).
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Twitter, Inc. (TWTR): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR-SP PHARMA (XPH): ETF Research Reports
US GLOBAL JETS (JETS): ETF Research Reports
PWRSH-DW TEC MO (PTF): ETF Research Reports
VANECK-RETAIL (RTH): ETF Research Reports
SP Plus Corporation (SP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In particular, results from Delta airlines DAL and United Continental UAL have been solid, while others like American Airlines AAL , Southwest Airlines LUV beat on the earnings estimates but missed on revenues. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report SPDR-SP PHARMA (XPH): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports PWRSH-DW TEC MO (PTF): ETF Research Reports VANECK-RETAIL (RTH): ETF Research Reports SP Plus Corporation (SP): Free Stock Analysis Report To read this article on Zacks.com click here. Per the data from the Commerce Department, the broadest measure of after-tax profits across the United States rose 16.1% (or $47.3 billion) in the second quarter, marking the largest year-over-year gain in six years.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report SPDR-SP PHARMA (XPH): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports PWRSH-DW TEC MO (PTF): ETF Research Reports VANECK-RETAIL (RTH): ETF Research Reports SP Plus Corporation (SP): Free Stock Analysis Report To read this article on Zacks.com click here. In particular, results from Delta airlines DAL and United Continental UAL have been solid, while others like American Airlines AAL , Southwest Airlines LUV beat on the earnings estimates but missed on revenues. XPH has a Zacks ETF Rank #3 with a High risk outlook (read: Q2 Earnings Drive Pharma ETFs Higher ).
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report SPDR-SP PHARMA (XPH): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports PWRSH-DW TEC MO (PTF): ETF Research Reports VANECK-RETAIL (RTH): ETF Research Reports SP Plus Corporation (SP): Free Stock Analysis Report To read this article on Zacks.com click here. In particular, results from Delta airlines DAL and United Continental UAL have been solid, while others like American Airlines AAL , Southwest Airlines LUV beat on the earnings estimates but missed on revenues. This represents the highest quarterly growth pace in almost eight years, exceeding the Q1 earnings growth of 24.6% (read: 5 Sector ETFs to Benefit from Q2 Revenue Growth ).
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report SPDR-SP PHARMA (XPH): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports PWRSH-DW TEC MO (PTF): ETF Research Reports VANECK-RETAIL (RTH): ETF Research Reports SP Plus Corporation (SP): Free Stock Analysis Report To read this article on Zacks.com click here. In particular, results from Delta airlines DAL and United Continental UAL have been solid, while others like American Airlines AAL , Southwest Airlines LUV beat on the earnings estimates but missed on revenues. Total earnings from 85.1% of the sector's total market capitalization are up 34.9%% on 9.7% higher revenues, with 91.7% of the companies beating on earnings and 75% exceeding top-line estimates.
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51c0db30-84c9-464b-b256-1709bbf47b39
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6946.0
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2018-08-30 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air, Ryanair, United Continental, American Airlines and JetBlue
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-ryanair-united-continental-american-airlines
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nan
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nan
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For Immediate Release
Chicago, IL -August 30, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Delta Air Lines, Inc.DAL , Ryanair Holdings plcRYAAY , United Continental Holdings, Inc.UAL , American Airlines Group Inc.AAL and JetBlue Airways Corp.JBLU .
Here are highlights from Wednesday's Analyst Blog:
Airline Stock Roundup: Rosy Labor Day Forecast & More
In the past week, premier trade organization Airlines for America ('A4A') issued a bright forecast for U.S. carriers. It is expected that U.S. airlines will make hay in the Labor Day holiday period (Aug 29 - Sep 4) owing to increased travel demand and affordable air fares.
Delta Air Lines, Inc. also grabbed headlines by virtue of its decision to broaden the trans-Atlantic network for next year's summer. Meanwhile, Ryanair Holdings plc took a giant stride toward ending its labor unrest when the company inked deals with the Italian and Irish pilots.
United Continental Holdings, Inc. too featured in the headlines, when it announced the decision that its shares would be traded in the Nasdaq Global Select Market from Sep 7.
Recap of the Past Week's Most Important Stories
1. As part of its decision to launch additional routes next year, Delta increased the frequency of its service connecting Los Angeles to Amsterdam and Paris. Notably, Delta is the second major U.S. carrier to announce changes in its international routes over the last few days. In a bid to boost its profitability in the current scenario of rising oil prices , American Airlines Group Inc. also announced certain route changes. (read more: Delta to Change Routes Under Trans-Atlantic Network Expansion ).
Delta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. Per Reuters , Ryanair has finally given in to the Irish pilots' demand, reaching an agreement with the pilots' union (Fórsa) on Aug 23, following a 22-hour discussion (read more: Ryanair Ends Deadlock, Inks Labor Deal With Irish Pilots ).
In another development toward ending its labor unrest, Ryanair has inked a deal with its Italian pilots.
3. According to the forecast put forward by A4A, approximately 16.5 million passengers will travel on U.S. airlines during the Labor Day holiday period this year compared with 16 million people who chose to travel by air in the same period last year. The forecast translates into 2.36 million fliers per day during the abovementioned period.
Moreover, Aug 31 is likely to be the busiest day for carriers in the seven-day period, with 2.76 million people expected to take to the skies. To meet the surge in travel demand, U.S. carriers are increasing the number of available seats by 92,000 per day.
4. In a bid to combat rising fuel costs, JetBlue Airways Corp. increased fees for checked bags and ticket changes. The low-cost carrier has reportedly decided to charge $30 for the first checked bag from $25. Fees for the second and third checked bags have also been increased. We expect other airlines to follow suite.
5 United Continental's has decided to transfer its stock exchange listing to The Nasdaq Global Select Market from The New York Stock Exchange. The move, which will be effective Sep 7, is in line with the company's efforts to check costs.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Delta Air Lines, Inc.DAL , Ryanair Holdings plcRYAAY , United Continental Holdings, Inc.UAL , American Airlines Group Inc.AAL and JetBlue Airways Corp.JBLU . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. It is expected that U.S. airlines will make hay in the Labor Day holiday period (Aug 29 - Sep 4) owing to increased travel demand and affordable air fares.
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Stocks recently featured in the blog include: Delta Air Lines, Inc.DAL , Ryanair Holdings plcRYAAY , United Continental Holdings, Inc.UAL , American Airlines Group Inc.AAL and JetBlue Airways Corp.JBLU . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. It is expected that U.S. airlines will make hay in the Labor Day holiday period (Aug 29 - Sep 4) owing to increased travel demand and affordable air fares.
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Stocks recently featured in the blog include: Delta Air Lines, Inc.DAL , Ryanair Holdings plcRYAAY , United Continental Holdings, Inc.UAL , American Airlines Group Inc.AAL and JetBlue Airways Corp.JBLU . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: Rosy Labor Day Forecast & More In the past week, premier trade organization Airlines for America ('A4A') issued a bright forecast for U.S. carriers.
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Stocks recently featured in the blog include: Delta Air Lines, Inc.DAL , Ryanair Holdings plcRYAAY , United Continental Holdings, Inc.UAL , American Airlines Group Inc.AAL and JetBlue Airways Corp.JBLU . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report 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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3020df88-c747-4cb4-bef2-e5c117cc94a8
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6947.0
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2018-08-29 00:00:00 UTC
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Urban Outfitters, American Airlines, AppFolio, Cypress Semiconductor and NetApp highlighted as Zacks Bull and Bear of the Day
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AAL
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https://www.nasdaq.com/articles/urban-outfitters-american-airlines-appfolio-cypress-semiconductor-and-netapp-highlighted
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nan
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nan
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For Immediate Release
Chicago, IL - August 29, 2018 - Zacks Equity Research Urban Outfitters, Inc. URBN as the Bull of the Day, American Airlines Group Inc. AAL as the Bear of the Day. In addition, Zacks Equity Research provides analysis onAppFolio, Inc. APPF , Cypress Semiconductor CY and NetApp, Inc. NTAP .
Here is a synopsis of all five stocks:
Bull of the Day :
Shares of Urban Outfitters, Inc. have surged roughly 30% over the past six months, which crushes its industry's 10% gain. Luckily for investors who might have missed out on this ride, the lifestyle and clothing retailer that also owns Anthropologie and Free People looks poised to continue to climb.
Q2 Overview
Urban was able to stand out last week amid a fantastic second quarter for retailers that saw industry giants Walmart and Target post impressive quarterly financial results. The Philadelphia-based company reported Q2 earnings that soared 90% from $0.44 per share in the year-ago period to hit $0.84 share, which also topped our $0.76 per share Zacks Consensus Estimate.
Urban not only delivered better-than-expected earnings results for the fifth straight quarter, the trendy retailer also saw its quarterly revenues jump 13.7% to a record $992.5 million-also easily surpassing our $977 million estimate. "All three brands delivered double-digit retail segment 'comp' sales and lower markdown rates to drive these results," CEO Richard Hayne said in a statement.
Price Movement
Investors will notice that shares of URBN have gone on a pretty wild ride over the last five years. Yet, Urban's stock price has skyrocketed roughly 120% over the last year on the back of positive momentum driven by its ability to adapt more quickly to new styles, some of which happen to fall directly in its wheelhouse-including a wave of late 80's and early 90's trends.
Shares of URBN have cooled down since the start of 2018, but are still up roughly 30%, which outpaces the S&P 500's 9% jump. Plus, Urban stock was trading roughly $7 below its 52-week high of $52.50 as of Tuesday's close at $45.41 per share.
Bear of the Day :
American Airlines Group Inc. has seen its stock price plummet 24% over last the six months, and things don't look like they are going to get much better for the airline powerhouse.
Second Quarter Overview
American's adjusted Q2 earnings of $1.63 per share came in above our Zacks Consensus Estimate by 4 cents, but they marked a massive decline from the year-ago period's $2.04 per share. The airline pointed to higher fuel costs as one of the biggest reasons it saw its quarterly earnings slip.
AAL's operating income also fell from $1.60 billion in the second quarter of 2017 to $1.03 billion. American's Q2 revenues did climb by roughly 3.6% to reach $11.64 billion, which still missed our quarterly estimate.
American, like United, Delta and other airlines, reported strong quarterly passenger totals, but the companies weren't able to raise their prices quickly enough to make up for what was a roughly 55% increase in fuel costs from a year ago-39.6% for American specifically.
The company also lowered its guidance for its third-quarter capacity growth rate by roughly 0.6% and its Q4 capacity by around 1%. Investors should note that American still expects its Q3 capacity to jump 3.3%, while the firm projects its fourth-quarter capacity to be up 1.6%
Price Movement
Investors will see that shares of AAL are up just around 4% over the last three years, which lags the S&P 500 by over 40%. The past 12 months have been even less kind to American stock, with shares down nearly 9%. Since the start of 2018, AAL stock has plummeted over 21%-against the S&P's roughly 8.6% climb.
Additional content:
3 Tech Stocks for Growth Investors to Buy Now
By their very nature, growth investors are primarily focused on finding companies whose earnings and revenue are expected grow at a rate that outpaces the market. This investment strategy comes with its fair share of risks, but it also brings the exciting possibility of outsized returns-an end goal that every investor desires.
Over the past several years, Wall Street's most exciting growth stocks have emerged from the technology sector. From industry innovators like Amazon and Netflix to exciting foreign stocks such as Alibaba, tech-focused growth investors have been rewarded with massive profits recently.
Strong earnings and impressive sales imply that the technology sector's hot streak could continue throughout 2018-despite recent market-wide volatility. That means that growth investors searching for the next great market-beating stock might want to keep their focus on tech companies.
Luckily, we can pair the proven Zacks Rank with our innovative Style Scores system, which includes a "Growth" category, to find strong growth tech stocks. Investors should note that our Growth category values earnings and sales growth, as well as improvements to a company's financial statements-including strong cash flows and great return on equity.
With all of this said, check out these three tech stocks for growth investors to consider now:
1. AppFolio, Inc.
AppFolio offers cloud-based software solutions for the property management and legal industries. The company's AppFolio Property Manager is a leading solution for property management, while its MyCase application is ideal for practitioners and small law firms. Currently, the stock is a Zacks Rank #2 (Buy).
AppFolio recently surged into profitability, which is something that investors tend to reward. This fiscal year, current estimates are calling for earnings growth of 93% and net sales growth of 28%. The company is also improving its cash position, generating quadruple-digit cash flow growth and operating with a net margin of nearly 11%.
The firm has also proven to be an efficient one, with Return on Equity of 20% crushing its industry average. AppFolio should be able to use this, and its solid margins, to capitalize on its new business opportunities. APPF has also displayed the strength of small caps recently, adding about 100% over the past six months.
2. Cypress Semiconductor
Cypress Semiconductor makes chips designed for the automotive, industrial, home automation and appliances, consumer electronics and medical products industries. It has emerged as a leader in the Internet of Things industry after shelling out $550 million for Broadcom's IoT business in 2016. Cypress' "WICED" IoT platform is part of one of the largest such portfolios in the industry.
While semiconductor stocks have been volatile at times this year, we believe there is still plenty of growth opportunity in secular trends like IoT. This should give Cypress a unique opportunity to keep expanding, even as cyclical industry concerns persist.
According to our latest consensus estimates, analysts expect to finish the current fiscal year with EPS growth of nearly 51% over the prior year. Cypress also has a long-term projected annual EPS growth rate in excess of 16% right now. Meanwhile, CY is holding a Zacks Rank #2 (Buy).
3. NetApp, Inc.
NetApp specializes in hybrid cloud solutions; in other words, it provides data-based services which simplify the management of applications cloud and on-premises environments. NetApp's products and solutions are in high demand as enterprises around the world continue modernizing and adapting to cloud technology. The stock sports a Zacks Rank #1 (Strong Buy) and sports promising growth characteristics.
Notably, NetApp has an "A" grade for Growth in our Style Scores system. Earnings are projected to improve by more than 27% in 2018, and that growth is expected to continue to the tune of 14% on a long-term, annualized basis. NetApp is also notching cash flow growth of about 25% right now.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
NetApp, Inc. (NTAP): Free Stock Analysis Report
AppFolio, Inc. (APPF): Free Stock Analysis Report
Cypress Semiconductor Corporation (CY): Free Stock Analysis Report
Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - August 29, 2018 - Zacks Equity Research Urban Outfitters, Inc. URBN as the Bull of the Day, American Airlines Group Inc. AAL as the Bear of the Day. AAL's operating income also fell from $1.60 billion in the second quarter of 2017 to $1.03 billion. Investors should note that American still expects its Q3 capacity to jump 3.3%, while the firm projects its fourth-quarter capacity to be up 1.6% Price Movement Investors will see that shares of AAL are up just around 4% over the last three years, which lags the S&P 500 by over 40%.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report NetApp, Inc. (NTAP): Free Stock Analysis Report AppFolio, Inc. (APPF): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - August 29, 2018 - Zacks Equity Research Urban Outfitters, Inc. URBN as the Bull of the Day, American Airlines Group Inc. AAL as the Bear of the Day. AAL's operating income also fell from $1.60 billion in the second quarter of 2017 to $1.03 billion.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report NetApp, Inc. (NTAP): Free Stock Analysis Report AppFolio, Inc. (APPF): Free Stock Analysis Report Cypress Semiconductor Corporation (CY): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - August 29, 2018 - Zacks Equity Research Urban Outfitters, Inc. URBN as the Bull of the Day, American Airlines Group Inc. AAL as the Bear of the Day. AAL's operating income also fell from $1.60 billion in the second quarter of 2017 to $1.03 billion.
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For Immediate Release Chicago, IL - August 29, 2018 - Zacks Equity Research Urban Outfitters, Inc. URBN as the Bull of the Day, American Airlines Group Inc. AAL as the Bear of the Day. AAL's operating income also fell from $1.60 billion in the second quarter of 2017 to $1.03 billion. Investors should note that American still expects its Q3 capacity to jump 3.3%, while the firm projects its fourth-quarter capacity to be up 1.6% Price Movement Investors will see that shares of AAL are up just around 4% over the last three years, which lags the S&P 500 by over 40%.
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61115006-9594-4870-80dd-67972f5c5cf9
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6948.0
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2018-08-29 00:00:00 UTC
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Busiest Labor Day in the Cards for U.S. Airlines Per A4A
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AAL
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https://www.nasdaq.com/articles/busiest-labor-day-in-the-cards-for-u.s.-airlines-per-a4a-2018-08-29
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nan
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nan
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According to a projection by Airlines for America ('A4A'), the trade organization for leading U.S. airlines, companies in the airline space are set to make significant gains in the upcoming Labor Day holiday period (Aug 29-Sep 4). The projection indicates 3.5% more passengers flying to various destinations over the period compared to last year.
The bullish forecast further confirms strong demand for air travel. Additionally, air fares are still low despite high fuel costs. Low ticket prices have also contributed to the favorable projection.
A4A'S Projection
According to the forecast put forward by the Washington-based trade group, approximately 16.5 million passengers will travel on U.S. airlines during the Labor Day holiday period this year, compared with 16 million people who chose to travel by air in the same period last year. The forecast translates into 2.36 million fliers per day during the abovementioned period. Moreover, Friday, Aug 31 is likely to be the busiest day for carriers in the seven-day period, with 2.76 million people expected to take to the skies on that day.
To meet the surge in travel demand, U.S. carriers are increasing the number of available seats by 92,000 per day. Also, with the U.S. economy improving and consumer confidence remaining strong, more Americans are taking vacations.
Further, affordable air fares in addition to a much-improved job market and rising disposable income have provided added incentive for consumers to opt for air travel. Driven by the above reasons, the seven-day period is likely to see 79,000 additional passengers taking to the skies per day on various U.S. carriers.
According to John Heimlich, vice president of A4A inflation-adjusted fares in the first quarter of 2018 were approximately $30 below the levels witnessed in the first quarter of 2010.
Forecast Follows Busiest Summer Season Projection
The optimistic Labor Day holiday period forecast made by A4A does not come as a surprise. It is in tune with the forecast for the busiest summer (Jun 1 to Aug 31) made in May by the same organization.
According to the above estimation, A4A had envisaged 246.1 million passengers to be transported through U.S. airlines over the Jun 1 to Aug 31 period. The anticipated surge in air traffic during the Labor Day holiday period can be viewed as an extension of this forecast. A highly successful summer season for U.S. carriers is thus projected to end on an even more jubilant note.
High Fuel Costs Remain a Worry
Despite the rosy Labor Day projection, we remain mindful of the fact that oil prices continue to rise, thereby hampering airline profits. Oil prices have risen roughly 10% year to date. Since fuel expenses are significant for airlines, an increase in oil prices is unfavorable for the space.
In fact, according to A4A, pre-tax profit margins for U.S. carriers declined to 7.2% in the first half of the year, compared with 11.5% in the comparable year-ago period. High fuel costs primarily resulted in the dismal picture.
Moreover, sector participants like American Airlines Group Inc. AAL ,Allegiant Travel Company ALGT and Delta Air Lines, Inc. DAL have trimmed their respective full-year earnings per share forecasts due to high fuel costs.
Delta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Additionally, the bearish forecast by the International Air Transport Association ("IATA") on current-year airlines' profitability also highlights the fact that fuel cost related woes are likely to continue for carriers.
The research firm predicts global net profit for the industry to be $33.8 billion, much lower than the 2018 profitability forecast of $38.4 billion unveiled in December 2017. The firm projects jet fuel prices likely to escalate around 27.5% to $70 per barrel this year. Fuel bill is likely to account for 24.2% of total costs in 2018 (21.4% in 2017).
High Fuel Costs Likely to See Uptick in Airfares
In a bid to counter the challenges posed by surging oil prices, airlines are likely to increase air fares. They might pass on the increased costs to passengers to prevent a decline in profits.
Recently, JetBlue Airways Corporation JBLU increased fees for checked bags and ticket changes. We expect other airlines to follow suite. This, in turn, should boost the top-line performance of these companies. Apart from high fuel costs, issues like the unfortunate mid-air accident at Southwest Airlines Co. LUV , the plane theft and subsequent crash at Alaska Air Group, Inc. ALK , capacity-related problems and high labor costs are also hurting airlines.
Industry Underperformance YTD
Judging by shareholder returns on a year-to-date basis, it seems that the abovementioned headwinds have dented investors' confidence.
The Zacks Airline industry , which is part of the broader Zacks Transportation Sector , has underperformed both the S&P 500 and its own sector year to date.
While the stocks in this industry have collectively lost 12.4%, the Zacks Transportation Sector has gained 1.2%. Meanwhile, the Zacks S&P 500 Composite has rallied 10.2% so far this year.
Zacks Industry Rank Highlights the Struggles
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term.
The Zacks Airline industry currently carries a Zacks Industry Rank #230, which places it at the bottom 10% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The above write-up clearly suggests that though Labor Day projection is encouraging, thanks to strong travel demand, airlines are reeling under multiple headwinds. The buoyant travel demand might slacken if airlines raise fares significantly to combat rising fuel costs. Therefore, we expect investor focus to remain on the issue going forward.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, sector participants like American Airlines Group Inc. AAL ,Allegiant Travel Company ALGT and Delta Air Lines, Inc. DAL have trimmed their respective full-year earnings per share forecasts due to high fuel costs. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, the bearish forecast by the International Air Transport Association ("IATA") on current-year airlines' profitability also highlights the fact that fuel cost related woes are likely to continue for carriers.
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Moreover, sector participants like American Airlines Group Inc. AAL ,Allegiant Travel Company ALGT and Delta Air Lines, Inc. DAL have trimmed their respective full-year earnings per share forecasts due to high fuel costs. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. A4A'S Projection According to the forecast put forward by the Washington-based trade group, approximately 16.5 million passengers will travel on U.S. airlines during the Labor Day holiday period this year, compared with 16 million people who chose to travel by air in the same period last year.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, sector participants like American Airlines Group Inc. AAL ,Allegiant Travel Company ALGT and Delta Air Lines, Inc. DAL have trimmed their respective full-year earnings per share forecasts due to high fuel costs. A4A'S Projection According to the forecast put forward by the Washington-based trade group, approximately 16.5 million passengers will travel on U.S. airlines during the Labor Day holiday period this year, compared with 16 million people who chose to travel by air in the same period last year.
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Moreover, sector participants like American Airlines Group Inc. AAL ,Allegiant Travel Company ALGT and Delta Air Lines, Inc. DAL have trimmed their respective full-year earnings per share forecasts due to high fuel costs. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, air fares are still low despite high fuel costs.
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372117f9-58be-48ad-9bb2-86d74684824d
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6949.0
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2018-08-29 00:00:00 UTC
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Can Airline Stocks Stage a Comeback in 2018? (Revised)
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AAL
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https://www.nasdaq.com/articles/can-airline-stocks-stage-a-comeback-in-2018-revised-2018-08-29
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nan
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nan
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The airline sector had a rough beginning this year, with the Dow Jones Transportation Average witnessing a significant decline during the first six months. However, recent figures tell a different story as both the Dow Jones Transportation Average and NYSE Arca Airline Index registered significant gains in the last few months.
A high level of domestic fares and low industrial capacity are expected to boost the airline sector. Also, some of the major airline companies are undervalued than the broader S&P 500. However, the recent surge in crude price remains a headwind for airline stocks.
High Fares, Low Capacity Are Boon for Airline Stocks
Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices. After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route resulted in "colossal loss" due to rise in fuel prices. Similarly, the Fort Worth-based airline giant also earlier canceled flight service between Chicago and Beijing.
Managing director of investment banking company, Imperial Capital, Michael Derchin said that airline giants like Delta Air Lines, Inc. DAL will gain from "lower industry capacity and potentially higher domestic fares."
Senior research analyst of financial services firm, Cowen Group, Helane Becker said that "low fares in the US domestic market" started to move higher and airlines are focusing on increasing "fares in the premium cabin." Becker further added that fare hike in the premium cabin will "begin to be reflected in revenue."
Airlines Less Pricey Than S&P 500, Tech Sector
Along with a positive industry outlook for the airline sector, several of its key components bear lower valuation levels. The recent price-earnings (P/E) ratio of the S&P 500 is 16.71, while that of the Technology Select Sector SPDR (XLK) is 18.66. As compared to the S&P 500 and one of the best performing sectors of the S&P 500 so far this year, airline companies are clearly undervalued.
Companies like Delta Air Lines, American Airlines, United Continental Holdings, Inc. UAL and Southwest Airlines Co. LUV have a P/E ratio of 9.24, 7.53, 9.46 and 12.91, respectively. A low level of valuations and strong growth prospects in the near-term make these airline stocks wise investment choices.
Delta Air Lines, United Continental and Southwest Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
Airlines Capable of Containing Rise in Oil Prices
Per the Energy Information Administration (EIA) on Aug 22, the U.S. crude inventories dropped by 5.8 million to 408.4 million barrels for the week ended Aug 17. Additionally, concerns remain that Iran would be forced to curb its oil imports on latest sanctions by the United States. Following these developments, oil prices surged.
Although, continued increase in crude oil prices is a threat for airline companies, their initiative to reduce industry capacity and raise domestic fares is aimed at countering this concern. Delta Air Lines, American Airlines, United Continental and Southwest Airlines have gained 9.3%, 4.4%, 8.4% and 5.9%, respectively, in the past one month.
Additionally, after the initial pullback this year, the Dow Jones Transportation Average (DJT) and NYSE ARCA Airline Index (XAL) have gained 5.9% and 1.9%, respectively, in the last three months.
Summing Up
Undoubtedly, the airline sector has come a long way from its weak start this year. Several major airline giants announced their increase their domestic fares and lower industrial capacity, which in turn is expected to boost the airline sector revenues. Along with this improvement, low valuation will also benefit these airline stocks to overcome high fuel costs.
(We are reissuing this article to correct a mistake. The original article, issued on August 24, 2018, should no longer be relied upon.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route resulted in "colossal loss" due to rise in fuel prices. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Managing director of investment banking company, Imperial Capital, Michael Derchin said that airline giants like Delta Air Lines, Inc. DAL will gain from "lower industry capacity and potentially higher domestic fares."
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route resulted in "colossal loss" due to rise in fuel prices. High Fares, Low Capacity Are Boon for Airline Stocks Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route resulted in "colossal loss" due to rise in fuel prices. High Fares, Low Capacity Are Boon for Airline Stocks Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices.
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After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route resulted in "colossal loss" due to rise in fuel prices. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The airline sector had a rough beginning this year, with the Dow Jones Transportation Average witnessing a significant decline during the first six months.
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e9f5a5a1-83ff-43f6-a8fc-c8e3ebfa06f6
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6950.0
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2018-08-28 00:00:00 UTC
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Delta Air Lines Will Expand Transatlantic Service in 2019
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-will-expand-transatlantic-service-2019-2018-08-28
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nan
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nan
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Since the beginning of 2017, most U.S. airlines have returned to unit revenue growth. That said, they have struggled to boost revenue fast enough to keep up with surging fuel prices . (The market price of jet fuel has hovered around $2.10 per gallon for the past few months, up from $1.30 per gallon as recently as June 2017.)
However, the transatlantic market has been a bright spot for the largest U.S. airlines over the past year. As a result, Delta Air Lines (NYSE: DAL) recently revealed plans to expand its transatlantic service in 2019.
Strong unit revenue growth for transatlantic flights
Delta Air Lines, American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all posted solid unit revenue growth last quarter. Delta led the way, with passenger revenue per available seat mile (PRASM) up 4.4% year over year. United took the No. 2 spot, with a 3% PRASM increase, while American Airlines' PRASM inched up 1.5%.
Despite this industry-leading unit revenue growth, Delta's adjusted pre-tax margin fell by almost 3 percentage points last quarter. United posted a similar margin decline , while American Airlines' pre-tax margin plunged by 5.6 percentage points. In other words, low- to mid-single-digit PRASM growth isn't enough to offset rising costs right now.
However, all three airlines have been reporting stronger unit revenue growth in the transatlantic market (which mainly consists of flights between the U.S. and Europe). In the second quarter, transatlantic PRASM rose 6.2% at American Airlines, 7.9% at United Airlines, and 11.2% at Delta Air Lines.
During the same period, overcapacity weighed on unit revenue in the domestic and transpacific regions, while economic weakness in much of Latin America has hurt unit revenue there.
Delta is doubling down
Delta Air Lines' strong Q2 PRASM performance in the transatlantic market wasn't a flash in the pan. Unit revenue growth has been accelerating there over the past year. Transatlantic PRASM rose 2.4% in the third quarter of 2017, 7.4% in the fourth quarter, and 11.5% in Q1 2018. That's why Delta plans to expand its transatlantic service. Last week, it announced several capacity increases that will take effect next year.
First, Delta has been flying from Los Angeles to Amsterdam four times a week, and from Los Angeles to Paris three times a week since June. Next June, it will begin offering daily flights on both routes.
Second, Delta will begin a daily nonstop flight between Tampa and Amsterdam in late May. Finally, the carrier will add a second daily flight on its existing routes from New York to Paris and Tel Aviv in mid-June.
While most transatlantic flights have been very profitable recently, there are still some underperformers. In conjunction with its announcement of these new transatlantic routes, Delta revealed that its seasonal summer service between Pittsburgh and Paris won't return in 2019.
Focusing on strategic advantages
Delta's 2019 transatlantic expansion is primarily aimed at adding capacity in markets where the carrier has a strategic advantage. Three of the four existing routes for which Delta is adding flights (Los Angeles-Amsterdam, Los Angeles-Paris, and New York-Paris) connect Delta hubs to the European hubs of its joint venture partner Air France-KLM.
The second daily flight to Tel Aviv takes advantage of a strong local market, but it also represents a defensive move. Today, United Airlines offers two daily flights between Newark (just outside of New York City) and Tel Aviv, including daytime and overnight return trips to the U.S. Delta will now be able to match United's schedule options between New York and Tel Aviv.
By contrast, Delta's new Tampa-Amsterdam route appears more opportunistic. Tampa is a major metro area without a dominant airline. Delta will use joint venture partner KLM's strong hub in Amsterdam to funnel traffic between Tampa and dozens of destinations in Europe and beyond.
Delta is playing to its strengths with the transatlantic capacity additions it announced last week. Thus, these routes should be able to reach peak profitability relatively quickly, rather than requiring a multiyear period of investment. That should help Delta Air Lines in its efforts to get its pre-tax profit growing again in 2019.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong unit revenue growth for transatlantic flights Delta Air Lines, American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all posted solid unit revenue growth last quarter. Finally, the carrier will add a second daily flight on its existing routes from New York to Paris and Tel Aviv in mid-June. In conjunction with its announcement of these new transatlantic routes, Delta revealed that its seasonal summer service between Pittsburgh and Paris won't return in 2019.
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Strong unit revenue growth for transatlantic flights Delta Air Lines, American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all posted solid unit revenue growth last quarter. As a result, Delta Air Lines (NYSE: DAL) recently revealed plans to expand its transatlantic service in 2019. In the second quarter, transatlantic PRASM rose 6.2% at American Airlines, 7.9% at United Airlines, and 11.2% at Delta Air Lines.
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Strong unit revenue growth for transatlantic flights Delta Air Lines, American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all posted solid unit revenue growth last quarter. In the second quarter, transatlantic PRASM rose 6.2% at American Airlines, 7.9% at United Airlines, and 11.2% at Delta Air Lines. Delta is doubling down Delta Air Lines' strong Q2 PRASM performance in the transatlantic market wasn't a flash in the pan.
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Strong unit revenue growth for transatlantic flights Delta Air Lines, American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all posted solid unit revenue growth last quarter. 2 spot, with a 3% PRASM increase, while American Airlines' PRASM inched up 1.5%. In the second quarter, transatlantic PRASM rose 6.2% at American Airlines, 7.9% at United Airlines, and 11.2% at Delta Air Lines.
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2db59cee-89bd-4294-87ba-f11c32259853
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6951.0
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2018-08-27 00:00:00 UTC
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Will Florida Mass Shooting Hurt U.S. Airline Stocks?
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AAL
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https://www.nasdaq.com/articles/will-florida-mass-shooting-hurt-u.s.-airline-stocks-2018-08-27
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nan
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nan
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Tragedy struck Jacksonville, FL, on Aug 26, when a man opened fire in a restaurant where the video game tournament was being streamed online. Unfortunately, two people were killed and nine injured following the gunfire. Two more persons suffered injury while trying to flee the site. Also, the shooter, believed to be David Katz of Baltimore, shot himself after the massacre.
Currently, this incident is under investigation. Although no motive has been established yet, sadly such episodes of violence are on the rise in the United States. Notably, in Florida, such cases of mass shooting are rising at an alarming rate, including the deadly shootings at a high school in Parkland earlier this year and at the Fort Lauderdale Airport last year.
Will Air Travel Demand to Florida Slacken?
As Florida boasts many attractive tourist destinations, air travel to and from the state helps in generating significant amount of passenger revenues for airline players. In fact, the Jacksonville International Airport in Florida is one of the busiest airports in the country, attracting huge traffic. All major airlines including the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU have operations there. However, the big question is whether the latest mass shooting will adversely impact air travel.
It is a well-documented fact that acts of terrorism have the potential to ground airline stocks due to the possibility of waning travel demand due to security fears. Given this backdrop, we expect U.S. airline stocks to shed value due to waning travel demand to Florida, at least in the short term. This, in turn, is likely to adversely impact the top line as well. Nonetheless, only time will tell the extent to which revenues are actually hurt.
Tropical Storm Lane Impedes Travel
As if the mass shooting induced uncertainty on travel demand was not enough, a recent natural disaster led to the cancellation of multiple flights. Hawaii was recently hit by tropical storm - Lane. The island was battered by torrential rains due to the natural calamity, which has now thankfully moved away from Hawaii.
Following this calamity, many airlines including Hawaiian Holdings, Inc. HA announced waivers to passengers to and from the island. Moreover, some carriers including United Continental Holdings, Inc. UAL have reportedly added flights to meet the surge in demand.The company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This is not the first time that airline operations have been disrupted due to a storm. Earlier, such acts of nature have thrown the schedules of carriers out of gear, causing multiple flight cancellations.
Winter storm Grayson had impeded travel earlier this year. Moreover, the back-to-back hurricanes (Harvey, Irma and Maria) dented airline operations significantly in 2017. Prior to that, winter storm Stella had crippled airline operations considerably by impeding travel. In 2016, Hurricane Matthew had spelt doom for airlines, causing extensive damage.
Airlines Already Reeling Under Multiple Headwinds
Increasing fuel costs has hurt airline stocks big time. Oil prices have risen roughly 10% year to date. Since expenses on fuel are significant for airlines, rise in oil prices is unfavorable for the space.
In fact, the bearish forecast by the International Air Transport Association ("IATA") on current-year airlines' profitability highlights the fact that the woes are likely to continue for carriers. The research firm predicts global net profit for the industry to be $33.8 billion, much lower than the 2018 profitability forecast of $38.4 billion, unveiled in December 2017. Escalating oil prices apart, labor costs, customer-related issues and capacity-related woes are hurting airlines.
Industry Underperformance YTD
Judging by shareholder returns on a year-to-date basis, it seems that the above-mentioned headwinds have led to investors' pessimism surrounding the space.
The Zacks Airline industry , which is part of the broader Zacks Transportation Sector , has underperformed both the S&P 500 and its own sector year to date. While the stocks in this industry have collectively lost 14.2%, the sector has gained 0.2% of its value. Meanwhile, the Zacks S&P 500 Composite has rallied 9% in the same time period.
YTD Price Performance
Zacks Industry Rank Highlights the Struggles
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term.
The Zacks Airline industry currently carries a Zacks Industry Rank #211, which places it at the bottom 18% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
With the sector already reeling under the above-mentioned headwinds, if travel demand to and from Florida slackens due to Sunday's mass shooting, airline stocks will receive a further blow. Therefore, we expect investor focus to remain on this issue.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All major airlines including the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU have operations there. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. As Florida boasts many attractive tourist destinations, air travel to and from the state helps in generating significant amount of passenger revenues for airline players.
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All major airlines including the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU have operations there. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Airlines Already Reeling Under Multiple Headwinds Increasing fuel costs has hurt airline stocks big time.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. All major airlines including the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU have operations there. YTD Price Performance Zacks Industry Rank Highlights the Struggles The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term.
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All major airlines including the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU have operations there. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. This is not the first time that airline operations have been disrupted due to a storm.
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4ba1a721-cc8e-4499-9b4b-734710271bff
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6952.0
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2018-08-27 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines, Delta Air, United Technologies and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-delta-air-united-technologies-and
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nan
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nan
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For Immediate Release
Chicago, IL -August 27, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Technologies CorporationUTX and Southwest Airlines Co.LUV .
Here are highlights from Friday's Analyst Blog:
Can Airline Stocks Stage a Comeback in 2018?
The airline sector had a rough beginning this year, with the Dow Jones Transportation Average witnessing a significant decline during the first six months. However, recent figures tell a different story as both the Dow Jones Transportation Average and NYSE Arca Airline Index registered significant gains in the last few months.
A high level of domestic fares and low industrial capacity are expected to boost the airline sector. Also, some of the major airline companies are undervalued than the broader S&P 500. However, the recent surge in crude price remains a headwind for airline stocks.
High Fares, Low Capacity Are Boon for Airline Stocks
Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices. After all, American Airlines Group Inc. has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route resulted in "colossal loss" due to rise in fuel prices. Similarly, the Fort Worth-based airline giant also earlier canceled flight service between Chicago and Beijing.
Managing director of investment banking company, Imperial Capital, Michael Derchin said that airline giants like Delta Air Lines, Inc. will gain from "lower industry capacity and potentially higher domestic fares."
Senior research analyst of financial services firm, Cowen Group, Helane Becker said that "low fares in the US domestic market" started to move higher and airlines are focusing on increasing "fares in the premium cabin." Becker further added that fare hike in the premium cabin will "begin to be reflected in revenue."
Airlines Less Pricey Than S&P 500, Tech Sector
Along with a positive industry outlook for the airline sector, several of its key components bear lower valuation levels. The recent price-earnings (P/E) ratio of the S&P 500 is 16.71, while that of the Technology Select Sector SPDR (XLK) is 18.66. As compared to the S&P 500 and one of the best performing sectors of the S&P 500 so far this year, airline companies are clearly undervalued.
Companies like Delta Air Lines, American Airlines, United Technologies Corporation and Southwest Airlines Co. have a P/E ratio of 9.24, 7.53, 9.46 and 12.91, respectively. A low level of valuations and strong growth prospects in the near-term make these airline stocks wise investment choices.
Delta Air Lines, United Technologies and Southwest Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
Airlines Capable of Containing Rise in Oil Prices
Per the Energy Information Administration (EIA) on Aug 22, the U.S. crude inventories dropped by 5.8 million to 408.4 million barrels for the week ended Aug 17. Additionally, concerns remain that Iran would be forced to curb its oil imports on latest sanctions by the United States. Following these developments, oil prices surged.
Although, continued increase in crude oil prices is a threat for airline companies, their initiative to reduce industry capacity and raise domestic fares is aimed at countering this concern. Delta Air Lines, American Airlines and Southwest Airlines have gained 10.2%, 3.7% and 17.5%, respectively, in the past month.
Summing Up
Undoubtedly, the airline sector has come a long way from its weak start this year. Several major airline giants announced their increase their domestic fares and lower industrial capacity, which in turn is expected to boost the airline sector revenues. Along with this improvement, low valuation will also benefit these airline stocks to overcome high fuel costs.
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Technologies Corporation (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Technologies CorporationUTX and Southwest Airlines Co.LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. After all, American Airlines Group Inc. has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route resulted in "colossal loss" due to rise in fuel prices.
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Stocks recently featured in the blog include: American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Technologies CorporationUTX and Southwest Airlines Co.LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. High Fares, Low Capacity Are Boon for Airline Stocks Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices.
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Stocks recently featured in the blog include: American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Technologies CorporationUTX and Southwest Airlines Co.LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. High Fares, Low Capacity Are Boon for Airline Stocks Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices.
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Stocks recently featured in the blog include: American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Technologies CorporationUTX and Southwest Airlines Co.LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. Managing director of investment banking company, Imperial Capital, Michael Derchin said that airline giants like Delta Air Lines, Inc. will gain from "lower industry capacity and potentially higher domestic fares."
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3356a729-4d41-4d80-9626-16c925af49a8
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6953.0
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2018-08-27 00:00:00 UTC
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Why Is American Airlines (AAL) Down 3% Since Last Earnings Report?
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AAL
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https://www.nasdaq.com/articles/why-is-american-airlines-aal-down-3-since-last-earnings-report-2018-08-27
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nan
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nan
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It has been about a month since the last earnings report for American Airlines (AAL). Shares have lost about 3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is American Airlines due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Second Quarter Earnings
American Airlines' second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Quarterly earnings decreased on a year-over-year basis mainly due to high fuel costs.
Revenues of $11,643 million fell short of the Zacks Consensus Estimate of $11,652 million. The top line, however, improved on a year-over-year basis. Strong demand for air travel led to the year over year improvement in the top line.
Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 2.1% to 15.97 cents in the reported quarter. Consolidated yield improved 1%. Passenger revenue per available seat miles (PRASM) improved 1.5%.
While traffic (measured by revenue passenger miles) was up 2%, capacity (measured by average seat miles) was up 1.6%. Consolidated load factor (percentage of seats filled by passengers) increased to 83.4% from 83% a year-ago as traffic growth outpaced capacity expansion in the second quarter of 2018.
Total operating expenses (on a reported basis) climbed 10.3% year over year to approximately $10,615 million primarily due to the rise in fuel costs. Expenses pertaining to salaries and benefits were up 1.8%. Consolidated operating costs per available seat miles (CASM: excluding fuel and special items) increased 2.4%.
During the quarter under review, the company returned $396 million to shareholders through dividends and buybacks. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on Aug 21, to the shareholders on Aug 7.
Outlook
TRASM is expected to increase in the band of 1% to 3% in the third quarter of 2018. Pre-tax margin excluding special items is projected in the range of 5% to 7% in the third quarter. Consolidated jet fuel per gallon (including taxes) is projected in the band of $2.22 to $2.27 for the third quarter.
Adjusted earnings per share in 2018 are now expected between $4.50 and $5.00 (previous guidance had hinted at earnings between $5 and $6). Higher fuel costs led to the view being trimmed.
Consolidated CASM (excluding special items and fuel) is expected to increase 1% in the third quarter of 2018. The metric is also anticipated to increase approximately 1.5% in 2018. The metric is still expected to increase in the band of 1% to 2% in each of 2019 and 2020.
Capacity (system) in the third quarter is projected to increase 3.3% year over year. The metric is expected to increase 1.6% in the final quarter of 2018. Capacity in 2018 is expected to grow 2.2%, compared with 2.5% expected earlier.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -17.79% due to these changes.
VGM Scores
Currently, American Airlines has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our style scores.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise American Airlines has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has been about a month since the last earnings report for American Airlines (AAL). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Will the recent negative trend continue leading up to its next earnings release, or is American Airlines due for a breakout?
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It has been about a month since the last earnings report for American Airlines (AAL). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Second Quarter Earnings American Airlines' second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents.
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It has been about a month since the last earnings report for American Airlines (AAL). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Second Quarter Earnings American Airlines' second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents.
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It has been about a month since the last earnings report for American Airlines (AAL). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Total operating expenses (on a reported basis) climbed 10.3% year over year to approximately $10,615 million primarily due to the rise in fuel costs.
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ac2097cf-4c47-49dd-90b3-3f3625cb5caf
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6954.0
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2018-08-25 00:00:00 UTC
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Hawaiian Airlines Cuts China Flights, Following American Airlines
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AAL
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https://www.nasdaq.com/articles/hawaiian-airlines-cuts-china-flights-following-american-airlines-2018-08-25
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nan
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nan
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In 2014, Hawaiian Holdings (NASDAQ: HA) began its first route to China, flying three times a week between Honolulu and Beijing. Management touted the route as opening up a massive new market that could potentially drive the bulk of the Hawaii tourism industry's growth over the next few decades.
However, earlier this week, Hawaiian announced that it will suspend its Honolulu-Beijing route in October. That made it the second U.S. carrier -- after American Airlines (NASDAQ: AAL) -- to slash capacity to China this week.
The demand wasn't there
At the time that Hawaiian Airlines first began flying to Beijing, then-CEO Mark Dunkerley noted that Hawaii needed to become a friendlier destination for Chinese tourists. He cited a need for more low-price and mid-price accommodations, more marketing in China, and (most importantly) more Mandarin speakers in tourist-facing roles in Hawaii.
Those problems haven't been fixed in the past four years. It has been clear from management's commentary for a while that the Beijing route was seen as a long-term investment rather than one expected to be profitable anytime soon. With fuel prices rising, Hawaiian Airlines appears to have decided that nonstop service to China isn't viable yet.
Hawaiian Airlines spokesperson Ann Botticelli said that the Beijing-Honolulu market hasn't matured as quickly as expected , according to the Honolulu Star-Advertiser . She continued: "We hope to once again fly to China when the market matures. If you look at China's population growth trends and economic growth indicators, there is no doubt it will become a major contributor to tourism globally, and that includes travel to Hawaii."
The last flight to Beijing will depart on Oct. 9, while the final return flight to Honolulu will leave Beijing on Oct. 12. Hawaiian Airlines plans to maintain its current sales footprint in China and offer connecting service to Hawaii via its interline partners' hubs in Tokyo, Osaka, and Seoul.
Hawaiian can afford to pull back
American Airlines' decision to slash capacity from Chicago to Asia -- mainly China -- was risky because some of its corporate customers may depend on those routes . Without nonstop American Airlines flights from Chicago to major Asian business destinations, these corporate clients could opt to move their entire (lucrative) travel accounts to United Continental .
American Airlines may have felt it had no choice but to retreat, due to the scale of its losses on these routes and the likelihood that competition on routes to China will continue increasing. By contrast, Hawaiian Airlines has faced a fairly steady competitive environment on its Beijing route since 2014. Capacity in the Beijing-Honolulu market actually declined 9.9% year over year in the first half of 2018.
However, for Hawaiian, there's much less downside to dropping its Beijing route. The airline predominantly carries inbound tourist traffic. It doesn't generate the bulk of its profit from corporate clients who would drop Hawaiian Airlines if it didn't serve all of the biggest business markets.
The only real drawback is that Chinese carriers could come to dominate the China-Hawaii tourist market in the coming years. But it would be illogical to maintain the route indefinitely in a fight for market share if it's nowhere close to becoming profitable.
This move should quickly boost profitability
Hawaiian Airlines has plenty of experience redeploying capacity on short notice. After adding lots of new international destinations between 2010 and 2014, Hawaiian cut several of the lower-performing routes in 2014. It redeployed the extra capacity to the U.S. West Coast.
In the short run, I expect the same thing this time around. Hawaiian Airlines is in the midst of an aggressive fleet renewal project. It plans to retire all of its Boeing 767s by year-end, replacing them with state-of-the-art Airbus A321neos . However, it seems like Hawaiian may be tight on aircraft availability this fall (and in early 2019) relative to its plans. The A330 that is currently used for the Beijing flight could be used to fill the gap.
If Hawaiian Airlines does have extra aircraft time available, it could potentially add flights in a market like Las Vegas, where capacity is down 10% year to date. Fares for Las Vegas-Honolulu flights are nearly as high as fares for Beijing-Honolulu flights, even though the Beijing route is almost twice as long. As a result, redeploying capacity to a market like Las Vegas would surely be a profitable move in the short run.
Next year, as its A321neo fleet continues to grow, Hawaiian Airlines is likely to redeploy some A330s away from West Coast markets. At that point, it may explore new routes to Asia, the South Pacific, or even just the East Coast. But for now, Hawaiian seems poised to double down on its core West Coast-Hawaii market, where it's reliably profitable. That should lead to a quick improvement in its earnings trajectory starting next quarter.
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Adam Levine-Weinberg owns shares of Hawaiian Holdings. The Motley Fool recommends Hawaiian Holdings. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That made it the second U.S. carrier -- after American Airlines (NASDAQ: AAL) -- to slash capacity to China this week. The demand wasn't there At the time that Hawaiian Airlines first began flying to Beijing, then-CEO Mark Dunkerley noted that Hawaii needed to become a friendlier destination for Chinese tourists. Hawaiian Airlines plans to maintain its current sales footprint in China and offer connecting service to Hawaii via its interline partners' hubs in Tokyo, Osaka, and Seoul.
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That made it the second U.S. carrier -- after American Airlines (NASDAQ: AAL) -- to slash capacity to China this week. In 2014, Hawaiian Holdings (NASDAQ: HA) began its first route to China, flying three times a week between Honolulu and Beijing. Without nonstop American Airlines flights from Chicago to major Asian business destinations, these corporate clients could opt to move their entire (lucrative) travel accounts to United Continental .
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That made it the second U.S. carrier -- after American Airlines (NASDAQ: AAL) -- to slash capacity to China this week. In 2014, Hawaiian Holdings (NASDAQ: HA) began its first route to China, flying three times a week between Honolulu and Beijing. It doesn't generate the bulk of its profit from corporate clients who would drop Hawaiian Airlines if it didn't serve all of the biggest business markets.
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That made it the second U.S. carrier -- after American Airlines (NASDAQ: AAL) -- to slash capacity to China this week. In 2014, Hawaiian Holdings (NASDAQ: HA) began its first route to China, flying three times a week between Honolulu and Beijing. If Hawaiian Airlines does have extra aircraft time available, it could potentially add flights in a market like Las Vegas, where capacity is down 10% year to date.
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aee75c58-3ac2-4cb2-9f2c-7094be1d3f73
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6955.0
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2018-08-24 00:00:00 UTC
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Can Airline Stocks Stage a Comeback in 2018?
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AAL
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https://www.nasdaq.com/articles/can-airline-stocks-stage-comeback-2018-2018-08-24
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nan
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nan
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The airline sector had a rough beginning this year, with the Dow Jones Transportation Average witnessing a significant decline during the first six months. However, recent figures tell a different story as both the Dow Jones Transportation Average and NYSE Arca Airline Index registered significant gains in the last few months.
A high level of domestic fares and low industrial capacity are expected to boost the airline sector. Also, some of the major airline companies are undervalued than the broader S&P 500. However, the recent surge in crude price remains a headwind for airline stocks.
High Fares, Low Capacity Are Boon for Airline Stocks
Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices. After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route, resulted in "colossal loss" due to rise in fuel prices. Similarly, the Fort Worth-based airline giant also earlier canceled flight service between Chicago and Beijing.
Managing director of investment banking company, Imperial Capital, Michael Derchin said that airline giants like Delta Air Lines, Inc. DAL will gain from "lower industry capacity and potentially higher domestic fares."
Senior research analyst of financial services firm, Cowen Group, Helane Becker said that "low fares in the US domestic market" started to move higher and airlines are focusing on increasing "fares in the premium cabin." Becker further added that fare hike in the premium cabin will "begin to be reflected in revenue."
Airlines Less Pricey Than S&P 500, Tech Sector
Along with a positive industry outlook for the airline sector, several of its key components bear lower valuation levels. The recent price-earnings (P/E) ratio of the S&P 500 is 16.71, while that of the Technology Select Sector SPDR (XLK) is 18.66. As compared to the S&P 500 and one of the best performing sectors of the S&P 500 so far this year, airline companies are clearly undervalued.
Companies like Delta Air Lines, American Airlines, United Technologies Corporation UTX and Southwest Airlines Co. LUV have a P/E ratio of 9.24, 7.53, 9.46 and 12.91, respectively. A low level of valuations and strong growth prospects in the near-term make these airline stocks wise investment choices.
Delta Air Lines, United Technologies, and Southwest Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
Airlines Capable of Containing Rise in Oil Prices
Per the Energy Information Administration (EIA) on Aug 22, the U.S. crude inventories dropped by 5.8 million to 408.4 million barrels for the week ended Aug 17. Additionally, concerns remain that Iran would be forced to curb its oil imports on latest sanctions by the United States. Following these developments, oil prices surged.
Although a continued increase in crude oil prices is a threat for airline companies, their initiative to reduce industry capacity and raise domestic fares is aimed at countering this concern. Delta Air Lines, American Airlines, and Southwest Airlines have gained 10.2%, 3.7% and 17.5%, respectively, in the past one month.
Additionally, after the initial pullback this year, the Dow Jones Transportation Average (DJT) and NYSE ARCA Airline Index (XAL) have gained 5.7% and 2.6%, respectively, in the last three months.
Summing Up
Undoubtedly, the airline sector has come a long way from its weak start this year. Several major airline giants announced their increase their domestic fares and lower industrial capacity, which in turn is expected to boost the airline sector revenues. Along with this improvement, low valuation will also benefit these airline stocks to overcome high fuel costs.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Technologies Corporation (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route, resulted in "colossal loss" due to rise in fuel prices. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. Managing director of investment banking company, Imperial Capital, Michael Derchin said that airline giants like Delta Air Lines, Inc. DAL will gain from "lower industry capacity and potentially higher domestic fares."
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route, resulted in "colossal loss" due to rise in fuel prices. High Fares, Low Capacity Are Boon for Airline Stocks Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route, resulted in "colossal loss" due to rise in fuel prices. High Fares, Low Capacity Are Boon for Airline Stocks Recently, several airline companies announced plans to increase domestic fares and reduce capacity growth in order to counter rising fuel prices.
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After all, American Airlines Group Inc. AAL has already decided to terminate as many as 11 flight services, including the one between Chicago and Shanghai this October as the route, resulted in "colossal loss" due to rise in fuel prices. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report To read this article on Zacks.com click here. The airline sector had a rough beginning this year, with the Dow Jones Transportation Average witnessing a significant decline during the first six months.
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4edf346b-51cc-4e50-b0dd-a891d99fe47d
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6956.0
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2018-08-23 00:00:00 UTC
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Delta to Change Routes Under Trans-Atlantic Network Expansion
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AAL
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https://www.nasdaq.com/articles/delta-to-change-routes-under-trans-atlantic-network-expansion-2018-08-23
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nan
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nan
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In a bid to expand internationally, Delta Air Lines, Inc.DAL announced its decision to broaden its trans-Atlantic network for next year's summer. Toward this end, this Atlanta, GA-based carrier not only announced additional flights but also increased frequencies of some existing ones.
Under the route expansion plan across the Atlantic, the airline behemoth has decided to introduce year-round nonstop flights connecting Tampa Bay, FL, to Amsterdam. The flights, which will be operational from May 23, 2019, are expected to widen the travel options for passengers travelling from the United States to the Netherlands. The new route will be the 11th one connecting Amsterdam and the United States, and the second one connecting Amsterdam and Florida.
To meet surge in demand, Delta also increased the frequency of its service connecting Los Angeles to Amsterdam and Paris. Flights to both these key European destinations will operate on a daily basis from Jun 16, 2019. Additionally, the company has decided to boost its European services from New York's JFK International Airport next summer. Delta will utilize the upgraded Boeing 777 jets to operate the additional flights connecting Los Angeles and Paris.
Moreover, Delta has added a second non-stop flight on each of the New York-JFK - Paris and New York-JFK- Tel Aviv routes as part of its expansion initiative. We note that this airline company operates flights connecting the United States and mainland Europe with Air France-KLM SA AFLYY and Alitalia. However, Delta will reportedly stop operating on the Pittsburgh-Paris and Newark-Paris routes after Sep 3 and Oct 28, 2018, respectively.
We note that shares of Delta have outperformed its industry in a year's time. The stock has gained 26.3% against the industry's 1.7% decline.
One-Year Price Performance
The announcement of the new routes is an added positive for the stock. Once operational, we expect these latest routes to boost the top line by generating additional traffic.
Notably, Delta is the second major U.S. carrier to announce changes to its international routes in the last couple of days. In a bid to boost its profitability in the current scenario of rising oil prices , American Airlines Group Inc. AAL recently announced certain route changes. The carrier has decided to strengthen its European footprint by introducing nine new routes next summer. However, it is set to discontinue the unprofitable Chicago-Shanghai route in October. American Airlines cited rising fuel costs as a reason behind this decision apart from intense competition from Chinese carriers.
Zacks Rank & Key Pick
Delta carries a Zacks Rank #3 (Hold). A better-ranked airline stock is SkyWest, Inc. SKYW sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of SkyWest have soared more than 95% in a year's time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a bid to boost its profitability in the current scenario of rising oil prices , American Airlines Group Inc. AAL recently announced certain route changes. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Under the route expansion plan across the Atlantic, the airline behemoth has decided to introduce year-round nonstop flights connecting Tampa Bay, FL, to Amsterdam.
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In a bid to boost its profitability in the current scenario of rising oil prices , American Airlines Group Inc. AAL recently announced certain route changes. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. We note that this airline company operates flights connecting the United States and mainland Europe with Air France-KLM SA AFLYY and Alitalia.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. In a bid to boost its profitability in the current scenario of rising oil prices , American Airlines Group Inc. AAL recently announced certain route changes. Under the route expansion plan across the Atlantic, the airline behemoth has decided to introduce year-round nonstop flights connecting Tampa Bay, FL, to Amsterdam.
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In a bid to boost its profitability in the current scenario of rising oil prices , American Airlines Group Inc. AAL recently announced certain route changes. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. We note that shares of Delta have outperformed its industry in a year's time.
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d20057a9-8a80-4862-9774-a411c18d7c65
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6957.0
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2018-08-23 00:00:00 UTC
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What's Behind the Recent Rally in Airlines ETF?
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AAL
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https://www.nasdaq.com/articles/whats-behind-recent-rally-airlines-etf-2018-08-23
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nan
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nan
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Airlines stocks have been flying high in recent sessions, breezing past the broader market fund SPDR S&P 500 ETFSPY . The airline companies belong to a bottom-ranked Zacks industry (bottom 6%). Still, stocks are soaring. Let's find out the reason:
Buffett Bets Big on Airlines
Buffett's Berkshire Hathaway Inc. broadened its stake in the airline industry and boosted its investments in Delta Air Lines Inc. DAL and Southwest Airlines Co. LUV) in the second quarter. The stake in Delta went up by 19% to 63.7 million shares while Southwest sees a rise in stake from 47.7 million to 56.5 million.
However, Berkshire Hathaway cut its stake marginally in United Continental and American Airlines AAL , per Bloomberg. The trimming of exposure was to avert crossing 10% ownership in each of those companies, which is "Buffett's personal threshold that he didn't want to cross."
Investors should note that most of airline stocks have a top-notch Zacks Value Score of A. And Buffett being a fan of value stocks, understandably dipped his toe in the sector.
Capacity Cuts
Per an article published on the Wall Street Journal, there is a decline in capacity projections in airline shares, with the airline group seeing a 9.9% rise in share price since late June. For example, American Airlines trimmed its capacity guidance for the third and fourth quarters.
And for 2018, United Continental's capacity is estimated to expand in the 4.5-5% range compared with 4.5-5.5% projected earlier. Delta Air Lines' July load factor rose year over year, as traffic demand surpassed seat supply .
Earlier, investors were concerned about big expansion plans as airliners flying with too many vacant seats are likely to cause lower ticket prices and lesser profitability. But the trimming of the full-year capacity growth forecast turned out a positive.
Decent Earnings
Delta 's second-quarter earnings and revenues beat estimates. The bottom line expanded on a year-over-year basis despite high fuel costs. The top line increased more than 9% from the year-ago figure. Strong demand for air travel boosted revenues. United Continental HoldingsInc. 's UAL earnings and revenues surpassed the Zacks Consensus Estimate of $3.07. The bottom and top line also increased significantly year over year.
Four other airlines - American Airlines, Southwest Airlines, JetBlue JBLU and Alaska Air Group ALK - surpassed earnings estimates but lagged the Zacks Consensus Estimate on revenues. Overall, the earnings picture of the sector remains decent, if not great (read: Airlines ETF Gains in 1-Month Period Despite Mixed Results ).
ETF in Focus
Since fundamentals are turning positive, investors having a strong stomach for oil-related risks may take a basket approach. This approach makes up for company-specific concentration risks as one company's weakness compensates for another company's strength (read: Winning and Losing Sectors ETFs Post OPEC Decision ).
JETS in Focus
The $101.6 million-fund holds more than 30 stocks in its portfolio and is concentrated on a few individual securities. United Continental (13.14%), Southwest Airlines (12.97%), Delta Airlines (12.26%) and American Airlines (11.22%) take the first four positions in the fund. Alaska Air and JetBlue hold the seventh and eighth positions in the fund with a 3.95% and 3.73% weight, respectively. The product charges 60 bps in fees. The fund added about 4.3% in the past five days (as of Aug 21, 2018) (see all industrials ETFs ).
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
SPDR-SP 500 TR (SPY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Berkshire Hathaway cut its stake marginally in United Continental and American Airlines AAL , per Bloomberg. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports To read this article on Zacks.com click here. Airlines stocks have been flying high in recent sessions, breezing past the broader market fund SPDR S&P 500 ETFSPY .
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports To read this article on Zacks.com click here. However, Berkshire Hathaway cut its stake marginally in United Continental and American Airlines AAL , per Bloomberg. Let's find out the reason: Buffett Bets Big on Airlines Buffett's Berkshire Hathaway Inc. broadened its stake in the airline industry and boosted its investments in Delta Air Lines Inc. DAL and Southwest Airlines Co. LUV) in the second quarter.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports To read this article on Zacks.com click here. However, Berkshire Hathaway cut its stake marginally in United Continental and American Airlines AAL , per Bloomberg. Let's find out the reason: Buffett Bets Big on Airlines Buffett's Berkshire Hathaway Inc. broadened its stake in the airline industry and boosted its investments in Delta Air Lines Inc. DAL and Southwest Airlines Co. LUV) in the second quarter.
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However, Berkshire Hathaway cut its stake marginally in United Continental and American Airlines AAL , per Bloomberg. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports To read this article on Zacks.com click here. Let's find out the reason: Buffett Bets Big on Airlines Buffett's Berkshire Hathaway Inc. broadened its stake in the airline industry and boosted its investments in Delta Air Lines Inc. DAL and Southwest Airlines Co. LUV) in the second quarter.
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cba0f53f-34c7-4b8b-9b3d-e07bc8b2fbbe
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6958.0
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2018-08-22 00:00:00 UTC
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What Warren Buffett Is Buying and One Proposed Corporate Rule Change You Need to Know
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AAL
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https://www.nasdaq.com/articles/what-warren-buffett-buying-and-one-proposed-corporate-rule-change-you-need-know-2018-08-22
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Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) saw quite a bit of buying and selling activity in the second quarter. Plus, President Donald Trump is looking into ending the quarterly reporting requirement for publicly traded companies.
In this episode of Industry Focus: Financials , host Shannon Jones and Motley Fool contributor Matt Frankel give listeners a rundown of these two news items.
A full transcript follows the video.
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This video was recorded on Aug. 20, 2018.
Shannon Jones: Welcome to Industry Focus , the show that dives into a different sector of the stock market every day. It's Monday, August the 20th. On today's Financials show, we're tracking what Warren Buffett's Berkshire Hathaway is buying and selling. Also, we'll dive into President Trump's ask of the SEC to study the possibility of moving away from quarterly company earnings reports to twice a year reporting. We'll dive into all of that and what it could mean for investors in this week's episode of Industry Focus: Financials .
Before we do, I'm your host, Shannon Jones, I'm joined in the studio via Skype with financials guru and certified financial planner, Matt Frankel. Matt, how's it going?
Matt Frankel: Great! I'm trying out new headset for the first time. It's an exciting day over here.
Jones: That is very exciting! We are moving on up the chain here with this exciting technology, Matt. Glad to have you!
As promised, when we covered Berkshire's earnings a couple of weeks ago, we said we would come back to our listeners to talk about what exactly Berkshire and friends were buying and selling in the second quarter of this year. It's obviously something that investors always look forward to. This quarter, no exception.
What we see, high-level, is, despite the aging bull market that's going on, Berkshire was definitely a net buyer and even went on a bank-buying bonanza. Matt, what can you tell us about what Berkshire is buying?
Frankel: There were a few notable buys this quarter. Apple (NASDAQ: AAPL) is the big one, as has it has been for the past few quarters. Berkshire added about 5% to its Apple stake this quarter, which doesn't sound like a lot, but we're still talking about billions of dollars. The Apple stake is actually worth about $55 billion right now. This is by far their biggest stock investment. It keeps getting bigger.
If comments from Warren Buffett and Charlie Munger are any indicator, it could continue to get bigger. They've both made comments that they would love to own more of Apple. Munger actually said they would love to own the whole thing if they could. Obviously, they can't. Berkshire still has over $100 billion of cash sitting on the sidelines. It's entirely possible that, if they still perceive Apple as a good value, the stake could continue to get bigger.
Beyond that, there are two other big categories of investments Buffett made. He invested in three different bank stocks that they already owned. Buffett didn't buy anything new this quarter. He bought more US Bancorp and Bank of New York Mellon , both of which are considered some of the best-run, best-quality banks in the sector, and both of which have under-performed the market significantly over this year so far. Buffett also loaded up on Goldman Sachs , which is interesting, particularly, because he sold Goldman Sachs a few years ago, a little bit of his stake. Now it looks like he's seeing it as a good value again, since it's been one of the laggards of the sector. That was a Buffett stock that originated in the financial crisis, did really well in the few years after he acquired it, and now has come down a little bit. It looks like Buffett might be starting to build a position in that again.
And, airlines were the other big category that Buffett bought this quarter. Buffett made big headlines, a couple of years ago, about two years ago, when he bought stakes in all four of the major U.S. airlines -- Delta , American Airlines , United and Southwest . This quarter, Buffett added significantly to his Delta and Southwest stakes, over $500 million into each one. This is almost a 20% increase on each stake. There's been widespread speculation that Buffett's going to eventually buy and hold airlines, particularly Southwest.
His method of investing in the airlines has a lot of parallels to when he invested in railroads a few years ago, and eventually acquired BNSF Railroad, which Berkshire still owns. There's been a lot of speculation. This is likely to only add fuel to that fire, especially since one of the two he added to was Southwest. Berkshire could easily afford to buy the portion of Southwest that they don't already own just with the cash they have in the bank. That's a very significant investment.
In addition, Berkshire made a couple of smaller purchases. "Smaller," I mean in the $50 billion ballpark each. That's still small to Berkshire. General Motors is one that had a pretty bad second quarter. He could have just added to that as a value play. Teva Pharmaceuticals is another big one, the generic drug maker that he bought into a little while ago. It's still a relatively small position for Buffett. And, Liberty Global , he added a little bit to his investment.
The airlines, Apple, and the banks were the three big attention-grabbers of the quarter.
Jones: From an industry perspective, when we're thinking about it from a read through to everyday investors, you mentioned he loaded up quite a bit on a couple of airline stocks and on banks. Do you think, for average investors like us, now is a really good time to actually be buying into these industries? If so, why?
Frankel: Banks, I particularly like, not just because they're my specialty. They've been one of the worst performers of 2018, after really, really good performance over the past few years. If you pick and choose, in the way Buffett's doing, picking the ones who have underperformed even the poorly performing banking sector ... US Bancorp is, in my opinion, the best-run of the big banks, period. Goldman Sachs, I've written several times, I think, is one of the best values in the banking space, just because of their vast potential when it comes to commercial banking that they're just starting to scratch the surface of. I like that.
Apple's always a winner. I own it in my own portfolio. It's really, really tough to make a case against Apple as an investment, unless you might think it has gotten a little bit too expensive. And, airlines, I don't know if it's a great time to get into the sector, unless you're speculating on which one Buffett might take out. To be perfectly honest, airlines are a little bit outside of my wheelhouse, so I don't really want to give anyone definitive advice one way or the other on them.
Jones: Yeah, agreed. I think definitely, from the financials sector, you've got it underperforming the market so far in 2018. And then, too, we did an episode, maybe about three or four weeks ago, talking about big bank earnings. You've got really strong fundamentals with many of these major banks. So, to see them underperforming the market actually opens up a really awesome buying opportunity to get in on either new positions into some of these stocks, or really to load up on some of your current positions. I agree with you 100% on following into bank stocks and into that particular industry.
Shifting gears a bit, had some notable opportunities to buy. Buffett also had some notable sells this quarter, as well. He closed out of a position and trimmed a few back. What exactly did he scale back on?
Frankel: Well, first of all, it's important to note that Buffett was a net buyer of stocks. His buys totaled about $3 billion more than his sells. It still looks like he's positive on the market in general. The sell that stuck out the most to me was Phillips 66 . This is a position that Buffett sold several billion dollars' worth of a couple of quarters ago. He made a point to say that the only reason he was getting rid of it was to keep his stake below 10% to avoid regulatory issues. And he made a point to say that he planned on holding the stock for the long-term. Well, fast forward to now. It looks like that might not be the case anymore, because Buffett unloaded $1.3 billion worth of Phillips 66, after he just recently said he planned to hold it for the long-term. I found that one particularly interesting. I wonder what changed there.
In addition to that, he sold about $200 million worth of Charter Communications . Still has a pretty substantial position. He sold some United Airlines and American Airlines, possibly to offset the increased stakes in Southwest and Delta. So, he's bought two airlines and sold the other two.
He sold about $260 million worth of Wells Fargo (NYSE: WFC) . Don't make the mistake of reading into that too much. Buffett did not sell Wells Fargo because he has any issue with a business. This is another issue where he wants to maintain a stake under 10% to be regulatory compliant. Berkshire owns about 9.3% of Wells Fargo right now. Buffett also owns some shares in his personal portfolio. To remain under the 10% threshold as Wells Fargo buys back some of its own stock, Buffett needs to sell some of Berkshire's shares to keep his stake proportionally low. This is a very small amount. Even though it says it's $260 million, it's less than 1% of Berkshire's Wells Fargo holdings.
It's not because of the scandals or anything to do with the bank's business itself. Buffett has said time and time again that he believes in Wells Fargo. He recently said he thinks it's going to be the best of the big four banks over the next decade or so. This is not Buffett losing faith in Wells Fargo. It's simply a housekeeping matter to keep his stake under 10%.
He did close out one position, Verisk . But that was a very small investment. I really don't see that as significant, in terms of what Buffett's buying and selling. It was less than $30 million, I believe, which in Berkshire terms is nothing.
Those are the big sales, just to run past them. Phillips 66, ticker symbol PSX, if you don't know. Charter Communications, CHTR. The two airlines, United and American Airlines, to offset the ones he bought, UIL and AAL. And Wells Fargo, but I don't really count that as a sale, it's just a technicality. Those are the big sales, that's a rundown of his big sales.
Jones: I think you highlighted a big point, particularly when investors start following 13-F filings. Love to track Berkshire Hathaway. There are many other fund managers and portfolios, but when it comes to 13-F filings, it's important that an investor understands the why someone is trimming back a position. To your point, Matt, it may not necessarily be because of something happening with the business, per se. It may be really because they want to keep the position under a certain amount for regulatory reasons. And there may be a whole host of other reasons. It's really important to dig into the numbers and not just go after the headlines.
Main takeaway this quarter for Berkshire Hathaway: despite an aging bull market, he is still a net buyer. We get questions all the time, "Is it still safe to buy with the market hitting new highs and continuing to go up?" For us here at The Motley Fool, again, we're long-term buy-and-hold investors. We look for opportunities to buy companies, especially when they're at a discount to dive in. We don't try to time the market. We don't try to say, "Don't buy stocks when the market is high." Look for good companies to invest in over the long term. That's exactly what you see Warren Buffett and Berkshire Hathaway doing.
Alright, last Friday, President Trump tweeted, and I'll read it for our listeners who are catching up. Specifically, he said, "In speaking with some of the world's top business leaders, I asked what it is that would make business and jobs even better in the U.S. Stop quarterly reporting and go to a six-month system, said one. That would allow greater flexibility and save money. I have asked the SEC to study."
Alright, Matt, let's unpack this particular tweet. Just for our listeners catching up, currently, public companies are required to report earnings on a quarterly basis. But according to President Trump and others, this schedule may be less than ideal, some even calling it quarterly capitalism. Matt, tell us what this all really means, and what's really driving the desire for this change, too.
Frankel: Quarterly reports came about in the Security Exchange Act of 1934, a response to the Great Depression. Everyone was concerned that investors weren't being well informed about what's going on in public companies. As an investor protection, companies are required to report every three months, just to kind of inform their potential investors, let them know what they're doing, to make better decisions.
The problem with that is, it's evolved to where it really encourages short-term thinking on the part of management teams. In other words, managers are often incentivized to perform to this quarter's numbers, especially when they're issuing quarterly guidance projections, which is a whole other issue. Managers are often incentivized compensation-wise, where the stock price is going to be at the end of this year, at the end of this quarter. They want to make the analysts' projections, so the stock doesn't plunge as a result of missing estimates.
So, they make decisions based on what's best for the company over the next few months, rather than what's best for investors over the long-term. They might choose to cut down on their capital spending to make their earnings look better, whereas instead, they could spend more money if it's going to have a better long-term effect. The concern is that managers are making trade-offs that are good in the short-term but bad in the long-term, and that the long-term potential of American business would be so much better if they didn't have the requirement. That's the main idea behind this.
President Trump's not alone. In addition to the business leaders he was talking to, we've heard from Warren Buffett, who says that quarterly projections are generally a bad thing because they encourage short-term thinking. Jamie Dimon, CEO of JPMorgan Chase . There have been several others. There have been studies done about this. I read one right before we recorded, a study from The Accounting Review, that said, outside of the U.S., a lot of places don't have these quarterly requirements. Companies that have annual reporting requirements instead of quarterly have, on average, 10% greater sales as a percentage of their assets, 3.5% higher sales growth a year, and 1.5% greater return on assets. There have been studies done that say that getting rid of quarterly reporting does incentivize companies to make better long-term decisions that pay off in the form of better sales, better returns. He's got a point there.
In addition, when he says it's costly and time consuming, he also has a point there. Quarterly reports are complex accounting documents. A lot of investors and a lot of analysts only read the earnings press release, which is usually a short form. But if you look at what's called the 10-Q, which is actually the quarterly report, these can be pretty lengthy documents. I just checked, Apple's recent quarterly report was 56 pages long, of a bunch of calculations and descriptions of their business. These are time consuming, lengthy processes that cost companies money, encourage short-term thinking, and just generally may not be in the best interest of long-term shareholders. That's where this debate came from.
Now, whether a six-month calendar would be any better is anybody's guess. I don't know if it would make that big of a difference if reporting requirements were stretched out by three months. But there's definitely an argument to be made that quarterly reports are not in the best interest of long-term investors.
Jones: Absolutely. The key here, and what's really driving it, just to reiterate, is that basically, many executives and business leaders think that the U.S. markets definitely have a very myopic view when it comes to company performance. I think it's hard to argue against that. When you have the short-term earnings targets that you're trying to meet, ultimately, and you really can't blame many of these executive teams for having to cut back on capital expenditures and really investing in the business. I think there's definitely a valid point there. Also, with the cost of compliance, like you mentioned.
Another really interesting point is that, you do see increased volatility in the markets, especially around that first quarter of the year when people are gearing up for earnings season in Q1. There was actually another report out not too long ago that pointed out that the VIX, the volatility index that measures investor fear, actually tends to rise an average of about 5% right around that Q1 earnings timeframe. I think there's definitely a lot more volatility that comes into the mix when you are reporting on a more frequent basis.
To your point, Matt, I think, whether that is every three months or every six months is kind of debatable. I think you're going to see increased volatility the more you actually push that out, especially if you're not giving more frequent updates in between. But we'll get to the disadvantages of the system in a second.
As you pointed out, overseas, we do have other countries that have gone to this every six months schedule. You've got U.K., Australia, New Zealand, the European Union, even, with the six-month semi-annual schedule. There's also, too, an advantage to harmonize across the board and across the globe.
With that being said, valid points on the desire to move toward this six-month schedule. But let's really unpack what this means for investors. There are some obvious disadvantages to going to the six-month system. Matt, let's start with the first one that everybody should probably already know or have guessed by this point, it really comes down to transparency.
Frankel: Yeah. Like I mentioned, the quarterly reports came out of the Security Exchange Act of 1934. The whole point of quarterly reports is to protect investors. So, it becomes a question, at what point are investors not getting enough information? And is there a way to go to a six month or even annual reporting schedule while keeping investors sufficiently informed?
There are several possible avenues this could take. We could go to annual reporting, but companies are required to disclose certain material events throughout the year that they're not required to disclose ordinarily. There are a couple of different ways they could take this.
But the big drawback is, having access to all this information is what makes the markets fair and efficient, to some degree. It levels the playing field between Wall Street experts and the public by making this same information available to everybody. You don't need to be a detective, you don't need to analyze all the numbers yourself. The companies put out quarterly reports, you see all the numbers in black and white, and you can make your decisions just like everyone else on Wall Street can.
It's definitely going to be an interesting debate, to see how they would deal with that issue. But it definitely is an issue of transparency, getting away from quarterly reports.
Jones: Exactly. You hit the nail on the head, it really comes down to investor protections at the end of the day. At least with a quarterly system in place, investors have more opportunities to not only just detect fraud or accounting irregularities, but really, too, if you think about it from an investor perspective, every quarter, you get a better sense of whether or not this company is staying the course. Are they growing favorably or, are they responding to changing market dynamics in the way that they should? Having that increased frequency of reporting really gives more information so that an investor can make an informed decision.
Like I mentioned, too, I think when you begin to report less, obviously, there's a chance that companies could try to cook the books a little bit more in between those every-six-month reporting schedules. That's not to say that on a quarterly basis, companies don't do that already. But at least there's a little bit more of a safety net to be able to detect those things early. And then, too, I think you have to consider, right now with U.S. and our reporting standards and our regulatory framework, U.S. stocks actually are more attractive when it comes to investment opportunities, especially from international investors. That's because of the framework that we've built over the years. Because of fallout from time periods where we didn't have the regulatory scrutiny that we do now, I think for most, you can usually very easily look back and see time periods in our history as a country when regulatory standards began to back off or become laxer. It didn't necessarily incentivize the companies to actually give more reporting and be more transparent. I think that's one important consideration here.
I'm all about giving the average retail investors more transparency and more power at the end of the day. That really comes down to good corporate governance, too. To cap it all off, Matt, would you be in favor of moving from this quarterly earnings system to a semiannual or even maybe just an annual system?
Frankel: It definitely has its pros and cons. You mentioned earlier that earnings season right now, the VIX tends to spike, stocks tend to move up and down pretty big, if you went after quarterly earnings. Could you imagine if earnings were only released once a year, how big those moves would be? The volatility could be solved and not solved at the same time.
But just to sum it up, I'm all for it, if they can figure out a way to do it without sacrificing transparency. Maybe you don't have to disclose all of your earnings. Then we'd get away from whether or not you made the numbers every quarter. But, there are still some things that should need to be disclosed, maybe a quarterly brief or update. But generally speaking, we are long term investors all around here, we like giving the public as much information as possible. So, I'm for it with the caveat that, as long as it doesn't sacrifice transparency too much, I'm in favor.
Jones: I'd have to say, for me, just in attempting to solve the problem of short-termism, I totally agree that it is a problem in our markets. That's really what The Motley Fool is all about, is trying to get away from short-termism and looking through that long-term lens, I would even say this debate should really open up and really bring in more scrutiny, in terms of aligning executive compensation with driving long-term shareholder value. Really, what it comes down to is not necessarily, did the company hit X earnings target for this quarter, but, is the management team, and really even so the Board of Directors, are they really driving for results that will impact an investor or shareholder's portfolio over the long-term? I mean, we could do an entire episode just on good corporate governance structure. I think, when you look at things like executive compensation, is that aligned with that long-term view that the company wants you to have, that we want to have. And, too, aligning the overall incentives for anyone involved on the company side, I think is key.
I would say I am for change. I would say changing from three to six months, I don't think it will have that big of an impact on the problem of short-termism as something like really going after executive compensation would. But I am open to change. To your point, Matt, to cap it all off, at the end of the day, it's about balancing the regulatory and compliance requirements for these corporations with the need to keep our markets fair, transparent, and efficient; and all while doing that with that long-term view in mind. Definitely not an easy task to undertake. I am glad that there will be a study to hopefully determine whether or not we should do it. But I think it's important for us to really take the time to get it right, just to make sure every stakeholder involved is ultimately treated fairly and compensated well, too.
Frankel: Yeah, definitely. You hit it right on the head there. It's all about balance. As long as they can do it in a balanced way -- we'll have to see what this study comes up with -- I don't think anybody would argue against companies acting in favor of long-term investors.
Jones: That's it for this week's Financials show. Thanks so much for tuning in! As always, people on the program may have interests 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. This show is produced by Austin Morgan. For Matt Frankel, I'm Shannon Jones. Thanks for listening and Fool on!
Matthew Frankel, CFP® owns shares of Apple, Berkshire Hathaway (B shares), and General Motors. Shannon Jones has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool owns shares of Verisk Analytics and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool recommends Berkshire Hathaway (B shares) 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.
The views and 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 two airlines, United and American Airlines, to offset the ones he bought, UIL and AAL. In this episode of Industry Focus: Financials , host Shannon Jones and Motley Fool contributor Matt Frankel give listeners a rundown of these two news items. Really, what it comes down to is not necessarily, did the company hit X earnings target for this quarter, but, is the management team, and really even so the Board of Directors, are they really driving for results that will impact an investor or shareholder's portfolio over the long-term?
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The two airlines, United and American Airlines, to offset the ones he bought, UIL and AAL. In this episode of Industry Focus: Financials , host Shannon Jones and Motley Fool contributor Matt Frankel give listeners a rundown of these two news items. Also, we'll dive into President Trump's ask of the SEC to study the possibility of moving away from quarterly company earnings reports to twice a year reporting.
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The two airlines, United and American Airlines, to offset the ones he bought, UIL and AAL. Also, we'll dive into President Trump's ask of the SEC to study the possibility of moving away from quarterly company earnings reports to twice a year reporting. As promised, when we covered Berkshire's earnings a couple of weeks ago, we said we would come back to our listeners to talk about what exactly Berkshire and friends were buying and selling in the second quarter of this year.
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The two airlines, United and American Airlines, to offset the ones he bought, UIL and AAL. Also, we'll dive into President Trump's ask of the SEC to study the possibility of moving away from quarterly company earnings reports to twice a year reporting. Buffett didn't buy anything new this quarter.
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2018-08-22 00:00:00 UTC
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Consumer Sector Update for 08/22/2018: LZB,LOW,AAL,CVS,AET
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-08222018-lzblowaalcvsaet-2018-08-22
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Top Consumer Stocks
WMT -0.28%
MCD -0.17%
DIS -0.28%
CVS +0.55%
KO -0.47%
Consumer stocks were broadly mixed today, with shares of consumer staples companies in the S&P 500 sinking over 0.6% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.3%.
Among consumer stocks moving on news:
+ La-Z-Boy ( LZB ) was sitting pretty Wednesday afternoon, rising just over 18% to touch an all-time high share price of $39.09 each after reporting fiscal Q1 net income of $0.39 per share, marking a $0.15-per-share increase over the year-ago period and exceeding the Capital IQ consensus by $0.14 per share. Net sales climbed 7.7% over the same quarter last year to $384.7 million and also beating the $368.17 million analyst mean.
In other sector news:
+ Lowe's Companies ( LOW ) climbed more than 10% on Wednesday to reach a best-ever $109.80 a share after saying it will close all 99 of its Orchard Supply Hardware stores on the West Coast and in Florida and posting adjusted Q2 net income of $2.07 per share on $20.89 billion in net sales to beat Wall Street expectations by $0.05 per share and $100 million, respectively. The decision to shutter its Orchard Supply stores in addition to plans to "aggressively rationalize" store inventory by reducing other slow-performing locations follows a strategic assessment and will likely result in the home improvement chain reporting FY18 net income in a range of $4.50 to $4.60 per share, lagging the Capital IQ consensus by at least $0.83 per share. Lowe's late Tuesday also said CVS Health ( CVS ) chief financial officer David Denton will join the company in the same role soon after CVS closes on its proposed acquisition of health care insurance carrier Aetna ( AET ), expected before the end of the year.
- American Airlines Group ( AAL ) opened slightly lower Wednesday morning and dropped almost 3% at one point during the session after saying it will eliminate some of its unprofitable international flights later this year and in 2019 due to rising fuel prices. Among the routes to be cut will be its Chicago-to-Shanghai, Los Angeles-to-Toronto and Philadelphia-to-Munich flights, the carrier said late Tuesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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- American Airlines Group ( AAL ) opened slightly lower Wednesday morning and dropped almost 3% at one point during the session after saying it will eliminate some of its unprofitable international flights later this year and in 2019 due to rising fuel prices. The decision to shutter its Orchard Supply stores in addition to plans to "aggressively rationalize" store inventory by reducing other slow-performing locations follows a strategic assessment and will likely result in the home improvement chain reporting FY18 net income in a range of $4.50 to $4.60 per share, lagging the Capital IQ consensus by at least $0.83 per share. Among the routes to be cut will be its Chicago-to-Shanghai, Los Angeles-to-Toronto and Philadelphia-to-Munich flights, the carrier said late Tuesday.
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- American Airlines Group ( AAL ) opened slightly lower Wednesday morning and dropped almost 3% at one point during the session after saying it will eliminate some of its unprofitable international flights later this year and in 2019 due to rising fuel prices. In other sector news: + Lowe's Companies ( LOW ) climbed more than 10% on Wednesday to reach a best-ever $109.80 a share after saying it will close all 99 of its Orchard Supply Hardware stores on the West Coast and in Florida and posting adjusted Q2 net income of $2.07 per share on $20.89 billion in net sales to beat Wall Street expectations by $0.05 per share and $100 million, respectively. Lowe's late Tuesday also said CVS Health ( CVS ) chief financial officer David Denton will join the company in the same role soon after CVS closes on its proposed acquisition of health care insurance carrier Aetna ( AET ), expected before the end of the year.
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- American Airlines Group ( AAL ) opened slightly lower Wednesday morning and dropped almost 3% at one point during the session after saying it will eliminate some of its unprofitable international flights later this year and in 2019 due to rising fuel prices. Consumer stocks were broadly mixed today, with shares of consumer staples companies in the S&P 500 sinking over 0.6% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.3%. Among consumer stocks moving on news: + La-Z-Boy ( LZB ) was sitting pretty Wednesday afternoon, rising just over 18% to touch an all-time high share price of $39.09 each after reporting fiscal Q1 net income of $0.39 per share, marking a $0.15-per-share increase over the year-ago period and exceeding the Capital IQ consensus by $0.14 per share.
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- American Airlines Group ( AAL ) opened slightly lower Wednesday morning and dropped almost 3% at one point during the session after saying it will eliminate some of its unprofitable international flights later this year and in 2019 due to rising fuel prices. Among consumer stocks moving on news: + La-Z-Boy ( LZB ) was sitting pretty Wednesday afternoon, rising just over 18% to touch an all-time high share price of $39.09 each after reporting fiscal Q1 net income of $0.39 per share, marking a $0.15-per-share increase over the year-ago period and exceeding the Capital IQ consensus by $0.14 per share. In other sector news: + Lowe's Companies ( LOW ) climbed more than 10% on Wednesday to reach a best-ever $109.80 a share after saying it will close all 99 of its Orchard Supply Hardware stores on the West Coast and in Florida and posting adjusted Q2 net income of $2.07 per share on $20.89 billion in net sales to beat Wall Street expectations by $0.05 per share and $100 million, respectively.
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2ebd24ee-a6ea-44d6-80d9-e18fd1e1556c
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6960.0
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2018-08-20 00:00:00 UTC
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Nasdaq 100 Movers: TSLA, JD
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-tsla-jd-2018-08-20
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nan
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nan
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In early trading on Monday, shares of JD.com ( JD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. Year to date, JD.com has lost about 20.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 2.5%. Tesla is lower by about 4.3% looking at the year to date performance.
Two other components making moves today are NVIDIA Corp ( NVDA ), trading down 1.5%, and American Airlines Group ( AAL ), trading up 1.8% on the day.
VIDEO: Nasdaq 100 Movers: TSLA, JD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are NVIDIA Corp ( NVDA ), trading down 1.5%, and American Airlines Group ( AAL ), trading up 1.8% on the day. And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 2.5%. VIDEO: Nasdaq 100 Movers: TSLA, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are NVIDIA Corp ( NVDA ), trading down 1.5%, and American Airlines Group ( AAL ), trading up 1.8% on the day. And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 2.5%. VIDEO: Nasdaq 100 Movers: TSLA, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are NVIDIA Corp ( NVDA ), trading down 1.5%, and American Airlines Group ( AAL ), trading up 1.8% on the day. In early trading on Monday, shares of JD.com ( JD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 2.5%.
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Two other components making moves today are NVIDIA Corp ( NVDA ), trading down 1.5%, and American Airlines Group ( AAL ), trading up 1.8% on the day. And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 2.5%. Tesla is lower by about 4.3% looking at the year to date performance.
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01f5fdab-5081-4c89-b73b-b320d4a6f23d
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6961.0
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2018-08-20 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 7,821.01 up 4.68 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-782101-468-points-2018-08-20
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nan
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nan
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Monday's session closes with the NASDAQ Composite Index at 7,821.01. The total shares traded for the NASDAQ was over 1.68 billion.
Advancers stocks led declining by 1.54 to 1 ratio. There were 1846 advancers and 1201 decliners for the day. On the NASDAQ Stock Exchange 92 stocks reached a 52 week high and 29 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -.08% for the day; a total of -6.12 points. The current value is 7,371.42. BioMarin Pharmaceutical Inc. ( BMRN ) had the largest percent change down (-1.96%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.82%.
The Dow Jones index closed up .35% for the day; a total of 89.37 points. The current value is 25,758.69. Walmart Inc. ( WMT ) had the largest percent change down (-1.89%) while Nike, Inc. ( NKE ) had the largest percent change gain rising 3.05%.
NASDAQ Market Wrap
As of 8/20/2018 4:44:01 PM
BILLIONS OF 1.68 NASDAQ SHARES TRADED TODAY 92 STOCKS REACHED A 52 WEEK HIGH 29 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.82 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BioMarin Pharmaceutical Inc. ( BMRN ) had the largest percent change down (-1.96%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.82%. NASDAQ Market Wrap As of 8/20/2018 4:44:01 PM BILLIONS OF 1.68 NASDAQ SHARES TRADED TODAY 92 STOCKS REACHED A 52 WEEK HIGH 29 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.82 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Dow Jones index closed up .35% for the day; a total of 89.37 points.
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BioMarin Pharmaceutical Inc. ( BMRN ) had the largest percent change down (-1.96%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.82%. NASDAQ Market Wrap As of 8/20/2018 4:44:01 PM BILLIONS OF 1.68 NASDAQ SHARES TRADED TODAY 92 STOCKS REACHED A 52 WEEK HIGH 29 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.82 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. On the NASDAQ Stock Exchange 92 stocks reached a 52 week high and 29 those reaching lows totaled.
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NASDAQ Market Wrap As of 8/20/2018 4:44:01 PM BILLIONS OF 1.68 NASDAQ SHARES TRADED TODAY 92 STOCKS REACHED A 52 WEEK HIGH 29 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.82 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. BioMarin Pharmaceutical Inc. ( BMRN ) had the largest percent change down (-1.96%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.82%. On the NASDAQ Stock Exchange 92 stocks reached a 52 week high and 29 those reaching lows totaled.
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NASDAQ Market Wrap As of 8/20/2018 4:44:01 PM BILLIONS OF 1.68 NASDAQ SHARES TRADED TODAY 92 STOCKS REACHED A 52 WEEK HIGH 29 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.82 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. BioMarin Pharmaceutical Inc. ( BMRN ) had the largest percent change down (-1.96%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.82%. There were 1846 advancers and 1201 decliners for the day.
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8893d27e-5fd6-43b7-b7e9-b0b066722365
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6962.0
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2018-08-20 00:00:00 UTC
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7 Airline Stocks Going Vertical
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AAL
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https://www.nasdaq.com/articles/7-airline-stocks-going-vertical-2018-08-20
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. equities are extending higher on Monday, continuing the rebound seen at the end of last week as China's "national team" helped bolster Chinese markets in overnight trading. Adding to the positive feelings are hopes for a meeting of U.S. and Chinese trade officials next week as well as more dovish comments from President Trump that he is critical of Federal Reserve chairman Jerome Powell's hawkish stance.
While all the focus this year has been on the big-cap technology stocks, waves of buying demand have perked up other areas as well. In recent weeks, defensive areas like consumer staples and utilities have seen a lift on a rotation into areas of value. This week, transportation stocks are on the move.
Airline stocks in particular are looking ready for new money as a number of names are breaking out of recent consolidation or downtrend patterns.
10 Dividend Aristocrats You Never Have to Worry About
Here are seven to buy now:
Airline Stocks to Buy: American Airlines (AAL)
American Airlines (NASDAQ: AAL ) shares have risen up and over their 50-day moving average for the first time since March in what looks like the first step in an exit from a three-month consolation range. The company recently reported results on July 26 with earnings of $1.63-per-share beating estimates by 4 cents on a 3.7% rise in revenues. The beat was driven by a 6.2% increase in passenger-revenue-per-available-seat-mile in the Atlantic region.
The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of $1.19-per-share on revenues of $11.6 billion.
Airline Stocks to Buy: United Airlines (UAL)
United Airlines (NYSE: UAL ) shares are breaking out to new highs, rising above the two-month range between $80 and $82 that traces back to overhead resistance seen back in the summer of 2017. The company enjoyed an upgrade to "Buy" from analysts at Macquarie on July 19. When management reported July traffic numbers on Aug. 8, revenue-per-mile increased by 6.9% from the previous year.
7 Stocks Warren Buffett Can't Stop Buying
The company will next report results on Oct. 16, after the close. Analysts are looking for earnings of $2.90-per-share on revenues of $10.8 billion. When the company last reported on July 17, earnings of $3.23-per-share beat estimates by 16 cents on a 7.7% rise in revenues.
Airline Stocks to Buy: Delta Airlines (DAL)
Delta Airlines (NYSE: DAL ) shares are up more than 3% in mid-day trading on Monday, testing the highs last seen in January and setting up what could be an exit from an upward tilting trading range going back to late 2016. When reporting July performance, the company highlighted a 4% year-over-year increase in revenue-per-mile.
The company will next report results on Oct. 11, before the bell. Analysts are looking for earnings of $1.76-per-share on revenues of $11.9 billion. When the company last reported on July 12, earnings of $1.77 beat estimates by 5 cents on a 9.1% rise in revenues.
Airline Stocks to Buy: Alaska Airlines (ALK)
Alaska Airlines (NYSE: ALK ) shares are rising above their 200-day moving average on Monday, ending a downtrend going back to the summer of 2017 and exiting a year-long consolidation range. ALK found support near the lows seen back in the summer of 2016. The company was in the news earlier this month when one of its aircraft was hijacked from Seattle-Tacoma International Airport by a ramp worker and taken on a joyride (complete with F-15 escorts, acrobatic stunts and a fiery crash).
4 Mega-Cap Stocks to Buy As They're Thrust Into the Spotlight
The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of $1.54-per-share on revenues of $2.2 billion. When the company last reported on July 26, earnings $1.66 beat estimates by 4 cents on a 2.6% rise in revenues.
Airline Stocks to Buy: Southwest Airlines (LUV)
Southwest Airlines (NYSE: LUV ) is extending its two-month rally rising back to levels last seen in January for a 24% rally off of its June lows. Analysts at Cowen raised their price target to $66 back in July on confidence in an improving fare environment and better cost structure, both of which are bolstering margins.
The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of $1.06-per-share on revenues of $5.6 billion. When the company last reported on July 26, earnings of $1.26 beat estimates by 3 cents on 0.2% rise in revenues.
Airline Stocks to Buy: JetBlue (JBLU)
JetBlue (NASDAQ: JBLU ) shares have popped back up and over their 50-day moving average, closing in on the late July high near the 200-day moving average and returning to the trading range that has predominated for most of the year. On Aug. 10, management reported that traffic in July increased 6.2% from the year-ago period.
The 5 Best-Performing Stocks of Last Week
The company will next report results on Oct. 23, before the bell. Analysts are looking for earnings of 43-cents-per-share on revenues of just over $2 billion. When the company last reported on July 24, earnings of 38-cents-per-share beat estimates by 2 cents on a 5% rise in revenues.
Airline Stocks to Buy: Spirit Airlines (SAVE)
Spirit Airlines (NYSE: SAVE ) shares are surging, already up a third from the lows set in July, and returning to levels not seen since January, eclipsing the March highs. In its recent investor update, management projected a 25% increase in seat capacity this quarter and operating expenses, excluding fuel falling upwards of 4%.
The company will next report results on Oct. 24, after the bell. Analysts are looking for earnings of $1.15-per-share on revenues of $868.2 million. When the company last reported on July 25, earnings of $1.11 beat estimates by 2 cents on a 21.4% rise in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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The post 7 Airline Stocks Going Vertical appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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10 Dividend Aristocrats You Never Have to Worry About Here are seven to buy now: Airline Stocks to Buy: American Airlines (AAL) American Airlines (NASDAQ: AAL ) shares have risen up and over their 50-day moving average for the first time since March in what looks like the first step in an exit from a three-month consolation range. Adding to the positive feelings are hopes for a meeting of U.S. and Chinese trade officials next week as well as more dovish comments from President Trump that he is critical of Federal Reserve chairman Jerome Powell's hawkish stance. The company was in the news earlier this month when one of its aircraft was hijacked from Seattle-Tacoma International Airport by a ramp worker and taken on a joyride (complete with F-15 escorts, acrobatic stunts and a fiery crash).
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10 Dividend Aristocrats You Never Have to Worry About Here are seven to buy now: Airline Stocks to Buy: American Airlines (AAL) American Airlines (NASDAQ: AAL ) shares have risen up and over their 50-day moving average for the first time since March in what looks like the first step in an exit from a three-month consolation range. Airline Stocks to Buy: United Airlines (UAL) United Airlines (NYSE: UAL ) shares are breaking out to new highs, rising above the two-month range between $80 and $82 that traces back to overhead resistance seen back in the summer of 2017. Airline Stocks to Buy: Alaska Airlines (ALK) Alaska Airlines (NYSE: ALK ) shares are rising above their 200-day moving average on Monday, ending a downtrend going back to the summer of 2017 and exiting a year-long consolidation range.
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10 Dividend Aristocrats You Never Have to Worry About Here are seven to buy now: Airline Stocks to Buy: American Airlines (AAL) American Airlines (NASDAQ: AAL ) shares have risen up and over their 50-day moving average for the first time since March in what looks like the first step in an exit from a three-month consolation range. The company recently reported results on July 26 with earnings of $1.63-per-share beating estimates by 4 cents on a 3.7% rise in revenues. Airline Stocks to Buy: United Airlines (UAL) United Airlines (NYSE: UAL ) shares are breaking out to new highs, rising above the two-month range between $80 and $82 that traces back to overhead resistance seen back in the summer of 2017.
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10 Dividend Aristocrats You Never Have to Worry About Here are seven to buy now: Airline Stocks to Buy: American Airlines (AAL) American Airlines (NASDAQ: AAL ) shares have risen up and over their 50-day moving average for the first time since March in what looks like the first step in an exit from a three-month consolation range. The company recently reported results on July 26 with earnings of $1.63-per-share beating estimates by 4 cents on a 3.7% rise in revenues. Airline Stocks to Buy: United Airlines (UAL) United Airlines (NYSE: UAL ) shares are breaking out to new highs, rising above the two-month range between $80 and $82 that traces back to overhead resistance seen back in the summer of 2017.
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8287f036-5199-492e-b51f-1c8657c16018
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6963.0
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2018-08-20 00:00:00 UTC
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Monday Sector Leaders: Industrial, Energy
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AAL
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https://www.nasdaq.com/articles/monday-sector-leaders-industrial-energy-2018-08-20
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nan
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nan
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Looking at the sectors faring best as of midday Monday, shares of Industrial companies are outperforming other sectors, higher by 0.9%. Within the sector, American Airlines Group Inc (Symbol: AAL) and United Continental Holdings Inc (Symbol: UAL) are two large stocks leading the way, showing a gain of 5.1% and 3.7%, respectively. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is up 0.8% on the day, and up 2.39% year-to-date. American Airlines Group Inc, meanwhile, is down 23.07% year-to-date, and United Continental Holdings Inc is up 26.14% year-to-date. Combined, AAL and UAL make up approximately 1.5% of the underlying holdings of XLI.
The next best performing sector is the Energy sector, up 0.9%. Among large Energy stocks, HollyFrontier Corp (Symbol: HFC) and Baker Hughes, A GE Company (Symbol: BHGE) are the most notable, showing a gain of 3.0% and 2.8%, respectively. One ETF closely tracking Energy stocks is the Energy Select Sector SPDR ETF ( XLE ), which is up 0.8% in midday trading, and up 2.64% on a year-to-date basis. HollyFrontier Corp, meanwhile, is up 39.29% year-to-date, and Baker Hughes, A GE Company is up 2.48% year-to-date. Combined, HFC and BHGE make up approximately 1.9% of the underlying holdings of XLE.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, eight sectors are up on the day, while one sector is down.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, AAL and UAL make up approximately 1.5% of the underlying holdings of XLI. Within the sector, American Airlines Group Inc (Symbol: AAL) and United Continental Holdings Inc (Symbol: UAL) are two large stocks leading the way, showing a gain of 5.1% and 3.7%, respectively. Combined, HFC and BHGE make up approximately 1.9% of the underlying holdings of XLE.
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Within the sector, American Airlines Group Inc (Symbol: AAL) and United Continental Holdings Inc (Symbol: UAL) are two large stocks leading the way, showing a gain of 5.1% and 3.7%, respectively. Combined, AAL and UAL make up approximately 1.5% of the underlying holdings of XLI. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is up 0.8% on the day, and up 2.39% year-to-date.
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Within the sector, American Airlines Group Inc (Symbol: AAL) and United Continental Holdings Inc (Symbol: UAL) are two large stocks leading the way, showing a gain of 5.1% and 3.7%, respectively. Combined, AAL and UAL make up approximately 1.5% of the underlying holdings of XLI. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is up 0.8% on the day, and up 2.39% year-to-date.
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Within the sector, American Airlines Group Inc (Symbol: AAL) and United Continental Holdings Inc (Symbol: UAL) are two large stocks leading the way, showing a gain of 5.1% and 3.7%, respectively. Combined, AAL and UAL make up approximately 1.5% of the underlying holdings of XLI. Looking at the sectors faring best as of midday Monday, shares of Industrial companies are outperforming other sectors, higher by 0.9%.
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00005ccf-d7c6-48ae-87de-f0959313daed
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6964.0
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2018-08-20 00:00:00 UTC
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Monday's ETF Movers: IYT, ILF
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AAL
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https://www.nasdaq.com/articles/mondays-etf-movers-iyt-ilf-2018-08-20
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nan
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nan
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In trading on Monday, the iShares Transportation Average ETF ( IYT ) is outperforming other ETFs, up about 1.4% on the day. Components of that ETF showing particular strength include shares of American Airlines Group ( AAL ), up about 5.1% and shares of United Continental Holdings ( UAL ), up about 3.8% on the day.
And underperforming other ETFs today is the iShares Latin America 40 ETF ( ILF ), down about 0.7% in Monday afternoon trading. Among components of that ETF with the weakest showing on Monday were shares of CIG ( CIG ), lower by about 3%, and shares of Latam Airlines Group (LTM), lower by about 2.4% on the day.
VIDEO: Monday's ETF Movers: IYT, ILF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of American Airlines Group ( AAL ), up about 5.1% and shares of United Continental Holdings ( UAL ), up about 3.8% on the day. Among components of that ETF with the weakest showing on Monday were shares of CIG ( CIG ), lower by about 3%, and shares of Latam Airlines Group (LTM), lower by about 2.4% on the day. VIDEO: Monday's ETF Movers: IYT, ILF The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of American Airlines Group ( AAL ), up about 5.1% and shares of United Continental Holdings ( UAL ), up about 3.8% on the day. Among components of that ETF with the weakest showing on Monday were shares of CIG ( CIG ), lower by about 3%, and shares of Latam Airlines Group (LTM), lower by about 2.4% on the day. VIDEO: Monday's ETF Movers: IYT, ILF The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of American Airlines Group ( AAL ), up about 5.1% and shares of United Continental Holdings ( UAL ), up about 3.8% on the day. In trading on Monday, the iShares Transportation Average ETF ( IYT ) is outperforming other ETFs, up about 1.4% on the day. Among components of that ETF with the weakest showing on Monday were shares of CIG ( CIG ), lower by about 3%, and shares of Latam Airlines Group (LTM), lower by about 2.4% on the day.
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Components of that ETF showing particular strength include shares of American Airlines Group ( AAL ), up about 5.1% and shares of United Continental Holdings ( UAL ), up about 3.8% on the day. In trading on Monday, the iShares Transportation Average ETF ( IYT ) is outperforming other ETFs, up about 1.4% on the day. And underperforming other ETFs today is the iShares Latin America 40 ETF ( ILF ), down about 0.7% in Monday afternoon trading.
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e2f10710-b875-4553-afa8-6d0265f27a39
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6965.0
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2018-08-15 00:00:00 UTC
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First Week of October 19th Options Trading For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/first-week-october-19th-options-trading-american-airlines-group-aal-2018-08-15
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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 this week, for the October 19th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new October 19th contracts and identified one put and one call contract of particular interest.
The put contract at the $36.00 strike price has a current bid of $1.64. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $36.00, but will also collect the premium, putting the cost basis of the shares at $34.36 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $36.55/share today.
Because the $36.00 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 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 4.56% return on the cash commitment, or 25.58% 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 $36.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $37.00 strike price has a current bid of $1.84. If an investor was to purchase shares of AAL stock at the current price level of $36.55/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $37.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.27% if the stock gets called away at the October 19th 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 $37.00 strike highlighted in red:
Considering the fact that the $37.00 strike represents an approximate 1% 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 50%. 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 5.03% boost of extra return to the investor, or 28.27% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example, as well as the call contract example, are both approximately 33%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $36.55) to be 32%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $37.00 strike highlighted in red: Considering the fact that the $37.00 strike represents an approximate 1% 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 this week, for the October 19th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $37.00 strike highlighted in red: Considering the fact that the $37.00 strike represents an approximate 1% 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 this week, for the October 19th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new October 19th 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 $37.00 strike highlighted in red: Considering the fact that the $37.00 strike represents an approximate 1% 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 this week, for the October 19th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new October 19th 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 October 19th 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 $37.00 strike highlighted in red: Considering the fact that the $37.00 strike represents an approximate 1% 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 this week, for the October 19th expiration.
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cd129d00-8077-4cc6-96dd-1040d3f80752
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6966.0
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2018-08-15 00:00:00 UTC
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Does Warren Buffett Love Southwest Airlines?
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AAL
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https://www.nasdaq.com/articles/does-warren-buffett-love-southwest-airlines-2018-08-15
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nan
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The airline industry is notoriously tough on investors. Fuel costs can rise and fall dramatically from quarter to quarter and passengers are incredibly price conscious, making profits hard to come by. Nevertheless, airlines caught the eye of Warren Buffett -- the Oracle of Omaha -- in 2016, and lately, he's been hinting he'd consider an outright purchase if he could strike the right deal for the right company.
Most airline stocks have traded lower this year, but the possibility Buffett could come knocking has reignited investor interest recently -- especially in Southwest Airlines (NYSE: LUV) , a top airline that's become one of Buffett's favorites. In Q2, Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) boosted his stake in the friendly flyer by 20%. Should you consider buying shares too?
Playing the field
Warren Buffett's struggled to profit from airlines in the past. Once upon a time, he even called them an investor "death trap."
Nevertheless, he plunged into the sector with both feet in 2016, acquiring stakes in multiple airlines for Berkshire Hathaway in a move that suggested he was struggling to pick a favorite. Since then, he seems to have settled in on two top picks. He still owns big stakes in American Airlines (NASDAQ: AAL) and United Continenta l (NYSE: UAL) , but it's Delta Airlines (NYSE: DAL) and Southwest Airlines that he's made his biggest positions in the industry.
In the first quarter, he added 488,962 shares of Delta Air Lines, which was enough to make Berkshire Hathaway the company's biggest institutional investor with a nearly $3 billion stake. He kept his Southwest stake level at 47.7 million shares, but he sold 505,600 shares in United Continental and didn't add any shares to his position in American Airlines.
In the second quarter, he sold shares in United Continental, but he bought more shares in Delta, and importantly, he significantly increased his stake in Southwest Airlines to roughly 57 million shares, a roughly 20% boost from the end of March. As of today, Berkshire Hathaway's position in Delta is worth about $3.2 billion and his stake in Southwest is valued at about $2.9 billion.
People are talking
Southwest Airlines stock took a drubbing in Q2 after an engine exploded, causing damage to a plane that claimed the life of one person and caused injuries to seven others.
LUV data by YCharts .
Worry the accident would curb ticket demand and force the company to cut prices to keep its planes full was enough to send its stock price reeling. Those concerns were somewhat validated by the fact that in Q2, Southwest's sales grew only 0.2% to $5.74 billion as its load factor fell 90 basis points to 84.7% and its average fare declined 4% to $151.94.
The slowdown in Southwest's business and corresponding sell-off in Southwest's shares was apparently too much for Buffett to resist. Compelled by Southwest's long track record of safety and its above-average reputation for pleasing customers, Buffett went bargain hunting what he arguably believes is one of the premier operators in the industry.
News that Buffett boosted Berkshire Hathaway's position in Southwest in Q2 may not surprise those on Wall Street who've been saying Southwest would be an ideal candidate for Berkshire Hathaway to own outright. Berkshire Hathaway already owns a railroad -- Burlington Northern -- and theoretically, it could benefit from owning an airline too. As fellow Motley Fool Adam Levine-Weinberg noted earlier this month, Wall Street's been speculating for weeks that Southwest's a natural fit for Berkshire Hathaway because of its consistent earnings and top-tier management team -- two factors Buffett's focused on in past acquisitions.
Tying the knot?
It's anyone's guess if Buffett plans to make a bid for Southwest or if he's content being one of its biggest shareholders. Berkshire Hathaway's sitting on a massive $100 billion-plus cash stockpile, so he's got plenty of financial firepower, but Buffett's known for his patience. Given the stock market's rip-roaring rally since 2009, he could be content to wait until the next recession strikes to make his move.
Overall, Southwest and Delta Air appear to have become Buffett's top picks, and given Buffett's track record for picking winners, investors might want to add those stocks to portfolios too, regardless of Buffett's acquisition plans.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He still owns big stakes in American Airlines (NASDAQ: AAL) and United Continenta l (NYSE: UAL) , but it's Delta Airlines (NYSE: DAL) and Southwest Airlines that he's made his biggest positions in the industry. In the first quarter, he added 488,962 shares of Delta Air Lines, which was enough to make Berkshire Hathaway the company's biggest institutional investor with a nearly $3 billion stake. Compelled by Southwest's long track record of safety and its above-average reputation for pleasing customers, Buffett went bargain hunting what he arguably believes is one of the premier operators in the industry.
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He still owns big stakes in American Airlines (NASDAQ: AAL) and United Continenta l (NYSE: UAL) , but it's Delta Airlines (NYSE: DAL) and Southwest Airlines that he's made his biggest positions in the industry. He kept his Southwest stake level at 47.7 million shares, but he sold 505,600 shares in United Continental and didn't add any shares to his position in American Airlines. In the second quarter, he sold shares in United Continental, but he bought more shares in Delta, and importantly, he significantly increased his stake in Southwest Airlines to roughly 57 million shares, a roughly 20% boost from the end of March.
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He still owns big stakes in American Airlines (NASDAQ: AAL) and United Continenta l (NYSE: UAL) , but it's Delta Airlines (NYSE: DAL) and Southwest Airlines that he's made his biggest positions in the industry. Most airline stocks have traded lower this year, but the possibility Buffett could come knocking has reignited investor interest recently -- especially in Southwest Airlines (NYSE: LUV) , a top airline that's become one of Buffett's favorites. Overall, Southwest and Delta Air appear to have become Buffett's top picks, and given Buffett's track record for picking winners, investors might want to add those stocks to portfolios too, regardless of Buffett's acquisition plans.
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He still owns big stakes in American Airlines (NASDAQ: AAL) and United Continenta l (NYSE: UAL) , but it's Delta Airlines (NYSE: DAL) and Southwest Airlines that he's made his biggest positions in the industry. Most airline stocks have traded lower this year, but the possibility Buffett could come knocking has reignited investor interest recently -- especially in Southwest Airlines (NYSE: LUV) , a top airline that's become one of Buffett's favorites. In the first quarter, he added 488,962 shares of Delta Air Lines, which was enough to make Berkshire Hathaway the company's biggest institutional investor with a nearly $3 billion stake.
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dd05d8da-a127-4436-849d-55a1fda3cfd4
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6967.0
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2018-08-15 00:00:00 UTC
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Top Stocks Warren Buffett Is Selling Now
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AAL
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https://www.nasdaq.com/articles/top-stocks-warren-buffett-selling-now-2018-08-15
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Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) manages a staggering $200 billion, and while Buffett is best known for his own-it-forever stock-picking approach, he's not afraid to sell companies when he feels his money can be best put to use elsewhere.
Because Berkshire Hathaway's so big, it tends to own huge stakes in companies that take months to unwind, so the prospect of being on the wrong side of an investment Buffett's soured on isn't a pleasant one. Fortunately, the stocks Berkshire Hathaway is selling are revealed every quarter in a 13F report it files with the Securities and Exchange Commission. According to its latest disclosure, Verisk Analytics (NASDAQ: VRSK) , Phillips 66 (NYSE: PSX) , American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all fell out of favor at Berkshire Hathaway last quarter.
Cutting long ties to an insurance vendor
Berkshire Hathaway was one of the founders of Verisk Analytics back in the 1970s, and it was the only founding member of the company to hold on to all its shares when Verisk went public in 2009.
In the second quarter, that long history came to an end. As I detailed in May, Verisk Analytics fell to an ant-sized position for Berkshire Hathaway in the first quarter of 2018 and, sure enough, Berkshire Hathaway unloaded its remaining 284,778 shares last quarter.
Buffett's mum on why he decided now is the right time to sell, but the company's expansion into other markets that's reduced its reliance on property and casualty insurance clients like Berkshire Hathaway's GEICO could be a factor. It's also likely that Verisk Analytics rally to all-time highs this year made booking his gain too attractive. For perspective, the company IPO'd at $22 and its share price was recently north of $116.
The fact Verisk Analytics has marched higher despite Berkshire Hathaway selling its shares is intriguing and now that Berkshire doesn't have anymore shares left to sell, it will be interesting to see what happens next for this company's share price. In the past, stocks such as Walmart and IBM have ticked higher following Berkshire's exit. But Berkshire's stake in Verisk Analytics was markedly smaller than it was in those Goliaths and therefore Berkshire's selling likely wasn't much of a weight holding down Verisk's share price.
Nevertheless, it might be worth keeping an eye on Verisk Analytics because its sales and earnings are growing. In Q2, revenue rose 15% to $601 million, including 7% organic constant currency growth, and earnings per share increased 29% to $1.06.
Positions current as of June 30, 2018. Data source: Berkshire-Hathaway SEC form 13F, filed Aug. 14, 2018.
Reining in refining
Perhaps Buffett's decision to sell more shares in Phillips 66, an oil and gas transport, storage, refining, and marketing company, this quarter was most surprising. Berkshire Hathaway sold 35 million shares of Phillips 66 in Q1. However, that decision appeared to be prompted by a desire to reduce Berkshire's stake below 10% to reduce regulatory burdens.
Berkshire Hathaway came into the second quarter owning about 9.8% of Phillips 66, down from 16% previously, but apparently that wasn't small enough. In Q2, Buffett sold another 10.9 million shares, reducing Berkshire Hathaway's position by about 24% to 34.7 million shares.
The decision to sell was made even as Phillips 66 shares were hitting new highs and ahead of second-quarter financial results that beat industry watchers' estimates on both the top and bottom lines. Specifically, the company's revenue rose 21% to $29.7 billion and its diluted EPS skyrocketed to $2.84 from $1.06 in Q2 2017. Its refining business was its best performer, generating $910 million in net income, up from $224 million one year ago.
Often, significant selling of a stock by Berkshire Hathaway suggests its selling will continue. Because Phillips 66's refining capacity utilization was at 100% last quarter, oil prices are near their highs, and Phillips 66's stock has been rallying, now could be a good time to book some profit in this stock, especially since Berkshire still owns a lot of shares it could sell.
Taking aim at airlines
Berkshire Hathaway bought a slate of airline stocks when it first included them in its portfolio in 2016, but recently, Buffett's been increasing his exposure to Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) and reducing Berkshire's holdings of American Air and United Continental.
Rising jet fuel and nonfuel costs have dented the industry's profit margins in the past year and American's and United Continental's 9% operating margins significantly trail Southwest's and Delta's. American arguably has one of the least favorable balance sheets of the four because of a heavy debt load and worry costs could continue pressuring profit have made it a poor performer this year. Alternatively, United Continental's share price has rallied nicely in 2018, particularly following its second-quarter financial results. In the quarter, United Continental offset more of its costs with rising revenue per average seat mile than anticipated, prompting management to up its full-year adjusted earnings-per-share guidance to at least $7.25 from at least $7 previously.
Warren Buffett's preference for Southwest and Delta Air could indicate he's settled on those two as his favorite plays in the industry, and if so, investors might want to consider selling some of their shares in American and United Continental. As of June, Berkshire Hathaway still owns 26.7 million shares in United Continental and 44.7 million shares of American Airlines, so if he continues to unwind those positions, it could present a stiff headwind for their share prices.
10 stocks we like better than Berkshire Hathaway (A shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool owns shares of Verisk Analytics. The Motley Fool recommends Berkshire Hathaway (B shares) 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.
The views and 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 its latest disclosure, Verisk Analytics (NASDAQ: VRSK) , Phillips 66 (NYSE: PSX) , American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all fell out of favor at Berkshire Hathaway last quarter. Because Berkshire Hathaway's so big, it tends to own huge stakes in companies that take months to unwind, so the prospect of being on the wrong side of an investment Buffett's soured on isn't a pleasant one. Buffett's mum on why he decided now is the right time to sell, but the company's expansion into other markets that's reduced its reliance on property and casualty insurance clients like Berkshire Hathaway's GEICO could be a factor.
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According to its latest disclosure, Verisk Analytics (NASDAQ: VRSK) , Phillips 66 (NYSE: PSX) , American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all fell out of favor at Berkshire Hathaway last quarter. Taking aim at airlines Berkshire Hathaway bought a slate of airline stocks when it first included them in its portfolio in 2016, but recently, Buffett's been increasing his exposure to Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) and reducing Berkshire's holdings of American Air and United Continental. As of June, Berkshire Hathaway still owns 26.7 million shares in United Continental and 44.7 million shares of American Airlines, so if he continues to unwind those positions, it could present a stiff headwind for their share prices.
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According to its latest disclosure, Verisk Analytics (NASDAQ: VRSK) , Phillips 66 (NYSE: PSX) , American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all fell out of favor at Berkshire Hathaway last quarter. As I detailed in May, Verisk Analytics fell to an ant-sized position for Berkshire Hathaway in the first quarter of 2018 and, sure enough, Berkshire Hathaway unloaded its remaining 284,778 shares last quarter. The fact Verisk Analytics has marched higher despite Berkshire Hathaway selling its shares is intriguing and now that Berkshire doesn't have anymore shares left to sell, it will be interesting to see what happens next for this company's share price.
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According to its latest disclosure, Verisk Analytics (NASDAQ: VRSK) , Phillips 66 (NYSE: PSX) , American Airlines (NASDAQ: AAL) , and United Continental (NYSE: UAL) all fell out of favor at Berkshire Hathaway last quarter. The fact Verisk Analytics has marched higher despite Berkshire Hathaway selling its shares is intriguing and now that Berkshire doesn't have anymore shares left to sell, it will be interesting to see what happens next for this company's share price. In Q2, Buffett sold another 10.9 million shares, reducing Berkshire Hathaway's position by about 24% to 34.7 million shares.
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6968.0
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2018-08-15 00:00:00 UTC
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After Some Recent Turbulence, AAL Stock Is Ready For Lift Off Again
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AAL
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https://www.nasdaq.com/articles/after-some-recent-turbulence-aal-stock-ready-lift-again-2018-08-15
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of American Airlines (NASDAQ: AAL ) have fallen sharply after reporting better-than-expected earnings on July 26. AAL stock is now nearing the lowest levels in nearly a year and fast approaching major support at the $35 area. Given the solid fundamentals and improving technical backdrop, I think the recent weakness if AAL is nearing a climax. Look for AAL stock to begin to take off in the very near future.
American reported earnings of $1.63 per share, beating consensus estimates of $1.59 per share. This marks the fourth straight quarter that the company has exceeded EPS expectations, yet AAL stock has actually fallen almost 25% in that time frame. This combination of lower stock price and higher earnings makes for a comparatively lower P/E ratio and a more attractive valuation for American Airlines, which now stands at less than 10 on a forward basis.
Click to Enlarge
From a technical viewpoint, AAL stock is approaching major support at the $35 level, which has been a springboard for a rally in the past. As one of the largest U.S airlines, American is normally highly correlated to fellow competitors such as United (NYSE: UAL ). A look at the chart shows that correlation remaining strong up until mid-April. Since that time, however, AAL stock has been a dramatic under performer to UAL stock, with United rising sharply and American dropping. I look for the spread between the two to converge back towards the mean, with AAL stock being a relative out performer over the coming weeks.
7 Public Stocks That Should Become Private Companies
Implied volatility (IV) in AAL options has fallen recently and is now at just the 27th percentile. This means option prices are comparatively cheap, especially when compared to historic volatility in the 45th percentile. This favors long option strategies when constructing trades.
So to position for lift off in AAL stock, a call calendar spread makes probabilistic sense.
Trade Idea for AAL Stock
Buy AAL Nov $40 calls and sell AAL Sep $40 calls for a 75 cents net debit
Maximum risk on the trade is $75 per spread. Ideally AAL closes near the $40 level at September expiration to realize the maximum potential gain. The trade structure also allows additional selling of October call options if the September calls expire worthless.
Tim may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his option-based strategies can go to https://marketfy.com/item/options-and-volatility .
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The post After Some Recent Turbulence, AAL Stock Is Ready For Lift Off Again appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This marks the fourth straight quarter that the company has exceeded EPS expectations, yet AAL stock has actually fallen almost 25% in that time frame. Click to Enlarge From a technical viewpoint, AAL stock is approaching major support at the $35 level, which has been a springboard for a rally in the past. 7 Public Stocks That Should Become Private Companies Implied volatility (IV) in AAL options has fallen recently and is now at just the 27th percentile.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of American Airlines (NASDAQ: AAL ) have fallen sharply after reporting better-than-expected earnings on July 26. 7 Public Stocks That Should Become Private Companies Implied volatility (IV) in AAL options has fallen recently and is now at just the 27th percentile. Trade Idea for AAL Stock Buy AAL Nov $40 calls and sell AAL Sep $40 calls for a 75 cents net debit Maximum risk on the trade is $75 per spread.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of American Airlines (NASDAQ: AAL ) have fallen sharply after reporting better-than-expected earnings on July 26. Trade Idea for AAL Stock Buy AAL Nov $40 calls and sell AAL Sep $40 calls for a 75 cents net debit Maximum risk on the trade is $75 per spread. AAL stock is now nearing the lowest levels in nearly a year and fast approaching major support at the $35 area.
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Since that time, however, AAL stock has been a dramatic under performer to UAL stock, with United rising sharply and American dropping. 7 Public Stocks That Should Become Private Companies Implied volatility (IV) in AAL options has fallen recently and is now at just the 27th percentile. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of American Airlines (NASDAQ: AAL ) have fallen sharply after reporting better-than-expected earnings on July 26.
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54b39ca0-9acb-43a3-b438-6749f73cae31
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6969.0
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2018-08-15 00:00:00 UTC
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Invest Like Buffett & Berkshire With These Top Stock Picks
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AAL
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https://www.nasdaq.com/articles/invest-buffett-berkshire-these-top-stock-picks-2018-08-15
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nan
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Warren Buffett has for years been looked at as an investment icon, while maintaining a relatively simple mantra. Buffett and Berkshire Hathaway BRK.B have long tried to invest in companies that both the Oracle of Omaha and the conglomerate understand. This sounds easy enough, but what are some of Buffett's most recent investments?
Apple AAPL
Berkshire upped its stake in Apple by 5% during the second quarter, according to its Tuesday regulatory filing with the SEC. Buffett's company has beefed up its stake in the iPhone giant over the last two years to the point where Berkshire became Apple's second-biggest shareholder-owning 4.96% of AAPL stock-as of March 31, behind only Vanguard.
Buffett for years avoided the tech sector, but he began to invest heavily in Apple, which included more than doubling Berkshire's stake in the firm in early 2017. Berkshire raised its holdings of Apple stock by 12.4 million shares in the second quarter. The move lifted its stake in Apple to $46.6 billion as of the end of June.
The investment giant placed its faith in Apple because the company understood its business model and its consumer-facing tech products. Plus, Berkshire saw that Apple ran an extremely successful business. "If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States," Buffett told CNBC in May.
Shares of Apple have soared roughly 80% since the start of 2017. Looking ahead, Apple's fiscal fourth-quarter revenues are projected to climb by nearly 16% to hit $60.98 billion, based on our current Zacks Consensus Estimate.
At the other end of the income statement, Apple is expected to see its adjusted Q4 earnings surge by roughly 33% to hit $2.75 per share. Furthermore, Apple has earned nine earnings estimate revisions for Q4 over the last 30 days, with 100% agreement to the upside. Apple has also seen 10 full-year revisions during this same stretch, against zero downward changes, which helps it earn its Zacks Rank #2 (Buy).
Goldman Sachs GS
Moving On, Berkshire also added more shares of Goldman Sachs in the quarter, while it sold some shares-roughly 1%-of Wells Fargo WFC . The company added 2.3 million shares of the investment banking giant and sold 4.5 million shares of the embattled banking firm.
Berkshire upped its total holding in GS by 21% in a sign on confidence that Goldman is headed in the right direction. And it seems that Buffett's bet looks more than justified. Goldman is projected to see its full-year revenues surge over 13.5% to hit $36.42 billion. Meanwhile, GS is expected to report adjusted fiscal year earnings of $24.98 per share, which would mark a more than a 26% climb from the year-ago period.
Goldman is also currently a Zacks Rank #2 (Buy) that has earned seven full-year upward earnings estimate revisions over the last 30 days, with 100% agreement to the upside.
Other Moves
Berkshire scooped up another 6.7% of Teva Pharmaceutical TEVA , after it doubled its holding in the company during the first quarter. The firm also upped its stake Delta DAL by 18.8% and Southwest Airlines LUV by 18.7%, according to the filing.
The company dropped some of its shares in American Airlines AAL and United UAL . But investors should note that Berkshire aims to keep most of its holdings under a 10% threshold to avoid increased regulatory requirements.
Coca-Cola KO , American Express AXP , Kraft Heinz KHC , and many other firms remain in Buffett and Berkshire's massive investment portfolio.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Wells Fargo & Company (WFC): Free Stock Analysis Report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
American Express Company (AXP): Free Stock Analysis Report
The Kraft Heinz Company (KHC): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company dropped some of its shares in American Airlines AAL and United UAL . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. Buffett's company has beefed up its stake in the iPhone giant over the last two years to the point where Berkshire became Apple's second-biggest shareholder-owning 4.96% of AAPL stock-as of March 31, behind only Vanguard.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. The company dropped some of its shares in American Airlines AAL and United UAL . Goldman Sachs GS Moving On, Berkshire also added more shares of Goldman Sachs in the quarter, while it sold some shares-roughly 1%-of Wells Fargo WFC .
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. The company dropped some of its shares in American Airlines AAL and United UAL . Apple AAPL Berkshire upped its stake in Apple by 5% during the second quarter, according to its Tuesday regulatory filing with the SEC.
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The company dropped some of its shares in American Airlines AAL and United UAL . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. Buffett for years avoided the tech sector, but he began to invest heavily in Apple, which included more than doubling Berkshire's stake in the firm in early 2017.
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e6729107-b8c5-4fd8-ba01-34c41dfda2f5
|
6970.0
|
2018-08-13 00:00:00 UTC
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Analysts Predict 11% Gains Ahead For The Holdings of FEX
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AAL
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https://www.nasdaq.com/articles/analysts-predict-11-gains-ahead-holdings-fex-2018-08-13
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Large Cap Core AlphaDEX Fund ETF (Symbol: FEX), we found that the implied analyst target price for the ETF based upon its underlying holdings is $67.70 per unit.
With FEX trading at a recent price near $61.07 per unit, that means that analysts see 10.86% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FEX's underlying holdings with notable upside to their analyst target prices are Western Digital Corp (Symbol: WDC), American Airlines Group Inc (Symbol: AAL), and Dish Network Corp (Symbol: DISH). Although WDC has traded at a recent price of $64.79/share, the average analyst target is 62.24% higher at $105.12/share. Similarly, AAL has 42.24% upside from the recent share price of $37.26 if the average analyst target price of $53.00/share is reached, and analysts on average are expecting DISH to reach a target price of $49.57/share, which is 40.95% above the recent price of $35.17. Below is a twelve month price history chart comparing the stock performance of WDC, AAL, and DISH:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of WDC, AAL, and DISH: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FEX's underlying holdings with notable upside to their analyst target prices are Western Digital Corp (Symbol: WDC), American Airlines Group Inc (Symbol: AAL), and Dish Network Corp (Symbol: DISH). Similarly, AAL has 42.24% upside from the recent share price of $37.26 if the average analyst target price of $53.00/share is reached, and analysts on average are expecting DISH to reach a target price of $49.57/share, which is 40.95% above the recent price of $35.17.
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Three of FEX's underlying holdings with notable upside to their analyst target prices are Western Digital Corp (Symbol: WDC), American Airlines Group Inc (Symbol: AAL), and Dish Network Corp (Symbol: DISH). Similarly, AAL has 42.24% upside from the recent share price of $37.26 if the average analyst target price of $53.00/share is reached, and analysts on average are expecting DISH to reach a target price of $49.57/share, which is 40.95% above the recent price of $35.17. Below is a twelve month price history chart comparing the stock performance of WDC, AAL, and DISH: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAL has 42.24% upside from the recent share price of $37.26 if the average analyst target price of $53.00/share is reached, and analysts on average are expecting DISH to reach a target price of $49.57/share, which is 40.95% above the recent price of $35.17. Below is a twelve month price history chart comparing the stock performance of WDC, AAL, and DISH: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FEX's underlying holdings with notable upside to their analyst target prices are Western Digital Corp (Symbol: WDC), American Airlines Group Inc (Symbol: AAL), and Dish Network Corp (Symbol: DISH).
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Similarly, AAL has 42.24% upside from the recent share price of $37.26 if the average analyst target price of $53.00/share is reached, and analysts on average are expecting DISH to reach a target price of $49.57/share, which is 40.95% above the recent price of $35.17. Three of FEX's underlying holdings with notable upside to their analyst target prices are Western Digital Corp (Symbol: WDC), American Airlines Group Inc (Symbol: AAL), and Dish Network Corp (Symbol: DISH). Below is a twelve month price history chart comparing the stock performance of WDC, AAL, and DISH: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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03799ec6-f0ed-412b-a2fd-f662ffa7897e
|
6971.0
|
2018-08-10 00:00:00 UTC
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Nasdaq 100 Movers: MCHP, ESRX
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-mchp-esrx-2018-08-10
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nan
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nan
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In early trading on Friday, shares of Express Scripts Holding topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. Year to date, Express Scripts Holding registers a 12.9% gain.
And the worst performing Nasdaq 100 component thus far on the day is Microchip Technology, trading down 12.9%. Microchip Technology is lower by about 2.8% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 3.9%, and Mylan, trading up 1.4% on the day.
VIDEO: Nasdaq 100 Movers: MCHP, ESRX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, Express Scripts Holding registers a 12.9% gain. And the worst performing Nasdaq 100 component thus far on the day is Microchip Technology, trading down 12.9%. VIDEO: Nasdaq 100 Movers: MCHP, ESRX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, Express Scripts Holding registers a 12.9% gain. VIDEO: Nasdaq 100 Movers: MCHP, ESRX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Express Scripts Holding topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. VIDEO: Nasdaq 100 Movers: MCHP, ESRX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Express Scripts Holding topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. And the worst performing Nasdaq 100 component thus far on the day is Microchip Technology, trading down 12.9%. VIDEO: Nasdaq 100 Movers: MCHP, ESRX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1cfa54ac-3ea1-4239-b90b-dc5c9faad906
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6972.0
|
2018-08-09 00:00:00 UTC
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United Continental Arm Posts Robust July Traffic Statistics
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AAL
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https://www.nasdaq.com/articles/united-continental-arm-posts-robust-july-traffic-statistics-2018-08-09
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nan
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nan
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United Continental Holdings, Inc .'s UAL wholly owned subsidiary, United Airlines, reported impressive traffic figures for July. Consolidated traffic, measured in revenue passenger miles (RPMs), was 23 billion, up 6.9% from the year-ago figure.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 4% to 25.76 billion. Also, load factor (percentage of seats occupied by passengers) expanded 240 basis points (bps) to 89.3% as traffic was higher than capacity growth.
At the end of the first seven months of 2018, the carrier registered a 5.8% increase in RPMs to 132.8 billion while ASMs climbed 4.2% to 158.44 billion, both on a year-over-year basis. Thus load factor inched up 130 bps to 83.8%.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
The company posted an on-time performance of 62.3% and a completion factor of 99.3% for the month.
Last month, this Zacks Rank #3 (Hold) company released impressive second-quarter 2018 financial numbers wherein both earnings and revenues surpassed estimates as well as improved year over year. The company's earnings (excluding 75 cents from non-recurring items) of $3.23 per share outpaced the Zacks Consensus Estimate of $3.07 and ascended 17% year over year owing to higher revenues. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Operating revenues came in at $10,777 million, outpacing the Zacks Consensus Estimate of $10,702 million and growing 7.7% year over year. (Read more: United Continental Beats on Q2 Earnings, Raises View )
Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Each of the carriers beat on earnings but missed on revenues.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(Read more: United Continental Beats on Q2 Earnings, Raises View ) Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. 's UAL wholly owned subsidiary, United Airlines, reported impressive traffic figures for July.
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(Read more: United Continental Beats on Q2 Earnings, Raises View ) Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote The company posted an on-time performance of 62.3% and a completion factor of 99.3% for the month.
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(Read more: United Continental Beats on Q2 Earnings, Raises View ) Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote The company posted an on-time performance of 62.3% and a completion factor of 99.3% for the month.
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(Read more: United Continental Beats on Q2 Earnings, Raises View ) Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. At the end of the first seven months of 2018, the carrier registered a 5.8% increase in RPMs to 132.8 billion while ASMs climbed 4.2% to 158.44 billion, both on a year-over-year basis.
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b1e1a987-cd94-41ca-9330-9c5c0093c18e
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6973.0
|
2018-08-08 00:00:00 UTC
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Hawaiian Holdings Unit Releases Solid July Traffic Data
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AAL
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https://www.nasdaq.com/articles/hawaiian-holdings-unit-releases-solid-july-traffic-data-2018-08-08
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nan
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nan
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Hawaiian Holdings, Inc .'s HA wholly owned subsidiary, Hawaiian Airlines, reported impressive traffic figures for July. Traffic (measured in Revenue Passenger Miles or RPMs) increased 5.1% to around 1.55 billion.
Available Seat Miles (ASMs) also climbed 5% to 1.78 billion in the month. Load factor (percentage of seats filled by passengers) inched up 10 basis points (bps) to 87.4% as traffic growth outpaced capacity expansion.
In the first seven months of 2018, Hawaiian Airlines witnessed a 5.8% rise in RPMs to 9.92 billion. Also, ASMs rose 5.3% to 11.53 billion. As a result, load factor increased 40 bps to 86%. Additionally, passenger count grew 5.3% to 7 million in the period.
Hawaiian Holdings, Inc. Price
Hawaiian Holdings, Inc. Price | Hawaiian Holdings, Inc. Quote
This Zacks Rank #3 (Hold) company recently reported second-quarter financial numbers wherein earnings surpassed estimates but revenues missed the same. While earnings per share declined, revenues improved on a year-over-year basis. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
For the third quarter, Hawaiian Airlines anticipates operating revenue per available seat mile to be down 1.5% to up 1.5% on a year-over-year basis. While capacity expansion is projected between 7.5% and 9.5%. Unit costs excluding fuel are estimated to rise significantly, primarily owing to escalating labor costs. Fuel cost per gallon (economic) is predicted in the band of $2.10-$2.20 for the current quarter.
Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Each of the carriers beat on earnings but missed on revenues.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. 's HA wholly owned subsidiary, Hawaiian Airlines, reported impressive traffic figures for July.
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Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Hawaiian Holdings, Inc. Price Hawaiian Holdings, Inc. Price | Hawaiian Holdings, Inc. Quote This Zacks Rank #3 (Hold) company recently reported second-quarter financial numbers wherein earnings surpassed estimates but revenues missed the same.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Load factor (percentage of seats filled by passengers) inched up 10 basis points (bps) to 87.4% as traffic growth outpaced capacity expansion.
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Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial figures. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Traffic (measured in Revenue Passenger Miles or RPMs) increased 5.1% to around 1.55 billion.
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5beb5440-6fca-4050-91c3-02faa24db443
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6974.0
|
2018-08-08 00:00:00 UTC
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United Airlines' Basic Economy Bag Ban Probably Won't Last
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AAL
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https://www.nasdaq.com/articles/united-airlines-basic-economy-bag-ban-probably-wont-last-2018-08-08
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nan
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nan
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Two years ago, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) decided to introduce "basic economy" fares in order to compete better with budget airlines. Both carriers' basic economy tickets carried a number of restrictions. Most significantly, customers purchasing basic economy fares from American and United were allowed to bring only a personal item on the plane -- not a full-size carry-on bag .
However, American Airlines announced late last month that basic economy passengers will be allowed to bring a carry-on bag, in addition to a personal item, starting Sept. 5. The end of the "bag ban" at American will put a lot of pressure on United Airlines to follow suit.
A new kind of basic economy
Delta Air Lines (NYSE: DAL) was the first U.S. airline to start testing basic economy fares, and it rolled them out broadly in 2015. Delta's basic economy tickets have no carry-on bag restrictions, but they don't permit flight changes, seat assignments prior to check-in, or upgrades. Basic economy passengers also board last.
Basic economy serves two purposes for Delta. First, it's a stripped-down product that Delta can offer to price-sensitive travelers, while encouraging customers to buy up to a regular coach ticket. Second, it ensures that price-sensitive travelers (who tend to book early) don't have a chance to snag better seats than high-fare business travelers who book at the last minute.
United Airlines decided to add the no carry-on allowance policy when it unveiled its basic economy offering in late 2016. American Airlines made the same decision when it announced its basic economy plans in early 2017.
In addition to giving customers an even bigger incentive to step up to regular coach fares, the bag ban was designed to solve an operational problem for United. Flights were being delayed due to the difficulty of fitting every customer's carry-on bag into the overhead bin. Ensuring that a large number of passengers on each flight don't use the overhead bin has helped United improve its operational performance substantially.
American Airlines abandons its bag restrictions
Last month, in conjunction with its Q2 earnings report, American Airlines acknowledged that basic economy had not provided as much of a revenue lift as expected. Management explained that certain flight-comparison tools had started to ask users whether they wanted to bring a carry-on bag. Those who said yes were shown American's regular coach fares rather than its basic economy prices. As a result, its prices didn't appear to be competitive with those of Delta, for example.
This is what drove American Airlines to eliminate the bag restriction for its basic economy fares. After the change, American's basic economy product will be relatively similar to Delta's. That leaves United as the only full-service airline in the U.S. that doesn't allow every customer to bring a full-size carry-on bag.
United can't afford to be the outlier
Despite the operational benefits from its carry-on bag restrictions, it's unlikely that United will be able to maintain them after American Airlines' policy change goes into effect.
Last summer, United Continental posted dreadful results, which it blamed in part on rolling out basic economy too aggressively , while American Airlines was still testing basic economy in just a few markets. This caused some customers to book away from United, since other carriers were offering more features (such as a carry-on bag) for the same price.
The legacy carriers compete with one another extensively, but United and Delta have relatively little overlap in their route networks. By contrast, United Airlines and American Airlines both have big hubs in Chicago, as well as competing hubs in New York; Washington, D.C.; Texas; and Los Angeles.
United Airlines made some tweaks to its basic economy strategy last year that should help it compete with airlines offering less restrictive fares. Nevertheless, with its main competitors all allowing carry-on bags for basic economy passengers soon, it's only a matter of time before price-sensitive travelers wise up and start avoiding United again. Thus, United Airlines will probably be forced to loosen its basic economy carry-on bag policy sooner or later.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two years ago, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) decided to introduce "basic economy" fares in order to compete better with budget airlines. Most significantly, customers purchasing basic economy fares from American and United were allowed to bring only a personal item on the plane -- not a full-size carry-on bag . However, American Airlines announced late last month that basic economy passengers will be allowed to bring a carry-on bag, in addition to a personal item, starting Sept. 5.
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Two years ago, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) decided to introduce "basic economy" fares in order to compete better with budget airlines. However, American Airlines announced late last month that basic economy passengers will be allowed to bring a carry-on bag, in addition to a personal item, starting Sept. 5. Delta's basic economy tickets have no carry-on bag restrictions, but they don't permit flight changes, seat assignments prior to check-in, or upgrades.
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Two years ago, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) decided to introduce "basic economy" fares in order to compete better with budget airlines. A new kind of basic economy Delta Air Lines (NYSE: DAL) was the first U.S. airline to start testing basic economy fares, and it rolled them out broadly in 2015. Last summer, United Continental posted dreadful results, which it blamed in part on rolling out basic economy too aggressively , while American Airlines was still testing basic economy in just a few markets.
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Two years ago, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) decided to introduce "basic economy" fares in order to compete better with budget airlines. However, American Airlines announced late last month that basic economy passengers will be allowed to bring a carry-on bag, in addition to a personal item, starting Sept. 5. This caused some customers to book away from United, since other carriers were offering more features (such as a carry-on bag) for the same price.
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91e66c0f-8834-4456-8993-d44106d8d144
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6975.0
|
2018-08-08 00:00:00 UTC
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Airlines ETF Gains in 1-Month Period Despite Mixed Results
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AAL
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https://www.nasdaq.com/articles/airlines-etf-gains-1-month-period-despite-mixed-results-2018-08-08
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nan
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nan
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It's been close to one month since Delta Air Lines Inc.DAL kick-started the second-quarter earnings season for the airline space. Overall, the season has been mixed for the industry, with several operators missing revenue estimates. The airline companies belong to a bottom-ranked Zacks industry (bottom 8%). Lets' delve a little deeper.
Inside Earnings
Delta 's second-quarter earnings (excluding 30 cents from non-recurring items) of $1.77 per share surpassed the Zacks Consensus Estimate by 5 cents. The bottom line also expanded on a year-over-year basis despite high fuel costs. Operating revenues came in at $11,775 million, outpacing the Zacks Consensus Estimate of $11,678.8 million. The top line increased more than 9% from the year-ago figure. Strong demand for air travel boosted revenues.
United Continental Holdings Inc. 's UAL) earnings (excluding 75 cents from non-recurring items) of $3.23 per share surpassed the Zacks Consensus Estimate of $3.07. The bottom line also increased significantly year over year owing to higher revenues. Operating revenues came in at $10,777 million, which outpaced the Zacks Consensus Estimate of $10,702 million. Moreover, the top line was up 7.7% year over year. The company anticipates capacity to expand between 4.5% and 5.5%, while pre-tax margin (adjusted) is estimated between 8% and 10%. Passenger unit revenues are anticipated to increase 4-6% year over year.
American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Quarterly earnings decreased on a year-over-year basis mainly due to high fuel costs. Revenues of $11,643 million fell short of the Zacks Consensus Estimate of $11,652 million. The top line, however, improved on a year-over-year basis. Strong demand for air travel led to the year-over-year improvement in the top line.
Low-cost carrier Southwest Airlines Co.LUV reported second-quarter 2018 earnings per share (excluding a penny from non-recurring items) of 1.26, beating the Zacks Consensus Estimate of $1.25. Operating revenues of $5,742 million lagged the Zacks Consensus Estimate of $5,771 million. However, the top line improved year over year.
JetBlue Airways Corporation 's JBLU second-quarter 2018 earnings per share (excluding 76 cents from non-recurring items) of 38 cents surpassed the Zacks Consensus Estimate of 36 cents. However, the bottom line decreased significantly on a year-over-year basis primarily due to high fuel costs. Total operating revenues of $1,928 million fell short of the Zacks Consensus Estimate of $1,931.2 million. Nevertheless, the top line increased approximately 5% from the year-ago figure.
Alaska Air Group Inc.ALK reported second-quarter 2018 earnings per share (excluding 10 cents from non-recurring items) of $1.66, which surpassed the Zacks Consensus Estimate of $1.63. Earnings declined due to high fuel costs. Revenues came in at $2,156 million, which fell short of the Zacks Consensus Estimate of $2,174.2 million. However, revenues increased year over year.
ETF in Focus
Since results were mixed, investors having a strong stomach for oil-related risks may go for a basket approach. This approach makes up for company-specific concentration risks as one company's weakness compensates for another company's strength (read: Winning and Losing Sectors ETFs Post OPEC Decision ).
JETS in Focus
The $98 million-fund holds more than 30 stocks in its portfolio and is concentrated on a few individual securities. United Continental (13.02%), Southwest Airlines (12.74%), Delta Airlines (12.01%) and American Airlines (11.08%) take the first four positions in the fund. Alaska Air and JetBlue hold the seventh and eighth positions in the fund with a 3.88% and 3.68% weight, respectively. The product charges 60 bps in fees (see all industrials ETFs ).
Want key ETF info delivered straight to your inbox?
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings Inc. 's UAL) earnings (excluding 75 cents from non-recurring items) of $3.23 per share surpassed the Zacks Consensus Estimate of $3.07.
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American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. JetBlue Airways Corporation 's JBLU second-quarter 2018 earnings per share (excluding 76 cents from non-recurring items) of 38 cents surpassed the Zacks Consensus Estimate of 36 cents.
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American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group Inc.ALK reported second-quarter 2018 earnings per share (excluding 10 cents from non-recurring items) of $1.66, which surpassed the Zacks Consensus Estimate of $1.63.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Overall, the season has been mixed for the industry, with several operators missing revenue estimates.
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08ab367c-013f-4379-99af-267b86b28f55
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6976.0
|
2018-08-07 00:00:00 UTC
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Allegiant's (ALGT) July Traffic Rises, Load Factor Falls
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AAL
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https://www.nasdaq.com/articles/allegiants-algt-july-traffic-rises-load-factor-falls-2018-08-07
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nan
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nan
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Allegiant Travel CompanyALGT reported mixed traffic numbers for July. Traffic for the total system (including scheduled service and fixed fee contract), measured in revenue passenger miles (RPMs), increased 11.3% on a year-over-year basis to 1.31 billion. System capacity, calculated in available seat miles (ASMs), expanded 12.1% to 1.51 billion.
With capacity expansion outweighing traffic growth, load factor (percentage of seats filled with passengers) contracted 60 basis points year over year to 86.8%.
Allegiant's passenger count rose 13.4% in the month. While its system-wide average fuel cost per gallon was approximately $2.39.
Allegiant Travel Company Price
Allegiant Travel Company Price | Allegiant Travel Company Quote
This Zacks Rank #5 (Strong Sell) company recently released second-quarter earnings wherein both the top and the bottom line surpassed estimates. Moreover, the metrics improved on a year-over-year basis. High passenger revenues drove the top line despite delivery delays in May. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
High fuel costs, however, limited bottom-line growth in the reported quarter. Notably, fuel prices surged 39.2% to $2.38 during the period. In fact, such high expenses are likely to hit the company's bottom line for the full year as well. Allegiant has raised its fuel cost view for 2018 to $2.35 per gallon from $2.20, expected earlier. Moreover, the company has trimmed its earnings per share expectation for the current year on the same ground. It now anticipates earnings per share in the band of $9-$10 for 2018, lower than the previous guidance of $10-$12.
Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial numbers. Each of the carriers beat on earnings but missed on revenues.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial numbers. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel CompanyALGT reported mixed traffic numbers for July.
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Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial numbers. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel Company Price Allegiant Travel Company Price | Allegiant Travel Company Quote This Zacks Rank #5 (Strong Sell) company recently released second-quarter earnings wherein both the top and the bottom line surpassed estimates.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial numbers. Traffic for the total system (including scheduled service and fixed fee contract), measured in revenue passenger miles (RPMs), increased 11.3% on a year-over-year basis to 1.31 billion.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Key airline players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Alaska Air Group, Inc. ALK also recently posted their second-quarter financial numbers. Allegiant Travel Company Price Allegiant Travel Company Price | Allegiant Travel Company Quote This Zacks Rank #5 (Strong Sell) company recently released second-quarter earnings wherein both the top and the bottom line surpassed estimates.
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f93eb899-9640-4628-880c-7def3e9d3e92
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6977.0
|
2018-08-07 00:00:00 UTC
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After Hours Most Active for Aug 7, 2018 : INTC, AAL, FNSR, GRPN, MU, NTAP
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AAL
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https://www.nasdaq.com/articles/after-hours-most-active-aug-7-2018-intc-aal-fnsr-grpn-mu-ntap-2018-08-07
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nan
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The NASDAQ 100 After Hours Indicator is down -1.29 to 7,461.36. The total After hours volume is currently 34,962,038 shares traded.
The following are the most active stocks for the after hours session :
Intel Corporation ( INTC ) is -0.04 at $49.66, with 1,835,865 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2018. The consensus EPS forecast is $1.15. INTC's current last sale is 85.62% of the target price of $58.
American Airlines Group, Inc. ( AAL ) is unchanged at $38.26, with 1,458,816 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
Finisar Corporation ( FNSR ) is +0.08 at $18.35, with 936,768 shares traded. As reported in the last short interest update the days to cover for FNSR is 11.601716; this calculation is based on the average trading volume of the stock.
Groupon, Inc. ( GRPN ) is unchanged at $4.46, with 856,657 shares traded. GRPN's current last sale is 81.09% of the target price of $5.5.
Micron Technology, Inc. ( MU ) is unchanged at $53.04, with 808,383 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
NetApp, Inc. ( NTAP ) is unchanged at $81.99, with 762,574 shares traded. As reported by Zacks, the current mean recommendation for NTAP is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) is unchanged at $38.26, with 1,458,816 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The following are the most active stocks for the after hours session : Intel Corporation ( INTC ) is -0.04 at $49.66, with 1,835,865 shares traded.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) is unchanged at $38.26, with 1,458,816 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
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American Airlines Group, Inc. ( AAL ) is unchanged at $38.26, with 1,458,816 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The following are the most active stocks for the after hours session : Intel Corporation ( INTC ) is -0.04 at $49.66, with 1,835,865 shares traded.
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American Airlines Group, Inc. ( AAL ) is unchanged at $38.26, with 1,458,816 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -1.29 to 7,461.36.
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17735f34-9472-4f6f-bf8a-158eb390cd41
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6978.0
|
2018-08-03 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for August 06, 2018
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-august-06-2018-2018-08-03
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nan
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nan
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 06, 2018. A cash dividend payment of $0.1 per share is scheduled to be paid on August 21, 2018. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 17th quarter that AAL has paid the same dividend. At the current stock price of $37.93, the dividend yield is 1.05%.
The previous trading day's last sale of AAL was $37.93, representing a -35.8% decrease from the 52 week high of $59.08 and a 6.43% increase over the 52 week low of $35.64.
AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). AAL's current earnings per share, an indicator of a company's profitability, is $3.43. Zacks Investment Research reports AAL's forecasted earnings growth in 2018 as -4.48%, compared to an industry average of -8.1%.
For more information on the declaration, record and payment dates, visit the AAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAL as a top-10 holding:
iShares Trust ( IYT )
Invesco Dynamic Large Cap Value ETF ( PWV )
Nationwide Maximum Diversification U.S. Core Equity ETF ( MXDU )
Direxion NASDAQ-100 Equal Weighted Index Shares ( QQQE ).
The top-performing ETF of this group is MXDU with an increase of 13.52% over the last 100 days. IYT has the highest percent weighting of AAL at 2.15%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). Zacks Investment Research reports AAL's forecasted earnings growth in 2018 as -4.48%, compared to an industry average of -8.1%.
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AAL's current earnings per share, an indicator of a company's profitability, is $3.43. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 06, 2018.
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAL Dividend History page. The following ETF(s) have AAL as a top-10 holding: iShares Trust ( IYT ) Invesco Dynamic Large Cap Value ETF ( PWV ) Nationwide Maximum Diversification U.S.
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AAL's current earnings per share, an indicator of a company's profitability, is $3.43. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 06, 2018. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment.
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f2e43e59-3395-494d-b4c0-af096aea7f9a
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6979.0
|
2018-08-02 00:00:00 UTC
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Ex-Dividend Reminder: American Airlines Group, Golar LNG Partners LP and Waste Connections
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AAL
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https://www.nasdaq.com/articles/ex-dividend-reminder-american-airlines-group-golar-lng-partners-lp-and-waste-connections
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 8/6/18, American Airlines Group Inc (Symbol: AAL), Golar LNG Partners LP (Symbol: GMLP), and Waste Connections Inc (Symbol: WCN) will all trade ex-dividend for their respective upcoming dividends. American Airlines Group Inc will pay its quarterly dividend of $0.10 on 8/21/18, Golar LNG Partners LP will pay its quarterly dividend of $0.5775 on 8/14/18, and Waste Connections Inc will pay its quarterly dividend of $0.14 on 8/21/18. As a percentage of AAL's recent stock price of $37.60, this dividend works out to approximately 0.27%, so look for shares of American Airlines Group Inc to trade 0.27% lower - all else being equal - when AAL shares open for trading on 8/6/18. Similarly, investors should look for GMLP to open 3.48% lower in price and for WCN to open 0.18% lower, all else being equal.
Below are dividend history charts for AAL, GMLP, and WCN, showing historical dividends prior to the most recent ones declared.
American Airlines Group Inc (Symbol: AAL) :
Golar LNG Partners LP (Symbol: GMLP) :
Waste Connections Inc (Symbol: WCN) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.06% for American Airlines Group Inc, 13.91% for Golar LNG Partners LP, and 0.72% for Waste Connections Inc .
In Thursday trading, American Airlines Group Inc shares are currently down about 1.4%, Golar LNG Partners LP shares are up about 0.1%, and Waste Connections Inc shares are up about 0.2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of AAL's recent stock price of $37.60, this dividend works out to approximately 0.27%, so look for shares of American Airlines Group Inc to trade 0.27% lower - all else being equal - when AAL shares open for trading on 8/6/18. Looking at the universe of stocks we cover at Dividend Channel , on 8/6/18, American Airlines Group Inc (Symbol: AAL), Golar LNG Partners LP (Symbol: GMLP), and Waste Connections Inc (Symbol: WCN) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for AAL, GMLP, and WCN, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel , on 8/6/18, American Airlines Group Inc (Symbol: AAL), Golar LNG Partners LP (Symbol: GMLP), and Waste Connections Inc (Symbol: WCN) will all trade ex-dividend for their respective upcoming dividends. American Airlines Group Inc (Symbol: AAL) : Golar LNG Partners LP (Symbol: GMLP) : Waste Connections Inc (Symbol: WCN) : In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of AAL's recent stock price of $37.60, this dividend works out to approximately 0.27%, so look for shares of American Airlines Group Inc to trade 0.27% lower - all else being equal - when AAL shares open for trading on 8/6/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 8/6/18, American Airlines Group Inc (Symbol: AAL), Golar LNG Partners LP (Symbol: GMLP), and Waste Connections Inc (Symbol: WCN) will all trade ex-dividend for their respective upcoming dividends. American Airlines Group Inc (Symbol: AAL) : Golar LNG Partners LP (Symbol: GMLP) : Waste Connections Inc (Symbol: WCN) : In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of AAL's recent stock price of $37.60, this dividend works out to approximately 0.27%, so look for shares of American Airlines Group Inc to trade 0.27% lower - all else being equal - when AAL shares open for trading on 8/6/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 8/6/18, American Airlines Group Inc (Symbol: AAL), Golar LNG Partners LP (Symbol: GMLP), and Waste Connections Inc (Symbol: WCN) will all trade ex-dividend for their respective upcoming dividends. As a percentage of AAL's recent stock price of $37.60, this dividend works out to approximately 0.27%, so look for shares of American Airlines Group Inc to trade 0.27% lower - all else being equal - when AAL shares open for trading on 8/6/18. Below are dividend history charts for AAL, GMLP, and WCN, showing historical dividends prior to the most recent ones declared.
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5e62a6d3-7f70-4bc8-a6e3-e19cc3c45842
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6980.0
|
2018-07-31 00:00:00 UTC
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Traders bet that American Airlines will soar
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AAL
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https://www.nasdaq.com/articles/traders-bet-american-airlines-will-soar-2018-07-31
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nan
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nan
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Option traders are buying up calls Tuesday on American Airlines ( AAL ). So far, 10,230 contracts of the Jan. 2019 46 call have changed hands, against open interest of 169 contracts. Pricing on today's trades indicates that these new contracts are being initiated from the buy side.
InvestorsKeyhole Trade Alert
IK-> The technicals for AAL ($39.76 up $0.79) are bearish with an upward trend. The stock has support around 36.30. Look at the Sept. 33/35 bull-put spread for a 20-cent credit. That's an 11.1% return and the stock has to fall by 12.0% to cause a problem. [InvestorsKeyhole, various news and data services]
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.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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Option traders are buying up calls Tuesday on American Airlines ( AAL ). InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($39.76 up $0.79) are bearish with an upward trend. Pricing on today's trades indicates that these new contracts are being initiated from the buy side.
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InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($39.76 up $0.79) are bearish with an upward trend. Option traders are buying up calls Tuesday on American Airlines ( AAL ). [InvestorsKeyhole, various news and data services] The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Option traders are buying up calls Tuesday on American Airlines ( AAL ). InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($39.76 up $0.79) are bearish with an upward trend. So far, 10,230 contracts of the Jan. 2019 46 call have changed hands, against open interest of 169 contracts.
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Option traders are buying up calls Tuesday on American Airlines ( AAL ). InvestorsKeyhole Trade Alert IK-> The technicals for AAL ($39.76 up $0.79) are bearish with an upward trend. So far, 10,230 contracts of the Jan. 2019 46 call have changed hands, against open interest of 169 contracts.
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ab45297e-e187-4eb9-a051-ab2975267970
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6981.0
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2018-07-30 00:00:00 UTC
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American Airlines Group, Inc.: The Train Wreck Continues
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-train-wreck-continues-2018-07-30
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nan
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nan
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Things are going from bad to worse at American Airlines (NASDAQ: AAL) . American has been facing steady margin erosion since 2016. However, a spike in fuel prices during 2018 combined with slowing momentum in unit revenue -- exacerbated by stiff competition from United Continental (NYSE: UAL) -- has the world's largest airline facing its biggest crisis since its 2013 merger with US Airways.
Last week, American Airlines reported dreadful results for the second quarter. Costs continue to rise much faster than revenue, leading the carrier to slash its 2018 guidance for the second time. While management claims that the worst will be over soon, it's hard for investors to have any confidence in this prediction, given the company's recent track record .
Another big profit decline
In the second quarter, revenue per available seat mile (RASM) rose 2.1% at American Airlines. Under normal conditions, this would be considered a solid result. However, United Airlines and Delta Air Lines both achieved stronger unit-revenue results last quarter. Moreover, this level of RASM growth wasn't nearly sufficient to offset American's rising costs.
First, adjusted nonfuel unit costs rose 2.4% year over year. Second, American Airlines paid an average of $2.24 per gallon for jet fuel, up from $1.63 per gallon a year earlier.
The net result was that American's adjusted pre-tax margin plummeted to 8.6% from 14.2% a year earlier. Adjusted net income fell to $757 million from around $1 billion. And even though American Airlines benefited from a lower tax rate -- thanks to tax reform -- and reduced its share count nearly 6% year over year, adjusted EPS still plunged 20% to $1.63.
Guidance comes down again
American Airlines' outlook for the rest of 2018 is also fairly grim. On the plus side, nonfuel unit cost growth is set to slow, even though American has reduced its growth plans for the second half of the year.
Nevertheless, rising fuel prices and modest unit-revenue growth make for a bad combination. For the third quarter, American Airlines expects RASM to rise 1% to 3%, whereas its average fuel price is set to surge from $1.67 per gallon in Q3 2017 to a range of between $2.22 and $2.27 per gallon.
Even with nonfuel unit costs likely to rise just 1%, American Airlines expects its adjusted pre-tax margin to be just 5% to 7% this quarter. That's a dreadful result for what is traditionally one of the most profitable parts of the year for airlines. Last year, American's Q3 adjusted pre-tax margin was 10.2%; a year before that, it was 14%.
Lastly, American Airlines cut its full-year EPS guidance to a range of $4.50 to $5.00, from a prior range of $5.00 to $6.00 and an initial range of $5.50 to $6.50. Even if American reaches the high end of this updated guidance range, it would imply an adjusted pre-tax profit of about $3 billion: at the low end of the company's long-term guidance.
American is losing domestic market share
One of the most troubling aspects about American Airlines' recent performance is a slowdown in domestic unit-revenue growth. In fact, passenger revenue per available seat mile inched up just 0.3% in the domestic market last quarter.
A big portion of this unit-revenue pressure can probably be explained by United Continental's aggressive efforts to regain domestic market share . United expanded capacity in the domestic market by 7.4% last quarter and still posted a 1.7% increase in domestic unit revenue.
American Airlines and United Airlines have competing hubs in a number of key markets. As a result, United's recent resurgence has likely come at the expense of American, more than any other carrier. That's bad news, given that United Airlines plans to continue expanding rapidly in the domestic market for at least two more years.
Will management's turnaround plans be enough?
In the past few months, management has announced a number of moves designed to stabilize American Airlines' performance. The carrier is eliminating some underperforming international routes , while cutting capacity on others. American also plans to cut some domestic capacity in its less profitable hubs, while continuing to grow in Dallas-Fort Worth and Charlotte, its two largest and most profitable hubs.
In conjunction with its earnings report, American Airlines also announced that it will defer the deliveries of 22 A321neos from the 2019-2021 period to 2024. This will result in slower growth and lower capital expenditures. American will also modify its basic economy fares to allow those customers to bring carry-on bags. This will make the basic economy product more attractive, hopefully stemming some of its market-share losses.
These are all sensible moves; the risk for investors is that they're too little, too late. American Airlines has become a highly leveraged play on oil prices . If oil prices continue to rise, profit will probably continue to fall -- and American's massive debt load could lead to significant financial distress for the company.
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Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Things are going from bad to worse at American Airlines (NASDAQ: AAL) . Another big profit decline In the second quarter, revenue per available seat mile (RASM) rose 2.1% at American Airlines. A big portion of this unit-revenue pressure can probably be explained by United Continental's aggressive efforts to regain domestic market share .
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Things are going from bad to worse at American Airlines (NASDAQ: AAL) . On the plus side, nonfuel unit cost growth is set to slow, even though American has reduced its growth plans for the second half of the year. For the third quarter, American Airlines expects RASM to rise 1% to 3%, whereas its average fuel price is set to surge from $1.67 per gallon in Q3 2017 to a range of between $2.22 and $2.27 per gallon.
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Things are going from bad to worse at American Airlines (NASDAQ: AAL) . Even with nonfuel unit costs likely to rise just 1%, American Airlines expects its adjusted pre-tax margin to be just 5% to 7% this quarter. American is losing domestic market share One of the most troubling aspects about American Airlines' recent performance is a slowdown in domestic unit-revenue growth.
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Things are going from bad to worse at American Airlines (NASDAQ: AAL) . Nevertheless, rising fuel prices and modest unit-revenue growth make for a bad combination. Even if American reaches the high end of this updated guidance range, it would imply an adjusted pre-tax profit of about $3 billion: at the low end of the company's long-term guidance.
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67f25bc6-16a6-4209-aab6-3f9dc910c63b
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6982.0
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2018-07-26 00:00:00 UTC
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American Airlines (AAL) Beats on Q2 Earnings, Cuts '18 View
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-beats-on-q2-earnings-cuts-18-view-2018-07-26
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nan
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nan
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American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Quarterly earnings decreased on a year-over-year basis mainly due to high fuel costs.
Revenues of $11,643 million fell short of the Zacks Consensus Estimate of $11,652 million. The top line, however, improved on a year-over-year basis. Strong demand for air travel led to the year over year improvement in the top line.
Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 2.1% to 15.97 cents in the reported quarter. Consolidated yield improved 1%. Passenger revenue per available seat miles (PRASM) improved 1.5%.
While traffic (measured by revenue passenger miles) was up 2%, capacity (measured by average seat miles) was up 1.6%. Consolidated load factor (percentage of seats filled by passengers) increased to 83.4% from 83% a year-ago as traffic growth outpaced capacity expansion in the second quarter of 2018.
Total operating expenses (on a reported basis) climbed 10.3% year over year to approximately $10,615 million primarily due to the rise in fuel costs. Expenses pertaining to salaries and benefits were up 1.8%. Consolidated operating costs per available seat miles (CASM: excluding fuel and special items) increased 2.4%.
During the quarter under review, this Zacks Rank #3 (Hold) company returned $396 million to shareholders through dividends and buybacks. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on Aug 21, to the shareholders on Aug 7. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments. Meanwhile, the carrier deferred deliveries of 22 A321neo planes in a bid to spread out capital expenditures. The planes were previously scheduled for delivery in 2019, 2020 and 2021.
American Airlines Group Inc. Price, Consensus and EPS Surprise
American Airlines Group Inc. Price, Consensus and EPS Surprise | American Airlines Group Inc. Quote
Outlook
TRASM is expected to increase in the band of 1% to 3% in the third quarter of 2018. Pre-tax margin excluding special items is projected in the range of 5% to 7% in the third quarter. Consolidated jet fuel per gallon (including taxes) is projected in the band of $2.22 to $2.27 for the third quarter.
Adjusted earnings per share in 2018 are now expected between $4.50 and $5.00 (previous guidance had hinted at earnings between $5 and $6). The Zacks Consensus Estimate for 2018 earnings is currently pegged at $4.74 per share. Higher fuel costs led to the view being trimmed.
Consolidated CASM (excluding special items and fuel) is expected to increase 1% in the third quarter of 2018. The metric is also anticipated to increase approximately 1.5% in 2018. The metric is still expected to increase in the band of 1% to 2% in each of 2019 and 2020.
Capacity (system) in the third quarter is projected to increase 3.3% year over year. The metric is expected to increase 1.6% in the final quarter of 2018. Capacity in 2018 is expected to grow 2.2%, compared with 2.5% expected earlier.
Upcoming Releases
Investors interested in the broader Transportation Sector are awaiting second-quarter 2018 earnings reports from key players, namely Genesee & Wyoming Inc. GWR , C.H. Robinson Worldwide, Inc. CHRW and Expeditors International of Washington, Inc. EXPD . Genesee & Wyoming will release results on Jul 27. C.H. Robinson and Expeditors will announce the same on Jul 31 and Aug 7 respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Genesee & Wyoming, Inc. (GWR): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Genesee & Wyoming, Inc. (GWR): Free Stock Analysis Report C.H. Consolidated load factor (percentage of seats filled by passengers) increased to 83.4% from 83% a year-ago as traffic growth outpaced capacity expansion in the second quarter of 2018.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Genesee & Wyoming, Inc. (GWR): Free Stock Analysis Report C.H. American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. American Airlines Group Inc. Price, Consensus and EPS Surprise American Airlines Group Inc. Price, Consensus and EPS Surprise | American Airlines Group Inc. Quote Outlook TRASM is expected to increase in the band of 1% to 3% in the third quarter of 2018.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Genesee & Wyoming, Inc. (GWR): Free Stock Analysis Report C.H. American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. American Airlines Group Inc. Price, Consensus and EPS Surprise American Airlines Group Inc. Price, Consensus and EPS Surprise | American Airlines Group Inc. Quote Outlook TRASM is expected to increase in the band of 1% to 3% in the third quarter of 2018.
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American Airlines Group Inc. 's AAL second-quarter 2018 earnings (excluding 41 cents from non-recurring items) of $1.63 per share surpassed the Zacks Consensus Estimate by 4 cents. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Genesee & Wyoming, Inc. (GWR): Free Stock Analysis Report C.H. Total operating expenses (on a reported basis) climbed 10.3% year over year to approximately $10,615 million primarily due to the rise in fuel costs.
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900e478b-ca07-48f3-9db3-a4b1b12fd11a
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6983.0
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2018-07-26 00:00:00 UTC
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Earnings From MCD, AAL, RDS.A
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AAL
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https://www.nasdaq.com/articles/earnings-from-mcd-aal-rds.a-2018-07-26
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nan
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nan
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We interrupt this Q2 earnings season to bring new economic data, which help inform the relative strength of aspects of our economy behind the top- and bottom-lines of the S&P 500 and beyond. This data also comes a day prior to the first read on Q2 2018 Gross Domestic Product (GDP) data, which is expected to reach north of 4.0% for the first time in four years.
Initial Jobless Claims bumped up from the extraordinarily low 208K the previous week (which itself was revised upward from the initial 207K) to 217K new claims last week - still an historically low figure, and remains within the 200-225K range we've been in for the past couple months now. Continuing Claims ratcheted even further downward on the week, however, from a previous 1.753 million read to 1.745 million last week. Have we mentioned these numbers are extraordinary?
The preliminary read on June Durable Goods came in lighter than expected this morning - +1.0% from the consensus estimate of 3.0%. Digging into these numbers a bit, subtracting Transportation costs, June durables reached +0.4%. Ex-Defense spending, +0.5%. Non-Defense, ex-Aircraft, we see +0.6%. Non-Defense Cap Orders came in at +1.0% for June. A slight disappointment here, but these numbers do carry some month-to-month volatility, especially on the preliminary reads.
European Central Bank (ECB) President Mario Draghi has talked this morning, both about ECB policy going forward and in commentary on the Trump/E.U. trade talks this week. Draghi said it was a "good sign" the U.S. and E.U. were working toward new trade agreements. He also said interest rates will remain unchanged at 0%, likely until the summer of 2019. The data he sees is consistent with economic growth in the E.U., but he also remarked that stimulus is still needed to reach its desired 2% inflation threshold.
In earnings news, McDonald'sMCD posted Q2 earnings of $1.99 per share, ahead of the $1.92 in the Zacks consensus. Sales of $5.35 billion topped the expected $5.32 billion, on +4% global comps year over year. For more on MCD's earnings, click here.
Lower downstream results hampered Royal Dutch ShellRDS.A earnings in its Q2 report this morning, only bringing in $1.12 per share from the $1.41 expected by analysts. However, revenues of $99.27 billion in the quarter was 37% better than the year-ago Q2 sales results, offset a bit by higher costs. The company also announced a share buyback program to the tune of $25 billion over the next 2 years. For more on RDS.A's earnings, click here.
American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. However, revenues of $11.64 billion were just shy of the Zacks consensus $11.65 billion. The company has also lowered full-year earnings guidance to $4.50-5.00 per share, and shares are down marginally in pre-market trading . For more on AAL's earnings, click here.
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
Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): 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 Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here.
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American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here.
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48b736fa-ec00-40dd-b4a9-93fb038d6678
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6984.0
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2018-07-26 00:00:00 UTC
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Jobless Claims, Durable Goods & Earnings: MCD, RDS.A & AAL
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AAL
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https://www.nasdaq.com/articles/jobless-claims-durable-goods-earnings-mcd-rdsa-aal-2018-07-26
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nan
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nan
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Thursday, July 26, 2018
We interrupt this Q2 earnings season to bring new economic data, which help inform the relative strength of aspects of our economy behind the top- and bottom-lines of the S&P 500 and beyond. This data also comes a day prior to the first read on Q2 2018 Gross Domestic Product (GDP) data, which is expected to reach north of 4.0% for the first time in four years.
Initial Jobless Claims bumped up from the extraordinarily low 208K the previous week (which itself was revised upward from the initial 207K) to 217K new claims last week - still an historically low figure, and remains within the 200-225K range we've been in for the past couple months now. Continuing Claims ratcheted even further downward on the week, however, from a previous 1.753 million read to 1.745 million last week. Have we mentioned these numbers are extraordinary?
The preliminary read on June Durable Goods came in lighter than expected this morning - +1.0% from the consensus estimate of 3.0%. Digging into these numbers a bit, subtracting Transportation costs, June durables reached +0.4%. Ex-Defense spending, +0.5%. Non-Defense, ex-Aircraft, we see +0.6%. Non-Defense Cap Orders came in at +1.0% for June. A slight disappointment here, but these numbers do carry some month-to-month volatility, especially on the preliminary reads.
European Central Bank (ECB) President Mario Draghi has talked this morning, both about ECB policy going forward and in commentary on the Trump/E.U. trade talks this week. Draghi said it was a "good sign" the U.S. and E.U. were working toward new trade agreements. He also said interest rates will remain unchanged at 0%, likely until the summer of 2019. The data he sees is consistent with economic growth in the E.U., but he also remarked that stimulus is still needed to reach its desired 2% inflation threshold.
In earnings news, McDonald's MCD posted Q2 earnings of $1.99 per share, ahead of the $1.92 in the Zacks consensus. Sales of $5.35 billion topped the expected $5.32 billion, on +4% global comps year over year. For more on MCD's earnings, click here.
Lower downstream results hampered Royal Dutch Shell RDS.A earnings in its Q2 report this morning, only bringing in $1.12 per share from the $1.41 expected by analysts. However, revenues of $99.27 billion in the quarter was 37% better than the year-ago Q2 sales results, offset a bit by higher costs. The company also announced a share buyback program to the tune of $25 billion over the next 2 years. For more on RDS.A's earnings, click here.
American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. However, revenues of $11.64 billion were just shy of the Zacks consensus $11.65 billion. The company has also lowered full-year earnings guidance to $4.50-5.00 per share, and shares are down marginally in pre-market trading . For more on AAL's earnings, click here.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): 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 Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here.
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American Airlines AAL also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. For more on AAL's earnings, click here. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here.
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0746edaf-f45f-442b-9e88-fd6f678d4ad6
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6985.0
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2018-07-26 00:00:00 UTC
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The Zacks Analyst Blog Highlights: JetBlue Airways, Hawaiian Holdings, Ryanair Holdings, American Airlines Group and Delta Air Lines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-jetblue-airways-hawaiian-holdings-ryanair-holdings
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nan
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nan
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For Immediate Release
Chicago, IL - July 26, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JetBlue Airways Corp. JBLU , Hawaiian Holdings, Inc. HA , Ryanair Holdings plc RYAAY , American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Airline Stock Roundup: Q2 Earnings Edition
In the past week, key airline players like JetBlue Airways Corp. and Hawaiian Holdings, Inc. unveiled their respective quarterly numbers. Although both the companies reported better-than-expected earnings per share, the metric contracted on a year-over-year basis mainly due to high fuel costs. Both the US-based carriers reported lower-than-expected revenues as well.
European low-cost carrier Ryanair Holdings plc revealed its first-quarter fiscal 2019 (ended Jun 30, 2018) financial numbers. High costs and low average air fares resulted in the carrier's profit after tax declining 20%.
On the non-earnings front, the China-Taiwan controversy grabbed headlines with carriers like American Airlines Group Inc. and Delta Air Lines, Inc. planning to comply with China's demands of changing their reference pertaining to Taiwan on the airlines' websites.
(Read the last Airline Stock Roundup for Jul 18, 2018 )
Recap of the Past Week's Most Important Stories
1. JetBlue Airways' second-quarter 2018 earnings per share (excluding 76 cents from non-recurring items) of 38 cents surpassed the Zacks Consensus Estimate of 36 cents. However, the bottom line decreased significantly on a year-over-year basis primarily due to high fuel costs (read more: JetBlue Tops Q2 Earnings Estimates, Declines Y/Y ).
Apart from the earnings report, the carrier was in the news when it revealed its intention to trim the workforce in a bid to cut costs. The reductions will reportedly be through layoffs, buyouts and attrition.
2. Hawaiian Holdings' second-quarter earnings (excluding 12 cents from non-recurring items) of $1.44 per share outpaced the Zacks Consensus Estimate of $1.26. However, quarterly revenues of $715.4 million fell short of the Zacks Consensus Estimate of $717.8 million. While earnings per share decreased, revenues increased on a year-over-year basis.
Operating revenue per available seat mile in the quarter climbed 0.7% year over year. The metric is projected to be down 1.5% to up 1.5% on a year-over-year basis in the third quarter of 2018. The same is expected to grow in the band of 1-3% for 2018.
Capacity is projected to grow between 7.5% and 9.5% in the third quarter. The metric is expected to increase in the band of 5.5-7.5% for 2018. CASM, excluding fuel, is also projected to rise significantly for the ongoing quarter primarily owing to rising labor costs. Fuel cost per gallon (economic) is anticipated to be in the band of $2.10-$2.20 in the third quarter. The metric is envisioned in the $2.05-$2.15 band for 2018.
Hawaiian Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
3. Ryanair Holdings reported financial and operating numbers with net profit of €319 million for the first quarter of fiscal 2019, down 20% year over year due to a 4% decline in average airfares. The top line expanded 9% to €2,079 million on the back of a 7% rise in traffic. Moreover, load factor came in at 96%. During the quarter, the carrier returned €265 million to shareholders through buybacks.
The carrier expects airfares to rise only 1% in the second quarter of fiscal 2019 compared with a 4% rise predicted earlier. Profit after tax in fiscal 2019 is projected at €1.25 billion. The carrier remains concerned about a Brexit-related impact.
4. U.S. based carriers are likely to comply with China's request pertaining to Taiwan in the next few days. China had requested the carriers to refer Taiwan in their respective websites as "China Taiwan" or the "China Taiwan region." The request, made in April, had asked the carriers not to refer Taiwan in any other manner.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include JetBlue Airways Corp. JBLU , Hawaiian Holdings, Inc. HA , Ryanair Holdings plc RYAAY , American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets.
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Stocks recently featured in the blog include JetBlue Airways Corp. JBLU , Hawaiian Holdings, Inc. HA , Ryanair Holdings plc RYAAY , American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, the bottom line decreased significantly on a year-over-year basis primarily due to high fuel costs (read more: JetBlue Tops Q2 Earnings Estimates, Declines Y/Y ).
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Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include JetBlue Airways Corp. JBLU , Hawaiian Holdings, Inc. HA , Ryanair Holdings plc RYAAY , American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: Q2 Earnings Edition In the past week, key airline players like JetBlue Airways Corp. and Hawaiian Holdings, Inc. unveiled their respective quarterly numbers.
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Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include JetBlue Airways Corp. JBLU , Hawaiian Holdings, Inc. HA , Ryanair Holdings plc RYAAY , American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL . Ryanair Holdings reported financial and operating numbers with net profit of €319 million for the first quarter of fiscal 2019, down 20% year over year due to a 4% decline in average airfares.
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3daec57d-e11e-418f-9083-5d1d327a9973
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6986.0
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2018-07-26 00:00:00 UTC
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American Airlines (AAL) Beats Q2 Earnings
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-beats-q2-earnings-2018-07-26
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nan
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American Airlines Group Inc . AAL reported second-quarter 2018 earnings per share (excluding 41 cents from non-recurring items) of $1.63, edging past the Zacks Consensus Estimate of $1.59. Earnings decreased on a year-over-year basis.
How was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for American Airlines depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 5.9% downward over the last 30 days.
However, the carrier has an impressive earnings surprise history having delivered positive surprises in each of the past four quarters. The average earnings beat was 2.4%
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. Price and EPS Surprise | American Airlines Group Inc. Quote
Revenues Lower Than Expected
American Airlines recorded revenues of $11,643 million, which fell short of the Zacks Consensus Estimate of $11,652 million. However, revenues increased year over year.
Key Statistics : Operating cost per available seat mile excluding fuel and special items increased 2.4% on a year over year basis. Total revenue per available seat miles (TRASM) improved 2.1% in the reported quarter. Yield improved 1%.During the quarter, the company returned $396 million to shareholders through dividends and buybacks.
TRASM is expected to increase in the band of 1% to 3% in the third quarter of 2018. Pre-tax margin excluding special items is projected in the range of 5% to 7%.
Adjusted earnings per share in 2018 are now expected between $4.50 and $5 (previous guidance had hinted at earnings between $5 and $6). The Zacks Consensus Estimate for 2018 earnings is currently pegged at $4.74 per share.
The company expects capacity in the third quarter to rise approximately 3.3% year over year (down 0.6 percentage points from its previous forecast). The same for the fourth quarter and full year is anticipated to be up approximately 1.6% (down 1 percentage point) and 2.2% respectively.
Zacks Rank : Currently, American Airlines carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Check back later for our full write up on this American Airlines earnings report later!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL reported second-quarter 2018 earnings per share (excluding 41 cents from non-recurring items) of $1.63, edging past the Zacks Consensus Estimate of $1.59. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 5.9% downward over the last 30 days.
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AAL reported second-quarter 2018 earnings per share (excluding 41 cents from non-recurring items) of $1.63, edging past the Zacks Consensus Estimate of $1.59. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The average earnings beat was 2.4% American Airlines Group Inc. Price and EPS Surprise American Airlines Group Inc. Price and EPS Surprise | American Airlines Group Inc. Quote Revenues Lower Than Expected American Airlines recorded revenues of $11,643 million, which fell short of the Zacks Consensus Estimate of $11,652 million.
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AAL reported second-quarter 2018 earnings per share (excluding 41 cents from non-recurring items) of $1.63, edging past the Zacks Consensus Estimate of $1.59. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors should note that the earnings estimate revisions for American Airlines depicted a gloomy picture prior to the earnings release.
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AAL reported second-quarter 2018 earnings per share (excluding 41 cents from non-recurring items) of $1.63, edging past the Zacks Consensus Estimate of $1.59. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors should note that the earnings estimate revisions for American Airlines depicted a gloomy picture prior to the earnings release.
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b9ab7666-2936-40a9-8c62-06194cfa9396
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6987.0
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2018-07-26 00:00:00 UTC
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American Airlines (AAL) Tops Q2 Earnings Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-tops-q2-earnings-estimates-2018-07-26
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nan
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American Airlines (AAL) just came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.59 per share. This compares to earnings of $1.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.52%. A quarter ago, it was expected that this world's largest airline would post earnings of $0.74 per share when it actually produced earnings of $0.75, delivering a surprise of 1.35%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $11.64 billion for the quarter ended June 2018, missing the Zacks Consensus Estimate by 0.08%. This compares to year-ago revenues of $11.11 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Airlines shares have lost about 26.6% since the beginning of the year versus the S&P 500's gain of 6.5%.
What's Next for American Airlines?
While American Airlines has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Airlines was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.44 on $11.74 billion in revenues for the coming quarter and $4.74 on $44.91 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) just came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.59 per share. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook.
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American Airlines (AAL) just came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.59 per share. 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, which belongs to the Zacks Transportation - Airline industry, posted revenues of $11.64 billion for the quarter ended June 2018, missing the Zacks Consensus Estimate by 0.08%.
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American Airlines (AAL) just came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.59 per share. 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, which belongs to the Zacks Transportation - Airline industry, posted revenues of $11.64 billion for the quarter ended June 2018, missing the Zacks Consensus Estimate by 0.08%.
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American Airlines (AAL) just came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.59 per share. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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79c18554-70da-4e0d-92aa-8f6f68d7ae94
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6988.0
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2018-07-24 00:00:00 UTC
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American Airlines (AAL) Q2 Earnings: Will it Disappoint?
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q2-earnings%3A-will-it-disappoint-2018-07-24
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American Airlines Group Inc . AAL is scheduled to unveil second-quarter 2018 results on Jul 26, before the market opens.
In the first quarter of 2018, the company delivered a positive earnings surprise of 1.4%. The bottom line also improved significantly year over year despite high costs. Although the top line fell short of the Zacks Consensus Estimate, it increased year over year on strong demand for air travel.
However, the company has been affected by numerous headwinds in the second quarter.
Let's delve into the details.
Factors Likely at Play
Repeating the first-quarter trend, high fuel costs are likely to hurt the company's bottom line in the second quarter too. Average fuel price per gallon is anticipated to lie between $2.24 and $2.29, much higher than $1.62 in the year-ago period as well as $2.10 in the previous quarter. The Zacks Consensus Estimate for the same stands at $2.21 per gallon.
The IT glitch at PSA Airlines (American Airlines' wholly owned regional carrier) is also expected to weigh on the company's quarterly results. This untoward incident led to approximately 3,000 flight cancellations in June and is estimated to affect the company's pre-tax income to the tune of $35 million.
Further, lower-than-expected domestic yields might adversely impact unit revenues and the top line in turn. The company predicts total revenue per available seat mile (TRASM) to increase between 1% and 3% in the second quarter (the metric rose 5.7% in the prior-year period).
However, robust passenger revenues on the back of rising demand for air travel is likely to aid results in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that American Airlines is likely to beat estimates this earnings season. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.
Earnings ESP : American Airlines has an Earnings ESP of -0.13%. This is because the Most Accurate Estimate is pegged at $1.58 per share, lower than the Zacks Consensus Estimate of $1.59. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : American Airlines has a Zacks Rank #3, which increases the predictive power of ESP. However, a company needs to have a positive ESP to be confident of a likely earnings beat. Therefore, this combination leaves surprise prediction inconclusive.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. Price and EPS Surprise | American Airlines Group Inc. Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like United Parcel Service, Inc. UPS , Expeditors International of Washington, Inc. EXPD and Norfolk Southern Corporation NSC as these possess the right combination of elements to beat on earnings this reporting cycle.
UPS has an Earnings ESP of +0.62% and a Zacks Rank of 3. The company will report second-quarter earnings on Jul 25.
Expeditors has an Earnings ESP of +1.54% and a Zacks Rank of 1. The company will report second-quarter earnings on Aug 7. You can see the complete list of today's Zacks #1 Rank stocks here .
Norfolk Southern has an Earnings ESP of +0.36% and a Zacks Rank #2. The company will announce second-quarter financial numbers on Jul 25.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Norfolk Southern Corporation (NSC): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL is scheduled to unveil second-quarter 2018 results on Jul 26, before the market opens. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. Factors Likely at Play Repeating the first-quarter trend, high fuel costs are likely to hurt the company's bottom line in the second quarter too.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. AAL is scheduled to unveil second-quarter 2018 results on Jul 26, before the market opens. Although the top line fell short of the Zacks Consensus Estimate, it increased year over year on strong demand for air travel.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. AAL is scheduled to unveil second-quarter 2018 results on Jul 26, before the market opens. Zacks Rank : American Airlines has a Zacks Rank #3, which increases the predictive power of ESP.
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AAL is scheduled to unveil second-quarter 2018 results on Jul 26, before the market opens. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. Although the top line fell short of the Zacks Consensus Estimate, it increased year over year on strong demand for air travel.
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f5c2e8a2-5f5a-4778-86ba-dc8f15e16c8e
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6989.0
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2018-07-24 00:00:00 UTC
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JetBlue Stock Has a Great Risk-Reward Setup After Earnings Tumble
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AAL
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https://www.nasdaq.com/articles/jetblue-stock-has-great-risk-reward-setup-after-earnings-tumble-2018-07-24
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
JetBlue (NASDAQ: JBLU ) shares initially reacted favorably to the airline's second-quarter report. JBLU stock was up slightly in Tuesday's pre-market session, rallying about 1% to 2% after the company beat on earnings-per-share estimates and met revenue expectations.
However, there wasn't enough juice in the results for JBLU to take flight. Instead, shares actually sank, falling about 6% in early regular-session trading. There's good news in the stock's reaction though: It has brought JBLU stock right back down to a vital area. That gives interested investors a great risk/reward should they want to give JetBlue a shot on the long side.
JBLU Earnings
Earnings of 38-cents-per-share beat estimates of 36-cents-per-share, while sales of $1.93 billion grew 4.9% year-over-year. Fuel costs jumped in the quarter though, rising more than 40% YoY to $2.28-per-gallon. Revenue-per-available seat mile fell 1.2% YoY, while the average fare dropped 70 basis points YoY to $170.80.
7 Best of the Best Mutual Funds to Buy
As for management's outlook, this is what JetBlue had to say for the third quarter and full year: "Capacity is expected to increase between 7.5% and 9.5% year over year in the third quarter 2018. For the full year 2018, JetBlue expects capacity to increase between 6.5% and 7.5%, including a 2 point reduction to capacity in the fourth quarter of 2018."
Valuing JBLU Stock
It's not that the quarter was particularly terrible, but I think another culprit is at hand: competition. Not necessarily in the form of fare wars or airlines low-balling on key JetBlue routes though. Instead, other stocks look more attractive to investors, like Delta Air Lines (NYSE: DAL ), United Airlines (NYSE: UAL ) and others.
Estimates call for JetBlue's revenue to grow 9.6% in 2018 and 8.7% in 2019. On the earnings front, analysts expect full-year earnings of $1.68-per-share. That's actually down from the year before and prices JBLU stock at about 11 times this year's earnings. For 2019, expectations call for 21% growth to $2.04-per-share.
Eleven-times earnings is not particularly expensive, but it's more expensive than many of its peers and JBLU stock doesn't pay out a dividend.
Earlier this month we compared four airlines - DAL, UAL, Southwest Airlines (NYSE: LUV ) and American Airlines (NASDAQ: AAL ). Three of these four have a lower valuation than JBLU, along with superior dividend yields and better earnings growth this year. Admittedly though, JBLU has better revenue growth and earnings growth in 2019 than the four listed above. But given its valuation, investors may not find JBLU worth it, yet.
Trading JBLU Stock
JetBlue doesn't have the worst valuation/growth profile in the world. As investors punish the stock on Tuesday, it will be important to see how it handles this $18 to $18.50 level.
This has been a significant level for JBLU stock over the course of several years. The downtrend line of resistance is in plain view too, but even a rally to this point would be significant. The key for bulls - whether they're new or have been holding a position for a while now - is whether this current support area holds up.
Below $18.50 and JBLU stock becomes iffy. I personally would not initiate a new position below this mark. Above $18 is still okay, but it definitely leaves JetBlue on the ropes. The bottom line: Above $18.50 and interested bulls can take a low-risk long position in the name.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, he did not hold a position in any of the aforementioned securities.
The Ultimate Marijuana Stock to Go Ballistic in the Next 90 Days
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The post JetBlue Stock Has a Great Risk-Reward Setup After Earnings Tumble appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earlier this month we compared four airlines - DAL, UAL, Southwest Airlines (NYSE: LUV ) and American Airlines (NASDAQ: AAL ). JBLU stock was up slightly in Tuesday's pre-market session, rallying about 1% to 2% after the company beat on earnings-per-share estimates and met revenue expectations. Not necessarily in the form of fare wars or airlines low-balling on key JetBlue routes though.
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Earlier this month we compared four airlines - DAL, UAL, Southwest Airlines (NYSE: LUV ) and American Airlines (NASDAQ: AAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips JetBlue (NASDAQ: JBLU ) shares initially reacted favorably to the airline's second-quarter report. For the full year 2018, JetBlue expects capacity to increase between 6.5% and 7.5%, including a 2 point reduction to capacity in the fourth quarter of 2018."
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Earlier this month we compared four airlines - DAL, UAL, Southwest Airlines (NYSE: LUV ) and American Airlines (NASDAQ: AAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips JetBlue (NASDAQ: JBLU ) shares initially reacted favorably to the airline's second-quarter report. 7 Best of the Best Mutual Funds to Buy As for management's outlook, this is what JetBlue had to say for the third quarter and full year: "Capacity is expected to increase between 7.5% and 9.5% year over year in the third quarter 2018.
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Earlier this month we compared four airlines - DAL, UAL, Southwest Airlines (NYSE: LUV ) and American Airlines (NASDAQ: AAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips JetBlue (NASDAQ: JBLU ) shares initially reacted favorably to the airline's second-quarter report. 7 Best of the Best Mutual Funds to Buy As for management's outlook, this is what JetBlue had to say for the third quarter and full year: "Capacity is expected to increase between 7.5% and 9.5% year over year in the third quarter 2018.
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ca26fc95-b502-4078-9d6d-7ee7c5462763
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6990.0
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2018-07-20 00:00:00 UTC
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GATX Corp's (GATX) Q2 Earnings & Revenues Surpass Estimates
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AAL
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https://www.nasdaq.com/articles/gatx-corps-gatx-q2-earnings-revenues-surpass-estimates-2018-07-20
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GATX CorporationGATX performed impressively in the second quarter of 2018, reporting better-than-expected earnings per share and revenues. The company's earnings (excluding 15 cents from non-recurring items) of $1.16 per share surpassed the Zacks Consensus Estimate of 92 cents. However, the bottom line decreased 12.1% year over year due to higher costs. Expenses pertaining to the closure of a railcar maintenance facility in Germany weighed on the bottom line in the quarter under review.
Revenues came in at $349.5 million, which outpaced the Zacks Consensus Estimate of $339.6 million. The top line also increased marginally on a year-over-year basis.
Apart from the outperformance, the company raised its outlook for 2018 earnings owing to improved market conditions. For 2018, this Zacks Rank #1 (Strong Buy) company now expects earnings per share between $4.90 and $5.10 (earlier guidance: $4.55-$4.75). You can see the complete list of today's Zacks #1 Rank stocks here.
Also, the Zacks Consensus Estimate for 2018 earnings is pegged at $4.70 per share, which is below the guided range. GATX's encouraging performance in the second quarter as well as its improved earnings view for the current year pleased investors. As a result, the stock gained 8.9% to $84.15 on Jul 19.
Segment-Wise Results
Profits at the Rail North America segment decreased to $64.2 million from $74.9 million a year ago. The decline was mainly due to a reduction in lease revenues apart from lower gains on asset dispositions in the quarter under review. The renewal lease rate change of the company's Lease Price Index (LPI) was -16.1% in the second quarter. Additionally, average lease renewal term for cars included in the LPI was 41 months compared with 32 months in the year-ago quarter.
In fact, Rail North America's wholly-owned fleet had approximately 119,000 rail cars at the end of the reported quarter. Fleet utilization came in at 98.9% compared with 98.8% at the end of the year-ago quarter.
In the reported quarter, profits at the Rail International segment decreased 22.9% year over year to $12.8 million. In the year-ago quarter, results were driven by a rise in railcars on lease and favorable movements related to foreign exchange.
Moreover, GATX Rail Europe's fleet totaled approximately 23,100 rail cars at the end of the second quarter. Fleet utilization was 97.8% compared with 95.7% at the end of second-quarter 2017.
At the Portfolio Management unit, profits decreased 42.4% to $11.4 million. Segmental results were hurt by lower residual sharing fees. However, the American Steamship segment's profit increased 23.1% to $8 million in the reported quarter. Segmental operations were boosted by increased efficiency related to fleet performance.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation Price, Consensus and EPS Surprise | GATX Corporation Quote
Liquidity
GATX exited the second quarter with cash and cash equivalents of $237.4 million compared with $296.5 million at 2017 end. Restricted cash was $3.7 million compared with $3.2 million at the end of the previous year.
Upcoming Releases
Investors interested in the broader Zacks Transportation sector are keenly awaiting second-quarter earnings reports from key players like JetBlue Airways Corporation JBLU , Norfolk Southern Corporation NSC and American Airlines Group Inc. AAL . While JetBlue will report on Jul 24, Norfolk Southern and American Airlines will announce the same on Jul 25 and Jul 26, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
GATX Corporation (GATX): Free Stock Analysis Report
Norfolk Southern Corporation (NSC): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Upcoming Releases Investors interested in the broader Zacks Transportation sector are keenly awaiting second-quarter earnings reports from key players like JetBlue Airways Corporation JBLU , Norfolk Southern Corporation NSC and American Airlines Group Inc. AAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Expenses pertaining to the closure of a railcar maintenance facility in Germany weighed on the bottom line in the quarter under review.
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Upcoming Releases Investors interested in the broader Zacks Transportation sector are keenly awaiting second-quarter earnings reports from key players like JetBlue Airways Corporation JBLU , Norfolk Southern Corporation NSC and American Airlines Group Inc. AAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. GATX Corporation Price, Consensus and EPS Surprise GATX Corporation Price, Consensus and EPS Surprise | GATX Corporation Quote Liquidity GATX exited the second quarter with cash and cash equivalents of $237.4 million compared with $296.5 million at 2017 end.
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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 GATX Corporation (GATX): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Zacks Transportation sector are keenly awaiting second-quarter earnings reports from key players like JetBlue Airways Corporation JBLU , Norfolk Southern Corporation NSC and American Airlines Group Inc. AAL . In the reported quarter, profits at the Rail International segment decreased 22.9% year over year to $12.8 million.
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Upcoming Releases Investors interested in the broader Zacks Transportation sector are keenly awaiting second-quarter earnings reports from key players like JetBlue Airways Corporation JBLU , Norfolk Southern Corporation NSC and American Airlines Group Inc. AAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. GATX's encouraging performance in the second quarter as well as its improved earnings view for the current year pleased investors.
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d5b192c5-825f-421d-88a3-bfbfa6a2e657
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6991.0
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2018-07-18 00:00:00 UTC
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Notable Wednesday Option Activity: ILG, AAL, NAV
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AAL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-ilg-aal-nav-2018-07-18
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in ILG Inc (Symbol: ILG), where a total volume of 25,012 contracts has been traded thus far today, a contract volume which is representative of approximately 2.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 171.2% of ILG's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $32 strike call option expiring September 21, 2018 , with 10,001 contracts trading so far today, representing approximately 1.0 million underlying shares of ILG. Below is a chart showing ILG's trailing twelve month trading history, with the $32 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 108,787 contracts thus far today. That number of contracts represents approximately 10.9 million underlying shares, working out to a sizeable 148% of AAL's average daily trading volume over the past month, of 7.4 million shares. Especially high volume was seen for the $39 strike put option expiring August 17, 2018 , with 22,242 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $39 strike highlighted in orange:
And Navistar International Corp. (Symbol: NAV) saw options trading volume of 7,474 contracts, representing approximately 747,400 underlying shares or approximately 134.6% of NAV's average daily trading volume over the past month, of 555,445 shares. Particularly high volume was seen for the $43 strike call option expiring October 19, 2018 , with 3,700 contracts trading so far today, representing approximately 370,000 underlying shares of NAV. Below is a chart showing NAV's trailing twelve month trading history, with the $43 strike highlighted in orange:
For the various different available expirations for ILG options , AAL options , or NAV options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $39 strike put option expiring August 17, 2018 , with 22,242 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing ILG's trailing twelve month trading history, with the $32 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 108,787 contracts thus far today. That number of contracts represents approximately 10.9 million underlying shares, working out to a sizeable 148% of AAL's average daily trading volume over the past month, of 7.4 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $39 strike highlighted in orange: And Navistar International Corp. (Symbol: NAV) saw options trading volume of 7,474 contracts, representing approximately 747,400 underlying shares or approximately 134.6% of NAV's average daily trading volume over the past month, of 555,445 shares. Below is a chart showing ILG's trailing twelve month trading history, with the $32 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 108,787 contracts thus far today. That number of contracts represents approximately 10.9 million underlying shares, working out to a sizeable 148% of AAL's average daily trading volume over the past month, of 7.4 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $39 strike highlighted in orange: And Navistar International Corp. (Symbol: NAV) saw options trading volume of 7,474 contracts, representing approximately 747,400 underlying shares or approximately 134.6% of NAV's average daily trading volume over the past month, of 555,445 shares. Below is a chart showing ILG's trailing twelve month trading history, with the $32 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 108,787 contracts thus far today. That number of contracts represents approximately 10.9 million underlying shares, working out to a sizeable 148% of AAL's average daily trading volume over the past month, of 7.4 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $39 strike highlighted in orange: And Navistar International Corp. (Symbol: NAV) saw options trading volume of 7,474 contracts, representing approximately 747,400 underlying shares or approximately 134.6% of NAV's average daily trading volume over the past month, of 555,445 shares. Below is a chart showing ILG's trailing twelve month trading history, with the $32 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 108,787 contracts thus far today. That number of contracts represents approximately 10.9 million underlying shares, working out to a sizeable 148% of AAL's average daily trading volume over the past month, of 7.4 million shares.
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3d6d1e2f-001f-4ae7-ae43-c33fbfbd5604
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6992.0
|
2018-07-17 00:00:00 UTC
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Nasdaq 100 Movers: NFLX, DLTR
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-nflx-dltr-2018-07-17
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nan
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nan
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In early trading on Tuesday, shares of Dollar Tree ( DLTR ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.2%. Year to date, Dollar Tree has lost about 18.8% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 10.2%. Netflix is showing a gain of 87.2% looking at the year to date performance.
Two other components making moves today are Dish Network Corp ( DISH ), trading down 1.8%, and American Airlines Group ( AAL ), trading up 1.1% on the day.
VIDEO: Nasdaq 100 Movers: NFLX, DLTR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Dish Network Corp ( DISH ), trading down 1.8%, and American Airlines Group ( AAL ), trading up 1.1% on the day. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 10.2%. VIDEO: Nasdaq 100 Movers: NFLX, DLTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Dish Network Corp ( DISH ), trading down 1.8%, and American Airlines Group ( AAL ), trading up 1.1% on the day. Year to date, Dollar Tree has lost about 18.8% of its value. VIDEO: Nasdaq 100 Movers: NFLX, DLTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Dish Network Corp ( DISH ), trading down 1.8%, and American Airlines Group ( AAL ), trading up 1.1% on the day. In early trading on Tuesday, shares of Dollar Tree ( DLTR ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.2%. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 10.2%.
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Two other components making moves today are Dish Network Corp ( DISH ), trading down 1.8%, and American Airlines Group ( AAL ), trading up 1.1% on the day. In early trading on Tuesday, shares of Dollar Tree ( DLTR ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.2%. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 10.2%.
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3fec0020-3424-4556-b9db-5ef8448937a2
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6993.0
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2018-07-13 00:00:00 UTC
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4 Airline Stocks Trading at a Discount You Should Consider Buying
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AAL
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https://www.nasdaq.com/articles/4-airline-stocks-trading-discount-you-should-consider-buying-2018-07-13
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airlines stocks have been losing altitude lately. Because they have great cash-flow generation and several return a large amount of capital, though, some investors are no doubt wondering if now's the time to buy. There are a number of different names, but for this article, I wanted to take a look at the largest in the industry.
7 Hot Stocks Savvy Investors Are Buying
I'm looking at Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NYSE: AAL ) - in that order, based on market cap.
The airlines are a bit like Ford Motor Company (NYSE: F ) and General Motors Company (NYSE: GM ). Despite healthy profits, the stocks get no respect when it comes to valuation. However, unlike Ford and GM, all four airlines have solid growth for both the top and bottom lines.
I think it should also be noted that Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A , NYSE: BRK.B ) owns significant stakes in all four of these companies. Additionally, I believe Buffett's only airline stocks are these four holdings. With that in mind, how do they look?
Comparing the Airline Stocks
Market Cap Revenue Growth 2018 Revenue Growth 2019 Earnings Growth 2018 Earnings Growth 2019 Yield P/E PEG DAL $36.1B
7.3%
4.4%
16.4%
18.1%
2.5%
8.8
0.63
LUV $30.9B
4.3%
6.4%
22.6%
17.9%
1.2%
12.3
0.69
UAL $29.3B
7.6%
5.4%
14.5%
18%
x
9.2
0.48
AAL $18.5B
7%
3.9%
1.4%
21.6%
1%
7.3
0.67
Above, I've put together a table of all of the airline stocks we're discussing. It's got this year's and next year's revenue and earnings growth, as well as yield and valuation based on 2018 earnings. In bold is the company that has the best numbers for the given category.
So what's the takeaway? Oddly enough, I actually feel that DAL looks the most attractive among these four airline stocks.
The only category DAL leads in (aside from market cap) is dividend yield. Paying out 2.5%, it's more than double the next highest yield, which comes from LUV. Last quarter, DAL paid out three times its dividend payment in stock repurchases. Management said the company is sticking with its long-term goal to return 25% of cash flow to investors. That's great news that investors should like to hear.
What's more, DAL has the second-best revenue growth this year, second-best earnings growth in 2018 and 2019 and has the second-lowest valuation. For those wondering, DAL's PEG ratio - which measures a stock's valuation against its growth - of 0.63 is second-best to UAL's 0.48.
While DAL doesn't flat-out win any these categories aside from capital return, its consistency is something to admire. With AAL's valuation, trading at just 7.3 times this year's earnings, and its big earnings growth expectations for 2019, it could have been the most attractive. However, when you see its chart you'll see why it's missing some luster.
LUV has good earnings and revenue growth both years, but is much more expensive than DAL and has a lower yield. Likewise, UAL has similar growth to DAL with a slightly higher valuation and no yield.
Delta just seems to have the best combination of yield, growth and valuation of these four airline stocks.
Trading the Airline Stocks
Generally speaking, the airline stocks are showing several bottoming signs. Either support is holding or some names are putting in higher lows. But, either way, they're not all falling anymore, which is a good sign.
Click to Enlarge
Delta has been chopping between $48 to $56 for almost a year now. Now, near the support side of the channel, investors can step in with an attractive risk/reward ratio.
Using a shorter time frame, DAL was previously finding support near $51. If DAL can't push through this level, it doesn't bode well for its share price. If it can, channel resistance near $56 is back in sight. The MACD (green circle) is flipping bullish, another good sign for bulls.
Click to Enlarge
United has a good-looking chart, at least considering the airline stocks group. It's putting in a series of higher lows, but is coming into resistance. If this trend-line of support gives way, along with the 200-day moving average, short-term investors should consider stopping out.
Click to Enlarge
Doing its best to break out of a sharp downward channel, Southwest is trying to put its futile run to an end. $50 is clear support, but if LUV can close near $53, and preferably closer to $54, shares could take flight.
7 Socially Responsible Investments to Make Now
Click to Enlarge
American has the worst-looking chart. Share are in a sharp descending channel and significant support may not come into play until $33.50 to $34. It could take its time getting there, but unless AAL gets out of this bearish channel, I want to avoid the name.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
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The post 4 Airline Stocks Trading at a Discount You Should Consider Buying appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Hot Stocks Savvy Investors Are Buying I'm looking at Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NYSE: AAL ) - in that order, based on market cap. With AAL's valuation, trading at just 7.3 times this year's earnings, and its big earnings growth expectations for 2019, it could have been the most attractive. It could take its time getting there, but unless AAL gets out of this bearish channel, I want to avoid the name.
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7 Hot Stocks Savvy Investors Are Buying I'm looking at Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NYSE: AAL ) - in that order, based on market cap. With AAL's valuation, trading at just 7.3 times this year's earnings, and its big earnings growth expectations for 2019, it could have been the most attractive. It could take its time getting there, but unless AAL gets out of this bearish channel, I want to avoid the name.
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7 Hot Stocks Savvy Investors Are Buying I'm looking at Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NYSE: AAL ) - in that order, based on market cap. With AAL's valuation, trading at just 7.3 times this year's earnings, and its big earnings growth expectations for 2019, it could have been the most attractive. It could take its time getting there, but unless AAL gets out of this bearish channel, I want to avoid the name.
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7 Hot Stocks Savvy Investors Are Buying I'm looking at Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NYSE: AAL ) - in that order, based on market cap. With AAL's valuation, trading at just 7.3 times this year's earnings, and its big earnings growth expectations for 2019, it could have been the most attractive. It could take its time getting there, but unless AAL gets out of this bearish channel, I want to avoid the name.
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b3d04e1a-6fcb-47ed-ab77-c17766833137
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6994.0
|
2018-07-13 00:00:00 UTC
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What Does Delta's Report Say About United Ahead of Earnings?
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AAL
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https://www.nasdaq.com/articles/what-does-deltas-report-say-about-united-ahead-earnings-2018-07-13
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nan
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nan
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Delta DAL started off the Q2 earnings season positively for the airline industry. The company's earnings of $1.77 per share surpassed the Zacks Consensus Estimate by five cents-thanks in large part to stronger demand for air travel, which boosted revenues.
Although the company had a positive earnings surprise for the reported quarter, these are still uncertain times for the airline space. A central issue is fuel prices that continue to rise, forcing major airlines to decide how to offset the costs.
Delta was able to surpass estimates for Q2, but fuel prices have begun to take a negative toll on the airline and its future outlook. On Thursday, the company announced that its fuel bill will be $2 billion more this year than it was last year.
Delta also stated on Thursday that it will have to raise fares for travelers moving forward to counteract the spike. The company appears to be confident that the move will work. Regarding the fuel costs, CEO Ed Bastian stated, "We expect to be able to cover most if not all of it this year, by the end of the year."
However, the high fuel bill may be causing more problems in the future than what CEO Bastian suggests, as the airline dropped its full year earnings outlook on Wednesday. Delta is now predicting that the 2018 earnings will be between $5.35 and $5.70 per share, much lower than the $6.30 to $6.70 forecast it gave earlier in January. In comparison, the Zacks Consensus Estimate for the current year is pegged at $5.69.
The attention now turns to United Continental UAL , one of Delta's main rivals and another major player in the airline industry. United is set to release its own second-quarter results next week on July 17.
Delta's earnings results will be difficult for United to match, as the company also has to face the same burden of rising fuel prices.
There are also other issues looming for United in wake of its upcoming earnings report. In addition to higher fuel costs, United and the other conventional carriers, Delta and American Airlines AAL , have to face competition from low cost carriers like Spirit SAVE and Jet Blue JBLU .
If United is forced to raise fares in similar fashion to Delta, then it will only make the lower priced fares of Spirit and Jet Blue more appealing to consumers. The low cost carriers are also more domestically focused, which puts them in a better position to face problems concerning macroeconomic and geopolitical tensions.
The main thing that United should hope for is that increased consumer demand from the summer travel period can provide the company's revenue a significant boost, just like how it did for Delta.
Bottom Line
United's upcoming earnings report will be a key indicator to the current state of the airline space. Whether or not United can match Delta's positive earnings surprise may reveal the extent to which major airline companies can deal with problems concerning fuel prices, global tensions, and competitors.
5 Medical Stocks to Buy Now
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to higher fuel costs, United and the other conventional carriers, Delta and American Airlines AAL , have to face competition from low cost carriers like Spirit SAVE and Jet Blue JBLU . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, the high fuel bill may be causing more problems in the future than what CEO Bastian suggests, as the airline dropped its full year earnings outlook on Wednesday.
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In addition to higher fuel costs, United and the other conventional carriers, Delta and American Airlines AAL , have to face competition from low cost carriers like Spirit SAVE and Jet Blue JBLU . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to higher fuel costs, United and the other conventional carriers, Delta and American Airlines AAL , have to face competition from low cost carriers like Spirit SAVE and Jet Blue JBLU . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Whether or not United can match Delta's positive earnings surprise may reveal the extent to which major airline companies can deal with problems concerning fuel prices, global tensions, and competitors.
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In addition to higher fuel costs, United and the other conventional carriers, Delta and American Airlines AAL , have to face competition from low cost carriers like Spirit SAVE and Jet Blue JBLU . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company's earnings of $1.77 per share surpassed the Zacks Consensus Estimate by five cents-thanks in large part to stronger demand for air travel, which boosted revenues.
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0a4ce2f4-e463-4c3f-8e86-10edcdbde2cc
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6995.0
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2018-07-12 00:00:00 UTC
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Analysts Anticipate 14% Gains Ahead For IYT
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AAL
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https://www.nasdaq.com/articles/analysts-anticipate-14-gains-ahead-iyt-2018-07-12
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Transportation Average ETF (Symbol: IYT), we found that the implied analyst target price for the ETF based upon its underlying holdings is $214.99 per unit.
With IYT trading at a recent price near $187.85 per unit, that means that analysts see 14.45% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Delta Air Lines Inc (Symbol: DAL), and United Continental Holdings Inc (Symbol: UAL). Although AAL has traded at a recent price of $35.96/share, the average analyst target is 64.30% higher at $59.08/share. Similarly, DAL has 38.75% upside from the recent share price of $49.84 if the average analyst target price of $69.15/share is reached, and analysts on average are expecting UAL to reach a target price of $85.09/share, which is 23.53% above the recent price of $68.88. Below is a twelve month price history chart comparing the stock performance of AAL, DAL, and UAL:
Combined, AAL, DAL, and UAL represent 9.66% of the iShares Transportation Average ETF. Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although AAL has traded at a recent price of $35.96/share, the average analyst target is 64.30% higher at $59.08/share. Below is a twelve month price history chart comparing the stock performance of AAL, DAL, and UAL: Combined, AAL, DAL, and UAL represent 9.66% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Delta Air Lines Inc (Symbol: DAL), and United Continental Holdings Inc (Symbol: UAL).
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Below is a twelve month price history chart comparing the stock performance of AAL, DAL, and UAL: Combined, AAL, DAL, and UAL represent 9.66% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Delta Air Lines Inc (Symbol: DAL), and United Continental Holdings Inc (Symbol: UAL). Although AAL has traded at a recent price of $35.96/share, the average analyst target is 64.30% higher at $59.08/share.
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Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Delta Air Lines Inc (Symbol: DAL), and United Continental Holdings Inc (Symbol: UAL). Although AAL has traded at a recent price of $35.96/share, the average analyst target is 64.30% higher at $59.08/share. Below is a twelve month price history chart comparing the stock performance of AAL, DAL, and UAL: Combined, AAL, DAL, and UAL represent 9.66% of the iShares Transportation Average ETF.
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Below is a twelve month price history chart comparing the stock performance of AAL, DAL, and UAL: Combined, AAL, DAL, and UAL represent 9.66% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Delta Air Lines Inc (Symbol: DAL), and United Continental Holdings Inc (Symbol: UAL). Although AAL has traded at a recent price of $35.96/share, the average analyst target is 64.30% higher at $59.08/share.
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238581e9-69c0-4d15-b0d3-e97d72cb2108
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6996.0
|
2018-07-12 00:00:00 UTC
|
Company News For Jul 12, 2018
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AAL
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https://www.nasdaq.com/articles/company-news-for-jul-12-2018-2018-07-12
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nan
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nan
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American Airlines Group Inc. AAL shares plunged 8.1% after the company trimmed its fiscal second-quarter TRASM growth forecast to 1%-3% year-over-year from the previous guidance of 1.5%-3.5%
Twenty-First Century Fox Inc. FOXA plummeted 4% after the company raised its bid by more than 30% to acquire a 61% stake in SKY plc
Fastenal Co.'s FAST shares jumped 10.1% after reporting fiscal second-quarter 2018 earnings per share of $0.74 outpacing the Zacks Consensus Estimate of $0.66
Shares of MSC Industrial Direct Co. Inc. MSM tumbled 4.5% after posting fiscal third-quarter 2018 revenues of $828.35 million missing the Zacks Consensus Estimate of $832.13 million
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Fastenal Company (FAST): Free Stock Analysis Report
Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report
MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. AAL shares plunged 8.1% after the company trimmed its fiscal second-quarter TRASM growth forecast to 1%-3% year-over-year from the previous guidance of 1.5%-3.5% Twenty-First Century Fox Inc. FOXA plummeted 4% after the company raised its bid by more than 30% to acquire a 61% stake in SKY plc Fastenal Co.'s FAST shares jumped 10.1% after reporting fiscal second-quarter 2018 earnings per share of $0.74 outpacing the Zacks Consensus Estimate of $0.66 Shares of MSC Industrial Direct Co. Inc. MSM tumbled 4.5% after posting fiscal third-quarter 2018 revenues of $828.35 million missing the Zacks Consensus Estimate of $832.13 million Want the latest recommendations from Zacks Investment Research? Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): 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 shares plunged 8.1% after the company trimmed its fiscal second-quarter TRASM growth forecast to 1%-3% year-over-year from the previous guidance of 1.5%-3.5% Twenty-First Century Fox Inc. FOXA plummeted 4% after the company raised its bid by more than 30% to acquire a 61% stake in SKY plc Fastenal Co.'s FAST shares jumped 10.1% after reporting fiscal second-quarter 2018 earnings per share of $0.74 outpacing the Zacks Consensus Estimate of $0.66 Shares of MSC Industrial Direct Co. Inc. MSM tumbled 4.5% after posting fiscal third-quarter 2018 revenues of $828.35 million missing the Zacks Consensus Estimate of $832.13 million Want the latest recommendations from Zacks Investment Research? Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): 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 shares plunged 8.1% after the company trimmed its fiscal second-quarter TRASM growth forecast to 1%-3% year-over-year from the previous guidance of 1.5%-3.5% Twenty-First Century Fox Inc. FOXA plummeted 4% after the company raised its bid by more than 30% to acquire a 61% stake in SKY plc Fastenal Co.'s FAST shares jumped 10.1% after reporting fiscal second-quarter 2018 earnings per share of $0.74 outpacing the Zacks Consensus Estimate of $0.66 Shares of MSC Industrial Direct Co. Inc. MSM tumbled 4.5% after posting fiscal third-quarter 2018 revenues of $828.35 million missing the Zacks Consensus Estimate of $832.13 million Want the latest recommendations from Zacks Investment Research? Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): 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 shares plunged 8.1% after the company trimmed its fiscal second-quarter TRASM growth forecast to 1%-3% year-over-year from the previous guidance of 1.5%-3.5% Twenty-First Century Fox Inc. FOXA plummeted 4% after the company raised its bid by more than 30% to acquire a 61% stake in SKY plc Fastenal Co.'s FAST shares jumped 10.1% after reporting fiscal second-quarter 2018 earnings per share of $0.74 outpacing the Zacks Consensus Estimate of $0.66 Shares of MSC Industrial Direct Co. Inc. MSM tumbled 4.5% after posting fiscal third-quarter 2018 revenues of $828.35 million missing the Zacks Consensus Estimate of $832.13 million Want the latest recommendations from Zacks Investment Research? Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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7d9b60ca-df74-4818-8040-cdc26c150648
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6997.0
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2018-07-12 00:00:00 UTC
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Thursday’s Vital Data: American Airlines, Micron and Transocean
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AAL
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https://www.nasdaq.com/articles/thursdays-vital-data%3A-american-airlines-micron-and-transocean-2018-07-12
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. stock futures are rising once again, as Wall Street recovers from another salvo in the U.S./China trade war. Stocks plunged yesterday after President Donald Trump pushed for another $200 billion in fresh tariffs on Chinese imports.
Today, Wall Street is more focused on inflation data. The June Consumer Price Index (CPI) is slated for release this morning. Economists are expecting the CPI to rise 0.2% on the month. A stronger reading could reinforced the Federal Reserve's push for two more interest rate hikes this year - bringing the total to four hikes.
Heading into the open, futures on the Dow Jones Industrial Average have risen 0.73%. Meanwhile, S&P 500 futures are up 0.53% and Nasdaq-100 futures have added 0.5%.
In options activity, volume remained anemic on Wednesday. Overall, only about 14.7 million calls and 14.8 million puts changed hands on the session. On the CBOE, the single-session equity put/call volume fell to 0.59. The 10-day moving average rose to a two-month high of 0.63.
Options traders backed off technology stocks a bit, hitting up American Airlines (NASDAQ: AAL ) on it's lowered forecast. Offshore drilling concern Transocean (NYSE: RIG ) was also targeted, though mostly by one rather large bearish put spread. Finally, Micron Technology (NASDAQ: MU ) slipped in with a fair amount of call volume following bullish remarks on CNBC .
Let's take a closer look:
American Airlines (AAL)
American stunned investors yesterday when it announced that revenue for each seat flown a mile likely only rose 1%-3% in the second quarter. The range was down 0.5% from American's prior forecast. Investors sent AAL stock down more than 8% on the news, as American deals with high fuel prices in addition to losing fare pricing power.
Options traders were keyed up following the report. Volume on AAL soared to 161,000 contracts, or nearly five times the stock's daily average. Calls were the most popular, claiming 55% of the day's take.
That said, the biggest trade of the day on AAL was a block of 42,000 August $36 puts. According to data from Trade-Alert.com, these puts crossed at the bid price. Combine this with the fact that implied volatility fell and open interest at the strike rose to about 43,000 contracts, and we can safely assume these puts were sold to open.
AAL stock is poised to open north of $36 this morning.
Micron Technology (MU)
Chip stocks are still among Wall Street's favorites, even with the escalating U.S./China trade war. Chip sector darling Micron got a boost yesterday when Sean O'Hara, president of Pacer ETFs Distributors, says that semiconductor companies were the future of the technology sector . O'Hara said he favored stocks like Micron over even the likes of Facebook (NASDAQ: FB ) and Google (NASDAQ: GOOG , NASDAQ: GOOGL ).
"We're entering that Jetsons-like phase of the world where everything's connected and the internet of things is potentially a far bigger opportunity for the chipmakers than the cellphone or devices have been," O'Hara told CNBC .
Options traders need very little prompting to rush into MU calls, and they did so yesterday despite the stock dropping more than 2%. Volume came in at 246,000 contracts, with calls claiming 70% of the day's take.
Despite the influx of calls, pessimism is still a big player in MU's near-term options configuration. In fact, the July put/call open interest ratio comes in at 0.83. In other words, puts are nearly as popular as calls among short-term options traders. It's understandable, given that MU stock hasn't had a meaningful rally since May.
Transocean (RIG)
Oil prices continue to rise, and yet offshore drilling firm Transocean finds its stock falling this week. Capping the decline, RIG stock was down nearly 4% yesterday. Whether it was the recent share price weakness, or the $600 million senior note offering , options traders decided to pile into RIG puts yesterday.
Volume soared to 367,000 contracts on Wednesday, coming in at more than 13-times RIG's daily average. Puts claimed 98% of the day's take. In fact, those puts were dominated by one, solitary put spread.
According to Trade-Alert.com, one trader opened up a Jan 2019 $10/$12 bear put spread with 175,000 contracts per leg - or 350,000 contracts total, nearly all of yesterday's activity. The spread went off at an ask price of 52 cents, or $52 per contract, and has a maximum profit of $1.48, or $148 per contract, if RIG closes at or below $10 when January 2019 options expire. That's quite the bearish bet.
As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.
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The post Thursday's Vital Data: American Airlines, Micron and Transocean appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options traders backed off technology stocks a bit, hitting up American Airlines (NASDAQ: AAL ) on it's lowered forecast. Let's take a closer look: American Airlines (AAL) American stunned investors yesterday when it announced that revenue for each seat flown a mile likely only rose 1%-3% in the second quarter. Investors sent AAL stock down more than 8% on the news, as American deals with high fuel prices in addition to losing fare pricing power.
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Let's take a closer look: American Airlines (AAL) American stunned investors yesterday when it announced that revenue for each seat flown a mile likely only rose 1%-3% in the second quarter. Options traders backed off technology stocks a bit, hitting up American Airlines (NASDAQ: AAL ) on it's lowered forecast. Investors sent AAL stock down more than 8% on the news, as American deals with high fuel prices in addition to losing fare pricing power.
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Options traders backed off technology stocks a bit, hitting up American Airlines (NASDAQ: AAL ) on it's lowered forecast. Let's take a closer look: American Airlines (AAL) American stunned investors yesterday when it announced that revenue for each seat flown a mile likely only rose 1%-3% in the second quarter. Investors sent AAL stock down more than 8% on the news, as American deals with high fuel prices in addition to losing fare pricing power.
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Options traders backed off technology stocks a bit, hitting up American Airlines (NASDAQ: AAL ) on it's lowered forecast. Let's take a closer look: American Airlines (AAL) American stunned investors yesterday when it announced that revenue for each seat flown a mile likely only rose 1%-3% in the second quarter. Investors sent AAL stock down more than 8% on the news, as American deals with high fuel prices in addition to losing fare pricing power.
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1e9bd34f-e433-4d50-9387-9938c17563d0
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6998.0
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2018-07-11 00:00:00 UTC
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Wednesday Sector Laggards: Non-Precious Metals & Non-Metallic Mining, Airlines
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AAL
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https://www.nasdaq.com/articles/wednesday-sector-laggards-non-precious-metals-non-metallic-mining-airlines-2018-07-11
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nan
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nan
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In trading on Wednesday, non-precious metals & non-metallic mining shares were relative laggards, down on the day by about 2.5%. Helping drag down the group were shares of Companhia Siderurgica Nacional ( SID ), off about 6.2% and shares of Taseko Mines ( TGB ) down about 5.5% on the day.
Also lagging the market Wednesday are airlines shares, down on the day by about 2.4% as a group, led down by American Airlines Group ( AAL ), trading lower by about 7.9% and China Southern Airlines Company ( ZNH ), trading lower by about 4.2%.
VIDEO: Wednesday Sector Laggards: Non-Precious Metals & Non-Metallic Mining, Airlines
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 lagging the market Wednesday are airlines shares, down on the day by about 2.4% as a group, led down by American Airlines Group ( AAL ), trading lower by about 7.9% and China Southern Airlines Company ( ZNH ), trading lower by about 4.2%. In trading on Wednesday, non-precious metals & non-metallic mining shares were relative laggards, down on the day by about 2.5%. VIDEO: Wednesday Sector Laggards: Non-Precious Metals & Non-Metallic Mining, Airlines The views and 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 lagging the market Wednesday are airlines shares, down on the day by about 2.4% as a group, led down by American Airlines Group ( AAL ), trading lower by about 7.9% and China Southern Airlines Company ( ZNH ), trading lower by about 4.2%. In trading on Wednesday, non-precious metals & non-metallic mining shares were relative laggards, down on the day by about 2.5%. VIDEO: Wednesday Sector Laggards: Non-Precious Metals & Non-Metallic Mining, Airlines The views and 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 lagging the market Wednesday are airlines shares, down on the day by about 2.4% as a group, led down by American Airlines Group ( AAL ), trading lower by about 7.9% and China Southern Airlines Company ( ZNH ), trading lower by about 4.2%. VIDEO: Wednesday Sector Laggards: Non-Precious Metals & Non-Metallic Mining, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and 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 lagging the market Wednesday are airlines shares, down on the day by about 2.4% as a group, led down by American Airlines Group ( AAL ), trading lower by about 7.9% and China Southern Airlines Company ( ZNH ), trading lower by about 4.2%. In trading on Wednesday, non-precious metals & non-metallic mining shares were relative laggards, down on the day by about 2.5%. Helping drag down the group were shares of Companhia Siderurgica Nacional ( SID ), off about 6.2% and shares of Taseko Mines ( TGB ) down about 5.5% on the day.
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10f8a22a-13fe-4746-92f5-bf683a448bdc
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6999.0
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2018-07-11 00:00:00 UTC
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Here's Why Airline Stocks (AAL, UAL, DAL) Are Slumping Today
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AAL
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https://www.nasdaq.com/articles/heres-why-airline-stocks-aal-ual-dal-are-slumping-today-2018-07-11
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nan
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nan
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Shares of several major airline stocks moved sharply lower in morning trading Wednesday after domestic giant American Airlines AAL lowered its unit revenue and unit cost guidance for the second quarter.
American said it expects unit revenue-the ever-important total revenue per available seat mile (TRASM) metric-to improve 1% to 3%, down from its previous guidance of 1.5% to 3.5% growth. This would still mark American's seventh consecutive quarter of TRASM growth, but the company cited lower-than-anticipated domestic yields as the reason for its lowered guidance.
Meanwhile, American lowered its outlook for Q2 capacity to 72.9 billion available seat miles from 73.1 billion and increased its estimate for average fuel prices to $2.24 - $2.29 per gallon from $2.18 - $2.23 per gallon.
American also said that a technology issue which resulted in one of its regional carriers, PSA Airlines, cancelling about 3,000 flights last month would reduce pre-tax income by about $35 million.
Shares of American Airlines were down more than 6% to touch an intraday low of $36.59 in early morning trading Wednesday. Elsewhere, "Big Three" rivals Delta DAL and United UAL were both more than 3% lower.
Budget airlines and regional carriers were also affected by the industry-wide slump. Alaska ALK dropped as much as 5%, Southwest LUV tumbled about 2%, and Spirit SAVE was down roughly 4%.
Overall, the U.S. Global Jets ETF JETS slumped about 2% in morning trading.
The airline industry continues to struggle in the face of rising fuel and labor costs, shifting trends, and global economic uncertainty. Nevertheless, investors will hope that some carriers can report strong summer travel results and help motivate a rebound.
Want more market analysis from this author? Make sure to follow @ Ryan_McQueeneyon Twitter!
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
US GLOBAL JETS (JETS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of several major airline stocks moved sharply lower in morning trading Wednesday after domestic giant American Airlines AAL lowered its unit revenue and unit cost guidance for the second quarter. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. American said it expects unit revenue-the ever-important total revenue per available seat mile (TRASM) metric-to improve 1% to 3%, down from its previous guidance of 1.5% to 3.5% growth.
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Shares of several major airline stocks moved sharply lower in morning trading Wednesday after domestic giant American Airlines AAL lowered its unit revenue and unit cost guidance for the second quarter. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of several major airline stocks moved sharply lower in morning trading Wednesday after domestic giant American Airlines AAL lowered its unit revenue and unit cost guidance for the second quarter. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of several major airline stocks moved sharply lower in morning trading Wednesday after domestic giant American Airlines AAL lowered its unit revenue and unit cost guidance for the second quarter. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. American also said that a technology issue which resulted in one of its regional carriers, PSA Airlines, cancelling about 3,000 flights last month would reduce pre-tax income by about $35 million.
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20649481-7768-4fdd-a413-2ebad7bf52e2
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