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7100.0
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2018-04-11 00:00:00 UTC
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Stock Market News For Apr 11, 2018
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-apr-11-2018-2018-04-11
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nan
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nan
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Markets closed higher on Tuesday after Chinese President Xi promised to take measures to open the country's economy and cut import tariffs. Investors' confidence rebounded as fears of a trade war eased to some extent, which saw stocks rallying almost throughout the trading session. This saw all three major indexes closing higher. Moreover, shares of Facebook too jumped after the company's CEO Mark Zuckerberg testified in front of the Congress following news of a data misuse scandal involving millions of users.
The Dow Jones Industrial Average (DJI) rose 1.8%, to close at 24,408. The S&P 500 increased 1.7% to close at 2,656.87, led my tech stocks. The Nasdaq Composite Index closed at 7094.30, increasing 2.1%. A total of 7.14 billion shares were traded on Tuesday, lower than the last 20-session average of 7.33 billion shares. Advancers outnumbered decliners on the NYSE by a 3.16-to-1 ratio. On Nasdaq, a 3.93-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow closed 428.90 points higher, as trade war tensions eased, after Chinese president Xi said that he would cut import duties. This saw shares of both Boeing BA and Caterpillar CAT increasing 3.8% and 3.5%, respectively. Boeing has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The S&P 500 closed 43.71 points higher, led by the Energy Select Sector SPDR (XLE), whichincreased 3.3%, registering its best day since Nov 30, 2016. Also, the Technology Select Sector SPDR (XLK)jumped 2.5%. Nine of the 11 major S&P 500 sectors, barring Real Estate Select Sector SPDR (XLRE) and Utilities Select Sector SPDR (XLU),ended the day in positive territory. The Nasdaq also finished the day 143.96 points higher.
Xi's Comments Ease Trade War Fears
Investors' confidence were further reinstated on Tuesday after Xi said that he will take adequate steps by opening the country's economy and increasing market access for foreign investors. He also promised to cut import tariffs on autos and other items. Xi's comments deflated trade fears to some extent and gave a boost to investors' confidence.
This immediately saw auto stocks rally. Shares of major automakers, General Motors Company GM , Ford Motor Company F and Fiat Chrysler Automobiles N.V. FCAU rose 3.3%, 1.8% and 2%, respectively.
Zuckerberg Testifies, Facebook's Shares Rise
While Xi's comments to open economy and cut import tariffs eased fears of a trade war, Zuckerberg's who testified in front of Congress on Tuesday, saw the social media giant's shares rally 4.5%, its best day in two years. Zuckerberg's testimony, which will continue over the week, comes after the company got embroiled in a data misuse scandal affecting personal data of 87 million users.
Zuckerberg said that the company failed to notify the FTC in 2015 about the data misuse issue and that it is trying hard to correct issues with its platform. While Zuckerberg took responsibility for the content on Facebook, he also said that it is a misconception that any data is regularly access by advertisers. Further, he staved off an attempt to get his to commit to backing increased regulation. This perhaps increased investors' confidence in the company that saw its shares soaring on Tuesday.
Stocks That Made Headlines
BP to Develop Alligin and Vorlich Fields in the North Sea
BP plcBP announced the development of two new North Sea developments - Alligin and Vorlich - scheduled to be commissioned in 2020. ( Read More )
Here's Why American Airlines Lost Ground Despite Upbeat View
Shares of American Airlines Group Inc. AAL declined to close the trading session on Apr 10 ( Read More )
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Fiat Chrysler Automobiles N.V. (FCAU): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
BP p.l.c. (BP): 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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( Read More ) Here's Why American Airlines Lost Ground Despite Upbeat View Shares of American Airlines Group Inc. AAL declined to close the trading session on Apr 10 ( Read More ) 5 Medical Stocks to Buy Now Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Fiat Chrysler Automobiles N.V. (FCAU): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report BP p.l.c. Markets closed higher on Tuesday after Chinese President Xi promised to take measures to open the country's economy and cut import tariffs.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Fiat Chrysler Automobiles N.V. (FCAU): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report BP p.l.c. ( Read More ) Here's Why American Airlines Lost Ground Despite Upbeat View Shares of American Airlines Group Inc. AAL declined to close the trading session on Apr 10 ( Read More ) 5 Medical Stocks to Buy Now Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. Shares of major automakers, General Motors Company GM , Ford Motor Company F and Fiat Chrysler Automobiles N.V. FCAU rose 3.3%, 1.8% and 2%, respectively.
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( Read More ) Here's Why American Airlines Lost Ground Despite Upbeat View Shares of American Airlines Group Inc. AAL declined to close the trading session on Apr 10 ( Read More ) 5 Medical Stocks to Buy Now Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Fiat Chrysler Automobiles N.V. (FCAU): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report BP p.l.c. Zuckerberg Testifies, Facebook's Shares Rise While Xi's comments to open economy and cut import tariffs eased fears of a trade war, Zuckerberg's who testified in front of Congress on Tuesday, saw the social media giant's shares rally 4.5%, its best day in two years.
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( Read More ) Here's Why American Airlines Lost Ground Despite Upbeat View Shares of American Airlines Group Inc. AAL declined to close the trading session on Apr 10 ( Read More ) 5 Medical Stocks to Buy Now Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Fiat Chrysler Automobiles N.V. (FCAU): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report BP p.l.c. The Dow closed 428.90 points higher, as trade war tensions eased, after Chinese president Xi said that he would cut import duties.
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85415bf9-e622-4cfe-beb2-8e47177e07e6
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7101.0
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2018-04-11 00:00:00 UTC
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Here's Why American Airlines Lost Ground Despite Upbeat View
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AAL
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https://www.nasdaq.com/articles/heres-why-american-airlines-lost-ground-despite-upbeat-view-2018-04-11
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nan
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nan
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Shares of American Airlines Group Inc.AAL declined 4.7% to close the trading session on Apr 10 at $47.46. The stock lost value despite a bullish outlook on first-quarter unit revenues provided by the carrier at an investor update.
The Guidance
This Fort Worth, TX-based company now expects total revenue per available seat mile (TRASM: a key measure of unit revenues) to increase between 3% and 4% year over year in the first quarter of 2018 (previous guidance anticipated the metric to grow in the 2-4% band). Strong demand for air travel coupled with improving yields might have led to the bullish view.
Notably, American Airlines is not the only carrier to unveil a bullish unit revenue view for the first quarter. Of late, fellow-airline operators like United Continental Holdings, Inc. UAL and Delta Air Lines, Inc. DAL had also issued bullish unit revenue projections for the soon-to-be-reported quarter.
Coming back to this Zacks Rank #3 (Hold) company's guidance, pre-tax margin (excluding special items) is now anticipated between 4% and 5%, reflecting an improvement from the previous guidance of 2-4%. Detailed results are expected to be unveiled on Apr 26.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Additionally, the carrier reduced its projection for non-fuel cost per available seat miles (CASM), which is another positive aspect of the guidance. The metric is now expected to increase 3% in the first quarter of 2018 compared with the previous projection that had hinted at a 4% increase. However, the metric is still anticipated to increase approximately 2% in 2018.
The company also maintained its projection pertaining to an increase in the metric between 1% and 2% in each of 2019 and 2020. In the current year, capacity (system) is still expected to improve 2.5% year over year. Adjusted earnings per share are also envisioned between $5.50 and $6.50 for 2018.
Furthermore, American Airlines, which is constantly looking to modernize its fleet, aims to spend approximately $3.7 billion toward capital expenditures in the current year. Out of which, $1.9 billion is expected to be shelled out for aircraft related matters.
In keeping with its objective of fleet modernization, American Airlines recently inked a deal worth $12 billion with The Boeing Company BA (Read more: Boeing, American Airlines Ink $12B Deal for 47 Dreamliners ).
Then Why the Decline
The above-mentioned bullish projections failed to please investors, which is evident from the decline in stock price on Apr 10. The main reason behind the downside was the spike in oil prices . On Apr 10, U.S. crude prices hit a three-year high of more than $65 a barrel. Mounting tensions related to Syria contributed to the upsurge. We note that high oil prices do not bode well for companies in the airline space as fuel costs account for a significant chunk of their expenditures.
In fact, not only yesterday, oil prices have been on an uptrend lately and were up approximately 8% in the January-March period. In fact, the first quarter of 2018 witnessed U.S. oil benchmark reach its highest settlement since December 2014. Given the inversely proportional relation between oil prices and airline stocks, this increase in crude prices is expected to hurt results for carriers in the soon-to-be-reported quarter.
The rise in oil prices can be made out from American Airlines' projection on the metric. The carrier expects fuel prices (including taxes) between $2.08 and $2.13 per gallon in the first quarter of 2018, which is much higher than the comparable year-ago figure of $1.7 per gallon.
Disappointing Price Performance
The American Airlines stock's unsatisfactory price performance was not limited to yesterday only. In fact, the company has not had a healthy run on the bourse lately with its stock price declining 18.8% in the last three months.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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
The Boeing Company (BA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group Inc.AAL declined 4.7% to close the trading session on Apr 10 at $47.46. 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 The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. Detailed results are expected to be unveiled on Apr 26.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc.AAL declined 4.7% to close the trading session on Apr 10 at $47.46. Of late, fellow-airline operators like United Continental Holdings, Inc. UAL and Delta Air Lines, Inc. DAL had also issued bullish unit revenue projections for the soon-to-be-reported quarter.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc.AAL declined 4.7% to close the trading session on Apr 10 at $47.46. The Guidance This Fort Worth, TX-based company now expects total revenue per available seat mile (TRASM: a key measure of unit revenues) to increase between 3% and 4% year over year in the first quarter of 2018 (previous guidance anticipated the metric to grow in the 2-4% band).
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Shares of American Airlines Group Inc.AAL declined 4.7% to close the trading session on Apr 10 at $47.46. 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 The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. The Guidance This Fort Worth, TX-based company now expects total revenue per available seat mile (TRASM: a key measure of unit revenues) to increase between 3% and 4% year over year in the first quarter of 2018 (previous guidance anticipated the metric to grow in the 2-4% band).
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143d8d99-a8c7-49ef-a9f3-609b775c9c25
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7102.0
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2018-04-11 00:00:00 UTC
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United Continental and American Airlines Raise Their Revenue Forecasts
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AAL
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https://www.nasdaq.com/articles/united-continental-and-american-airlines-raise-their-revenue-forecasts-2018-04-11
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nan
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nan
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Last week, Delta Air Lines (NYSE: DAL) bumped up its unit revenue forecast for the first quarter of 2018. It expects to report a 5% year-over-year increase in revenue per available seat mile (RASM) when it releases its first-quarter earnings report this Thursday. That's up from its initial guidance for a 2.5% to 4.5% increase and its March forecast of 4% to 5% RASM growth.
This week, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) published their own first-quarter investor updates. Both carriers also raised their unit revenue forecasts. Nevertheless, investors weren't impressed -- and sent shares of United and American lower, even as the broader market rallied.
American Airlines vs. United Continental Stock Performance, data by YCharts .
United raises its guidance again
Back in January, United Continental projected that its profit margin would contract yet again in the first quarter, leading to a breakeven performance. While the first quarter is seasonally weak for most airlines (including United), this forecast still didn't inspire much confidence in United's turnaround strategy.
However, in March, United Continental increased its guidance for passenger revenue per available seat mile, calling for a 1% to 3% increase (compared to its original forecast of 0% to 2% growth). This opened up the possibility of earning a small profit in the first quarter, with an adjusted pre-tax margin of 0% to 2%.
On Monday, United raised its guidance again. The carrier estimates that passenger unit revenue rose 2.7% last quarter -- near the high end of its updated guidance range -- and that its adjusted pre-tax margin will come in near 2% for the first quarter. That would be down just slightly from 2.4% a year earlier.
American Airlines also tweaks its guidance, but investors wanted more
American Airlines' initial first-quarter guidance wasn't much better than United's. It projected that RASM would rise 2% to 4% year over year, offset by a roughly 4% rise in non-fuel unit costs. As a result, the company forecast that its pre-tax margin would be in the range of 2% to 4%.
Coming into this week, American Airlines hadn't updated its first-quarter guidance. Given that Delta and United had already raised their forecasts in March -- before raising them again this month -- many investors were expecting a big improvement in American's unit revenue outlook.
Instead, American merely narrowed its existing revenue guidance to the upper half of the range it gave in January. RASM rose roughly 3% o 4% in the first quarter. However, the company did increase its pre-tax margin guidance for the quarter to 4% to 5%, driven partially by a shift in the timing of some expenses from the first quarter to the second quarter.
Investors should stay cautious
American Airlines reaffirmed its full-year adjusted EPS forecast of $5.50 to $6.50 in its investor update this week. United reiterated its target of $6.50 to $8.50 at an investor conference last month. Based on the midpoints of those ranges, American Airlines stock trades for just eight times forward earnings, while United shares trade for nine times forward earnings.
This suggests that there could be big upside for investors if American Airlines and United Continental can successfully execute their strategic initiatives. However, investors shouldn't get greedy, here.
Most importantly, both companies still have much lower pre-tax margins than Delta Air Lines, which expects to report a pre-tax margin of 6.5% to 7.5% for the first quarter. There's no sign that either American or United will be able to close this margin gap. Weak profit margins can lead to substantial earnings volatility, justifying low earnings multiples.
Additionally, while the industry's first-quarter revenue results were promising, it's still not clear if higher industry capacity growth will undermine unit revenue this year. For example, United is planning for full-year capacity growth of 4% to 6%: well ahead of its 3.6% Q1 capacity increase. In other words, airlines still haven't felt the brunt of United's aggressive growth plan.
Keeping unit revenue moving higher is very important, given that oil prices have been rising. Investors should wait for further evidence that American Airlines and United Continental can grow (or at least maintain) their earnings power before investing in either company.
10 stocks we like better than United Continental Holdings
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and United Continental Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of April 2, 2018
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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This week, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) published their own first-quarter investor updates. This suggests that there could be big upside for investors if American Airlines and United Continental can successfully execute their strategic initiatives. Investors should wait for further evidence that American Airlines and United Continental can grow (or at least maintain) their earnings power before investing in either company.
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This week, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) published their own first-quarter investor updates. Given that Delta and United had already raised their forecasts in March -- before raising them again this month -- many investors were expecting a big improvement in American's unit revenue outlook. Based on the midpoints of those ranges, American Airlines stock trades for just eight times forward earnings, while United shares trade for nine times forward earnings.
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This week, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) published their own first-quarter investor updates. United raises its guidance again Back in January, United Continental projected that its profit margin would contract yet again in the first quarter, leading to a breakeven performance. American Airlines also tweaks its guidance, but investors wanted more American Airlines' initial first-quarter guidance wasn't much better than United's.
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This week, United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) published their own first-quarter investor updates. American Airlines also tweaks its guidance, but investors wanted more American Airlines' initial first-quarter guidance wasn't much better than United's. Given that Delta and United had already raised their forecasts in March -- before raising them again this month -- many investors were expecting a big improvement in American's unit revenue outlook.
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dcb4f507-a388-4d13-bb7f-96b58c7ef064
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7103.0
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2018-04-11 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-2018-04-11
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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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $45.37 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 47.4. A bullish investor could look at AAL's 28.0 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 $42.01 per share, with $59.08 as the 52 week high point - that compares with a last trade of $45.40.
According to the ETF Finder at ETF Channel, AAL makes up 3.03% of the iShares Transportation Average ETF (Symbol: IYT) which is trading lower by about 0.3% on the day Wednesday.
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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $45.37 per share. A bullish investor could look at AAL's 28.0 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 $42.01 per share, with $59.08 as the 52 week high point - that compares with a last trade of $45.40.
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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 $42.01 per share, with $59.08 as the 52 week high point - that compares with a last trade of $45.40. In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $45.37 per share. A bullish investor could look at AAL's 28.0 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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $45.37 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 $42.01 per share, with $59.08 as the 52 week high point - that compares with a last trade of $45.40. A bullish investor could look at AAL's 28.0 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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $45.37 per share. According to the ETF Finder at ETF Channel, AAL makes up 3.03% of the iShares Transportation Average ETF (Symbol: IYT) which is trading lower by about 0.3% on the day Wednesday. A bullish investor could look at AAL's 28.0 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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b7cfa676-a6c2-4e71-81a7-70fa20907002
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7104.0
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2018-04-10 00:00:00 UTC
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Market Close Report: NASDAQ Composite Index closes above 7000; up 143.96 points at 7,094.30
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-above-7000-14396-points-709430-2018-04
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nan
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nan
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Tuesday's session closes with the NASDAQ Composite Index up above 7000 points. The index first reached the 7000 mark on Jan 2, 2018. The total shares traded for the NASDAQ was over 2.31 billion.
Advancers stocks led declining by 3.85 to 1 ratio. There were 2384 advancers and 619 decliners for the day. On the NASDAQ Stock Exchange 36 stocks reached a 52 week high and 17 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 2.22% for the day; a total of 143.53 points. The current value is 6,615.87. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.74%) while NVIDIA Corporation ( NVDA ) had the largest percent change gain rising 5.8%.
The Dow Jones index closed up 1.79% for the day; a total of 428.9 points. The current value is 24,408. Nike, Inc. ( NKE ) had the largest percent change down (-.27%) while Boeing Company (The) ( BA ) had the largest percent change gain rising 3.83%.
NASDAQ Market Wrap
As of 4/10/2018 4:44:02 PM
NASDAQ COMPOSITE INDEX 7000 milestone closes above 36 STOCKS REACHED A 52 WEEK HIGH 17 THOSE REACHING LOWS TOTALEDNVIDIA Corporation [NVDA]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.8 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 (-4.74%) while NVIDIA Corporation ( NVDA ) had the largest percent change gain rising 5.8%. Tuesday's session closes with the NASDAQ Composite Index up above 7000 points. The Dow Jones index closed up 1.79% for the day; a total of 428.9 points.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.74%) while NVIDIA Corporation ( NVDA ) had the largest percent change gain rising 5.8%. On the NASDAQ Stock Exchange 36 stocks reached a 52 week high and 17 those reaching lows totaled. NASDAQ Market Wrap As of 4/10/2018 4:44:02 PM NASDAQ COMPOSITE INDEX 7000 milestone closes above 36 STOCKS REACHED A 52 WEEK HIGH 17 THOSE REACHING LOWS TOTALEDNVIDIA Corporation [NVDA]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.8 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 (-4.74%) while NVIDIA Corporation ( NVDA ) had the largest percent change gain rising 5.8%. On the NASDAQ Stock Exchange 36 stocks reached a 52 week high and 17 those reaching lows totaled. The NASDAQ 100 index closed up 2.22% for the day; a total of 143.53 points.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-4.74%) while NVIDIA Corporation ( NVDA ) had the largest percent change gain rising 5.8%. There were 2384 advancers and 619 decliners for the day. The NASDAQ 100 index closed up 2.22% for the day; a total of 143.53 points.
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67a8b001-96d8-4f3a-8935-d24675d862d3
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7105.0
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2018-04-10 00:00:00 UTC
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Nasdaq 100 Movers: AAL, STX
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-stx-2018-04-10
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nan
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nan
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In early trading on Tuesday, shares of Seagate Technology topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.5%. Year to date, Seagate Technology registers a 43.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.4%. American Airlines Group is lower by about 6.5% looking at the year to date performance.
Two other components making moves today are Charter Communications, trading down 0.5%, and NVIDIA, trading up 4.0% on the day.
VIDEO: Nasdaq 100 Movers: AAL, STX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: AAL, STX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.4%. American Airlines Group is lower by about 6.5% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: AAL, STX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.4%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: AAL, STX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Seagate Technology topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.5%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.4%.
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VIDEO: Nasdaq 100 Movers: AAL, STX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Seagate Technology topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.5%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.4%.
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778380d6-d6d7-40a5-a9fc-13d0166ff96a
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7106.0
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2018-04-10 00:00:00 UTC
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Noteworthy Tuesday Option Activity: AAL, STX, ZION
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-aal-stx-zion-2018-04-10
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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 47,319 contracts has been traded thus far today, a contract volume which is representative of approximately 4.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 123.6% of AAL's average daily trading volume over the past month, of 3.8 million shares. Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 14,311 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange:
Seagate Technology plc (Symbol: STX) saw options trading volume of 27,290 contracts, representing approximately 2.7 million underlying shares or approximately 64.4% of STX's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $65 strike call option expiring May 18, 2018 , with 4,046 contracts trading so far today, representing approximately 404,600 underlying shares of STX. Below is a chart showing STX's trailing twelve month trading history, with the $65 strike highlighted in orange:
And Zions Bancorporation (Symbol: ZION) options are showing a volume of 15,145 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 62% of ZION's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $70 strike call option expiring May 18, 2018 , with 10,417 contracts trading so far today, representing approximately 1.0 million underlying shares of ZION. Below is a chart showing ZION's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for AAL options , STX options , or ZION 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 $50 strike call option expiring May 18, 2018 , with 14,311 contracts trading so far today, representing approximately 1.4 million 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 47,319 contracts has been traded thus far today, a contract volume which is representative of approximately 4.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 123.6% of AAL's average daily trading volume over the past month, of 3.8 million shares.
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Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 14,311 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: Seagate Technology plc (Symbol: STX) saw options trading volume of 27,290 contracts, representing approximately 2.7 million underlying shares or approximately 64.4% of STX's average daily trading volume over the past month, of 4.2 million shares. 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 47,319 contracts has been traded thus far today, a contract volume which is representative of approximately 4.7 million underlying shares (given that every 1 contract represents 100 underlying 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 47,319 contracts has been traded thus far today, a contract volume which is representative of approximately 4.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: Seagate Technology plc (Symbol: STX) saw options trading volume of 27,290 contracts, representing approximately 2.7 million underlying shares or approximately 64.4% of STX's average daily trading volume over the past month, of 4.2 million shares. That number works out to 123.6% of AAL's average daily trading volume over the past month, of 3.8 million shares.
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Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 14,311 contracts trading so far today, representing approximately 1.4 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: Seagate Technology plc (Symbol: STX) saw options trading volume of 27,290 contracts, representing approximately 2.7 million underlying shares or approximately 64.4% of STX's average daily trading volume over the past month, of 4.2 million shares. 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 47,319 contracts has been traded thus far today, a contract volume which is representative of approximately 4.7 million underlying shares (given that every 1 contract represents 100 underlying shares).
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f7881f6a-5736-4751-aa66-e441269796b8
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7107.0
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2018-04-10 00:00:00 UTC
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Why Tupperware Brands, SBA Communications, and American Airlines Group Slumped Today
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AAL
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https://www.nasdaq.com/articles/why-tupperware-brands-sba-communications-and-american-airlines-group-slumped-today-2018-04
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Tuesday was another good day on Wall Street, thanks largely to diminished concerns about trade disputes between the U.S. and China. Chinese leaders made conciliatory comments that suggested that there could be a measured resolution to tensions between the two countries, and market participants took that as an all-clear sign to bid shares higher. Yet some stocks suffered from negative news. Tupperware Brands (NYSE: TUP) , SBA Communications (NASDAQ: SBAC) , and American Airlines Group (NASDAQ: AAL) were among the worst performers on the day. Here's why they did so poorly.
Tupperware cuts its guidance
Shares of Tupperware Brands dropped 11.5% after the company announced an update to its guidance for the first quarter. The maker of food storage containers and other kitchen items said that it believes its revenue dropped 2% from the year-ago quarter, which is well below the 1% gain that Tupperware had seen as the low end of the range it had previously expected. The company also cut earnings guidance by $0.14 per share to a new range of $0.87 to $0.92 per share. A larger-than-expected impact from tax reform played a small role, but Tupperware also faced challenges across the globe, with a variety of execution issues hurting sales. CEO Rick Goings said that he has "confidence in how our business will perform going forward," but shareholders seem less comfortable with that optimistic assessment.
SBA fears telecom tie-ups
SBA Communications stock fell 5% as investors assessed the potential impact of consolidation in the telecom industry on the company's wireless tower assets. News that the No. 3 and No. 4 wireless carriers in the U.S. market could join forces through a merger hit shares of SBA and its peers hard, because fewer wireless companies would mean less competition for space on cellular towers that in turn could reduce the amount of leasing income that SBA and other tower owners are able to collect. After having expected better times due to rising capital expenditures , SBA shareholders are now concerned once again that the company could suffer if the wireless carriers finally get their act together this time and get a deal done.
American Airlines flies a bit lower
Finally, shares of American Airlines Group declined 5%. Conflicting forces rocked the airline, as the stock initially responded positively to a new corporate outlook but then turned downward as oil prices spiked. Crude climbed more than $2 per barrel to go above the $65 mark, raising fears that tailwinds from relatively low fuel costs could go away in the near future. Yet the airline's investor update included a boost to revenue per available seat mile growth to a new range of 3% to 4% for the quarter, even as it invested in its long-term growth with a big new aircraft order . Investors will have to see how things shake out when American reports final results later this month.
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Dan Caplinger 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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Tupperware Brands (NYSE: TUP) , SBA Communications (NASDAQ: SBAC) , and American Airlines Group (NASDAQ: AAL) were among the worst performers on the day. Chinese leaders made conciliatory comments that suggested that there could be a measured resolution to tensions between the two countries, and market participants took that as an all-clear sign to bid shares higher. The maker of food storage containers and other kitchen items said that it believes its revenue dropped 2% from the year-ago quarter, which is well below the 1% gain that Tupperware had seen as the low end of the range it had previously expected.
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Tupperware Brands (NYSE: TUP) , SBA Communications (NASDAQ: SBAC) , and American Airlines Group (NASDAQ: AAL) were among the worst performers on the day. Tupperware cuts its guidance Shares of Tupperware Brands dropped 11.5% after the company announced an update to its guidance for the first quarter. SBA fears telecom tie-ups SBA Communications stock fell 5% as investors assessed the potential impact of consolidation in the telecom industry on the company's wireless tower assets.
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Tupperware Brands (NYSE: TUP) , SBA Communications (NASDAQ: SBAC) , and American Airlines Group (NASDAQ: AAL) were among the worst performers on the day. SBA fears telecom tie-ups SBA Communications stock fell 5% as investors assessed the potential impact of consolidation in the telecom industry on the company's wireless tower assets. 4 wireless carriers in the U.S. market could join forces through a merger hit shares of SBA and its peers hard, because fewer wireless companies would mean less competition for space on cellular towers that in turn could reduce the amount of leasing income that SBA and other tower owners are able to collect.
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Tupperware Brands (NYSE: TUP) , SBA Communications (NASDAQ: SBAC) , and American Airlines Group (NASDAQ: AAL) were among the worst performers on the day. Tupperware cuts its guidance Shares of Tupperware Brands dropped 11.5% after the company announced an update to its guidance for the first quarter. The Motley Fool has no position in any of the stocks mentioned.
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1dbdf06e-0cc9-429f-a3e4-dcd58c7656f1
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7108.0
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2018-04-09 00:00:00 UTC
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Can Delta (DAL) Stock Spring a Surprise in Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/can-delta-dal-stock-spring-a-surprise-in-q1-earnings-2018-04-09
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Delta Air Lines, Inc . DAL is scheduled to report first-quarter 2018 results on Apr 12, before the market opens.
Last quarter, the carrier delivered a positive earnings surprise of 9.1%. Moreover, it has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 3.8%.
Let's see how things are shaping up for this earnings season.
Factors Likely at Play
Delta is expected to perform well on the unit revenue front. Evidently, the carrier now expects total revenue per available seat mile (TRASM) to increase approximately 5%, i.e, in the high end of its previously guided range of a rise between 4% and 5%. This upside has been driven by strong demand and higher yields.
The Zacks Consensus Estimate for first-quarter passenger revenue per available seat mile (PRASM) is pegged at 13.76 cents, better than 13.28 cents reported a year ago.
The new tax law, which reduced corporate tax rate significantly, is also anticipated to boost earnings in the first quarter. Notably, the company estimates its bottom line per share between 65 cents and 75 cents. Additionally, the carrier's tax rate is projected at around 23% for the first quarter while pre-tax margin is likely to increase between 6.5% and 7.5%.
However, high costs might hurt Delta's bottom line in the quarter to be reported. The carrier predicts cost per available seat mile (CASM) excluding fuel and profit sharing to augment around 4%. The figure is higher than the past forecast of an increase between 3% and 4%. This bleak outlook is due to wage hikes in April 2017 and a rise in depreciation on aircraft retirements. Weather-related expenses also weigh on costs to the tune of 0.5 points. Also, the airline assumes average fuel price per gallon of $2-$2.05.
The Zacks Consensus Estimate for first-quarter CASM excluding fuel and profit sharing stands at 11.35 cents, more than 10.92 cents reported a year ago. While the consensus mark for average fuel price per gallon net of hedging gains-mainline is pegged at $2.06, above $1.71 reported in the first quarter of 2017.
Weather-related destructions have also wreaked havoc since the beginning of the first quarter, thus forcing the carrier to cancel multiple flights. This might also hamper the company's top line in turn.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Delta is likely to beat estimates this quarter. 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. However, that is not the case here as highlighted below.
Zacks ESP : Delta has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 73 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Delta carries a Zacks Rank #3, which increases the predictive power of ESP. However, Delta's 0.00% ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the stock is witnessing negative estimate revisions.
Stocks to Consider
Investors interested in the airline space may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +17.00% and a Zacks Rank of 3. The company is expected to report first-quarter results on Apr 26. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel has an Earnings ESP of +1.18% and is a Zacks #3 Ranked player. The company is scheduled to report first-quarter earnings on Apr 25.
JetBlue is also a #3 Ranked player and has an Earnings ESP of +1.73%. The company is expected to release first-quarter results on Apr 24.
Zacks Editor-in-Chief Goes "All In" on This Stock
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Download it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Investors interested in the airline space may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Evidently, the carrier now expects total revenue per available seat mile (TRASM) to increase approximately 5%, i.e, in the high end of its previously guided range of a rise between 4% and 5%.
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Stocks to Consider Investors interested in the airline space may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Earnings Whispers Our proven model does not conclusively show that Delta is likely to beat estimates this 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 Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Investors interested in the airline space may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Earnings Whispers Our proven model does not conclusively show that Delta is likely to beat estimates this 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 Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Investors interested in the airline space may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Last quarter, the carrier delivered a positive earnings surprise of 9.1%.
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7109.0
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2018-04-09 00:00:00 UTC
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5 Airline Stocks Poised to Beat Earnings Estimates in Q1
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AAL
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https://www.nasdaq.com/articles/5-airline-stocks-poised-to-beat-earnings-estimates-in-q1-2018-04-09
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The current projection for Q1 earnings season is very encouraging. Per the latest earnings preview , the bottom line for S&P 500 companies is expected to expand at a highly impressive rate of 16% on a year-over-year basis. Total revenues for the same set of companies are projected to grow 7.4%. The report further predicts that 14 of the 16 Zacks sectors will end the Q1 earnings season with the bottom line improving year over year. Out of which, 11 are projected to exhibit double-digit earnings growth.
One of those sectors is the transportation sector , wherein earnings are anticipated to increase 14.3%. Notably, this highly diversified sector includes airlines among others. We believe that the favorable economic indicators along with promising fiscal and regulatory policies from the current administration bode well for the sector.
The Q1 earnings season will be kicked off by Delta Air Lines, Inc. (DAL) on Apr 12. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Multiple Headwinds Hurt Airlines in Q1
Airline stocks had a rough time in the January-March period mainly due to weather-related disruptions. Notably, key players in this space had to cancel multiple flights in the first quarter due to quite a few storms in the first quarter. Apart from Winter Storm Grayson in January, successive nor'easters in March disrupted airline operations significantly due to multiple flight cancellations.
In fact, in March, there were reportedly more than 10,000 flight cancellations due to successive nor'easters. It is believed to be the worst month in five years in this regard. The increase in the number of flight cancellations in the first quarter resulted in significant revenue losses for airline operators and this is likely to hurt top-line growth in the upcoming earnings season.
Additionally, oil prices were up approximately 8% in the January-March period. On Mar 21, crude had jumped above the psychologically important $65 per barrel level, representing a spectacular recovery from the $26 a barrel mark touched in late February 2016. In fact, the first quarter of 2018 saw U.S. oil benchmark attain its highest settlement since December 2014.
We note that high oil prices do not bode well for companies in the airline space as fuel costs account for a significant chunk of their expenditures. Given this backdrop, we expect high fuel costs to limit bottom-line growth of carriers in Q1.
Zacks Industry Rank
The above struggles for the airline space is well reflected by the bearish Zacks Industry Rank of 169 carried by the 27-member Zacks Airline industry . Notably, the unfavorable rank places the industry in the bottom 34% of the 250+ groups. We put our entire 250-plus industries into two groups: the top half (i.e., industries with the best average Zacks Rank) and the bottom half (the industries with the worst average Zacks Rank).
Over the last 10 years, using a one week rebalance, the top half outpaced the bottom half by a factor of more than 2 to 1.
The Zacks Industry Rank for this sector has also improved immensely, given the industry's 200+ rank only a few months ago.
Click here to know more: About Zacks Industry Rank
Some Prevalent Tailwinds
Despite the above-mentioned challenges, there are a few bright spots in the sector. Evidently, the unit revenue scenario is steadily improving for airline stocks. This can be made out from the bullish Q1 unit revenue forecasts from leading carriers like Delta and United Continental.
The improved unit revenue projections highlight the strong demand for air travel on the back of a buoyant U.S. economy. Furthermore, the bullish forecast for spring travel by the Airlines for America ('A4A') - a premier trade organization - highlights the improvement on the revenue front. In fact, strong demand for air travel backed by an improving economy, a much-improved job market and rising disposable income is likely to aid results in the to-be-reported quarter.
Moreover, the conservative nature of the Zacks Consensus Estimate on multiple downward revisions due to the above headwinds may not make earnings outperformance too difficult for carriers in the soon-to-be reported quarter. For example, the Zacks Consensus for the first quarter of 2018 at United Continental is 27 cents per share, comparatively less than the year-ago figure of 37 cents. Moreover, in the preceding quarter, the consensus mark for earnings in was pegged at $1.34 at United Continental. Naturally, the lowered bar should make it easier for companies to surpass the Zacks Consensus Estimate in Q1.
In view of the above commentary, it would not be a bad idea to add airline stocks, despite the above-mentioned hiccups, to one's portfolio for handsome returns.
Selection of Outperformers
With the airline space being densely populated, the task of selecting the right stocks is by no means an easy one. Given the numerous stocks in the sector that almost always muddle one's stock-picking prowess, the Zacks methodology might provide some relief.
Our research shows that for stocks with the combination of a Zacks Rank #1, 2 (Buy) or 3 and a positive Earnings ESP , the chance of a positive earnings surprise is as high as 70%. You may uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
5 Airline Picks
Based on the above methodology, we have zeroed in on five airline stocks that are likely to surpass the Zacks Consensus Estimate for earnings in Q1. In fact, an earnings beat boosts investors' confidence in the stock, which is reflected in its rapid price appreciation. These stocks should therefore turn out to be great additions to your portfolio ahead of their earnings releases.
American Airlines Group Inc. ( AAL ) headquartered in Fort Worth, TX, operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. The company has a Zacks Rank #3 and an Earnings ESP of +17.00%. This is because the Most Accurate estimate is pegged at 10 cents above the Zacks Consensus Estimate of 58 cents. The favorable combination makes an earnings beat likely in the quarter.
The stock has seen the Zacks Consensus Estimate for first-quarter earnings being revised 9.4% upward over the last 30 days. American Airlines is expected to report first-quarter 2018 results on Apr 26.
United Continental Holdings ( UAL ), based in Chicago, is also expected to report better-than-expected earnings by virtue of its Zacks Rank #2 and an Earnings ESP of +6.51%. This is because the Most Accurate estimate is pegged at 2 cents above the Zacks Consensus Estimate of 27 cents.
This holding company for both United Airlines and Continental Airlines is scheduled to reveal its results on Apr 17. The stock has seen the Zacks Consensus Estimate for first-quarter earnings being revised upward in excess of 100% over the last 30 days.
Spirit Airlines, Inc. ( SAVE ), based in Miramar, FL, is also expected to report better-than-expected earnings by virtue of its Zacks Rank #3 and an Earnings ESP of +1.49%. This is because the Most Accurate estimate is pegged at a cent above the Zacks Consensus Estimate of 37 cents.
This low-cost carrier is scheduled to reveal its results on Apr 26. The stock has seen the Zacks Consensus Estimate for first-quarter earnings being revised 8.8% upward over the last 30 days.
Our next choice is Alaska Air Group, Inc. ( ALK ), the holding company of primarily Alaska Airlines, Virgin America and Horizon Air Industries. The company, which is based in SeaTac, WA, has a Zacks Rank #3 and an Earnings ESP of +5.81%. This low-cost carrier is scheduled to reveal its results on Apr 23.
Finally, Hawaiian Holdings, Inc. ( HA ) - the parent company of Hawaiian Airlines - has a Zacks Rank #3 and an Earnings ESP of +2.85%. This is because the Most Accurate estimate is pegged at 2 cents above the Zacks Consensus Estimate of 82 cents. The favorable combination makes an earnings beat likely in the quarter for this Honolulu County, HI carrier.
Hawaiian Holdings is scheduled to reveal its results on Apr 24. The stock has seen the Zacks Consensus Estimate for first-quarter earnings being revised 24.2% upward over the last 30 days.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): 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.
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 ) headquartered in Fort Worth, TX, 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 United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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 increase in the number of flight cancellations in the first quarter resulted in significant revenue losses for airline operators and this is likely to hurt top-line growth in the upcoming earnings season.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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. American Airlines Group Inc. ( AAL ) headquartered in Fort Worth, TX, operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. Apart from Winter Storm Grayson in January, successive nor'easters in March disrupted airline operations significantly due to multiple flight cancellations.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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. American Airlines Group Inc. ( AAL ) headquartered in Fort Worth, TX, operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. Zacks Industry Rank The above struggles for the airline space is well reflected by the bearish Zacks Industry Rank of 169 carried by the 27-member Zacks Airline industry .
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American Airlines Group Inc. ( AAL ) headquartered in Fort Worth, TX, 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 United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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 improved unit revenue projections highlight the strong demand for air travel on the back of a buoyant U.S. economy.
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adb968b0-d1d3-4580-97cf-4c8aaa4d8134
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7110.0
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2018-04-05 00:00:00 UTC
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Alaska Airlines Adds Flights at JFK Airport (but Drops Others)
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AAL
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https://www.nasdaq.com/articles/alaska-airlines-adds-flights-jfk-airport-drops-others-2018-04-05
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nan
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nan
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On Wednesday -- two years to the day after announcing that it would acquire Virgin America -- Alaska Air (NYSE: ALK) rolled out some more changes to the route network it inherited from Virgin.
As part of the Virgin America deal, Alaska Air acquired 23 slots at New York's JFK Airport. (Each slot allows one takeoff or one landing at a specified time between 6 a.m. and 10:59 p.m.) Virgin America used nearly all of these slots to operate flights to its main bases of San Francisco and Los Angeles. By contrast, Alaska Airlines plans to redeploy some of these slots to enable more flights to other West Coast cities where it has a strong presence -- and where it faces less competition.
A long struggle to grow in New York
Three years ago, Alaska Airlines didn't fly to JFK Airport at all. Its footprint in New York City was limited to two daily roundtrips between Seattle and Newark Airport. Slot constraints at all three major New York-area airports prevented it from expanding further in this incredibly important market.
However, Alaska Airlines managed to acquire one slot pair at JFK in 2015, allowing it to begin operating one daily roundtrip from Seattle in the fall of that year. In 2016, it took advantage of the end of slot restrictions at Newark Airport to add a third daily flight to Seattle, as well as new daily routes to Portland, San Diego, and San Jose.
However, the 2016 acquisition of Virgin America transformed Alaska Air's position in the New York City market. Virgin America owned slots at all three New York airports, which it used to fly about two dozen daily roundtrips to New York City. As a result, Alaska Air became a major player in the New York-Los Angeles and New York-San Francisco transcontinental markets overnight, competing with American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , JetBlue Airways (NASDAQ: JBLU) , and United Continental .
Shifting slots around
On Wednesday, Alaska Airlines announced that it will begin two new flights from JFK Airport on July 6. First, it will introduce a route between JFK and San Jose, where it has been building up a focus city.
Second, the carrier will begin a third daily roundtrip between Seattle and JFK Airport. (It already had plans to add a second daily roundtrip on that route in mid-June.) This includes a morning departure from Seattle that arrives in New York in time to connect to international flights departing in the late afternoon and early evening.
To accommodate these new flights, Alaska will drop one of its five daily San Francisco-New York roundtrips and one of its six daily Los Angeles-New York roundtrips. (This continues a recent trend of retrenching in San Francisco and Los Angeles by trimming some flights.)
A sensible move -- but one that is telling
Given that Alaska Air has been facing unit revenue pressure in the California transcontinental market, redeploying scarce JFK slots to markets with less competition makes sense.
Alaska faces nonstop competition in the JFK-San Francisco and JFK-Los Angeles markets from American Airlines, Delta Air Lines, and JetBlue Airways. Those carriers all offer flat-bed business class seats on both routes, unlike Alaska, giving them a revenue advantage .
Furthermore, American, Delta, and JetBlue together operate about 18 daily roundtrips on the San Francisco route and more than 30 daily roundtrips on the Los Angeles route. This has created a brutal competitive environment. Alaska Air's management believes that cutting one flight on each route won't hurt the carrier's position with customers very much, while it will help to balance supply with demand.
By contrast, the JFK-Seattle and JFK-San Jose markets are far more attractive. Today, there is only one daily roundtrip between JFK and San Jose, which is operated by JetBlue. Delta will join that market in June, also with one daily roundtrip. However, Alaska Airlines will offer the only daytime flight on the eastbound leg, which could give it an advantage over Delta and JetBlue, particularly since none of the carriers will offer flat-bed seats on this route.
Competition is also fairly modest in the JFK-Seattle market. American, Delta, and JetBlue all fly that route, but together they will operate just 10 daily roundtrips this summer, far less than on the busy routes to San Francisco and Los Angeles. Adding flights on this route is also critical because Alaska Airlines is trying to defend its market-leading position in Seattle against a growing threat from Delta.
Nevertheless, Alaska Airlines has tacitly admitted with this reshuffling that it is struggling to keep up in the two largest transcontinental markets. That's good news for its rivals -- especially JetBlue, which gets a meaningful proportion of its revenue from transcontinental flights.
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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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As a result, Alaska Air became a major player in the New York-Los Angeles and New York-San Francisco transcontinental markets overnight, competing with American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , JetBlue Airways (NASDAQ: JBLU) , and United Continental . By contrast, Alaska Airlines plans to redeploy some of these slots to enable more flights to other West Coast cities where it has a strong presence -- and where it faces less competition. Alaska faces nonstop competition in the JFK-San Francisco and JFK-Los Angeles markets from American Airlines, Delta Air Lines, and JetBlue Airways.
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As a result, Alaska Air became a major player in the New York-Los Angeles and New York-San Francisco transcontinental markets overnight, competing with American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , JetBlue Airways (NASDAQ: JBLU) , and United Continental . Alaska faces nonstop competition in the JFK-San Francisco and JFK-Los Angeles markets from American Airlines, Delta Air Lines, and JetBlue Airways. Furthermore, American, Delta, and JetBlue together operate about 18 daily roundtrips on the San Francisco route and more than 30 daily roundtrips on the Los Angeles route.
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As a result, Alaska Air became a major player in the New York-Los Angeles and New York-San Francisco transcontinental markets overnight, competing with American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , JetBlue Airways (NASDAQ: JBLU) , and United Continental . To accommodate these new flights, Alaska will drop one of its five daily San Francisco-New York roundtrips and one of its six daily Los Angeles-New York roundtrips. Furthermore, American, Delta, and JetBlue together operate about 18 daily roundtrips on the San Francisco route and more than 30 daily roundtrips on the Los Angeles route.
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As a result, Alaska Air became a major player in the New York-Los Angeles and New York-San Francisco transcontinental markets overnight, competing with American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , JetBlue Airways (NASDAQ: JBLU) , and United Continental . Alaska faces nonstop competition in the JFK-San Francisco and JFK-Los Angeles markets from American Airlines, Delta Air Lines, and JetBlue Airways. Furthermore, American, Delta, and JetBlue together operate about 18 daily roundtrips on the San Francisco route and more than 30 daily roundtrips on the Los Angeles route.
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5a3f9f45-5727-4eeb-9187-e140966c8224
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7111.0
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2018-04-03 00:00:00 UTC
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Zacks.com highlights: Caleres, Bed Bath & Beyond, Ford Motor, American Airlines Group and Chicago Bridge & Iron
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AAL
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https://www.nasdaq.com/articles/zacks.com-highlights%3A-caleres-bed-bath-beyond-ford-motor-american-airlines-group-and
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nan
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nan
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For Immediate Release
Chicago, IL - April 3, 2018 - Stocks in this week's article include: Caleres, Inc. CAL , Bed Bath & Beyond Inc. BBBY , Ford Motor Company F , American Airlines Group Inc. AAL and Chicago Bridge & Iron Company N.V. CBI .
Screen of the Week of Zacks Investment Research:
5 Broker-Friendly Stocks to Fight Ongoing Market Uncertainty
The possibility of a trade war brewing between the United States and China - the world's two biggest economies - threw 11 S&P 500 sectors into correction territory (decline of at least 10% from the latest peak) late last month. The trigger was the executive memorandum signed by President Trump to impose tariffs on up to $60 billion in Chinese imports targeting the technology, telecommunications and apparel sectors. In response, China proposed a list of 128 U.S. products worth $3 billion as potential retaliation targets.
Expert Advice - A Must in This Scenario
Given the widespread uncertainty, the task of building a portfolio of stocks for handsome returns is a herculean task. Furthermore, with a huge number of stocks available in the market at any point of time, spotting potential outperformers is very tough for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for a needle in a haystack.
Additionally, with time at a premium these days, it is next to impossible for investors to go through the extensive process. Given this backdrop, it is in the best interest of investors to seek guidance from "experts in the field." The concerned experts are brokers.
Broker Advice - The Savior
The "experts" in the field of investing are brokers who are equipped with thorough knowledge about the space. Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Direction of Earnings Estimates: A Winning Pointer
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
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 in 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 effective.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/297682/5-brokerfriendly-stocks-to-fight-ongoing-market-uncertainty
Get the remaining stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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: https://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 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
Ford Motor Company (F): Free Stock Analysis Report
Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report
Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
Caleres, Inc. (CAL): 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 - April 3, 2018 - Stocks in this week's article include: Caleres, Inc. CAL , Bed Bath & Beyond Inc. BBBY , Ford Motor Company F , American Airlines Group Inc. AAL and Chicago Bridge & Iron Company N.V. CBI . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): Free Stock Analysis Report To read this article on Zacks.com click here. Screen of the Week of Zacks Investment Research: 5 Broker-Friendly Stocks to Fight Ongoing Market Uncertainty The possibility of a trade war brewing between the United States and China - the world's two biggest economies - threw 11 S&P 500 sectors into correction territory (decline of at least 10% from the latest peak) late last month.
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For Immediate Release Chicago, IL - April 3, 2018 - Stocks in this week's article include: Caleres, Inc. CAL , Bed Bath & Beyond Inc. BBBY , Ford Motor Company F , American Airlines Group Inc. AAL and Chicago Bridge & Iron Company N.V. CBI . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): Free Stock Analysis Report To read this article on Zacks.com click here. 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 Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - April 3, 2018 - Stocks in this week's article include: Caleres, Inc. CAL , Bed Bath & Beyond Inc. BBBY , Ford Motor Company F , American Airlines Group Inc. AAL and Chicago Bridge & Iron Company N.V. CBI . Screen of the Week of Zacks Investment Research: 5 Broker-Friendly Stocks to Fight Ongoing Market Uncertainty The possibility of a trade war brewing between the United States and China - the world's two biggest economies - threw 11 S&P 500 sectors into correction territory (decline of at least 10% from the latest peak) late last month.
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For Immediate Release Chicago, IL - April 3, 2018 - Stocks in this week's article include: Caleres, Inc. CAL , Bed Bath & Beyond Inc. BBBY , Ford Motor Company F , American Airlines Group Inc. AAL and Chicago Bridge & Iron Company N.V. CBI . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): Free Stock Analysis Report To read this article on Zacks.com click here. Furthermore, with a huge number of stocks available in the market at any point of time, spotting potential outperformers is very tough for individual investors.
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fb0e2599-3c32-4b9c-a3e6-24fb49d01969
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7112.0
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2018-04-03 00:00:00 UTC
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New Month, New Quarter, Same Old Selloff
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AAL
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https://www.nasdaq.com/articles/new-month-new-quarter-same-old-selloff-2018-04-03
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nan
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nan
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SPECIAL NOTE: We've just released our 5 Stocks Set to Double special report which includes five stocks our team believes have the potential to grow +100% in the next 12 months. This latest report features favorite stocks from Sheraz Mian, Tracey Ryniec, Brian Hamilton, Brian Bolan and Kevin Cook. Log on to Zacks.com to see these stocks today.
Any hope that Friday's rally signaled a turning point for the market were crushed early on Monday. Instead, the major indices started the day solidly in the red and never even flirted with the idea of rebounding. Stocks did come off their lows of the session, but a combination of Chinese tariffs and another bad day for tech kept the market down.
The NASDAQ got the worst of it, dropping 2.74% to 6870.1 and moving into the red for the year. Amazon dipped by more than 5% as President Trump continues his twitter storm again the retailing giant, while Facebook slipped another 2.75%. The S&P fell 2.23% to 2581.9 and ended below its 200-day moving average. The Dow was off 1.9% to 23,644.2.
In the portfolios, TAZR Trader sees a "W" bottom test after today's pullback, so it added more of a bullish ETF to prepare for a bounceback in technology. Stocks Under $10 picked up a play on the rising price of crude oil . And Black Box Trader swapped out six names in its weekly adjustment. Learn more about all these moves in the highlights section below, along with this week's Zacks Confidential and more.
Today's Portfolio Highlights:
Stocks Under $10: As the price of crude moves higher, Brian Bolan thinks a stock like Flotek (FTK) will jump on the bandwagon. The company sold off its drilling and production technology units last year, but it still develops and delivers prescriptive chemistry-based technology to the energy sector (as well as other spaces). Rising earnings estimates have helped FTK become a Zacks Rank #2 (Buy), and the editor is also impressed with its valuation. Learn more about this new addition in the complete commentary.
TAZR Trader: Today's sharp market pullback in the wake of Friday's rally has Kevin seeing a "W" bottom test in the S&P. Since he continues to appreciate the relative strength for technology and semiconductors, this provided the perfect opportunity to increase the portfolio's "starter" position in NASDAQ 100 3X Bull ETF (TQQQ). Therefore, he added 5.5% to the fund, bringing the total allocation up to more than 10%. Read the full write up for more.
Black Box Trader: More than half of the portfolio was swapped out this week. The six names that were sold today include:
• Dynegy Inc. (DYN, +4.2%)
• Centene Corp (CNC, +1.1%)
• American Airlines (AAL)
• Conduent Inc. (CNDT)
• Fiat Chrysler (FCAU)
• Kapstone Paper (KS)
The new buys that replaced these stocks are:
• Archer Daniels (ADM)
• Dollar General (DG)
• Flowers Foods (FLO)
• HD Supply Holdings (HDS)
• Hewlett Packard Enterprise (HPE)
• Interpublic Group (IPG)
Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing.
Zacks Confidential: The more connected we become, the more we invite risk into our lives. Not too long ago, security breaches were headline news. These days, we regularly hear about companies getting hacked. Such intrusions mean there's a lot of potential in cyber security. Brian Bolan is a big believer in the space, which is why Kevin asked him to handle this week's Zacks Confidential. Learn all about the importance of this industry and get a few recommendations by clicking: Innovations in Cyber Security.
Momentum Trader:"I had hoped that the long weekend would give the market enough time to heal some of the wounds of last week and take a new direction. Rather than breathing a sigh of relief, we're staring into the abyss. That abyss is the south side of the 200-day moving average.
"On one hand, this presents a great buying opportunity. On the other hand, let's not completely ignore the technical risks of the market. A break of the 200-day is a bad thing. A retrace to the 200-day where we can load up before going higher, is a good thing. Below the 200-day, staring up, is a bad thing.
"Keep your eyes on these levels tomorrow. A fierce down day on volume means the downside will extend. My prediction is the market bottoms out after the European close during the mid-morning then gives us a 'Turnaround Tuesday'." -- Dave Bartosiak, who also heads Surprise Trader and Blockchain Innovators .
Options Trader:"As for the market, it's important to note that we are still trading above the correction lows seen in February. For the S&P, that's 2,532.69 (the correction low of Feb. 9th, 2018).
"Where would the S&P have to go to hit that -20% bear market threshold? All the way down to 2,298.29. But I contend we are not going to see anything like that. The economy is too strong, inflation is not a problem, interest rates remain very accommodative, corporate profits continue to surge, and the entire world economy is expanding.
"Soon this correction/bottoming formation will be done and over with. Having to endure this period in time is definitely no fun. But I believe we are closer to the bottom than not and that the market will turn up shortly." -- Kevin Matras
Have a Good Evening,
Jim Giaquinto
Recommendations from Zacks' Private Portfolios:
Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>
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 six names that were sold today include: • Dynegy Inc. (DYN, +4.2%) • Centene Corp (CNC, +1.1%) • American Airlines (AAL) • Conduent Inc. (CNDT) • Fiat Chrysler (FCAU) • Kapstone Paper (KS) The new buys that replaced these stocks are: • Archer Daniels (ADM) • Dollar General (DG) • Flowers Foods (FLO) • HD Supply Holdings (HDS) • Hewlett Packard Enterprise (HPE) • Interpublic Group (IPG) Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing. In the portfolios, TAZR Trader sees a "W" bottom test after today's pullback, so it added more of a bullish ETF to prepare for a bounceback in technology. Since he continues to appreciate the relative strength for technology and semiconductors, this provided the perfect opportunity to increase the portfolio's "starter" position in NASDAQ 100 3X Bull ETF (TQQQ).
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The six names that were sold today include: • Dynegy Inc. (DYN, +4.2%) • Centene Corp (CNC, +1.1%) • American Airlines (AAL) • Conduent Inc. (CNDT) • Fiat Chrysler (FCAU) • Kapstone Paper (KS) The new buys that replaced these stocks are: • Archer Daniels (ADM) • Dollar General (DG) • Flowers Foods (FLO) • HD Supply Holdings (HDS) • Hewlett Packard Enterprise (HPE) • Interpublic Group (IPG) Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing. In the portfolios, TAZR Trader sees a "W" bottom test after today's pullback, so it added more of a bullish ETF to prepare for a bounceback in technology. Today's Portfolio Highlights: Stocks Under $10: As the price of crude moves higher, Brian Bolan thinks a stock like Flotek (FTK) will jump on the bandwagon.
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The six names that were sold today include: • Dynegy Inc. (DYN, +4.2%) • Centene Corp (CNC, +1.1%) • American Airlines (AAL) • Conduent Inc. (CNDT) • Fiat Chrysler (FCAU) • Kapstone Paper (KS) The new buys that replaced these stocks are: • Archer Daniels (ADM) • Dollar General (DG) • Flowers Foods (FLO) • HD Supply Holdings (HDS) • Hewlett Packard Enterprise (HPE) • Interpublic Group (IPG) Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing. Today's Portfolio Highlights: Stocks Under $10: As the price of crude moves higher, Brian Bolan thinks a stock like Flotek (FTK) will jump on the bandwagon. Click here to "test drive" Zacks Ultimate for FREE >> Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The six names that were sold today include: • Dynegy Inc. (DYN, +4.2%) • Centene Corp (CNC, +1.1%) • American Airlines (AAL) • Conduent Inc. (CNDT) • Fiat Chrysler (FCAU) • Kapstone Paper (KS) The new buys that replaced these stocks are: • Archer Daniels (ADM) • Dollar General (DG) • Flowers Foods (FLO) • HD Supply Holdings (HDS) • Hewlett Packard Enterprise (HPE) • Interpublic Group (IPG) Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing. In the portfolios, TAZR Trader sees a "W" bottom test after today's pullback, so it added more of a bullish ETF to prepare for a bounceback in technology. Learn more about all these moves in the highlights section below, along with this week's Zacks Confidential and more.
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b5814d55-eb2e-4723-af21-eaa21b70a340
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7113.0
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2018-04-02 00:00:00 UTC
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United Continental Arm to Expand Houston-Havana Service
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AAL
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https://www.nasdaq.com/articles/united-continental-arm-to-expand-houston-havana-service-2018-04-02
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nan
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nan
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United Continental Holdings ' UAL wholly owned subsidiary, United Airlines and its code share partner Mesa Airlines have received a tentative approval from the U.S. Department of Transportation (DOT) to extend its Houston-Havana Saturday service to a daily operation. Final government approval for the service connecting Houston's George Bush Intercontinental Airport and Havana's José Martí International Airport is pending.
United Airlines' Saturday service between Houston and Havana, launched in December 2016, has eased air travel for customers flying to Havana. The airline's increased service will intensify competition in the area, enhancing flight options to Havana from Houston.
This Zacks Rank #2 (Buy) carrier will operate the Houston-Havana service on either Boeing 737-800 mainline aircraft or Embraer E175 regional aircraft. The Embraer E175 regional aircraft will be operated by Mesa Airlines under the brand name, United Express. Mesa Airlines has a code share agreement with United Airlines and operates flights under the United Express brand. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The Embraer E175 aircraft features a wide range of modern amenities including extra-legroom, complimentary food and drinks and in-flight entertainment to offer a better customer experience.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
Other Tentative Approvals
The DOT awarded tentative clearance for U.S.-Cuba scheduled flights to other carriers as well including the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , JetBlue Airways Corporation and Southwest Airlines Co. LUV . The new allocations have to be implemented within three months of the receipt of the final clearance from the government.
The DOT awarded the new allocations following the decision of many carriers like Frontier Airlines and Spirit Airlines to terminate operations between the nations due to lower-than-expected demand.
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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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote Other Tentative Approvals The DOT awarded tentative clearance for U.S.-Cuba scheduled flights to other carriers as well including the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , JetBlue Airways Corporation and Southwest Airlines Co. LUV . 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 To read this article on Zacks.com click here. The airline's increased service will intensify competition in the area, enhancing flight options to Havana from Houston.
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United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote Other Tentative Approvals The DOT awarded tentative clearance for U.S.-Cuba scheduled flights to other carriers as well including the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , JetBlue Airways Corporation and Southwest Airlines Co. LUV . 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 To read this article on Zacks.com click here. United Continental Holdings ' UAL wholly owned subsidiary, United Airlines and its code share partner Mesa Airlines have received a tentative approval from the U.S. Department of Transportation (DOT) to extend its Houston-Havana Saturday service to a daily operation.
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United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote Other Tentative Approvals The DOT awarded tentative clearance for U.S.-Cuba scheduled flights to other carriers as well including the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , JetBlue Airways Corporation and Southwest Airlines Co. LUV . 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 To read this article on Zacks.com click here. United Continental Holdings ' UAL wholly owned subsidiary, United Airlines and its code share partner Mesa Airlines have received a tentative approval from the U.S. Department of Transportation (DOT) to extend its Houston-Havana Saturday service to a daily operation.
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United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote Other Tentative Approvals The DOT awarded tentative clearance for U.S.-Cuba scheduled flights to other carriers as well including the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , JetBlue Airways Corporation and Southwest Airlines Co. LUV . 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 To read this article on Zacks.com click here. United Continental Holdings ' UAL wholly owned subsidiary, United Airlines and its code share partner Mesa Airlines have received a tentative approval from the U.S. Department of Transportation (DOT) to extend its Houston-Havana Saturday service to a daily operation.
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b6a287fd-b194-429b-97b4-f5cf120b0927
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7114.0
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2018-04-02 00:00:00 UTC
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5 Broker-Friendly Stocks to Fight Ongoing Market Uncertainty
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AAL
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https://www.nasdaq.com/articles/5-broker-friendly-stocks-to-fight-ongoing-market-uncertainty-2018-04-02
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nan
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nan
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The possibility of a trade war brewing between the United States and China - the world's two biggest economies - threw 11 S&P 500 sectors into correction territory (decline of at least 10% from the latest peak) late last month. The trigger was the executive memorandum signed by President Trump to impose tariffs on up to $60 billion in Chinese imports targeting the technology, telecommunications and apparel sectors. In response, China proposed a list of 128 U.S. products worth $3 billion as potential retaliation targets.
Expert Advice - A Must in this Scenario
Given the widespread uncertainty, the task of building a portfolio of stocks for handsome returns is a herculean task. Furthermore, with a huge number of stocks available in the market at any point of time, spotting potential outperformers is very tough for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for 'a needle in a haystack'.
Additionally, with time at a premium these days, it is next to impossible for investors to go through the extensive process. Given this backdrop, it is in the best interest of investors to seek guidance from "experts in the field." The concerned experts are brokers.
Broker Advice - The Saviour
The "experts" in the field of investing are brokers who are equipped with thorough knowledge about the space. Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Direction of Earnings Estimates: A Winning Pointer
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
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 in 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 effective.
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 four 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 four 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 the 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:
Caleres, Inc.CAL is a footwear retailer and wholesaler. The company is headquartered in St. Louis, MO. This Zacks Rank #3 (Hold) stock has an impressive expected earnings per share growth rate of 11% for three to five years. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Bed Bath & Beyond Inc. BBBY , an omnichannel retailer of domestics merchandise and home furnishings, carries a Zacks Rank #3. The stock has seen the Zacks Consensus Estimate for current-quarter earnings being revised 2.2% upward over the last 90 days.
Ford Motor CompanyF is an automotive, financial services and mobility company with operations in the United States and across the world. The stock, carrying a Zacks Rank #3, has seen the Zacks Consensus Estimate for current-quarter earnings being revised 5.1% upward over the last 30 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 from its hubs. This Zacks Rank #3 stock is headquartered in Fort Worth, TX. The stock has seen the Zacks Consensus Estimate for current-quarter earnings being revised 7.5% upward over the last 30 days.
Chicago Bridge & Iron Company N.V.CBI provides a wide range of services like conceptual designing, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services on a global scale. This Zacks Rank #3 stock has an impressive expected earnings per share growth rate of 9% 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.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report
Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
Caleres, Inc. (CAL): 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 from its hubs. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): Free Stock Analysis Report To read this article on Zacks.com click here. The possibility of a trade war brewing between the United States and China - the world's two biggest economies - threw 11 S&P 500 sectors into correction territory (decline of at least 10% from the latest peak) late last month.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): 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 from its hubs. This Zacks Rank #3 (Hold) stock has an impressive expected earnings per share growth rate of 11% for three to five years.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): 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 from its hubs. Direction of Earnings Estimates: A Winning Pointer Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company.
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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 from its hubs. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report Chicago Bridge & Iron Company N.V. (CBI): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Caleres, Inc. (CAL): Free Stock Analysis Report To read this article on Zacks.com click here. The estimate revisions serve as an important pointer regarding the price of a stock.
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a1fa9d09-e5d7-4913-8b25-c8a0c6aa1b81
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7115.0
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2018-04-02 00:00:00 UTC
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New Flights to Havana Could Be Coming Soon
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AAL
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https://www.nasdaq.com/articles/new-flights-havana-could-be-coming-soon-2018-04-02
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nan
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nan
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Under a new U.S.-Cuba aviation treaty that went into effect two years ago, U.S. airlines are permitted to operate up to 20 daily roundtrip flights to Havana, the island nation's capital and largest city. This set off a vicious fight among airlines eager to secure as big a share of these 20 daily flights as possible.
However, flying to Havana hasn't been nearly as lucrative as airlines had originally expected. Of the eight airlines that were initially granted the right to fly to Havana, three have already pulled out of the market entirely. Additionally, Delta Air Lines (NYSE: DAL) recently slashed its New York-Havana route from daily service to one roundtrip flight per week (on Saturdays).
This has created room for the Department of Transportation to grant new Havana flying rights. On Friday, it announced its tentative decision for allocating additional flight frequencies among American Airlines (NASDAQ: AAL) , Delta, JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , and United Continental (NYSE: UAL) .
A delayed decision
The most recent cycle of applications for additional flights to Havana began about a year ago , after Frontier Airlines and Spirit Airlines decided to terminate all of their Cuba flights due to poor profitability. However, the timeline for a decision has been delayed due to shifting facts on the ground.
Only in early June did the DOT receive official confirmation that the two ultra low-cost carriers were giving up their rights to fly to Havana. It took until late August for the DOT to decide that it needed to go through a new route allocation proceeding, rather than making a decision based on the evidence gathered in 2016 for the original allocation.
Before that decision-making process was completed, Alaska Air announced that it would end its Havana flights due to regulatory changes. Shortly thereafter, Delta decided to scale back service on its New York-Havana route. Each time, the DOT decided to go back to square one.
Sticking to the formula
Not surprisingly, the DOT's tentative decision -- which will likely be finalized later this month -- took a "something for everybody" approach to allocating flight frequencies. (The one exception was FedEx, which was shut out again in favor of passenger airlines.)
American Airlines, which already operates four daily roundtrips between Miami and Havana, will be allowed to add a fifth daily flight. American had asked to expand to six daily flights, with even more flights on weekends. However, the government would prefer a more balanced allocation of slots in order to maximize competition.
JetBlue, the No. 2 carrier in the U.S.-Cuba market, is also getting one extra daily roundtrip to Havana. It will be allowed to add a third flight to its Fort Lauderdale-Havana schedule from Sunday-Friday, in addition to beginning weekly service between Boston and Havana on Saturdays. The DOT rejected JetBlue's requests to add a second daily New York-Havana flight, along with new daily Newark-Havana and Tampa-Havana flights.
Finally, Delta Air Lines, Southwest Airlines, and United Continental were each granted their relatively modest flight allocation requests. Delta will be allowed to add a second daily flight on its Miami-Havana route. Southwest will be permitted to expand to three daily flights between Fort Lauderdale and Havana. Finally, United will be able to offer daily Houston-Havana flights, instead of Saturday-only service in that market.
Will these changes create a healthier supply demand balance?
South Florida is set to receive nearly 80% of the extra flights allocated under this temporary decision. The Miami and Fort Lauderdale markets benefit from far more "visiting friends and relatives" demand than other parts of the country. That's particularly important after the U.S. government tightened the regulations on permitted travel to Cuba.
With five carriers flying to Havana (instead of eight) and more service concentrated in South Florida, airlines are likely to have more success in Cuba than they initially did.
That said, for nearly a year, several Havana flight frequencies have lain dormant, making the remaining flights more profitable. As a result, airlines serving Havana -- particularly market-leader American Airlines -- may face some fare pressure after the new flights begin. Bookings should be solid for the summer peak season, but there could be another reckoning later this year if there isn't enough demand to support all of the extra flights during the low season.
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Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, JetBlue Airways, and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways. The Motley Fool owns shares of and recommends Spirit Airlines. 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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On Friday, it announced its tentative decision for allocating additional flight frequencies among American Airlines (NASDAQ: AAL) , Delta, JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , and United Continental (NYSE: UAL) . Under a new U.S.-Cuba aviation treaty that went into effect two years ago, U.S. airlines are permitted to operate up to 20 daily roundtrip flights to Havana, the island nation's capital and largest city. Additionally, Delta Air Lines (NYSE: DAL) recently slashed its New York-Havana route from daily service to one roundtrip flight per week (on Saturdays).
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On Friday, it announced its tentative decision for allocating additional flight frequencies among American Airlines (NASDAQ: AAL) , Delta, JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , and United Continental (NYSE: UAL) . Additionally, Delta Air Lines (NYSE: DAL) recently slashed its New York-Havana route from daily service to one roundtrip flight per week (on Saturdays). *Stock Advisor returns as of March 5, 2018 Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, JetBlue Airways, and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways.
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On Friday, it announced its tentative decision for allocating additional flight frequencies among American Airlines (NASDAQ: AAL) , Delta, JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , and United Continental (NYSE: UAL) . A delayed decision The most recent cycle of applications for additional flights to Havana began about a year ago , after Frontier Airlines and Spirit Airlines decided to terminate all of their Cuba flights due to poor profitability. The DOT rejected JetBlue's requests to add a second daily New York-Havana flight, along with new daily Newark-Havana and Tampa-Havana flights.
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On Friday, it announced its tentative decision for allocating additional flight frequencies among American Airlines (NASDAQ: AAL) , Delta, JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , and United Continental (NYSE: UAL) . American Airlines, which already operates four daily roundtrips between Miami and Havana, will be allowed to add a fifth daily flight. 2 carrier in the U.S.-Cuba market, is also getting one extra daily roundtrip to Havana.
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c2523578-51c5-4acc-9d35-e66313818340
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7116.0
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2018-04-02 00:00:00 UTC
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Noteworthy Monday Option Activity: AAL, ADBE, PH
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AAL
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-aal-adbe-ph-2018-04-02
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 17,952 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 46.7% of AAL's average daily trading volume over the past month of 3.8 million shares. Particularly high volume was seen for the $55 strike call option expiring May 18, 2018 , with 4,730 contracts trading so far today, representing approximately 473,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange:
Adobe Systems Inc (Symbol: ADBE) options are showing a volume of 16,924 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 43.6% of ADBE's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $225 strike call option expiring April 20, 2018 , with 1,817 contracts trading so far today, representing approximately 181,700 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $225 strike highlighted in orange:
And Parker Hannifin Corp (Symbol: PH) saw options trading volume of 4,854 contracts, representing approximately 485,400 underlying shares or approximately 42.9% of PH's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $160 strike put option expiring April 20, 2018 , with 1,508 contracts trading so far today, representing approximately 150,800 underlying shares of PH. Below is a chart showing PH's trailing twelve month trading history, with the $160 strike highlighted in orange:
For the various different available expirations for AAL options , ADBE options , or PH 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 $55 strike call option expiring May 18, 2018 , with 4,730 contracts trading so far today, representing approximately 473,000 underlying shares of AAL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 17,952 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 46.7% of AAL's average daily trading volume over the past month of 3.8 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: Adobe Systems Inc (Symbol: ADBE) options are showing a volume of 16,924 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 17,952 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 46.7% of AAL's average daily trading volume over the past month of 3.8 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 17,952 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 46.7% of AAL's average daily trading volume over the past month of 3.8 million shares. Particularly high volume was seen for the $55 strike call option expiring May 18, 2018 , with 4,730 contracts trading so far today, representing approximately 473,000 underlying shares of AAL.
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Particularly high volume was seen for the $55 strike call option expiring May 18, 2018 , with 4,730 contracts trading so far today, representing approximately 473,000 underlying shares of AAL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 17,952 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 46.7% of AAL's average daily trading volume over the past month of 3.8 million shares.
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942e0855-7edd-4310-820b-30d01687c2aa
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7117.0
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2018-03-28 00:00:00 UTC
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American Airlines Group Breaks Below 200-Day Moving Average - Notable for AAL
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-breaks-below-200-day-moving-average-notable-aal-2018-03-28
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nan
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nan
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $50.44, changing hands as low as $50.05 per share. American Airlines Group Inc shares are currently trading off about 0.9% on the day. The chart below shows the one year performance of AAL shares, versus its 200 day moving average:
Looking at the chart above, AAL's low point in its 52 week range is $40.82 per share, with $59.08 as the 52 week high point - that compares with a last trade of $50.50.
According to the ETF Finder at ETF Channel, AAL makes up 3.30% of the iShares Transportation Average ETF (Symbol: IYT) which is trading lower by about 0.2% on the day Wednesday.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $50.44, changing hands as low as $50.05 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $40.82 per share, with $59.08 as the 52 week high point - that compares with a last trade of $50.50. According to the ETF Finder at ETF Channel, AAL makes up 3.30% of the iShares Transportation Average ETF (Symbol: IYT) which is trading lower by about 0.2% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $50.44, changing hands as low as $50.05 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $40.82 per share, with $59.08 as the 52 week high point - that compares with a last trade of $50.50. According to the ETF Finder at ETF Channel, AAL makes up 3.30% of the iShares Transportation Average ETF (Symbol: IYT) which is trading lower by about 0.2% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $50.44, changing hands as low as $50.05 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $40.82 per share, with $59.08 as the 52 week high point - that compares with a last trade of $50.50. According to the ETF Finder at ETF Channel, AAL makes up 3.30% of the iShares Transportation Average ETF (Symbol: IYT) which is trading lower by about 0.2% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $50.44, changing hands as low as $50.05 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $40.82 per share, with $59.08 as the 52 week high point - that compares with a last trade of $50.50. According to the ETF Finder at ETF Channel, AAL makes up 3.30% of the iShares Transportation Average ETF (Symbol: IYT) which is trading lower by about 0.2% on the day Wednesday.
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3fee63b3-f590-48fb-b30c-9dc64409a0c2
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7118.0
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2018-03-28 00:00:00 UTC
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Airline Stock Roundup: LUV's Bleak Q1 RASM View, UAL's Expansion Update & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-luvs-bleak-q1-rasm-view-uals-expansion-update-more-2018-03-28
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nan
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nan
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It was a week that saw the NYSE ARCA Airline Index declining 4.1% mainly due to the disappointing unit revenue forecast of low-cost carrier Southwest Airlines Co. LUV for the current quarter. The Dallas-based carrier attributed the downbeat forecast to pricing pressure and lower-than-expected demand for air travel due to the timing of the spring break holidays.
Apart from the bleak forecast, airlines were also hurt by the emergence of another nor'easter (Toby) in the Northeast region. In fact, this was the fourth nor'easter to hit the region this month. American Airlines Group Inc. AAL was also in the news over the past five trading days regarding its fleet upgrade efforts.
Moreover, the week saw American Airlines and United Airlines - the wholly-owned subsidiary of United Continental Holdings, Inc. UAL - issuing updates on their plans to add additional flights in a bid to expand their presence.
Transportation - Airline Industry 5YR % Return
Transportation - Airline Industry 5YR % Return
(Read the last Airline Stock Roundup for Mar 21, 2018 ).
Recap of the Past Week's Most Important Stories
1. Southwest Airlines now expects revenue per available seat mile (RASM: a key measure of unit revenue) to be flat, as against the year-ago figure of 13.23 cents. The projection compares unfavorably to the previous forecast of year-over-year growth between 1% and 2%. However, current customer demand remains strong, according to Southwest. The carrier still continues to expect year-over-year RASM growth in 2018.
Further, the company has lowered its outlook for first-quarter operating expenses per available seat mile (CASM) excluding fuel and oil expense plus profit-sharing expense. Additionally, first-quarter fuel costs are expected to be at approximately $2.10 per gallon (Read more: Airline Stocks Decline on Wednesday's Trading: Here's Why ).
2. Airline operations were disrupted when Toby hit the Northeast, resulting in multiple flight cancellations. In fact, the current month has reportedly seen more than 10,000 flights being called off due to successive nor'easters. Notably, it is believed to be the worst March in five years time in terms of flight cancellations (Read more: Airline Operations Disrupted Due to Another Nor'easter ).
3. According to a Reuters report American Airlines has ended its negotiations with Airbus to buy multiple planes, in a bid to upgrade its fleet. Replacing Airbus, as a potential supplier to American Airlines was The Boeing Company BA . American Airlines is reportedly looking to purchase 25-30 new wide-bodied jets. The deal with Boeing might be valued between $7 billion and $8.5 billion.
On a separate issue, American Airlines announced its intention to launch flights to four cities - Georgetown, Guyana, Pereira, Colombia, Cordoba, Argentina, Oaxaca, Mexico and Buenos Aires, Argentina. The new routes will be operational subject to government clearance. Tickets will be available from April 2018.
American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
4. The association between United Airlines and Air New Zealand was strengthened when the carriers announced their decision to operate flights connecting Chicago and Auckland. The non-stop year-round flights, operated by Air New Zealand thrice a week, will commence from Nov 30, 2018. Moreover, United Airlines announced that its flights connecting San Francisco and Auckland, which currently operate on a seasonal basis, will fly throughout the year (thrice a week) from April 2019. The service has been expanded to cater to the increased demand.
5. Alaska Air Group's ALK subsidiary - Alaska Airlines - inked a deal with Irish carrier, Aer Lingus, for providing members of its Mileage Plan more opportunities to earn and redeem miles to Europe. According to the new partnership, the carriers will commence interline availability across their respective networks from April 2018. Aer Lingus currently operates flights connecting Dublin and 13 cities in North America. The carrier will operate flights connecting Seattle and Dublin from May 18, 2018.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
The table above shows most of the airline stocks traded in the red over the past week mainly due to Southwest's bearish guidance. Over the course of six months, the NYSE ARCA Airline Index appreciated 6.9%, on the back of impressive gains at Gol Linhas Aéreas Inteligentes S.A. GOL .
What's Next in the Airline Space?
Investors will look forward to March traffic reports from the likes of Delta Air Lines Inc. DAL in the coming days.
Will You Make a Fortune on the Shift to Electric Cars?
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): 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
The Boeing Company (BA): 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 was also in the news over the past five trading days regarding its fleet upgrade efforts. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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 The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. The Dallas-based carrier attributed the downbeat forecast to pricing pressure and lower-than-expected demand for air travel due to the timing of the spring break holidays.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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 The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL was also in the news over the past five trading days regarding its fleet upgrade efforts. Moreover, the week saw American Airlines and United Airlines - the wholly-owned subsidiary of United Continental Holdings, Inc. UAL - issuing updates on their plans to add additional flights in a bid to expand their presence.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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 The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL was also in the news over the past five trading days regarding its fleet upgrade efforts. Moreover, the week saw American Airlines and United Airlines - the wholly-owned subsidiary of United Continental Holdings, Inc. UAL - issuing updates on their plans to add additional flights in a bid to expand their presence.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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 The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL was also in the news over the past five trading days regarding its fleet upgrade efforts. It was a week that saw the NYSE ARCA Airline Index declining 4.1% mainly due to the disappointing unit revenue forecast of low-cost carrier Southwest Airlines Co. LUV for the current quarter.
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0365e2a8-7748-4d0a-b5e7-9cf249f03782
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7119.0
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2018-03-26 00:00:00 UTC
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If This Report Is True, Airbus Is in Big Trouble
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AAL
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https://www.nasdaq.com/articles/if-report-true-airbus-big-trouble-2018-03-26
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nan
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nan
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During 2017, Boeing (NYSE: BA) smoked its European rival Airbus (NASDAQOTH: EADSY) in terms of orders for wide-body planes. Boeing received 167 net orders for wide-bodies last year, compared to just 55 for Airbus.
The U.S. aerospace giant's momentum has continued in early 2018. Boeing booked 21 net firm wide-body orders in January and February, versus eight for Airbus. Boeing has also finalized at least one major wide-body deal this month.
Recent reports suggest that Boeing is set to further extend its dominance in the wide-body market. American Airlines (NASDAQ: AAL) is poised to place an order for 25-30 additional 787 Dreamliners, while canceling its existing order for 22 Airbus A350s.
American Airlines' Airbus order has been up in the air
Way back in 2005, US Airways ordered 20 A350s. Two years later, in conjunction with major design changes for the Airbus A350 family, the carrier increased its order to 22 units. American Airlines inherited this order in 2013 when it merged with US Airways.
The A350s were initially scheduled for delivery beginning in 2014. But due to a combination of production delays and two deferrals by American Airlines in the past two years, the first A350s are now supposed to arrive in late 2020. During the past year, American's management has openly acknowledged that the company is rethinking the A350 order.
The merger is the main reason for this change of heart. US Airways was about a third the size of the current merged airline, so it would have been reasonable to operate 22 aircraft of a particular type. However, it's not efficient for an airline the size of American to operate such a small subfleet, according to the carrier's president, Robert Isom.
Indeed, American Airlines aims to simplify its fleet from 52 subfleets in 2016 (including different configurations of the same aircraft) to just 30 by the end of 2022. In keeping with this goal, management decided that it needed to increase the size of the A350 order or cancel it outright.
Another victory for Boeing
American Airlines is set to dump its A350 order in favor of buying 25-30 additional Boeing 787-9 Dreamliners, according to Reuters . The airline had been in talks with Airbus about switching the order to the slightly smaller (and cheaper) A330-900neo, but Airbus isn't willing to match the price that Boeing offered for the 787-9.
American's preference for the 787-9 makes sense -- especially if it's the cheapest option. As of the end of 2017, American Airlines operated 34 Dreamliners, including 14 787-9s. It also has another eight 787-9s set to arrive in 2018 and 2019. By contrast, it doesn't have any A350s or A330-900neos. Thus, of the options that American considered, buying more 787-9s was most consistent with its fleet simplification goals.
To be fair, American Airlines claims that it hasn't made any final decision on its fleet. However, Hawaiian Holdings said almost exactly the same thing last month, following reports that it planned to dump an order for A330neos in favor of the 787-9. Just a few weeks later, it confirmed its intention to order the Dreamliner .
Does Airbus have an answer?
Assuming the recent reports are accurate, it's another big blow to Airbus: especially its A330neo wide-body program. Airbus began selling this upgraded version of its A330 jet family in mid-2014, but it has accumulated just 214 firm orders. Furthermore, Airbus has captured just 10 firm orders for the A330-900neo since the beginning of 2017 -- while the smaller A330-800neo model has lost all of its 10 orders during that period.
To make matters worse, 44% of the A330neo order backlog comes from two airlines: Iran Air and AirAsia X. Iran Air's order for 28 aircraft could easily be disrupted by renewed U.S. sanctions, while AirAsia X may be reconsidering its massive order for 66 A330-900neos. More than 60 additional A330neo orders come from several aircraft leasing companies, which prefer aircraft that have a large base of operators.
In short, getting American Airlines to switch from the A350 to the A330neo would have gone a long way toward solidifying the latter's position in the marketplace. Instead, Boeing could soon be one step closer to dominating the market for small to medium-size wide-bodies.
Airbus' current strategy is predicated on the idea that it can discount the A330neo enough to steal sales from Boeing's Dreamliner. If Boeing is willing to match or even beat Airbus' prices for the A330neo, then Airbus may need a completely new approach to compete in this market segment.
10 stocks we like better than Boeing
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Adam Levine-Weinberg owns shares of Hawaiian Holdings. 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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American Airlines (NASDAQ: AAL) is poised to place an order for 25-30 additional 787 Dreamliners, while canceling its existing order for 22 Airbus A350s. During 2017, Boeing (NYSE: BA) smoked its European rival Airbus (NASDAQOTH: EADSY) in terms of orders for wide-body planes. Two years later, in conjunction with major design changes for the Airbus A350 family, the carrier increased its order to 22 units.
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American Airlines (NASDAQ: AAL) is poised to place an order for 25-30 additional 787 Dreamliners, while canceling its existing order for 22 Airbus A350s. Another victory for Boeing American Airlines is set to dump its A350 order in favor of buying 25-30 additional Boeing 787-9 Dreamliners, according to Reuters . As of the end of 2017, American Airlines operated 34 Dreamliners, including 14 787-9s.
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American Airlines (NASDAQ: AAL) is poised to place an order for 25-30 additional 787 Dreamliners, while canceling its existing order for 22 Airbus A350s. American Airlines' Airbus order has been up in the air Way back in 2005, US Airways ordered 20 A350s. Another victory for Boeing American Airlines is set to dump its A350 order in favor of buying 25-30 additional Boeing 787-9 Dreamliners, according to Reuters .
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American Airlines (NASDAQ: AAL) is poised to place an order for 25-30 additional 787 Dreamliners, while canceling its existing order for 22 Airbus A350s. Recent reports suggest that Boeing is set to further extend its dominance in the wide-body market. US Airways was about a third the size of the current merged airline, so it would have been reasonable to operate 22 aircraft of a particular type.
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df0decf1-bd10-4bfb-bc6d-f7b90a1669e1
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7120.0
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2018-03-26 00:00:00 UTC
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Why Did Boeing (BA) Stock Pop on Monday?
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AAL
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https://www.nasdaq.com/articles/why-did-boeing-ba-stock-pop-monday-2018-03-26
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nan
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nan
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Shares of Boeing BA climbed nearly 2.5% on Monday as it looks to buck a nearly month-long downturn fueled by tariff-related woes and possible Chinese retaliation. Aside from reports that these potentially devastating headwinds might have been overblown, some substantive Boeing-related news helped push the stock higher today. Let's take a look.
Startup Investment
Boeing just announced that it was part of a $15 million Series A investment round for Australian Internet of Things startup, Myriota.
Myriota's direct-to-orbit platform can enable more effective, lower cost connectivity for IoT applications across a range of industries, from logistics to defense, in relatively off-the-grid areas.
"Myriota's technology influences how we think about space-based communications and connectivity in remote locations," vice president of Boeing HorizonX, Steve Nordlund, said in a statement .
The aerospace giant made this investment through its venture capital leg, Boeing HorizonX. Boeing's Myriota investment marked its first outside the U.S. and its 10 th since the company launched the fund last April.
Potential American Airlines Deal
Last Friday, Reuters reported that American Airlines AAL ended its negotiations with Airbus EADSY to purchase a large number of aircraft. Europe-based Airbus noted that it was simply unable to meet or match the price Boeing offered for comparable planes.
American is reportedly looking to purchase roughly 30 new wide-bodied aircraft, which could value any potentially deal with Boeing at roughly $8 billion.
Dreamliner Delivery
Boeing delivered its first 787-10 Dreamliner to Singapore Airlines on Sunday. This is hardly an insignificant move as the company has banked a large portion of its future on the Dreamliner class of aircraft, of which the 787-10 is the largest of three planes in terms of length and passenger capacity.
The aircraft reportedly costs roughly $325 million and is the latest and final-at least for the time being- model of the Dreamliner series, which debuted in 2012.
Virtual Reality
The last piece of Boeing news that might have helped lift investor confidence comes in the form of a National Safety Council recognition. Boeing joined Accenture ACN and Brigham Health Sleep Matters Initiative as a 2018 Green Cross for Safety Innovation Award Finalist.
Boeing cracked the list for its use of virtual reality technology to help engineers with real-time interactive simulations of build processes and service tasks. The VR allows the design team to "experience those tasks from the perspective of a production mechanic or airline maintenance mechanic and identify issues before they become a safety concern."
The National Safety Council noted that Boeing has developed 11 different virtual reality systems so far, and plans to add three more in 2018.
Bottom Line
Boeing is a Zacks Rank #1 (Strong Buy) and also currently boasts an "A" for Growth in our Style Scores system. On top of that, Boeing stock comes at a discount compared to where it was just a few months ago, as its stock price sunk nearly 10% over the last four weeks alone.
Now might not be a bad time to buy Boeing stock, especially when considering the latest company-related news that could propel further growth.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
Accenture PLC (ACN): 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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Potential American Airlines Deal Last Friday, Reuters reported that American Airlines AAL ended its negotiations with Airbus EADSY to purchase a large number of aircraft. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report To read this article on Zacks.com click here. Myriota's direct-to-orbit platform can enable more effective, lower cost connectivity for IoT applications across a range of industries, from logistics to defense, in relatively off-the-grid areas.
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Potential American Airlines Deal Last Friday, Reuters reported that American Airlines AAL ended its negotiations with Airbus EADSY to purchase a large number of aircraft. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report To read this article on Zacks.com click here. Potential American Airlines Deal Last Friday, Reuters reported that American Airlines AAL ended its negotiations with Airbus EADSY to purchase a large number of aircraft. American is reportedly looking to purchase roughly 30 new wide-bodied aircraft, which could value any potentially deal with Boeing at roughly $8 billion.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report To read this article on Zacks.com click here. Potential American Airlines Deal Last Friday, Reuters reported that American Airlines AAL ended its negotiations with Airbus EADSY to purchase a large number of aircraft. The aircraft reportedly costs roughly $325 million and is the latest and final-at least for the time being- model of the Dreamliner series, which debuted in 2012.
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c2c81d31-abbe-4f7a-95df-9edbc767196c
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7121.0
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2018-03-26 00:00:00 UTC
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Here's Why it is Apt to Hold Hawaiian Holdings (HA) for Now
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AAL
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https://www.nasdaq.com/articles/heres-why-it-is-apt-to-hold-hawaiian-holdings-ha-for-now-2018-03-26
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nan
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Hawaiian Holdings, Inc .'s HA performance with respect to passenger revenues is encouraging. Notably, the company has raised guidance for first-quarter 2018 operating revenue per available seat mile (RASM) owing to better-than-expected passenger revenue performance in each of its geographies as well as higher cargo demand across the network. It now expects RASM to increase 3-5%, up from its previous prediction of a decline of 0.5% to a rise of 2.5%.
In 2017, passenger revenues increased 10.1% on a year-over-year basis, accounting for 87.6% of the company's top line. The company's growth is supported by strong demand for air travel to Hawaii. The exit of Island Air has further strengthened the airline's foothold in the region.
The company's decision announced in October 2017, to reward shareholders with dividend payments is also impressive. Later in December, the company announced a new share repurchase program worth $100 million through Dec 31, 2019, an addition to the existing $100 million authorization. Such investor-friendly initiatives bode well for the stock.
The airline's efforts to modernize its fleet also raise optimism. To this end, it is on track to remodel its A330 fleet by adding lie flat premium seats.
Hawaiian Holdings, Inc. Price and Consensus
Hawaiian Holdings, Inc. Price and Consensus | Hawaiian Holdings, Inc. Quote
The positive sentiment revolving around the stock is evident from the Zacks Consensus Estimate for current-quarter earnings being revised 39.6% upward in the last 60 days. While the same for the full year has moved 16.8% north.
Additionally, the company has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of all three scores.
In light of the above positives, we believe investors should hold on to Hawaiian Holdings stock for now.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are American Airlines Group Inc. AAL , International Consolidated Airlines Group SA ICAGY and AZUL SA AZUL . While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and AZUL carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of American Airlines, International Consolidated Airlines and AZUL have rallied more than 22%, 24% and 53%, respectively, in a year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
AZUL SA (AZUL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the same space are American Airlines Group Inc. AAL , International Consolidated Airlines Group SA ICAGY and AZUL SA AZUL . Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. In 2017, passenger revenues increased 10.1% on a year-over-year basis, accounting for 87.6% of the company's top line.
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Some better-ranked stocks in the same space are American Airlines Group Inc. AAL , International Consolidated Airlines Group SA ICAGY and AZUL SA AZUL . Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and AZUL carry a Zacks Rank #2 (Buy).
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Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the same space are American Airlines Group Inc. AAL , International Consolidated Airlines Group SA ICAGY and AZUL SA AZUL . Hawaiian Holdings, Inc. Price and Consensus Hawaiian Holdings, Inc. Price and Consensus | Hawaiian Holdings, Inc. Quote The positive sentiment revolving around the stock is evident from the Zacks Consensus Estimate for current-quarter earnings being revised 39.6% upward in the last 60 days.
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Some better-ranked stocks in the same space are American Airlines Group Inc. AAL , International Consolidated Airlines Group SA ICAGY and AZUL SA AZUL . Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, the company has an impressive VGM Score of B.
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d7e9db6d-8a0d-4ca8-b630-90caa9b013d1
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7122.0
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2018-03-23 00:00:00 UTC
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Here's Why FedEx's (FDX) Shares Declined 5.1% Yesterday
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AAL
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https://www.nasdaq.com/articles/heres-why-fedexs-fdx-shares-declined-5.1-yesterday-2018-03-23
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nan
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nan
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Shares of FedEx CorporationFDX declined 5.1% to $236.27 on Mar 22, despite reporting better-than-expected revenues and earnings per share in the third quarter of fiscal 2018, on Mar 20. This is the biggest one-day decline for the stock since March 2013.
Why the Decline?
Following President Trump's order to levy tariffs on at least $50 billion in Chinese imports, shares of this Memphis, TN-based package-delivery company declined despite reporting better-than-expected results in the fiscal third quarter due to fears of trade contracting.
FedEx's chief executive officer, Fred Smith is also not too impressed by Trump's policy to impose tariff on Chinese imports. Smith has stated that the measures might be detrimental to the economic health of the United States.
The fact that FedEx has a significant presence in China has given rise to fears of significant revenue loss due to the weakening of trade, following the tariffs. In fact, shares of its rival, United Parcel Service, Inc. UPS also declined to the tune of 3% on Mar 22.
However, FedEx's worries are greater since its exposure to Asia (including China) is greater than UPS, according to Bloomberg. We note that FedEx opened a hub in Shanghai in January 2018 to strengthen its presence in China.
Apart from the trade-related fears, FedEx was also in the news after a parcel recently exploded at one of its facilities in Texas. Even though FedEx's Ground and Freight units performed well in the third quarter of fiscal 2018, performance at its Express air-freight unit raises concerns.
Zacks Rank & Key Picks
FedEx carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Transportation sector are American Airlines Group Inc. AAL and GATX Corporation GATX , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here . Shares of American Airlines and GATX have increased 22% and 15%, respectively, over the last six months.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
GATX Corporation (GATX): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines Group Inc. AAL and GATX Corporation GATX , each carrying a Zacks Rank #2 (Buy). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Following President Trump's order to levy tariffs on at least $50 billion in Chinese imports, shares of this Memphis, TN-based package-delivery company declined despite reporting better-than-expected results in the fiscal third quarter due to fears of trade contracting.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines Group Inc. AAL and GATX Corporation GATX , each carrying a Zacks Rank #2 (Buy). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines Group Inc. AAL and GATX Corporation GATX , each carrying a Zacks Rank #2 (Buy). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of FedEx CorporationFDX declined 5.1% to $236.27 on Mar 22, despite reporting better-than-expected revenues and earnings per share in the third quarter of fiscal 2018, on Mar 20.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines Group Inc. AAL and GATX Corporation GATX , each carrying a Zacks Rank #2 (Buy). Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of FedEx CorporationFDX declined 5.1% to $236.27 on Mar 22, despite reporting better-than-expected revenues and earnings per share in the third quarter of fiscal 2018, on Mar 20.
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722fa0b6-172a-44bf-8048-a16e7bb0017f
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7123.0
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2018-03-22 00:00:00 UTC
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Beware of the Long Term With Delta Air Lines, Inc. Stock
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AAL
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https://www.nasdaq.com/articles/beware-long-term-delta-air-lines-inc-stock-2018-03-22
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The airline industry and its stocks, like Delta Air Lines, Inc. (NYSE: DAL ), has gone through a very bumpy history, one that has been very cyclical, and one that I fear is going to suck in a lot of investors into making some bad decisions.
The major airlines went through a multi-year consolidation phase. That's because running an airline is extremely difficult. Not only is it capital-intensive, it's essentially a commodity. The airlines have to distinguish themselves by offering differences in experience, and in service.
7 Stocks to Buy on the Dip
In most cases, that means distinguishing between awful experience in service and just plain bad experience in service. The one exception to this seems to always been Southwest Airlines (NYSE: LUV ).
The Least Miserable Way to Fly
At the end of the day, though, it's a matter of the least miserable way to fly. Up until a few years ago, savvy travelers were offered ways that might make a material difference in their experience. For example, if you knew what you were doing, you could earn miles on your favorite airline, and then redeem them by purchasing an economy coach ticket and upgrading to a fancy business class seat for a transcontinental flight. That's something I did on American Airlines (NYSE: AAL ) for many many years.
Then, the airlines finally got smart. They started figuring out ways to squeeze more revenue out of consumers. The 25,000-mile economy-to-coach upgrade on American, round-trip no less, soon became 30,000 miles. Then it became 35,000 miles. Then they started adding co-pays of $75 each way. And so on.
Elite flyer status became easier and easier to get. The benefits of being an elite flyer, such as priority boarding, were effectively taken away by allowing individuals who had the airlines-branded credit card many of the same benefits.
How Delta Air Lines Is Different
Delta Air Lines and DAL stock have benefited from a slightly more prudent strategy towards enhancing revenue. In the company's most recent earnings report, we learned that passenger revenue grew 7% or $525 million. Delta is also focusing more on its business travelers and catering more to them, resulting in the fastest pace of revenue growth for business travelers since 2014.
But DAL stock is also benefited from Delta's focus on improving cargo revenue. For the first time in almost 6 years, the last quarter delivered a revenue increase for this division.
It's always difficult to tell whether an airlines domestic revenue premium, which is 118% of industry average for DAL stock, is the result of having less competition on major routes or because people are willing to pay more for the Delta experience. I tend to believe the former. Nevertheless, it is a premium. And that's been very good for DAL stock.
Some of this may also be the result of having more success with its Comfort Plus product and up-selling people to first class.
Bottom Line on DAL Stock
Nevertheless, one can't get too enthusiastic. Net income for DAL stock was $4.5 billion in 2015, but only $3.58 billion in 2017. Operational cash flow for DAL stock fell from $7.93 billion to $5.1 billion. Free cash flow fell from $5 billion to $1.25 billion.
7 Stocks to Buy on the Dip
While Delta stock has tripled over the past five years, I remain wary of airline stocks in general. They're just too many variables at play, including oil prices, even if you reduce the impact using hedges. The slightest bad news can cause any individual airline to lose a lot of business.
Airlines are too unpredictable in general for a long-term investment, but speculators and traders may find Delta shares to be of interest.
Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years' experience in the stock market, and has written more than 2,000 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.
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The post Beware of the Long Term With Delta Air Lines, Inc. 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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That's something I did on American Airlines (NYSE: AAL ) for many many years. For example, if you knew what you were doing, you could earn miles on your favorite airline, and then redeem them by purchasing an economy coach ticket and upgrading to a fancy business class seat for a transcontinental flight. It's always difficult to tell whether an airlines domestic revenue premium, which is 118% of industry average for DAL stock, is the result of having less competition on major routes or because people are willing to pay more for the Delta experience.
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That's something I did on American Airlines (NYSE: AAL ) for many many years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The airline industry and its stocks, like Delta Air Lines, Inc. (NYSE: DAL ), has gone through a very bumpy history, one that has been very cyclical, and one that I fear is going to suck in a lot of investors into making some bad decisions. How Delta Air Lines Is Different Delta Air Lines and DAL stock have benefited from a slightly more prudent strategy towards enhancing revenue.
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That's something I did on American Airlines (NYSE: AAL ) for many many years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The airline industry and its stocks, like Delta Air Lines, Inc. (NYSE: DAL ), has gone through a very bumpy history, one that has been very cyclical, and one that I fear is going to suck in a lot of investors into making some bad decisions. It's always difficult to tell whether an airlines domestic revenue premium, which is 118% of industry average for DAL stock, is the result of having less competition on major routes or because people are willing to pay more for the Delta experience.
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That's something I did on American Airlines (NYSE: AAL ) for many many years. It's always difficult to tell whether an airlines domestic revenue premium, which is 118% of industry average for DAL stock, is the result of having less competition on major routes or because people are willing to pay more for the Delta experience. And that's been very good for DAL stock.
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bfcc5f52-d55a-49fc-82ea-f26e0596ec5a
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7124.0
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2018-03-21 00:00:00 UTC
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Nasdaq 100 Movers: AAL, LBTYA
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-lbtya-2018-03-21
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nan
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nan
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In early trading on Wednesday, shares of Liberty Global ( LBTYA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, Liberty Global has lost about 9.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.2%. American Airlines Group is showing a gain of 2.9% looking at the year to date performance.
Two other components making moves today are Facebook ( FB ), trading down 2.3%, and Liberty Global ( LBTYK ), trading up 2.4% on the day.
VIDEO: Nasdaq 100 Movers: AAL, LBTYA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.2%. VIDEO: Nasdaq 100 Movers: AAL, LBTYA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is showing a gain of 2.9% looking at the year to date performance.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.2%. VIDEO: Nasdaq 100 Movers: AAL, LBTYA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.2%. VIDEO: Nasdaq 100 Movers: AAL, LBTYA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Liberty Global ( LBTYA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.2%. VIDEO: Nasdaq 100 Movers: AAL, LBTYA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is showing a gain of 2.9% looking at the year to date performance.
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047e650c-9782-461a-9ba4-0c0c105a1aca
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7125.0
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2018-03-21 00:00:00 UTC
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The Zacks Analyst Blog Highlights: BancFirst, Health Insurance, EOG, Wynn and American Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-bancfirst-health-insurance-eog-wynn-and-american
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nan
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nan
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For Immediate Release
Chicago, IL - March 21, 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 BancFirst CorporationBANF , Health Insurance Innovations, Inc.HIIQ , EOG Resources, Inc.EOG , Wynn Resorts, LimitedWYNN and American Airlines Group Inc.AAL .
Here are highlights from Tuesday's Analyst Blog:
Spring Has Come to Warm Us All: 5 Top Stocks to Blossom
Spring is officially in the air. And it isn't only about cleaning your closet, but also cleaning up your portfolio. So, it's time to buy such stocks that have the potential to bloom. Financial and energy-oriented stocks have historically performed better than the general market this warmer season.
Spring breaks, in the meantime, are great for family vacations and trips. Thus, companies that do business in sectors catering to warm weather activities like travel and leisure also tend to do well.
How Will the Stock Market Fare This Spring?
Facebook's worst drop in nearly four years over data breach has made a lot of noise lately. This in turned has sparked a selloff in technology shares, which by the way has been the best performing sector so far this year.
Recent political worry that led to a number of high-profile departures from the Trump administration and a potential global trade war is also keeping a lid on the broader market upside. Trade friction escalated after the White House planned to levy hefty tariffs on Chinese imports, and foreign steel and aluminum.
The economic backdrop, however, paints a rosy picture. Steady rise in wages, record low jobless rate and upbeat consumer confidence will certainly help the stock market return to its winning ways this spring season. Trump's business-friendly policies including tax cuts and repealing regulations will also add to stock market gains. Needless to say, we are heading into April which has been historically good for stocks.
Financial & Energy Shares Outperform
While the spring season bodes well for the broader market, financial and energy sectors have traditionally performed even better. As per CNBC.com, both these sectors have given a staggering return of more than 20% over the past 10 warmer seasons, while the S&P 500 managed an average gain of only 5%.
This time around it won't be different either. Financials are poised to gain as the Fed is widely expected to raise rates by a quarter percentage point this month. As per the CME Group, investors see a 94.4% probability that the central bank will hike rates as near-term inflation expectations climb in March to its highest level in three years.
Higher interest rates will boost bank profits as they increase the spread between what banks earn by funding longer-term assets, such as loans, with shorter-term liabilities. A rise in rates will also enable insurance firms to invest in higher-yielding government securities, thereby leading to greater returns, while brokerage firms and asset managers benefit immensely from rising-rate environments since an increase in rates generally concurs with periods of economic strength and investor enthusiasm.
Coming to the energy sector, it is true that rapid increase in oil supply is leading to the current mismatch between supply and demand. But energy still remains a big growth contributor in Q1, with total earnings for the sector expected to be up 65.7% from the year-earlier period on 15.4% higher revenues (read more: Q1 Earnings Season to Show Growth Acceleration ).
Travel & Leisure Activities Increase in Warm Weather
With the advent of spring, many people spend on outdoor activities and travel is very much on their minds. After all, very few can travel in the harsh winter months. Thus, stocks related to the travel and leisure sector will do well.
Needless to say that consumer sentiment touched a 14-year high this month, as households felt more optimistic about the economy. An uptick in consumer sentiment generally leads to a rise in outlays, eventually benefiting companies related to travel and leisure activities.
5 Stocks to Buy This Spring
If you are looking for some stocks to buy the spring, look no further. Here are five to consider from the aforesaid sectors. These stocks also flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
BancFirst Corporation operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. Currently, the stock has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings moved up 7.6% in the last 60 days. The company's expected growth rate for the current and next quarter is 20.6% and 15.5%, respectively. The stocks projected growth rate for the current year is 24.3%, more than the industry 's rally of 19.7%.
Health Insurance Innovations, Inc. operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States. Recently, the stock has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings moved up 26.7% in the last 60 days. The company's expected growth rate for the current and next quarter is 41.7% and 30.4%, respectively. The stocks projected growth rate for the current year is 46.7%, more than the industry 's rally of 19.6%.
EOG Resources, Inc. explores for, develops, produces, and markets crude oil and natural gas. Currently, the stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings soared 49.8% in the last 60 days. The company's expected growth rate for both the current and next quarter is more than 100%. The stocks projected growth rate for the current year is 278.6%, more than the industry 's rally of 25%. You can see the complete list of today's Zacks #1 Rank stocks here.
Wynn Resorts, Limited develops, owns, and operates destination casino resorts. Recently, the stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings moved up 15% in the last 60 days. The company's expected growth rate for the current and next quarter is 54% and 71.2%, respectively. The stocks projected growth rate for the current year is 43.2%, more than the industry 's rally of 13.8%.
American Airlines Group Inc. through its subsidiaries operates as a network air carrier. Currently, the stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings moved up 15.4% in the last 60 days. The company's expected growth rate for the next quarter is a steady 8.3%. The stocks projected growth rate for the current year is 21.5%, more than the industry 's rally of 16.4%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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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.
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
Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
BancFirst Corporation (BANF): Free Stock Analysis Report
Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report
EOG Resources, Inc. (EOG): 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 BancFirst CorporationBANF , Health Insurance Innovations, Inc.HIIQ , EOG Resources, Inc.EOG , Wynn Resorts, LimitedWYNN and American Airlines Group Inc.AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Recent political worry that led to a number of high-profile departures from the Trump administration and a potential global trade war is also keeping a lid on the broader market upside.
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Stocks recently featured in the blog include BancFirst CorporationBANF , Health Insurance Innovations, Inc.HIIQ , EOG Resources, Inc.EOG , Wynn Resorts, LimitedWYNN and American Airlines Group Inc.AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. An uptick in consumer sentiment generally leads to a rise in outlays, eventually benefiting companies related to travel and leisure activities.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include BancFirst CorporationBANF , Health Insurance Innovations, Inc.HIIQ , EOG Resources, Inc.EOG , Wynn Resorts, LimitedWYNN and American Airlines Group Inc.AAL . 5 Stocks to Buy This Spring If you are looking for some stocks to buy the spring, look no further.
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Stocks recently featured in the blog include BancFirst CorporationBANF , Health Insurance Innovations, Inc.HIIQ , EOG Resources, Inc.EOG , Wynn Resorts, LimitedWYNN and American Airlines Group Inc.AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Financial & Energy Shares Outperform While the spring season bodes well for the broader market, financial and energy sectors have traditionally performed even better.
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fc02188a-7142-4c5c-92f3-8724cc9992f2
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7126.0
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2018-03-20 00:00:00 UTC
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Alaska Air Group Grapples With Cost Woes: Time to Dump?
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AAL
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https://www.nasdaq.com/articles/alaska-air-group-grapples-with-cost-woes%3A-time-to-dump-2018-03-20
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nan
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nan
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We have issued an updated research report on Alaska Air Group, Inc.ALK . The stock has been downgraded to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold). Going by the Zacks proven model, the Sell-rated stocks (#4 or 5) are likely to underperform the broader market over the next one to three months.
Reasons Behind the Downgrade
High costs have been putting pressure on the company's bottom line for quite some time, and the fourth quarter of 2017 was no exception. Moreover, rising costs are likely to hamper first-quarter 2018 results too. Notably, the carrier expects cost per available seat mile (CASM) excluding fuel and special items in the ongoing period to rise approximately 6% year over year.
Additionally, economic fuel cost per gallon is anticipated to grow 18% in the first quarter. Apart from these, high labor and fuel costs plus expenses pertaining to the Virgin America acquisition might hit the bottom line going forward.
The company has also been struggling on the unit revenue front. Last quarter, passenger revenue per available seat mile (PRASM: a key measure of unit revenues) decreased 5.1% year over year. A continuous below-par performance of this key metric will probably affect the stock significantly.
The negativity revolving around the stock can be gauged from the Zacks Consensus Estimate for current-quarter earnings being pegged at a loss of 13 cents per share. The consensus mark has been lowered from the previous earnings estimate of 47 cents in the last 60 days.
The company's unimpressive Momentum Score of F further highlights its short-term unattractiveness.
Due to these headwinds, shares of the company have declined 12.8% in the last three months, underperforming the industry 's gain of 2.3%.
Stocks to Consider
Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , AZUL SA AZUL and American Airlines Group Inc. AAL . While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), AZUL and American Airlines carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of International Consolidated Airlines, AZUL and American Airlines have rallied more than 11%, 13% and 18%, respectively, in the last six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
AZUL SA (AZUL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , AZUL SA AZUL and American Airlines Group Inc. AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Reasons Behind the Downgrade High costs have been putting pressure on the company's bottom line for quite some time, and the fourth quarter of 2017 was no exception.
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Stocks to Consider Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , AZUL SA AZUL and American Airlines Group Inc. AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), AZUL and American Airlines carry a Zacks Rank #2 (Buy).
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Stocks to Consider Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , AZUL SA AZUL and American Airlines Group Inc. AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), AZUL and American Airlines carry a Zacks Rank #2 (Buy).
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Stocks to Consider Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , AZUL SA AZUL and American Airlines Group Inc. AAL . Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, passenger revenue per available seat mile (PRASM: a key measure of unit revenues) decreased 5.1% year over year.
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2a81335b-7f65-452b-831d-fb822fcb9970
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7127.0
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2018-03-20 00:00:00 UTC
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Spring Has Come to Warm Us All: 5 Top Stocks to Blossom
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AAL
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https://www.nasdaq.com/articles/spring-has-come-warm-us-all-5-top-stocks-blossom-2018-03-20
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nan
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nan
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Spring is officially in the air. And it isn't only about cleaning your closet, but also cleaning up your portfolio. So, it's time to buy such stocks that have the potential to bloom. Financial and energy-oriented stocks have historically performed better than the general market this warmer season.
Spring breaks, in the meantime, are great for family vacations and trips. Thus, companies that do business in sectors catering to warm weather activities like travel and leisure also tend to do well.
How Will the Stock Market Fare This Spring?
Facebook's worst drop in nearly four years over data breach has made a lot of noise lately. This in turned has sparked a selloff in technology shares, which by the way has been the best performing sector so far this year.
Recent political worry that led to a number of high-profile departures from the Trump administration and a potential global trade war is also keeping a lid on the broader market upside. Trade friction escalated after the White House planned to levy hefty tariffs on Chinese imports, and foreign steel and aluminum.
The economic backdrop, however, paints a rosy picture. Steady rise in wages, record low jobless rate and upbeat consumer confidence will certainly help the stock market return to its winning ways this spring season. Trump's business-friendly policies including tax cuts and repealing regulations will also add to stock market gains. Needless to say, we are heading into April which has been historically good for stocks.
Financial & Energy Shares Outperform
While the spring season bodes well for the broader market, financial and energy sectors have traditionally performed even better. As per CNBC.com, both these sectors have given a staggering return of more than 20% over the past 10 warmer seasons, while the S&P 500 managed an average gain of only 5%.
This time around it won't be different either. Financials are poised to gain as the Fed is widely expected to raise rates by a quarter percentage point this month. As per the CME Group, investors see a 94.4% probability that the central bank will hike rates as near-term inflation expectations climb in March to its highest level in three years.
Higher interest rates will boost bank profits as they increase the spread between what banks earn by funding longer-term assets, such as loans, with shorter-term liabilities. A rise in rates will also enable insurance firms to invest in higher-yielding government securities, thereby leading to greater returns, while brokerage firms and asset managers benefit immensely from rising-rate environments since an increase in rates generally concurs with periods of economic strength and investor enthusiasm.
Coming to the energy sector, it is true that rapid increase in oil supply is leading to the current mismatch between supply and demand. But energy still remains a big growth contributor in Q1, with total earnings for the sector expected to be up 65.7% from the year-earlier period on 15.4% higher revenues (read more: Q1 Earnings Season to Show Growth Acceleration ).
Travel & Leisure Activities Increase in Warm Weather
With the advent of spring, many people spend on outdoor activities and travel is very much on their minds. After all, very few can travel in the harsh winter months. Thus, stocks related to the travel and leisure sector will do well.
Needless to say that consumer sentiment touched a 14-year high this month, as households felt more optimistic about the economy. An uptick in consumer sentiment generally leads to a rise in outlays, eventually benefiting companies related to travel and leisure activities.
5 Stocks to Buy This Spring
If you are looking for some stocks to buy the spring, look no further. Here are five to consider from the aforesaid sectors. These stocks also flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
BancFirst CorporationBANF operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. Currently, the stock has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings moved up 7.6% in the last 60 days. The company's expected growth rate for the current and next quarter is 20.6% and 15.5%, respectively. The stocks projected growth rate for the current year is 24.3%, more than the industry 's rally of 19.7%.
Health Insurance Innovations, Inc.HIIQ operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States. Recently, the stock has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings moved up 26.7% in the last 60 days. The company's expected growth rate for the current and next quarter is 41.7% and 30.4%, respectively. The stocks projected growth rate for the current year is 46.7%, more than the industry 's rally of 19.6%.
EOG Resources, Inc.EOG explores for, develops, produces, and markets crude oil and natural gas. Currently, the stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings soared 49.8% in the last 60 days. The company's expected growth rate for both the current and next quarter is more than 100%. The stocks projected growth rate for the current year is 278.6%, more than the industry 's rally of 25%. You can see the complete list of today's Zacks #1 Rank stocks here.
Wynn Resorts, LimitedWYNN develops, owns, and operates destination casino resorts. Recently, the stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings moved up 15% in the last 60 days. The company's expected growth rate for the current and next quarter is 54% and 71.2%, respectively. The stocks projected growth rate for the current year is 43.2%, more than the industry 's rally of 13.8%.
American Airlines Group Inc.AAL through its subsidiaries operates as a network air carrier. Currently, the stock has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings moved up 15.4% in the last 60 days. The company's expected growth rate for the next quarter is a steady 8.3%. The stocks projected growth rate for the current year is 21.5%, more than the industry 's rally of 16.4%.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
BancFirst Corporation (BANF): Free Stock Analysis Report
Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report
EOG Resources, Inc. (EOG): 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 through its subsidiaries operates as a network air carrier. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Recent political worry that led to a number of high-profile departures from the Trump administration and a potential global trade war is also keeping a lid on the broader market upside.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL through its subsidiaries operates as a network air carrier. An uptick in consumer sentiment generally leads to a rise in outlays, eventually benefiting companies related to travel and leisure activities.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL through its subsidiaries operates as a network air carrier. 5 Stocks to Buy This Spring If you are looking for some stocks to buy the spring, look no further.
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American Airlines Group Inc.AAL through its subsidiaries operates as a network air carrier. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report Wynn Resorts, Limited (WYNN): Free Stock Analysis Report BancFirst Corporation (BANF): Free Stock Analysis Report Health Insurance Innovations, Inc. (HIIQ): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Financial & Energy Shares Outperform While the spring season bodes well for the broader market, financial and energy sectors have traditionally performed even better.
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861a2efa-b06e-4d52-b802-f71d8c6b54ff
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7128.0
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2018-03-19 00:00:00 UTC
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The Zacks Analyst Blog Highlights: FedEx, American Airlines, Allegiant and United Parcel
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-fedex-american-airlines-allegiant-and-united-parcel
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nan
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nan
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For Immediate Release
Chicago, IL - March 19, 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 FedEx CorporationFDX , American Airlines Group Inc.AAL , Allegiant Travel CompanyALGT and United Parcel Service, Inc.UPS .
Here are highlights from Friday's Analyst Blog:
Is a Q3 Earnings Beat in the Cards for FedEx (FDX)?
FedEx Corporation is set to release third-quarter fiscal 2018 results, after the closing bell on Mar 20.
Last quarter, the company posted a positive earnings surprise of 10.8%. It reported better-than-expected results owing to increased package volumes during the peak holiday season. Both the top as well as the bottom line increased 9.3% and 13.6%, respectively, in the second quarter.
Let's see how things are shape up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that FedEx is likely to beat on earnings this quarter because it has the perfect combination of the following two key ingredients:
Zacks ESP : FedEx has an Earnings ESP of +2.20%, representing the percentage difference between the Most Accurate estimate of $3.13 per share and the Zacks Consensus Estimate, pegged lower at $3.06. A favourable Zacks ESP is indicative of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : FedEx carries a Zacks Rank #3 (Hold). Note that the stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates. Together with a positive ESP, the combination makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
What's Driving Better-Than-Expected Earnings?
Strong growth of e-commerce is likely to boost results in the third quarter. The Zacks Consensus Estimate for revenues at the FedEx Express (including TNT Express) division stands at $9,127 million, much above the year-ago reported figure of $6,779 million. For Ground and Freight revenues, the consensus mark is pegged at $5,170 million and $1,612 million, respectively, greater than the year-ago figures of $4,688 million and $1,492 million.
The new tax law, which reduces corporate tax rate significantly, is a huge positive for transportation stocks and FedEx is no exception. With decreased corporate taxes, the company's bottom line is likely to get a boost in the to-be-reported quarter.
Additionally, the company has hiked shipping rates since January 2018. Notably, FedEx Express, Ground, Freight and Home Delivery shipping rates in the United States have been increased by an average of 4.9%. This move is in turn anticipated to aid the company's top line in the period to be reported.
However, high costs are likely to hurt the company's bottom line in the third quarter. Significant investments at the company's Ground unit have been pushing up costs. Moreover, the company's high debt-levels are a cause for worry.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider the following stocks, which have the right combination of elements to deliver an earnings beat in the upcoming releases:
American Airlines Group Inc. has an Earnings ESP of +17.50% and a Zacks Rank #2.
Allegiant Travel Company has an Earnings ESP of +3.11% and a Zacks Rank of 3.
United Parcel Service, Inc. is also a #3 Ranked player and has an Earnings ESP of +1.45%.
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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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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include FedEx CorporationFDX , American Airlines Group Inc.AAL , Allegiant Travel CompanyALGT and United Parcel Service, Inc.UPS . Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. 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 FedEx CorporationFDX , American Airlines Group Inc.AAL , Allegiant Travel CompanyALGT and United Parcel Service, Inc.UPS . Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for revenues at the FedEx Express (including TNT Express) division stands at $9,127 million, much above the year-ago reported figure of $6,779 million.
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Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include FedEx CorporationFDX , American Airlines Group Inc.AAL , Allegiant Travel CompanyALGT and United Parcel Service, Inc.UPS . Our proven model shows that FedEx is likely to beat on earnings this quarter because it has the perfect combination of the following two key ingredients: Zacks ESP : FedEx has an Earnings ESP of +2.20%, representing the percentage difference between the Most Accurate estimate of $3.13 per share and the Zacks Consensus Estimate, pegged lower at $3.06.
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Stocks recently featured in the blog include FedEx CorporationFDX , American Airlines Group Inc.AAL , Allegiant Travel CompanyALGT and United Parcel Service, Inc.UPS . Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. However, high costs are likely to hurt the company's bottom line in the third quarter.
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e4eb0425-3a08-4072-b6e3-dc1843bf067f
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7129.0
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2018-03-16 00:00:00 UTC
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Is The Market Pricing Hawaiian Holdings Fairly?
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AAL
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https://www.nasdaq.com/articles/market-pricing-hawaiian-holdings-fairly-2018-03-16
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nan
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nan
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Hawaiian Holdings ( HA ), which operates Hawaiian Airlines, saw its stock price fall by around 29% in 2017, largely on account of increased competition as Southwest is expected to make an entry into Hawaii . Hawaiian Airlines is the largest airline in Hawaii and the 10th largest domestic airline in the U.S. based on revenue per passenger mile. The company's revenue grew to $2.7 billion (+10% year-on-year), primarily driven by growth in Available seat miles ( ASM ) and Revenue per passenger mile ( RPM ). The growth in RPM was based on strong demand in North American routes and the company's expansion of Hawaii to Japan service. Our expectation for 2018 is based on strong trends in Passenger yield in both domestic and international markets, coupled with the performance cargo market.
We have created an interactive dashboard analysis to estimate Hawaiian airline's valuation based on its expected revenues for fiscal 2018. You can make changes to these variables to arrive at your own price estimate for the stock.
Hawaiian Holdings' revenue comes from two primary sources: Passenger revenue and other revenue. The passenger revenue is derived from three major geographic areas: approximately 53% comes from flights between U.S. mainland and Hawaii, 22% comes from flights within Hawaii, and approximately 25% comes from International routes.
We estimate Hawaiian Holdings' revenue using the following steps. The average seat miles, load factor, and passenger yield have been estimated. The revenue for Passenger segment is arrived at by multiplying the three metrics. The Other revenues have been estimated based on historical revenue growth. The total revenues for Hawaiian Holdings are then calculated by adding the revenues for the two divisions.
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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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The growth in RPM was based on strong demand in North American routes and the company's expansion of Hawaii to Japan service. We have created an interactive dashboard analysis to estimate Hawaiian airline's valuation based on its expected revenues for fiscal 2018. The average seat miles, load factor, and passenger yield have been estimated.
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Hawaiian Airlines is the largest airline in Hawaii and the 10th largest domestic airline in the U.S. based on revenue per passenger mile. The company's revenue grew to $2.7 billion (+10% year-on-year), primarily driven by growth in Available seat miles ( ASM ) and Revenue per passenger mile ( RPM ). We have created an interactive dashboard analysis to estimate Hawaiian airline's valuation based on its expected revenues for fiscal 2018.
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Hawaiian Airlines is the largest airline in Hawaii and the 10th largest domestic airline in the U.S. based on revenue per passenger mile. The company's revenue grew to $2.7 billion (+10% year-on-year), primarily driven by growth in Available seat miles ( ASM ) and Revenue per passenger mile ( RPM ). Hawaiian Holdings' revenue comes from two primary sources: Passenger revenue and other revenue.
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The company's revenue grew to $2.7 billion (+10% year-on-year), primarily driven by growth in Available seat miles ( ASM ) and Revenue per passenger mile ( RPM ). We have created an interactive dashboard analysis to estimate Hawaiian airline's valuation based on its expected revenues for fiscal 2018. Hawaiian Holdings' revenue comes from two primary sources: Passenger revenue and other revenue.
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0b08f48e-1ebe-4c63-9755-da2f2b8c82a1
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7130.0
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2018-03-16 00:00:00 UTC
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Is a Beat in the Cards for FedEx (FDX) Stock in Q3 Earnings?
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AAL
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https://www.nasdaq.com/articles/is-a-beat-in-the-cards-for-fedex-fdx-stock-in-q3-earnings-2018-03-16
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nan
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nan
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FedEx CorporationFDX is set to release third-quarter fiscal 2018 results, after the closing bell on Mar 20.
Last quarter, the company posted a positive earnings surprise of 10.8%. It reported better-than-expected results owing to increased package volumes during the peak holiday season. Both the top as well as the bottom line increased 9.3% and 13.6%, respectively, in the second quarter.
Let's see how things are shape up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that FedEx is likely to beat on earnings this quarter because it has the perfect combination of the following two key ingredients:
Zacks ESP : FedEx has an Earnings ESP of +2.20%, representing the percentage difference between the Most Accurate estimate of $3.13 per share and the Zacks Consensus Estimate, pegged lower at $3.06. A favourable Zacks ESP is indicative of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : FedEx carries a Zacks Rank #3 (Hold). Note that the stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates. Together with a positive ESP, the combination makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
FedEx Corporation Price and EPS Surprise
FedEx Corporation Price and EPS Surprise | FedEx Corporation Quote
What is Driving Better-Than-Expected Earnings?
Strong growth of e-commerce is likely to boost results in the third quarter. The Zacks Consensus Estimate for revenues at the FedEx Express (including TNT Express) division stands at $9,127 million, much above the year-ago reported figure of $6,779 million. For Ground and Freight revenues, the consensus mark is pegged at $5,170 million and $1,612 million, respectively, greater than the year-ago figures of $4,688 million and $1,492 million.
The new tax law, which reduces corporate tax rate significantly, is a huge positive for transportation stocks and FedEx is no exception. With decreased corporate taxes, the company's bottom line is likely to get a boost in the to-be-reported quarter.
Additionally, the company has hiked shipping rates since January 2018. Notably, FedEx Express, Ground, Freight and Home Delivery shipping rates in the United States have been increased by an average of 4.9%. This move is in turn anticipated to aid the company's top line in the period to be reported.
However, high costs are likely to hurt the company's bottom line in the third quarter. Significant investments at the company's Ground unit have been pushing up costs. Moreover, the company's high debt-levels are a cause for worry.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider the following stocks, which have the right combination of elements to deliver an earnings beat in the upcoming releases:
American Airlines Group Inc. AAL has an Earnings ESP of +17.50% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel Company ALGT has an Earnings ESP of +3.11% and a Zacks Rank of 3.
United Parcel Service, Inc. UPS is also a #3 Ranked player and has an Earnings ESP of +1.45%.
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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Stocks to Consider Investors interested in the broader Transportation sector may also consider the following stocks, which have the right combination of elements to deliver an earnings beat in the upcoming releases: American Airlines Group Inc. AAL has an Earnings ESP of +17.50% and a Zacks Rank #2. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that FedEx is likely to beat on earnings this quarter because it has the perfect combination of the following two key ingredients: Zacks ESP : FedEx has an Earnings ESP of +2.20%, representing the percentage difference between the Most Accurate estimate of $3.13 per share and the Zacks Consensus Estimate, pegged lower at $3.06.
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Other Stocks to Consider Investors interested in the broader Transportation sector may also consider the following stocks, which have the right combination of elements to deliver an earnings beat in the upcoming releases: American Airlines Group Inc. AAL has an Earnings ESP of +17.50% and a Zacks Rank #2. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. FedEx Corporation Price and EPS Surprise FedEx Corporation Price and EPS Surprise | FedEx Corporation Quote What is Driving Better-Than-Expected Earnings?
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Other Stocks to Consider Investors interested in the broader Transportation sector may also consider the following stocks, which have the right combination of elements to deliver an earnings beat in the upcoming releases: American Airlines Group Inc. AAL has an Earnings ESP of +17.50% and a Zacks Rank #2. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that FedEx is likely to beat on earnings this quarter because it has the perfect combination of the following two key ingredients: Zacks ESP : FedEx has an Earnings ESP of +2.20%, representing the percentage difference between the Most Accurate estimate of $3.13 per share and the Zacks Consensus Estimate, pegged lower at $3.06.
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Other Stocks to Consider Investors interested in the broader Transportation sector may also consider the following stocks, which have the right combination of elements to deliver an earnings beat in the upcoming releases: American Airlines Group Inc. AAL has an Earnings ESP of +17.50% and a Zacks Rank #2. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. With decreased corporate taxes, the company's bottom line is likely to get a boost in the to-be-reported quarter.
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b1846668-6c9a-415d-8410-3215ca9684ea
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7131.0
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2018-03-16 00:00:00 UTC
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Will United Continental's (UAL) Dog Fiasco Lead to New Laws?
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AAL
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https://www.nasdaq.com/articles/will-united-continentals-ual-dog-fiasco-lead-to-new-laws-2018-03-16
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nan
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nan
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The latest fiasco at United Continental Holdings, Inc.UAL , which resulted in the tragic death of a black French bulldog puppy on one of its flights on Mar 12, 2018, has not gone unnoticed by lawmakers in the United States.
According to a Reuters report , U.S. senators - John Kennedy and Catherine Cortez Masto - have introduced a legislation aimed at preventing airlines from putting live animals in overhead bins. The senators have also proposed the imposition of fines on violations of the animal-friendly measure.
Following the dog fiasco, shares of United Continental have lost 2.6% of its value this week versus the 0.7% decline of its industry .
Reasons Behind the Proposed Bill
The senators filed the bill (christened Welfare of Our Furry Friends Act) following the public outcry prompted by the puppy's death on an United Airlines flight (1284) from Houston to New York. The carrier, however, apologised the next day (Mar 13) for the tragic incident, which is currently under investigation. Also, it has promised to issue bag tags for carriers of animals to avoid a repetition of the same incident. We note that United Airlines is the wholly-owned subsidiary of United Continental.
The owner of the bulldog puppy was reportedly insisted by a flight attendant to put the bag containing the animal in an overhead locker. As a result of this inhuman instruction, the dog died by the time the flight landed in New York's LaGuardia Airport.The Chicago-based carrier, however, said that the flight attendant was unaware of the dog in the bag.
Whatever, be the real story, it cannot be denied that United Airlines' track record with respect to customer service over the past year is not one to be proud of. It all started with the infamous David Dao incident on Apr 9, 2017.
Animal Deaths: Highest on United Flights in 2017
The death of the puppy further highlights the troubles faced by animals on flights of this Zacks Rank #3 (Hold) carrier. This is because the highest number of animal deaths among U.S. carriers in 2017 occurred in United Airlines' flights.
According to data released by the Department of Transportation, 18 of the 24 animal deaths on U.S. carriers were related to United Airlines flights. On the flip side, other legacy carriers - American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL - reported only two animal deaths each in 2017. The data also revealed that 138,178 animals were transported on United Airlines flights in the same year.
Notably, the highest number of animal deaths on United Airlines flights prompted Kennedy to shoot off a letter to the carrier's President Scott Kirby demanding an explanation regarding the issue.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Animal-friendly Measures on Flights in Focus
Even before the death of the French puppy, the issue of carrying animals on flights was very much in focus. In fact, Delta had announced a change in its policy pertaining to onboard service animals from March. Risks related to untrained animals in planes due to lack of regulations led to the change in policy.
At Delta, the concerned passenger onboard would need to furnish documents underlining the need for carrying the animal on the flight. Also, the person has to provide proof related to its training and vaccinations within 48 hours before the flight. Southwest Airlines Co. LUV is also reviewing its policy pertaining to onboard service animals.
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
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the flip side, other legacy carriers - American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL - reported only two animal deaths each in 2017. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. According to a Reuters report , U.S. senators - John Kennedy and Catherine Cortez Masto - have introduced a legislation aimed at preventing airlines from putting live animals in overhead bins.
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On the flip side, other legacy carriers - American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL - reported only two animal deaths each in 2017. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the highest number of animal deaths on United Airlines flights prompted Kennedy to shoot off a letter to the carrier's President Scott Kirby demanding an explanation regarding the issue.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On the flip side, other legacy carriers - American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL - reported only two animal deaths each in 2017. Animal Deaths: Highest on United Flights in 2017 The death of the puppy further highlights the troubles faced by animals on flights of this Zacks Rank #3 (Hold) carrier.
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On the flip side, other legacy carriers - American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL - reported only two animal deaths each in 2017. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier, however, apologised the next day (Mar 13) for the tragic incident, which is currently under investigation.
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aa2630bc-7053-44bf-ae27-40d008eff900
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7132.0
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2018-03-15 00:00:00 UTC
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American Airlines (AAL) Surges 22% in 6 Months: Here's Why
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-surges-22-in-6-months%3A-heres-why-2018-03-15
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nan
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nan
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Shares of American Airlines Group IncAAL have gained 22% in the past six months, outperforming the Zacks Airline industry 's rally of 17%.
Let's take a look into the factors responsible for the impressive price performance.
American Airlines has an impressive earnings surprise history, having reported better-than-expected earnings per share in each of the trailing four quarters. Also, in the fourth quarter of 2017, this Fort Worth, TX- based carrier's earnings and revenues exceeded estimates and improved year over year. Results were aided by strong demand for air travel.
The company performed well on the unit revenue front too. Total revenues per available seat miles (TRASM) increased 5.6% (on a year-over-year basis). In fact, this marked the fifth successive quarter in which the metric grew on a year-over-year basis, since the fourth quarter of 2014. The measure is expected to lie within 2-4% in the first quarter of 2018. Apart from American Airlines, other airline players like United Continental Holdings, Inc. UAL , Hawaiian Holdings, Inc. HA and JetBlue Airways Corporation JBLU are expected to perform well on the unit revenue front in the same time period.
In fact, a solid earnings track record generally works as a catalyst in boosting the stock price. This is because it indicates the company's ability to surpass earnings estimates. More often than not, investors take into account a company's buoyant earnings history while betting on the stock with the expectation that it will continue surpassing earnings estimates in its next releases.
Furthermore, the company's efforts to reward shareholders through dividends and share buybacks raise optimism on the stock's performance. To this end, American Airlines returned $1.7 billion to shareholders through dividends and buybacks in 2017. Its employee-friendly attitude and efforts to modernize its fleet are also encouraging. Evidently, employees at American Airlines earned more than $240 million in 2017 as part of the company's profit sharing scheme.
Estimate Revisions & Style Score
Upward estimate revisions reflect optimism in a stock's prospects. American Airlines scores impressively on this front too. In fact, this Zacks Rank #2 (Buy) company has seen the Zacks Consensus Estimate for current-quarter and current-year earnings being revised 5.7% and 1.9% upward, respectively, in the last 30 days. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Additionally, the stock has a VGM Score of B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
Such a score allows investors to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor's Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): 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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Shares of American Airlines Group IncAAL have gained 22% in the past six months, outperforming the Zacks Airline industry 's rally of 17%. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): 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. Furthermore, the company's efforts to reward shareholders through dividends and share buybacks raise optimism on the stock's performance.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): 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. Shares of American Airlines Group IncAAL have gained 22% in the past six months, outperforming the Zacks Airline industry 's rally of 17%. Apart from American Airlines, other airline players like United Continental Holdings, Inc. UAL , Hawaiian Holdings, Inc. HA and JetBlue Airways Corporation JBLU are expected to perform well on the unit revenue front in the same time period.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): 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. Shares of American Airlines Group IncAAL have gained 22% in the past six months, outperforming the Zacks Airline industry 's rally of 17%. Apart from American Airlines, other airline players like United Continental Holdings, Inc. UAL , Hawaiian Holdings, Inc. HA and JetBlue Airways Corporation JBLU are expected to perform well on the unit revenue front in the same time period.
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Shares of American Airlines Group IncAAL have gained 22% in the past six months, outperforming the Zacks Airline industry 's rally of 17%. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): 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. American Airlines has an impressive earnings surprise history, having reported better-than-expected earnings per share in each of the trailing four quarters.
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a22dcf12-1f7c-44c9-8ce4-3147008f7bf4
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7133.0
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2018-03-14 00:00:00 UTC
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Go Long United Continental Holdings Inc Despite the Headline Turbulence
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AAL
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https://www.nasdaq.com/articles/go-long-united-continental-holdings-inc-despite-headline-turbulence-2018-03-14
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While the headlines flying out of the White House are causing havoc in the stock market, United Continental Holdings Inc (NYSE: UAL ) staff just created their own nasty headline that is likely to impact its stock for the near-term.
Source: Shutterstock
Last night, we learned of the tragic story of a dog that died on board a UAL flight because of improper handling by the crew. This is a sad and totally avoidable incident.
Shocking headlines are chronic with airlines. They always find new ways to create their own drama. We all remember the video of a passenger being dragged off a plane. And just when we think we are done, out comes another one that causes jaws to drop even wider.
As a life-long dog owner, my thoughts go out to the family. But this doesn't change the fact that UAL stock continues to perform according to plan - and therein lies my opportunity to reload a winning trade. I bet that this headline will eventually fade and support for United Airlines stock will hold through 2018.
This is a bullish stock market so dips overall are long entry opportunities. Here I structured my trade so I can profit even without a rally. I merely need UAL to hold support so I can retain maximum gains. If a rally ensues my profits will come faster.
10 Dividend Aristocrats You Never Have to Worry About
Fundamentally, UAL is priced in line with its major competitors like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). And overall all three are priced with a low price-to-earnings ratio around 11. Furthermore, with United's Price to Book ratio just over 2, I am confident that owning UAL shares at a discount will not be a major disaster.
Most Wall Street experts rate the stock as a hold so there's no help from them. Current stock price is near the lows of their price ranges. Technically, the shares have lagged its competition. In the past 12 months, UAL is flat while it's competition is up at least 15% or more so there could be a catch up rally and its future.
Click to Enlarge The zone around $68 per share has been pivotal for the past 5 years, so it should provide decent support for UAL on dips. These are areas where bulls and bears fight it out hard, thereby creating stand stills. Just above $61 there's a similar zone only for a much wider range.
So for the next few months I am confident that there's plenty of support below current price against which I can sell risk on dips.
UAL Stock Charts
The Bet: Sell the UAL Sep $55 put for $1.25. Here I have a 85% theoretical chance of success. If the price falls below that level then I would suffer losses below $53.75.
Selling naked puts is daunting, especially near all-time-high stock markets especially when the headlines are flying fast and furious. Those who want to mitigate that risk can sell spreads instead.
Trump to Qualcomm, Inc. Stock: 'Watch Out Below!'
The Alternate Bet: Sell the UAL Sep $55/$50 credit put spread where my risk is limited. If the spread wins would deliver 15% in yield.
Ultimately, regardless of how careful I am, investing in stocks is fraught with danger, so I never risk more than I am willing to lose.
Get my newsletter for free here . Nicolas Chahine is the managing director of SellSpreads.com . As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on twitter and stocktwits .
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The post Go Long United Continental Holdings Inc Despite the Headline 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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10 Dividend Aristocrats You Never Have to Worry About Fundamentally, UAL is priced in line with its major competitors like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). Source: Shutterstock Last night, we learned of the tragic story of a dog that died on board a UAL flight because of improper handling by the crew. But this doesn't change the fact that UAL stock continues to perform according to plan - and therein lies my opportunity to reload a winning trade.
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10 Dividend Aristocrats You Never Have to Worry About Fundamentally, UAL is priced in line with its major competitors like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips While the headlines flying out of the White House are causing havoc in the stock market, United Continental Holdings Inc (NYSE: UAL ) staff just created their own nasty headline that is likely to impact its stock for the near-term. UAL Stock Charts The Bet: Sell the UAL Sep $55 put for $1.25.
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10 Dividend Aristocrats You Never Have to Worry About Fundamentally, UAL is priced in line with its major competitors like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips While the headlines flying out of the White House are causing havoc in the stock market, United Continental Holdings Inc (NYSE: UAL ) staff just created their own nasty headline that is likely to impact its stock for the near-term. UAL Stock Charts The Bet: Sell the UAL Sep $55 put for $1.25.
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10 Dividend Aristocrats You Never Have to Worry About Fundamentally, UAL is priced in line with its major competitors like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). I bet that this headline will eventually fade and support for United Airlines stock will hold through 2018. Furthermore, with United's Price to Book ratio just over 2, I am confident that owning UAL shares at a discount will not be a major disaster.
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4d0b6eb1-e609-4a8e-8be7-13ab8fcd118c
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7134.0
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2018-03-14 00:00:00 UTC
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Copa Holdings' (CPA) February Traffic & Load Factor Rise
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AAL
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https://www.nasdaq.com/articles/copa-holdings-cpa-february-traffic-load-factor-rise-2018-03-14
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nan
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nan
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Shares of Copa Holdings, S.A.CPA gained 1.9% at the close of business on Mar 13, following the release of its impressive traffic statistics for February. Traffic, measured in revenue passenger miles (RPMs), was 1.63 billion, up 10.6% from the year-ago figure.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) improved 7.7% to 1.96 billion. Load factor (% of seats filled by passengers) also expanded 210 basis points (bps) to 83.1% in February as traffic growth outpaced capacity.
In the first two months of 2018, the carrier generated RPMs of 3.45 billion (up 8% year over year) and ASMs of 4.13 billion (up 6.5%). Load factor registered a rise of 120 bps year over year to 83.6% during the period.
Copa Holdings, S.A. Price
Copa Holdings, S.A. Price | Copa Holdings, S.A. Quote
Last month, the company reported fourth-quarter earnings numbers. The carrier performed well, outperforming revenues and earnings estimates. Moreover, the bottom line surged 66.2% year over year. Also, quarterly revenues improved 12.4% on a year-over-year basis. High passenger revenues bolstered the top line.
Zacks Rank & Key Picks
Copa Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of International Consolidated Airlines, American Airlines and Delta Air Lines rallied more than 28%, 36% and 22%, respectively, in a year.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Copa Holdings, S.A.CPA gained 1.9% at the close of business on Mar 13, following the release of its impressive traffic statistics for February.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy).
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy).
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. In the first two months of 2018, the carrier generated RPMs of 3.45 billion (up 8% year over year) and ASMs of 4.13 billion (up 6.5%).
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0fc4861a-fdb0-4cfc-b4b6-584b336bbc19
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7135.0
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2018-03-14 00:00:00 UTC
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Alaska Air Group's February Traffic Up, Load Factor Down
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AAL
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https://www.nasdaq.com/articles/alaska-air-groups-february-traffic-up-load-factor-down-2018-03-14
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nan
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nan
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Alaska Air Group, Inc . ALK reported traffic results for February. Traffic, measured in revenue passenger miles (RPMs) increased 7.9% to 3.78 billion.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 9% to 4.76 billion. However, load factor or percentage of seats filled by passengers contracted 80 basis points to 79.4% as capacity expansion outpaced traffic growth.
In the first two months of 2018, the carrier generated RPMs of 7.75 billion (up 5.6% year over year) and ASMs of 9.99 billion (up 7.7% year over year). Load factor was pegged at 78% compared with 79.4% in the first two months of 2017.
Alaska Air Group, Inc. Price
Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote
For the first quarter of 2018, the carrier expects cost per available seat mile (CASM) excluding fuel and special items to rise approximately 6% year over year. While economic fuel cost per gallon is anticipated to grow 18% in the first quarter. Meanwhile, capacity is anticipated to expand around 8% in the quarter.
We note that the bottom line had contracted significantly in the fourth quarter of 2017. The cost projections imply that the bottom line will remain under pressure in the first quarter as well.
Zacks Rank & Key Picks
Alaska Air Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of International Consolidated Airlines, American Airlines and Delta Air Lines have rallied more than 28%, 36% and 22%, respectively, in a year.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion - more than a 3,800% increase in the previous 12 months. They're now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. However, load factor or percentage of seats filled by passengers contracted 80 basis points to 79.4% as capacity expansion outpaced traffic growth.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy).
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group, Inc. Price Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote For the first quarter of 2018, the carrier expects cost per available seat mile (CASM) excluding fuel and special items to rise approximately 6% year over year.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Alaska Air Group, Inc. Price Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote For the first quarter of 2018, the carrier expects cost per available seat mile (CASM) excluding fuel and special items to rise approximately 6% year over year.
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4bdfb90b-8f14-4b16-84e5-681a6b50cf14
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7136.0
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2018-03-13 00:00:00 UTC
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JetBlue's February Traffic Rises, 1Q18 RASM View Tweaked
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AAL
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https://www.nasdaq.com/articles/jetblues-february-traffic-rises-1q18-rasm-view-tweaked-2018-03-13
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nan
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JetBlue Airways CorporationJBLU posted a substantial rise in air traffic for February. Traffic, measured in revenue passenger miles (RPMs), improved 6.8% year over year to 3.69 billion. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) also expanded 6.8% to 4.47 billion.
Load factor or percentage of seats filled by passengers remained flat at 82.6% in the month as traffic growth was commensurate with capacity expansion.
The low-cost carrier registered a completion factor (system wide) of 98.4% in the month with 74.6% flights on schedule.
JetBlue Airways Corporation Price
JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote
In the first couple of months in 2018, the carrier posted a 2.3% increase in RPMs while ASMs rose 3.3%, both on a year-over-year basis. Load factor contracted 80 basis points year over year to 82.2%.
1Q18 RASM View Tweaked
This Long Island City, NY-based airline now expects first-quarter 2018 operating revenue per available seat mile (RASM) to improve 3.5-5.5%. Prior guidance was an increase of 2.5-5.5%.
For the first quarter of 2018, the carrier anticipates capacity to grow between 3.5% and 5.5%. The metric is further projected to increase in the 6.5-8.5% range for the current year.
Zacks Rank & Key Picks
JetBlue carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Shares of International Consolidated Airlines, American Airlines and Delta Air Lines have rallied more than 28%, 37% and 21%, respectively, in a year.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . 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 International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor or percentage of seats filled by passengers remained flat at 82.6% in the month as traffic growth was commensurate with capacity expansion.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . 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 International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy).
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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 American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . JetBlue Airways Corporation Price JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote In the first couple of months in 2018, the carrier posted a 2.3% increase in RPMs while ASMs rose 3.3%, both on a year-over-year basis.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . 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 International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy).
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8ea26aa9-1f54-45c4-911d-ca7a42fa5bf8
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7137.0
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2018-03-13 00:00:00 UTC
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Hawaiian Holdings' Arm Revises Guidance for 1Q18 & Full Year
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AAL
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https://www.nasdaq.com/articles/hawaiian-holdings-arm-revises-guidance-for-1q18-full-year-2018-03-13
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nan
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nan
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Hawaiian Holdings, Inc .'s HA wholly owned subsidiary, Hawaiian Airlines, has issued an updated outlook for first-quarter 2018 and the full year. Moreover, as of Jan 1, this year, the company adopted a new accounting standard, affecting the company's accounting for frequent flyer mileage sales, passenger revenues, other operating revenues as well as selling costs.
Q1 Projection
The company has raised guidance for first-quarter operating revenue per available seat mile (RASM) owing to better-than-expected passenger revenue performance in each of its geographies as well as higher cargo demand across the network. It now expects RASM to increase 3-5%, up from its previous prediction of a decline of 0.5% to a rise of 2.5%.
The airline now projects operating cost per available seat mile (CASM) excluding fuel and special items to grow between 4% and 6% in the period under review. Prior view was an increase in the range of 3.5-6.5%.
Additionally, the company has altered its view for available seat miles (ASMs) as well as fuel consumption partly due to adjustments pertaining to aircraft deployments. It now anticipates ASMs to climb between 4% and 5%. Former outlook had called for an ascent of 3-5% in the metric. While fuel consumption is estimated to expand between 5% and 7%, above the past forecast of 4-6% improvement.
Hawaiian Holdings, Inc. Price
Hawaiian Holdings, Inc. Price | Hawaiian Holdings, Inc. Quote
Full-Year Forecast
The company has increased its expectation for CASM excluding aircraft fuel and special items and lowered the same for ASMs due to delays in aircraft delivery. The carrier now anticipates CASM excluding aircraft fuel and special items to inch up between 1% and 4%. Earlier view was a decline of 0.5% to a rise of 2.5%. Meanwhile, ASMs are assumed to appreciate between 4% and 7% in the concerned quarter, lower than the preceding forecast of 5-8% increase.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of International Consolidated Airlines, American Airlines and Delta Air Lines have rallied more than 28%, 37% and 21%, respectively, in a year.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free 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 International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. The airline now projects operating cost per available seat mile (CASM) excluding fuel and special items to grow between 4% and 6% in the period under review.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free 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 International Consolidated Airlines Group SA (ICAGY): 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 Full-Year Forecast The company has increased its expectation for CASM excluding aircraft fuel and special items and lowered the same for ASMs due to delays in aircraft delivery.
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Click to get this free 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 International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Hawaiian Holdings, Inc. Price Hawaiian Holdings, Inc. Price | Hawaiian Holdings, Inc. Quote Full-Year Forecast The company has increased its expectation for CASM excluding aircraft fuel and special items and lowered the same for ASMs due to delays in aircraft delivery.
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Some better-ranked stocks in the airline space are International Consolidated Airlines Group SA ICAGY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL . Click to get this free 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 International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, the company has altered its view for available seat miles (ASMs) as well as fuel consumption partly due to adjustments pertaining to aircraft deployments.
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99209354-5aa1-4646-bd52-93f7e297eb75
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7138.0
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2018-03-13 00:00:00 UTC
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3 Dividend-Paying Airline Stocks to Boost Your Portfolio
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AAL
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https://www.nasdaq.com/articles/3-dividend-paying-airline-stocks-to-boost-your-portfolio-2018-03-13
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nan
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nan
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The robust U.S. job data for February bodes well for the domestic economy. In fact, American businesses have recorded the strongest jobs growth in a year and a half in February. Factors like warmer-than-normal weather conditions and Trump's business-friendly tax reform contributed to the impressive numbers.
While the economy is currently basking in the glory of the February job data, it is worth noting that market participants were gripped by fears of inflation only a month back. Notably, both the Dow as well as the S&P 500 had entered into the correction territory on Feb 9. In fact, the significant increase in the CBOE Volatility Index (VIX) highlighted the heightened volatility in the market at that time.
Given the fluctuating nature of the U.S. equity market, investing in companies that pay consistent dividends seem to be a prudent strategy right now. This is because such companies are financially stable and mature and can even generate steady cash flow irrespective of market conditions.
Airlines: A Sector to Consider
A sector that boasts well-paying stocks in terms of dividends, is the one having airline stocks. Infact, airlines have rebounded nicely after having laid low by hurricanes last year.
Markedly, the financial prosperity of airline stocks has contributed to their shareholder-friendly attitude. This is well-reflected by its healthy price performance over the last six months. The Zacks Airline industry has gained 13.7% in the period, outperforming the S&P 500's 11.9% rally.
Factors like healthy demand for air travel and improving unit scenario have contributed to the bullish sentiment surrounding airlines. The Zacks Industry Rank of 97 (out of 250 plus groups) carried by the Zacks Airline industry further highlights the attractiveness of airlines. The favorable rank places the companies in the top 38% of the Zacks industries.
We put our entire 250-plus industries into two groups: the top half (i.e., industries with the best average Zacks Rank) and the bottom half (the industries with the worst average Zacks Rank).
Over the last 10 years, using a one week rebalance, the top half beat the bottom half by a factor of more than 2 to 1.
Click here to know more: About Zacks Industry Rank
Moreover, the fact that Warren Buffett - one of the most revered investors of all time - continues to show his affinity for airline stocks bodes well for the sector. Last month, the "Oracle of Omaha," in an interview to CNBC , did not reject the possibility of eventually owning an airline company, thus showcasing his interest in the space.
More Dividend Hikes Likely Under the New Tax Law
The new tax law (Tax Cuts and Jobs Act), which reduces corporate tax rate significantly, is a huge positive for airline stocks. This is because it is likely to boost cash flow and in turn improve the bottom line of carriers. Moreover, the fact that the likes of Southwest Airlines Co. LUV and JetBlue Airways Corp. JBLU declared bonuses ($1,000 per member), following the tax overhaul, highlights the optimism on stocks pertaining to this measure.
Meanwhile, the likes of Alaska Air Group, Inc. ALK and SkyWest, Inc. SKYW have already announced hikes in their respective dividend payouts in 2018. We expect other carriers to do the same in view of the Tax Cuts and Jobs Act.
Notably, huge savings owing to the reduction in corporate tax rate implies that more cash will be available to fund their capital expenditures, acquisitions and share repurchases, among others. This bodes well for shareholders who will gain in the form of dividend hikes and more buybacks.
Valuation Signals More Upside
Going by the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization) ratio - which is often used to value airline stocks - given their significant debt levels, and high depreciation and amortization expenses, the industry does not look expensive at this point.
The industry currently has a trailing 12-month EV/EBITDA ratio of 6.9, which compares favorably with the market at large, as the current EV/EBITDA for the S&P 500 is at 12.2. The industry's favorable positioning compared with the overall market certainly signals more upside.
Dividend Paying Airlines Should Grace Your Portfolio
In view of the tailwinds mentioned above, we believe that stocks from the airline space should be present in one's portfolio. Moreover, dealing with dividend stocks is a prudent strategy during uncertain times like the current scenario. Markedly, the best dividend stocks that pay out a healthy yield and have strong prospects are less susceptible to market downturns.
Given the significant reduction in taxes, we expect the already cheap airline stocks to fly higher, going ahead. Consequently, we have zeroed in on three stocks in this high flying space, which have a strong dividend paying history. Moreover, each of the selected stocks sport a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Delta Air Lines, Inc.DAL is a leading provider of scheduled air transportation for passengers and cargo in the United States as well as internationally. The company, based in Atlanta, GA, has a Zacks Rank #2 and a Value Score of A.
The company has a dividend yield of 2.18%. Also, Delta has been consistently rewarding its shareholders through dividends since 2013. Notably, it has hiked dividend pay-outs significantly for four consecutive years since then. The latest hike was announced in May 2017, when the company's board of directors approved a 50.6% dividend hike in its quarterly cash dividend to 30.5 cents per share. We expect the company to raise its dividend this year too.
American Airlines Group, Inc.AAL , headquartered in Fort Worth, TX, is another established name in the airline space paying regular dividends. This Zacks Rank #2 legacy carrier has a Value Score of A. The company has a dividend yield of 0.71%.
International Consolidated Airlines Group, S.A.ICAGY based in Madrid, Spain, was founded in 2010. The carrier has a Zacks Rank #1. The company has a dividend yield of 2.48%.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): 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 , headquartered in Fort Worth, TX, is another established name in the airline space paying regular dividends. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. While the economy is currently basking in the glory of the February job data, it is worth noting that market participants were gripped by fears of inflation only a month back.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group, Inc.AAL , headquartered in Fort Worth, TX, is another established name in the airline space paying regular dividends. We put our entire 250-plus industries into two groups: the top half (i.e., industries with the best average Zacks Rank) and the bottom half (the industries with the worst average Zacks Rank).
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group, Inc.AAL , headquartered in Fort Worth, TX, is another established name in the airline space paying regular dividends. The Zacks Industry Rank of 97 (out of 250 plus groups) carried by the Zacks Airline industry further highlights the attractiveness of airlines.
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American Airlines Group, Inc.AAL , headquartered in Fort Worth, TX, is another established name in the airline space paying regular dividends. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Industry Rank of 97 (out of 250 plus groups) carried by the Zacks Airline industry further highlights the attractiveness of airlines.
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deb7dd84-ae86-479a-b4db-c5c446ab50d9
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7139.0
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2018-03-13 00:00:00 UTC
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United Lifts Guidance: Is It Time to Buy Airline Stocks?
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AAL
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https://www.nasdaq.com/articles/united-lifts-guidance-it-time-buy-airline-stocks-2018-03-13
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nan
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nan
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Shares of United UAL climbed on Tuesday after the company announced that it upped its unit revenue guidance for the first quarter and provided strong full-year earnings guidance. Meanwhile, fellow U.S. airline powers Delta DAL and American AAL also saw their stock prices climb, which makes this a great time to see if any of these stocks are worth buying at the moment.
United
In a SEC filing that was made public today, United announced that it expects to post adjusted earnings between $6.50 per share and $8.50 per share in fiscal 2018. Our current Zacks Consensus Estimates are calling for the company to post earnings of $7.50 per share, which falls directly in the middle of United's latest guidance and would mark a 10.95% year-over-year surge.
Investors might be happy to the note that the airline's new high-side EPS guidance comes in $0.46 above our current highest earnings estimate. This might signal that some optimistic analysts will soon up their estimates based on United's new EPS projections.
The company also provided initial 2020 earnings guidance and noted that its CAGR target for EPS is 25%. United projects it will post an EPS figure between $11 and $13 in 2020, based on this three-year growth target.
Along with these more long-term projections, United upped its Q1 fiscal 2018 passenger revenue per available seat mile (PRASM) guidance from between 0% and 2% to 1% and 3%. This important metric is one that airline industry investors pay close attention to as it is a solid way to measure efficiency and profitability.
United is currently a Zacks Rank #3 (Hold) and sports an "A" grade for Value and a "B" for Momentum in our Style Scores system.
Delta
Delta announced earlier this month that the company carried 13 million passengers in February, which marked a record high for the normally slow travel period. As one might expect, the company's domestic revenue passenger miles (RPM) climbed 5.4%.
Looking ahead to fiscal 2018, Delta is expected to see its earnings jump by 29% to reach $6.36 per share, while its sales are projected to climb 5.8% to $43.63 billion. The airline power is also expected to expand its EPS figure at an annualized rate of 11.60% over the next three to five years.
Delta is currently a Zacks Rank #2 (Buy) and rocks an overall "B" VGM score, which is supported by its "A" grades for Value and Momentum. Investors should also note that Delta is currently trading at 8.8x earnings-a discount compared to the "Transportation - Airline" industry average as well as its biggest competitors United and American.
American
Aside from the recent cancelation of flights in the Northeast due to severe storms, American Airlines also looks to be a strong stock at the moment. AAL is currently a Zacks Rank #2 (Buy) and boasts an "A" grade for Value, along with some strong growth prospects.
The company is projected to see its fiscal 2018 earnings surge 20.7% to hit $5.89 per share. On top of that, our current estimates call for American's 2019 EPS figure to climb another 19% above our current 2018 projections. American's revenues are also expected to jump nearly 7% this year to reach $45.16 billion.
Furthermore, American's bottom line is projected to expand at an annualized rate of nearly 17% over the next three to five years, which is strong for a company of its size and age. These estimates could climb even higher if recent American initiatives, such as its new "Basic Economy" options on some trans-Atlantic flights, prove to be solid revenue drivers.
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
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, fellow U.S. airline powers Delta DAL and American AAL also saw their stock prices climb, which makes this a great time to see if any of these stocks are worth buying at the moment. AAL is currently a Zacks Rank #2 (Buy) and boasts an "A" grade for Value, along with some strong growth prospects. 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 To read this article on Zacks.com click here.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, fellow U.S. airline powers Delta DAL and American AAL also saw their stock prices climb, which makes this a great time to see if any of these stocks are worth buying at the moment. AAL is currently a Zacks Rank #2 (Buy) and boasts an "A" grade for Value, along with some strong growth prospects.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, fellow U.S. airline powers Delta DAL and American AAL also saw their stock prices climb, which makes this a great time to see if any of these stocks are worth buying at the moment. AAL is currently a Zacks Rank #2 (Buy) and boasts an "A" grade for Value, along with some strong growth prospects.
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Meanwhile, fellow U.S. airline powers Delta DAL and American AAL also saw their stock prices climb, which makes this a great time to see if any of these stocks are worth buying at the moment. AAL is currently a Zacks Rank #2 (Buy) and boasts an "A" grade for Value, along with some strong growth prospects. 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 To read this article on Zacks.com click here.
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b8668297-c0c0-4078-81c8-bea86144a032
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7140.0
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2018-03-09 00:00:00 UTC
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Notable Friday Option Activity: AGN, AAL, HUM
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AAL
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https://www.nasdaq.com/articles/notable-friday-option-activity-agn-aal-hum-2018-03-09
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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 Allergan PLC (Symbol: AGN), where a total volume of 16,195 contracts has been traded thus far today, a contract volume which is representative of approximately 1.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 41% of AGN's average daily trading volume over the past month, of 3.9 million shares. Especially high volume was seen for the $150 strike call option expiring March 09, 2018 , with 2,882 contracts trading so far today, representing approximately 288,200 underlying shares of AGN. Below is a chart showing AGN's trailing twelve month trading history, with the $150 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 18,552 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 40.7% of AAL's average daily trading volume over the past month, of 4.6 million shares. Particularly high volume was seen for the $56 strike call option expiring March 09, 2018 , with 1,561 contracts trading so far today, representing approximately 156,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $56 strike highlighted in orange:
And Humana Inc. (Symbol: HUM) options are showing a volume of 4,098 contracts thus far today. That number of contracts represents approximately 409,800 underlying shares, working out to a sizeable 40.4% of HUM's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $290 strike call option expiring April 20, 2018 , with 1,371 contracts trading so far today, representing approximately 137,100 underlying shares of HUM. Below is a chart showing HUM's trailing twelve month trading history, with the $290 strike highlighted in orange:
For the various different available expirations for AGN options , AAL options , or HUM 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 $56 strike call option expiring March 09, 2018 , with 1,561 contracts trading so far today, representing approximately 156,100 underlying shares of AAL. Below is a chart showing AGN's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 18,552 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 40.7% of AAL's average daily trading volume over the past month, of 4.6 million shares.
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That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 40.7% of AAL's average daily trading volume over the past month, of 4.6 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $56 strike highlighted in orange: And Humana Inc. (Symbol: HUM) options are showing a volume of 4,098 contracts thus far today. Below is a chart showing AGN's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 18,552 contracts thus far today.
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That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 40.7% of AAL's average daily trading volume over the past month, of 4.6 million shares. Below is a chart showing AGN's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 18,552 contracts thus far today. Particularly high volume was seen for the $56 strike call option expiring March 09, 2018 , with 1,561 contracts trading so far today, representing approximately 156,100 underlying shares of AAL.
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Particularly high volume was seen for the $56 strike call option expiring March 09, 2018 , with 1,561 contracts trading so far today, representing approximately 156,100 underlying shares of AAL. Below is a chart showing HUM's trailing twelve month trading history, with the $290 strike highlighted in orange: For the various different available expirations for AGN options , AAL options , or HUM options , visit StockOptionsChannel.com. Below is a chart showing AGN's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 18,552 contracts thus far today.
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ad647a27-d563-4944-b560-6fce1730e209
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7141.0
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2018-03-08 00:00:00 UTC
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April 27th Options Now Available For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/april-27th-options-now-available-american-airlines-group-aal-2018-03-08
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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 April 27th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new April 27th contracts and identified one put and one call contract of particular interest.
The put contract at the $53.00 strike price has a current bid of $1.16. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $53.00, but will also collect the premium, putting the cost basis of the shares at $51.84 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $55.44/share today.
Because the $53.00 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 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 2.19% return on the cash commitment, or 15.99% 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 $53.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $58.50 strike price has a current bid of $1.01. If an investor was to purchase shares of AAL stock at the current price level of $55.44/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $58.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.34% if the stock gets called away at the April 27th 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 $58.50 strike highlighted in red:
Considering the fact that the $58.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.82% boost of extra return to the investor, or 13.31% annualized, which we refer to as the YieldBoost .
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $55.44) to be 30%. 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 $58.50 strike highlighted in red: Considering the fact that the $58.50 strike represents an approximate 6% 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 April 27th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $58.50 strike highlighted in red: Considering the fact that the $58.50 strike represents an approximate 6% 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 April 27th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new April 27th 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 $58.50 strike highlighted in red: Considering the fact that the $58.50 strike represents an approximate 6% 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 April 27th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new April 27th 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 April 27th 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 $58.50 strike highlighted in red: Considering the fact that the $58.50 strike represents an approximate 6% 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 April 27th expiration.
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c1ad04f0-3b50-4507-987e-08f65ae14188
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7142.0
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2018-03-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines, Delta Air, United Continental, JetBlue and Alaska Air
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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-continental-jetblue
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nan
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nan
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For Immediate Release
Chicago, IL - March 6, 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 Continental Holdings, Inc.UAL , JetBlue Airways CorporationJBLU and Alaska Air Group, Inc.ALK .
Here are highlights from Monday's Analyst Blog:
Nor'Easter Cripples Airline Operations: What Lies Ahead?
Airline operations have been disrupted severely over the last couple of days due to the deadly nor'easter in the Mid-Atlantic and Northeast of United States. Notably, this winter storm has impeded travel plans and caused harassments to passengers. It caused heavy snowfall accompanied by hurricane-force winds in excess of 120 kilometers per hour in the affected areas.
Flight Cancellations at Large Due to the Storm
With the storm disrupting normal life, it is of little wonder that travel plans were thrown haywire as major airline operators had to cancel multiple flights. In fact, the severity of the storm can be realized from the fact that approximately 4000 flights were cancelled in the United States by various carriers like American Airlines Group Inc., Delta Air Lines, Inc. and United Continental Holdings, Inc. since Mar 2, 2018.
While Delta and United Continental carry a Zacks Rank #2 (Buy), American Airlines has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The worst scenario was on Friday with carriers in the United States cancelling 3,423 flights while more than 4,000 were delayed. In fact, operations were disrupted severely at hubs like Boston, New York and Philadelphia.
More Worries Loom Ahead?
Although the winds have weakened, storm-related harassments still linger, thousands of homes in eastern United States are still without power. According to a Reuters report , coastal areas of Maine, MA, among others might still be affected by floods and extreme high tides.
To compensate for the harassment of passengers, who had planned to travel in the affected period, most carriers including American Airlines, Delta and JetBlue Airways Corporation are offering various facilities. For example, they can opt for change of flights without incurring any extra cost.
Some Similar Incidents
Weather-related issues have hurt airlines previously as well. In January 2018, operations at carriers were disrupted by winter storm Grayson. Last year, back-to-back hurricanes (Harvey, Irma and Maria) dented airline operations significantly.
Also, winter storm Stella had crippled airline operations considerably by impeding travel. In 2016, Hurricane Matthew had spelt doom for airlines, causing extensive damage. In fact, such acts of nature hinder the schedules of carriers, thus causing multiple flight cancellations.
Other Factors Hurting Airlines
Apart from the storm-related disruption in operations, airlines have been confronted with a few other challenges.
Of late, the disagreement between legacy carriers - American Airlines and United Continental - pertaining to gate allocation at Chicago's O'Hare International Airport has been grabbing headlines. Both carriers, having major hubs at Chicago's largest airport, are levelling charges against each other. Unless resolved quickly, this issue might snowball into a major crisis.
Moreover, fears related to capacity overexpansion were re-ignited with January traffic reports of most carriers like Alaska Air Group, Inc., exhibiting a fall in load factor (percentage of seats filled by passengers). The downturn can be attributed to capacity expansion outweighing traffic growth.
We remind investors that shares of United Continental declined significantly in January, even after reporting better-than-expected results in the fourth quarter on issues related to capacity.
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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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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Continental Holdings, Inc.UAL , JetBlue Airways CorporationJBLU and Alaska Air Group, Inc.ALK . 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 To read this article on Zacks.com click here. To compensate for the harassment of passengers, who had planned to travel in the affected period, most carriers including American Airlines, Delta and JetBlue Airways Corporation are offering various facilities.
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Stocks recently featured in the blog include American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Continental Holdings, Inc.UAL , JetBlue Airways CorporationJBLU and Alaska Air Group, Inc.ALK . 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 To read this article on Zacks.com click here. In fact, the severity of the storm can be realized from the fact that approximately 4000 flights were cancelled in the United States by various carriers like American Airlines Group Inc., Delta Air Lines, Inc. and United Continental Holdings, Inc. since Mar 2, 2018.
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Stocks recently featured in the blog include American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Continental Holdings, Inc.UAL , JetBlue Airways CorporationJBLU and Alaska Air Group, Inc.ALK . 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 To read this article on Zacks.com click here. In fact, the severity of the storm can be realized from the fact that approximately 4000 flights were cancelled in the United States by various carriers like American Airlines Group Inc., Delta Air Lines, Inc. and United Continental Holdings, Inc. since Mar 2, 2018.
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Stocks recently featured in the blog include American Airlines Group Inc.AAL , Delta Air Lines, Inc.DAL , United Continental Holdings, Inc.UAL , JetBlue Airways CorporationJBLU and Alaska Air Group, Inc.ALK . 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 To read this article on Zacks.com click here. Flight Cancellations at Large Due to the Storm With the storm disrupting normal life, it is of little wonder that travel plans were thrown haywire as major airline operators had to cancel multiple flights.
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917eb7bf-a289-409d-b28e-0803a111230c
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7143.0
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2018-02-27 00:00:00 UTC
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Why Airline ETF May Fly Low Despite Decent Earnings
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AAL
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https://www.nasdaq.com/articles/why-airline-etf-may-fly-low-despite-decent-earnings-2018-02-27
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nan
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nan
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The pure-play aviation ETF U.S. Global Jets ETFJETS lost about 0.8% in one month (as of Feb 23, 2018)despite reporting mixed-to-upbeat earnings. The space has a top Zacks Industry Rank (top 42%). Investors still seem cautious about investing in it.
Let's delve a little deeper into the earnings results and the concerns associated with airline stocks.
Q4 Results in Detail
Delta Air Lines Inc.'sDAL fourth-quarter earnings (excluding 16 cents from non-recurring items) of 96 cents per share beat the Zacks Consensus Estimate of 88 cents. Moreover, the bottom line expanded 17.1% on a year-over-year basis aided by higher revenues. Operating revenues came in at $10,245 million, surpassing the Zacks Consensus Estimate of $10,158.8 million. The top line increased 8.3% from the year-ago figure. The stock has a Zacks Rank #2 (Buy) with a VGM (Value, Growth, Momentum) Score of B (read : ETFs & Stocks to Gain on Record Thanksgiving Travel ).
United Continental Holdings UAL reported better-than-expected earnings and revenues in the fourth quarter of 2017. Earnings (excluding 59 cents from non-recurring items) came in at $1.40 per share, beating the Zacks Consensus Estimate of $1.34. The bottom line was, however, 21.4% lower than the year-ago figure due to higher costs. Operating revenues of $9,438 million (up 4.3% year over year) were also ahead of the Zacks Consensus Estimate of $9,427.9 million. The stock has a Zacks Rank #2 with a VGM Score of B.
Low cost carrier Southwest Airlines'LUV earnings per share (excluding $2.41 from non-recurring items) of 77 cents beat the Zacks Consensus Estimate of 76 cents. The bottom line also increased 4.1% on a year-over-year basis. Operating revenues of $5,274 million surpassed the Zacks Consensus Estimate of $5,242.1 million. Also, the top line improved 3.9% year over year. It has a Zacks Rank #2 with a VGM Score of A.
American Airlines Group Inc .'s AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Quarterly earnings increased 3% on a year-over-year basis despite higher costs. Revenues of $10,600 million were up 8.3% year over year and beat the Zacks Consensus Estimate of $10,581.1 million. It has a VGM Score of B.
Low-cost carrier JetBlue Airways Corporation 's JBLU fourth-quarter earnings per share (excluding $1.76 from non-recurring items) of 32 cents fell short of the Zacks Consensus Estimate of 34 cents. The bottom line decreased 36% on a year-over-year basis due to high costs. Operating revenues of $1,756 million matched the Zacks Consensus Estimate. Revenues increased 7% from the year-ago figure. This Zacks Rank #3 company has a VGM Score of C.
Alaska Air Group Inc. ALK reported fourth-quarter 2017 earnings (excluding $2.14 from non-recurring items) of 83 cents, meeting the Zacks Consensus Estimate. The bottom line plunged 46.79% on a year-over-year basis. Revenues came in at $1,962 million, marginally above the Zacks Consensus Estimate of $1,961.8 million. The top line also improved 28.7% on a year-over-year basis. It has a VGM Score of B.
Wall of Worry
As per an article published on Wall Street Journal , most leading global airlinesannounced greater-than-anticipated expansion plans lately. Several operators also indicated a rise in costs. Plus, fuel price is no longer as low as it was two years back. As per analysts, "a combination of low fuel prices, control of costs, and restrained growth" led leading airlines to score solid earnings in recent times. Now, the gradual retreat of those very factors may bring about pain in the space (read: ETFs in Focus as Oil Breaches $70 Mark ).
Nevertheless, investors having a strong stomach for oil-related risks and faith in the compelling valuation of airline stocks, may still play the space. Below we highlight the fund in detail.
JETS in Focus
The $93.8 million-fund holds more than 30 stocks in its portfolio and is concentrated on a few individual securities. American Airlines (12.29%), United Continental (12.15%), Delta Airlines (11.49%), Southwest Airlines (10.65%), and take the first four positions in the fund. JetBlue and Alaska Air hold the seventh and tenth positions in the fund with a 3.81% and 3.51% weight, respectively. The product charges 60 bps in fees (see all industrials ETFs ).
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Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
US GLOBAL JETS (JETS): 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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's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. As per analysts, "a combination of low fuel prices, control of costs, and restrained growth" led leading airlines to score solid earnings in recent times.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Q4 Results in Detail Delta Air Lines Inc.'sDAL fourth-quarter earnings (excluding 16 cents from non-recurring items) of 96 cents per share beat the Zacks Consensus Estimate of 88 cents.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Q4 Results in Detail Delta Air Lines Inc.'sDAL fourth-quarter earnings (excluding 16 cents from non-recurring items) of 96 cents per share beat the Zacks Consensus Estimate of 88 cents.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. The space has a top Zacks Industry Rank (top 42%).
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181b38f3-676d-4159-b788-cae8da4ed430
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7144.0
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2018-02-26 00:00:00 UTC
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Monday's ETF Movers: IYT, IDU
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AAL
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https://www.nasdaq.com/articles/mondays-etf-movers-iyt-idu-2018-02-26
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In trading on Monday, the iShares Transportation Average ETF ( IYT ) is outperforming other ETFs, up about 1.6% on the day. Components of that ETF showing particular strength include shares of American Airlines Group ( AAL ), up about 2.9% and shares of Union Pacific ( UNP ), up about 2.9% on the day.
And underperforming other ETFs today is the iShares U.S. Utilities ETF ( IDU ), off about 0.5% in Monday afternoon trading. Among components of that ETF with the weakest showing on Monday were shares of Westar Energy ( WR ), lower by about 1.9%, and shares of One Gas (OGS), lower by about 1.8% on the day.
VIDEO: Monday's ETF Movers: IYT, IDU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 2.9% and shares of Union Pacific ( UNP ), up about 2.9% on the day. Among components of that ETF with the weakest showing on Monday were shares of Westar Energy ( WR ), lower by about 1.9%, and shares of One Gas (OGS), lower by about 1.8% on the day. VIDEO: Monday's ETF Movers: IYT, IDU The views and 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 2.9% and shares of Union Pacific ( UNP ), up about 2.9% on the day. In trading on Monday, the iShares Transportation Average ETF ( IYT ) is outperforming other ETFs, up about 1.6% on the day. VIDEO: Monday's ETF Movers: IYT, IDU The views and 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 2.9% and shares of Union Pacific ( UNP ), up about 2.9% on the day. In trading on Monday, the iShares Transportation Average ETF ( IYT ) is outperforming other ETFs, up about 1.6% on the day. Among components of that ETF with the weakest showing on Monday were shares of Westar Energy ( WR ), lower by about 1.9%, and shares of One Gas (OGS), lower by about 1.8% on the day.
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Components of that ETF showing particular strength include shares of American Airlines Group ( AAL ), up about 2.9% and shares of Union Pacific ( UNP ), up about 2.9% on the day. In trading on Monday, the iShares Transportation Average ETF ( IYT ) is outperforming other ETFs, up about 1.6% on the day. And underperforming other ETFs today is the iShares U.S. Utilities ETF ( IDU ), off about 0.5% in Monday afternoon trading.
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bfc6695d-b59c-433a-8f53-cccc4e6769b7
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7145.0
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2018-02-26 00:00:00 UTC
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Buffett Talks Up Airlines and Amazon, Is Down on Bonds
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AAL
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https://www.nasdaq.com/articles/buffett-talks-airlines-and-amazon-down-bonds-2018-02-26
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nan
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Bloomberg News
Warren Buffett, whose Berkshire Hathaway once publicly shunned airlines, told CNBC on Monday morning that he wouldn't "rule out" owning an entire airline.
Despite earlier reservations about the industry, Berkshire (ticker: BRK.A) currently holds stakes ranging from 6.5% to 9.5% in four airlines: United Continental (UAL), American (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV).
Still, Buffett noted on Monday that Berkshire generally doesn't "like to go over 10%" ownership of any company.
He said that competitive pressures were stronger in airlines, where low-cost carriers have hurt the major airlines, than in the railroad business, where Berkshire owns the Burlington Northern Santa Fe.
Airlines have always been subject "to someone doing something very dumb competitively" and that the industry was "suicidally competitive" for decades, he said.
As for the the high market valuation of Amazon.com (AMZN), Bufettt said it wasn't surprising to him, acknowledging that he had "blown it" by not investing in the company.
"I'm amazed at the managerial talent of Jeff Bezos," Buffett told CNBC. Buffett was asked about the favorable comments he made about Amazon at Berkshire's annual meeting last May, when Amazon traded around $993 a share. It's now $1,500. Buffett added that he "wouldn't bet" against Amazon.
Buffett says equity investors shouldn't be fazed by the upward move so far in the yield on the 10-year Treasury note, which has risen to about 2.9% from 2.4% a year ago.
Concerns about higher rates led to the 10% market pullback that began in late January that has been mostly retraced. Buffett did add that the relative appeal of stocks would diminish with a sharp upward move in bond yields.
"If you told me that interest rates would be 15% next year, there are a lot of equities that I wouldn't want to own." He said if the 30-year gets to a 4.5% yield, it might have an impact on stocks.
Buffett continues to favor stocks over bonds, saying its "idiotic" to won a 30-year Treasury bond yielding about 3%. He said that 3% yield pales in comparison with businesses earning 12% returns on equity as many companies now do.
Buffett compared equities with bonds that don't have the "coupons" or returns printed on them. It's the just of investors to figure out the potential returns. The problem with bonds, he noted, is that the coupon never rises, but tends to increase over time with stocks.
Elaborating on comments that he made in his annual shareholder letter released over the weekend that high prices are making it difficult for Berkshire to find and buy attractive businesses, Buffett said that individual investors have an advantage because individual stocks are priced more cheaply than whole businesses.
"You can buy small pieces of businesses for less than whole businesses. You get a bargain as an investor compared to what I can get at Berkshire in buying a whole business," Buffett added.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite earlier reservations about the industry, Berkshire (ticker: BRK.A) currently holds stakes ranging from 6.5% to 9.5% in four airlines: United Continental (UAL), American (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV). As for the the high market valuation of Amazon.com (AMZN), Bufettt said it wasn't surprising to him, acknowledging that he had "blown it" by not investing in the company. Buffett says equity investors shouldn't be fazed by the upward move so far in the yield on the 10-year Treasury note, which has risen to about 2.9% from 2.4% a year ago.
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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. Despite earlier reservations about the industry, Berkshire (ticker: BRK.A) currently holds stakes ranging from 6.5% to 9.5% in four airlines: United Continental (UAL), American (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV). Buffett was asked about the favorable comments he made about Amazon at Berkshire's annual meeting last May, when Amazon traded around $993 a share.
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Despite earlier reservations about the industry, Berkshire (ticker: BRK.A) currently holds stakes ranging from 6.5% to 9.5% in four airlines: United Continental (UAL), American (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV). Bloomberg News Warren Buffett, whose Berkshire Hathaway once publicly shunned airlines, told CNBC on Monday morning that he wouldn't "rule out" owning an entire airline. Buffett says equity investors shouldn't be fazed by the upward move so far in the yield on the 10-year Treasury note, which has risen to about 2.9% from 2.4% a year ago.
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Despite earlier reservations about the industry, Berkshire (ticker: BRK.A) currently holds stakes ranging from 6.5% to 9.5% in four airlines: United Continental (UAL), American (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV). Bloomberg News Warren Buffett, whose Berkshire Hathaway once publicly shunned airlines, told CNBC on Monday morning that he wouldn't "rule out" owning an entire airline. Buffett compared equities with bonds that don't have the "coupons" or returns printed on them.
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78db08e1-f085-4446-9348-8afde4f7b51e
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7146.0
|
2018-02-26 00:00:00 UTC
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Monday Sector Leaders: Technology & Communications, Industrial
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AAL
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https://www.nasdaq.com/articles/monday-sector-leaders-technology-communications-industrial-2018-02-26
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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 Technology & Communications companies are outperforming other sectors, up 1.1%. Within that group, HP Inc (Symbol: HPQ) and Qualcomm Inc (Symbol: QCOM) are two of the day's stand-outs, showing a gain of 5.9% and 4.8%, respectively. Among technology ETFs , one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 1.3% on the day, and up 8.15% year-to-date. HP Inc, meanwhile, is up 11.52% year-to-date, and Qualcomm Inc is up 3.66% year-to-date. Combined, HPQ and QCOM make up approximately 2.2% of the underlying holdings of XLK.
The next best performing sector is the Industrial sector, higher by 1.1%. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Union Pacific Corp (Symbol: UNP) are the most notable, showing a gain of 3.2% and 2.8%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF ( XLI ), which is up 1.3% in midday trading, and up 3.97% on a year-to-date basis. American Airlines Group Inc, meanwhile, is up 6.10% year-to-date, and Union Pacific Corp is up 3.49% year-to-date. Combined, AAL and UNP make up approximately 5.5% of the underlying holdings of XLI.
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, seven 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 UNP make up approximately 5.5% of the underlying holdings of XLI. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Union Pacific Corp (Symbol: UNP) are the most notable, showing a gain of 3.2% and 2.8%, respectively. Combined, HPQ and QCOM make up approximately 2.2% of the underlying holdings of XLK.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Union Pacific Corp (Symbol: UNP) are the most notable, showing a gain of 3.2% and 2.8%, respectively. Combined, AAL and UNP make up approximately 5.5% of the underlying holdings of XLI. Among technology ETFs , one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 1.3% on the day, and up 8.15% year-to-date.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Union Pacific Corp (Symbol: UNP) are the most notable, showing a gain of 3.2% and 2.8%, respectively. Combined, AAL and UNP make up approximately 5.5% of the underlying holdings of XLI. Among technology ETFs , one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 1.3% on the day, and up 8.15% year-to-date.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Union Pacific Corp (Symbol: UNP) are the most notable, showing a gain of 3.2% and 2.8%, respectively. Combined, AAL and UNP make up approximately 5.5% of the underlying holdings of XLI. Within that group, HP Inc (Symbol: HPQ) and Qualcomm Inc (Symbol: QCOM) are two of the day's stand-outs, showing a gain of 5.9% and 4.8%, respectively.
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6971096f-6330-43fd-9421-65bc2a7a5c9e
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7147.0
|
2018-02-22 00:00:00 UTC
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How Expensive Is It For Southwest Airlines To Operate A Flight?
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AAL
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https://www.nasdaq.com/articles/how-expensive-it-southwest-airlines-operate-flight-2018-02-22
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nan
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nan
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Have you ever wondered what it costs a big airline to operate a typical flight? For instance for a flight from New York to Los Angeles, how much would Southwest Airlines ( LUV ) spend on its crew, fuel, and other cost items? This note brings you our interactive dashboard that combines our in-house data analysis with our proprietary technology to give you the flexibility to understand how different cost buckets vary with flight length, aircraft sizes, and average jet fuel price for Southwest. Our interactive dashboard can help you answers questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how an increase in fuel price may impact Southwest Airlines' flight operating expense.
Our base case shows a typical flight of 160 seat capacity covering nearly 2500 miles between New York and Los Angeles. Based on the figures reported by Bureau of Transportation Statistics and Southwest Airlines' own financial metrics, we estimate that it will cost the company nearly $37,000 to operate one such flight. You can modify the inputs such as Air Miles, Number of Seats, Flight Hours, Fuel Price etc. to estimate flight operating cost for Southwest Airlines for any route and for a plane of any size. While from year to year, fuel cost has the most variability, it accounted for nearly 22.3% of flight operating expense in 2017. However, employees continue to remain the biggest cost component for Southwest, accounting for nearly 41.4% of flight operating expense. You can go to our interactive dashboard to see how different cost components can vary for different flight routes. For instance, while fuel cost is directly proportional to flight capacity, duration and length, we estimate that maintenance and repair cost mostly depends on flight size and number of hours flown.
What's behind Trefis? See How It's Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
More Trefis Research
Like our charts? Explore example interactive dashboards and create your own.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 instance for a flight from New York to Los Angeles, how much would Southwest Airlines ( LUV ) spend on its crew, fuel, and other cost items? This note brings you our interactive dashboard that combines our in-house data analysis with our proprietary technology to give you the flexibility to understand how different cost buckets vary with flight length, aircraft sizes, and average jet fuel price for Southwest. Based on the figures reported by Bureau of Transportation Statistics and Southwest Airlines' own financial metrics, we estimate that it will cost the company nearly $37,000 to operate one such flight.
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Our interactive dashboard can help you answers questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how an increase in fuel price may impact Southwest Airlines' flight operating expense. You can modify the inputs such as Air Miles, Number of Seats, Flight Hours, Fuel Price etc. to estimate flight operating cost for Southwest Airlines for any route and for a plane of any size.
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Our interactive dashboard can help you answers questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how an increase in fuel price may impact Southwest Airlines' flight operating expense. For instance, while fuel cost is directly proportional to flight capacity, duration and length, we estimate that maintenance and repair cost mostly depends on flight size and number of hours flown. See How It's Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams More Trefis Research Like our charts?
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Our interactive dashboard can help you answers questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how an increase in fuel price may impact Southwest Airlines' flight operating expense. to estimate flight operating cost for Southwest Airlines for any route and for a plane of any size. You can go to our interactive dashboard to see how different cost components can vary for different flight routes.
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34d80234-40af-48fa-908a-e87067d1d42f
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7148.0
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2018-02-21 00:00:00 UTC
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Noteworthy Wednesday Option Activity: ROCK, AAL, JPM
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-rock-aal-jpm-2018-02-21
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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 Gibraltar Industries Inc (Symbol: ROCK), where a total volume of 1,484 contracts has been traded thus far today, a contract volume which is representative of approximately 148,400 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 54.5% of ROCK's average daily trading volume over the past month, of 272,150 shares. Especially high volume was seen for the $30 strike put option expiring March 16, 2018 , with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of ROCK. Below is a chart showing ROCK's trailing twelve month trading history, with the $30 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 31,179 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 52.7% of AAL's average daily trading volume over the past month, of 5.9 million shares. Especially high volume was seen for the $55 strike call option expiring May 18, 2018 , with 5,571 contracts trading so far today, representing approximately 557,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange:
And JPMorgan Chase & Co (Symbol: JPM) options are showing a volume of 92,372 contracts thus far today. That number of contracts represents approximately 9.2 million underlying shares, working out to a sizeable 52.2% of JPM's average daily trading volume over the past month, of 17.7 million shares. Particularly high volume was seen for the $120 strike call option expiring March 16, 2018 , with 15,604 contracts trading so far today, representing approximately 1.6 million underlying shares of JPM. Below is a chart showing JPM's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for ROCK options , AAL options , or JPM 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 $55 strike call option expiring May 18, 2018 , with 5,571 contracts trading so far today, representing approximately 557,100 underlying shares of AAL. Below is a chart showing ROCK's trailing twelve month trading history, with the $30 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 31,179 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 52.7% of AAL's average daily trading volume over the past month, of 5.9 million shares.
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That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 52.7% of AAL's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing ROCK's trailing twelve month trading history, with the $30 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 31,179 contracts thus far today. Especially high volume was seen for the $55 strike call option expiring May 18, 2018 , with 5,571 contracts trading so far today, representing approximately 557,100 underlying shares of AAL.
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That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 52.7% of AAL's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing ROCK's trailing twelve month trading history, with the $30 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 31,179 contracts thus far today. Especially high volume was seen for the $55 strike call option expiring May 18, 2018 , with 5,571 contracts trading so far today, representing approximately 557,100 underlying shares of AAL.
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Especially high volume was seen for the $55 strike call option expiring May 18, 2018 , with 5,571 contracts trading so far today, representing approximately 557,100 underlying shares of AAL. Below is a chart showing JPM's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for ROCK options , AAL options , or JPM options , visit StockOptionsChannel.com. Below is a chart showing ROCK's trailing twelve month trading history, with the $30 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 31,179 contracts thus far today.
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c91b47df-54eb-4c1e-9245-89d62297627a
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7149.0
|
2018-02-21 00:00:00 UTC
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Wednesday Sector Leaders: Industrial, Healthcare
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AAL
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https://www.nasdaq.com/articles/wednesday-sector-leaders-industrial-healthcare-2018-02-21
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nan
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nan
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Looking at the sectors faring best as of midday Wednesday, shares of Industrial companies are outperforming other sectors, up 1.5%. Within that group, Expeditors International of Washington, Inc. (Symbol: EXPD) and American Airlines Group Inc (Symbol: AAL) are two of the day's stand-outs, showing a gain of 4.6% and 3.8%, respectively. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is up 1.7% on the day, and up 2.80% year-to-date. Expeditors International of Washington, Inc., meanwhile, is up 0.11% year-to-date, and American Airlines Group Inc is up 3.36% year-to-date. Combined, EXPD and AAL make up approximately 1.3% of the underlying holdings of XLI.
The next best performing sector is the Healthcare sector, higher by 1.4%. Among large Healthcare stocks, Patterson Companies Inc (Symbol: PDCO) and Henry Schein Inc (Symbol: HSIC) are the most notable, showing a gain of 3.1% and 3.0%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF ( XLV ), which is up 1.2% in midday trading, and up 3.40% on a year-to-date basis. Patterson Companies Inc, meanwhile, is down 9.11% year-to-date, and Henry Schein Inc is up 0.16% year-to-date. Combined, PDCO and HSIC make up approximately 0.4% of the underlying holdings of XLV.
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 Wednesday. As you can see, eight sectors are up on the day, while one sector is down.
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, EXPD and AAL make up approximately 1.3% of the underlying holdings of XLI. Within that group, Expeditors International of Washington, Inc. (Symbol: EXPD) and American Airlines Group Inc (Symbol: AAL) are two of the day's stand-outs, showing a gain of 4.6% and 3.8%, respectively. Combined, PDCO and HSIC make up approximately 0.4% of the underlying holdings of XLV.
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Within that group, Expeditors International of Washington, Inc. (Symbol: EXPD) and American Airlines Group Inc (Symbol: AAL) are two of the day's stand-outs, showing a gain of 4.6% and 3.8%, respectively. Combined, EXPD and AAL make up approximately 1.3% 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 1.7% on the day, and up 2.80% year-to-date.
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Within that group, Expeditors International of Washington, Inc. (Symbol: EXPD) and American Airlines Group Inc (Symbol: AAL) are two of the day's stand-outs, showing a gain of 4.6% and 3.8%, respectively. Combined, EXPD and AAL make up approximately 1.3% 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 1.7% on the day, and up 2.80% year-to-date.
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Within that group, Expeditors International of Washington, Inc. (Symbol: EXPD) and American Airlines Group Inc (Symbol: AAL) are two of the day's stand-outs, showing a gain of 4.6% and 3.8%, respectively. Combined, EXPD and AAL make up approximately 1.3% of the underlying holdings of XLI. Looking at the sectors faring best as of midday Wednesday, shares of Industrial companies are outperforming other sectors, up 1.5%.
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8d545693-9150-4dfe-a1f9-90a254372cbb
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7150.0
|
2018-02-21 00:00:00 UTC
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How Much Does It Cost Delta To Operate A Flight Between New York And Los Angeles?
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AAL
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https://www.nasdaq.com/articles/how-much-does-it-cost-delta-operate-flight-between-new-york-and-los-angeles-2018-02-21
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nan
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nan
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Have you ever wondered what it costs a big airline to operate one flight between New York City and Los Angeles? We have created an interactive dashboard that combines our in-house data analysis with our proprietary technology to give you the flexibility to understand how different cost buckets vary with flight length, aircraft sizes, and average jet fuel price for Delta Air Lines ( DAL ). Our interactive dashboard can help you answer questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how a 20% increase in fuel price may impact Delta's flight operating expense.
Our base case shows a typical flight of 160 seat capacity covering nearly 2500 miles between New York and Los Angeles. Based on the figures reported by Bureau of Transportation Statistics and Delta's own financial metrics, we estimate that it will cost Delta nearly $45,000 to operate one such flight. You can modify the inputs such as Air Miles, Number of Seats, Flight Hours, Fuel Price etc. to estimate flight operating cost for Delta for any route and for a plane of any size. Needless to say, fuel cost has the most variability. It accounted for nearly 22% of flight operating expense in 2017. However, employees continue to remain the biggest cost component for Delta, accounting for nearly 44% of flight operating expense. You can go to our interactive dashboard to see how different cost components can vary for different flight routes. For instance, while fuel cost is directly proportional to flight capacity, duration, and length, we estimate that maintenance and repair cost mostly depends on flight size and number of hours flown.
What's behind Trefis? See How It's Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
More Trefis Research
Like our charts? Explore example interactive dashboards and create your own.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 have created an interactive dashboard that combines our in-house data analysis with our proprietary technology to give you the flexibility to understand how different cost buckets vary with flight length, aircraft sizes, and average jet fuel price for Delta Air Lines ( DAL ). Our base case shows a typical flight of 160 seat capacity covering nearly 2500 miles between New York and Los Angeles. However, employees continue to remain the biggest cost component for Delta, accounting for nearly 44% of flight operating expense.
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We have created an interactive dashboard that combines our in-house data analysis with our proprietary technology to give you the flexibility to understand how different cost buckets vary with flight length, aircraft sizes, and average jet fuel price for Delta Air Lines ( DAL ). Our interactive dashboard can help you answer questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how a 20% increase in fuel price may impact Delta's flight operating expense. You can modify the inputs such as Air Miles, Number of Seats, Flight Hours, Fuel Price etc.
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We have created an interactive dashboard that combines our in-house data analysis with our proprietary technology to give you the flexibility to understand how different cost buckets vary with flight length, aircraft sizes, and average jet fuel price for Delta Air Lines ( DAL ). Our interactive dashboard can help you answer questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how a 20% increase in fuel price may impact Delta's flight operating expense. For instance, while fuel cost is directly proportional to flight capacity, duration, and length, we estimate that maintenance and repair cost mostly depends on flight size and number of hours flown.
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Our interactive dashboard can help you answer questions such as how costs, and consequently ticket prices, may vary according to routes and flight capacity, and how a 20% increase in fuel price may impact Delta's flight operating expense. You can modify the inputs such as Air Miles, Number of Seats, Flight Hours, Fuel Price etc. to estimate flight operating cost for Delta for any route and for a plane of any size.
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33ea5170-55f6-408f-97e1-b72d2d310fd3
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7151.0
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2018-02-19 00:00:00 UTC
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Copa Holdings (CPA) Reports Robust January Traffic Figures
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AAL
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https://www.nasdaq.com/articles/copa-holdings-cpa-reports-robust-january-traffic-figures-2018-02-19
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nan
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nan
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Copa Holdings, S.A.CPA has reported impressive traffic results for January. Traffic, measured in revenue passenger miles (RPMs), came in at 1.82 billion up 5.8% from the year-ago figure.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) improved 5.4% to 2.17 billion. Load factor (% of seats filled by passengers) also expanded 40 basis points (bps) to 84% in the first month of 2018 as traffic growth outpaced capacity.
We remind investors that traffic at Copa Holdings had improved significantly in 2017 as well. The upside was backed by an increase in demand for air travel owing to an improving Latin American economy. Load factor had improved 280 basis points as capacity expansion (8.8%) was outweighed by traffic growth (12.6%) in the same time period.
Price Performance
Copa Holdings' robust traffic growth is well reflected in its impressive price performance last year. The stock has gained 26.4%, easily outperforming the Zacks Airline industry 's 6.9% rally.
Furthermore, an impressive January traffic data is positive for the stock that competes with the likes of Gol Linhas Aéreas Inteligentes S.A. GOL and LATAM Airlines Group S.A. LTM in the Latin American aviation space.
Zacks Rank & Stock to Consider
Copa Holdings carries a Zacks Rank #3 (Hold).
A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
American Airlines has seen the Zacks Consensus Estimate for current-year earnings being revised 12.8% upward over the last 30 days.
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Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor (% of seats filled by passengers) also expanded 40 basis points (bps) to 84% in the first month of 2018 as traffic growth outpaced capacity.
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A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. Furthermore, an impressive January traffic data is positive for the stock that competes with the likes of Gol Linhas Aéreas Inteligentes S.A. GOL and LATAM Airlines Group S.A. LTM in the Latin American aviation space.
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A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank & Stock to Consider Copa Holdings carries a Zacks Rank #3 (Hold).
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A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor (% of seats filled by passengers) also expanded 40 basis points (bps) to 84% in the first month of 2018 as traffic growth outpaced capacity.
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435d08d6-2217-41cb-a299-d69704ef33e7
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7152.0
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2018-02-19 00:00:00 UTC
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Alaska Air Group's January Load Factor Declines, Stock Falls
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AAL
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https://www.nasdaq.com/articles/alaska-air-groups-january-load-factor-declines-stock-falls-2018-02-19
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nan
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nan
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Shares of Alaska Air Group, Inc.ALK have declined more than 2% ever since it released its traffic results for January 2018, last week. In the first month of 2018, the company's consolidated traffic (measured in revenue passenger miles or RPMS) increased 3.5% to approximately 4 billion.
Consolidated capacity (measured in average seat miles or ASMs) also increased 6.6% to 5.2 billion. As capacity expansion outweighed traffic growth in January, load factor (percentage of seats filled by passengers) declined 230 basis points to 75.8%. The decline in this key metric was due to capacity overexpansion which disappointed investors, thus leading to the stock price depreciation.
In first-quarter 2018, the carrier aims to expand capacity by around 8%. For the full year, the metric is likely to climb 7.5%. Consequently, load factor will be pressurized throughout 2018 at this Seattle, WA-based carrier in the event of traffic growth lagging capacity expansion.
Alaska Air Group, Inc. Price
Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote
In fact, Alaska Air Group is not the only carrier which is facing capacity relate issues. We remind investors that shares of United Continental Holdings, Inc. UAL also declined significantly in the last month, even after reporting better-than-expected results in the fourth quarter on issues related to capacity.
On the fourth-quarter conference call, the company stated that it will continue to expand capacity in a bid to maintain market share at major airport hubs to deal with competition from discount carriers like Spirit Airlines, Inc. SAVE . For 2018, United Continental's capacity growth is projected between 4% and 6% year over year. The metric is anticipated to grow for 2019 as well as 2020.
Zacks Rank & Stock to Consider
Alaska Air Group has a Zacks Rank #4 (Sell).
A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
American Airlines has seen the Zacks Consensus Estimate for current-year earnings being revised 12.8% upward over the last 30 days.
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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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). Click to get this free 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 To read this article on Zacks.com click here. As capacity expansion outweighed traffic growth in January, load factor (percentage of seats filled by passengers) declined 230 basis points to 75.8%.
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Click to get this free 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 To read this article on Zacks.com click here. A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). As capacity expansion outweighed traffic growth in January, load factor (percentage of seats filled by passengers) declined 230 basis points to 75.8%.
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Click to get this free 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 To read this article on Zacks.com click here. A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). Alaska Air Group, Inc. Price Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote In fact, Alaska Air Group is not the only carrier which is facing capacity relate issues.
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A better-ranked stock in the Zacks Airline industry is American Airlines Group Inc. AAL carrying a Zacks Rank #2 (Buy). Click to get this free 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 To read this article on Zacks.com click here. In first-quarter 2018, the carrier aims to expand capacity by around 8%.
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08fca47a-e375-4152-a7e5-2608b5c78e01
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7153.0
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2018-02-17 00:00:00 UTC
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American Airlines Scales Back Its Ambitions in New York
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AAL
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https://www.nasdaq.com/articles/american-airlines-scales-back-its-ambitions-new-york-2018-02-17
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nan
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nan
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For many years, New York City has been one of the few markets where all three legacy airlines -- American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental -- have tried to maintain a strong position. (Los Angeles is the other main exception.)
Airlines' interest in New York is perfectly logical. It's the largest metro area in the U.S. and has a massive base of business travelers. However, a combination of capacity constraints at all three New York-area airports, high operating costs, and stiff competition makes it tricky to earn strong profits there. Recognizing this, American Airlines is reorienting its focus in New York, emphasizing flights to the most important business markets.
The pre-merger situation was a mess
Prior to its late-2013 merger with US Airways, American Airlines didn't have any hubs in the Northeast outside of New York. As a result, American was forced to do the best it could with limited resources at New York's LaGuardia and JFK airports.
In some key business markets, American Airlines did quite well. For example, it dominated the lucrative JFK-London Heathrow route along with joint-venture partner British Airways. The carrier also had a solid position on the key transcontinental routes from JFK to Los Angeles and San Francisco. However, other parts of its New York route network, such as nonstop flights to Tokyo's Haneda Airport , were big money-losers.
American Airlines tried to shore up its position in New York through an interline and frequent-flier partnership with JetBlue Airways (NASDAQ: JBLU) . This allowed it to use JetBlue's larger domestic network at JFK to supply connecting traffic for international flights there. But cozying up to a major competitor is never a comfortable situation. And even with the JetBlue relationship, American still lagged Delta Air Lines in New York in terms of network breadth.
The merger changed everything
The merger with US Airways gave American Airlines another key asset in New York: one of two hourly shuttle services connecting LaGuardia Airport to Boston and Washington, D.C. (Delta operates the other shuttle service.) These routes are also popular with business travelers.
On the other hand, the merger made New York much less strategically important for American Airlines. US Airways had a major hub just 100 miles away, in Philadelphia. Today, American operates nearly 400 daily departures in Philadelphia, serving more than 100 destinations. By contrast, it has fewer than 100 daily departures at JFK Airport, and about 170 at LaGuardia.
For the past several years, American Airlines has struggled to make its Philadelphia and New York hubs coexist productively. One thing it did quickly was cancel the JetBlue partnership. It didn't make sense to be paying JetBlue for connecting traffic in New York when the new American Airlines could just as easily move that traffic through its Philadelphia hub.
Unfortunately, this further undermined American's position at JFK. However, the company felt that it didn't make sense to pull out of JFK entirely, because of the strong business demand for its London and transcontinental routes.
Slowly retrenching
American Airlines' adjusted pre-tax margin reached a record high of 15.3% in 2015, making it less urgent for management to make tough choices. By contrast, the company's adjusted pre-tax margin fell back to 9.1% last quarter and is still declining . This means that it is now critical for American Airlines to figure out a viable strategy for its Northeast hubs.
The result is that American Airlines is narrowing its focus to the top business routes in New York. In late 2016, the carrier announced that its flight from JFK to Manchester, U.K., and one of its two daily JFK-Paris flights would be operated seasonally. Last year, it made those cuts permanent, rather than just seasonal.
American Airlines will also end its flights from JFK to Zurich next month. Instead, it will fly to Zurich from Philadelphia: a route that it had cut during 2016.
In short, American Airlines is finally creating a sensible division of labor between its New York and Philadelphia hubs. In Philadelphia, it will operate a traditional hub-and-spoke operation to connect customers from across the U.S. to Europe. In New York, American Airlines is focusing on the nonstop routes with the most business demand.
Good news for Delta
American Airlines' decision to retrench in New York is helping Delta Air Lines consolidate its leading position in that key market. Delta is the largest carrier at both LaGuardia and JFK, allowing it to run more effective hub operations there. (Slot constraints are still a significant limitation, though.) Delta and its joint venture partners fly nonstop from JFK to all of the international markets where American has decided to cut back.
It's inevitable that American Airlines will lose some customers in New York as it cuts lower-performing international routes. However, maximizing the number of potential connections by concentrating flights in a few big hubs -- Philadelphia, in this case -- is a proven strategy for airlines. Thus, American's route network adjustments are likely to bolster its profitability.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is 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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For many years, New York City has been one of the few markets where all three legacy airlines -- American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental -- have tried to maintain a strong position. However, a combination of capacity constraints at all three New York-area airports, high operating costs, and stiff competition makes it tricky to earn strong profits there. Delta and its joint venture partners fly nonstop from JFK to all of the international markets where American has decided to cut back.
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For many years, New York City has been one of the few markets where all three legacy airlines -- American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental -- have tried to maintain a strong position. It didn't make sense to be paying JetBlue for connecting traffic in New York when the new American Airlines could just as easily move that traffic through its Philadelphia hub. Good news for Delta American Airlines' decision to retrench in New York is helping Delta Air Lines consolidate its leading position in that key market.
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For many years, New York City has been one of the few markets where all three legacy airlines -- American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental -- have tried to maintain a strong position. The merger changed everything The merger with US Airways gave American Airlines another key asset in New York: one of two hourly shuttle services connecting LaGuardia Airport to Boston and Washington, D.C. (Delta operates the other shuttle service.) It didn't make sense to be paying JetBlue for connecting traffic in New York when the new American Airlines could just as easily move that traffic through its Philadelphia hub.
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For many years, New York City has been one of the few markets where all three legacy airlines -- American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental -- have tried to maintain a strong position. The pre-merger situation was a mess Prior to its late-2013 merger with US Airways, American Airlines didn't have any hubs in the Northeast outside of New York. In some key business markets, American Airlines did quite well.
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bd97bef9-c893-47a9-98e2-a3d9fc898e80
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7154.0
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2018-02-13 00:00:00 UTC
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5 Stocks with Solid Sales Growth to Buy Amid Choppy Markets
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AAL
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https://www.nasdaq.com/articles/5-stocks-with-solid-sales-growth-to-buy-amid-choppy-markets-2018-02-13
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nan
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nan
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With markets in correction mode, it's very difficult to select stocks that will offer steady returns going forward. Investors may apply complex investment strategies with an aim to book higher returns but may not be rewarded with the desired returns.
Thus, at present, investors should use conventional strategies, based on key fundamentals, to select stocks. One such strategy is focus on sales growth.
Why Sales Growth?
Investors often fail to keep an eye on sales growth while picking stocks, as a company's share price is usually sensitive to its earnings momentum. Nonetheless, earnings are not the be-all and end-all in the sense that books can be easily manipulated. That's why sales should always be taken into consideration.
Sales growth is actually an important indicator of a company's health and ability to sustain its business. It offers investors an insight into product demand and pricing power. The main advantage is that the sales figure is generally not manipulated and is less volatile than earnings.
Without some revenue growth, bottom-line improvement may not be sustainable in the longer term. While a company can show earnings strength by reducing expenses, a sustainable bottom-line recovery usually requires sales growth.
Focusing exclusively on sales growth is not enough though. A healthy sales growth rate is certainly a positive indicator for picking good stocks, but it does not ensure profits. So, taking into consideration a company's cash position along with its sales number can prove to be a more dependable strategy.
Substantial cash on hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments. Cash also enables a company to endure market downturns. Most importantly, a sufficient cash position indicates that revenues are being channelized in the right direction.
Selecting the Winning Stocks
In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. So, we added certain other factors to arrive at a winning strategy.
Price-to-Sales (P/S) Ratio less than X-Industry: This metric determines the value placed on each dollar of a company's revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (4 Weeks) greater than X-Industry: Better-than-industry estimate revision has often been seen to trigger an increase in the stock price.
Operating Margin (Average Last 5 years) greater than 5%: Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs, an optimal situation for the company.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means the company is spending wisely and is in all likelihood profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment. You can see the complete list of today's Zacks #1 Rank stocks here .
Here are five of the 20 stocks that qualified the screening:
Based in Seattle, WA, StarbucksSBUX operates as a roaster, marketer, and retailer of specialty coffee. The company has expected sales growth rate of 10.6% for the current fiscal year and carries a Zacks Rank #2.
W.W. GraingerGWW distributes maintenance, repair, and operating (MRO) supplies; and other related products and services. This Lake Forest, IL-based stock has expected sales growth rate of 5.8% for 2018 and sports a Zacks Rank #1.
Synchrony FinancialSYF , based in Stamford, CT, operates as a consumer financial services company. Its current year expected sales growth rate is 9.7% and the stock carries a Zacks Rank #2.
Headquartered in Fort Worth, TX, American Airlines GroupAAL operates as a network air carrier. The company has expected sales growth rate of 6.9% for 2018 and carries a Zacks Rank #2.
Broadridge Financial SolutionsBR provides investor communications and technology-driven solutions. This Lake Success, NY-based company's sales are expected to grow at the rate of 3.6% for 2018 and the stock has a Zacks Rank #2.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Synchrony Financial (SYF): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): 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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Headquartered in Fort Worth, TX, American Airlines GroupAAL operates as a network air carrier. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Synchrony Financial (SYF): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Investors often fail to keep an eye on sales growth while picking stocks, as a company's share price is usually sensitive to its earnings momentum.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Synchrony Financial (SYF): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Headquartered in Fort Worth, TX, American Airlines GroupAAL operates as a network air carrier. Selecting the Winning Stocks In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Synchrony Financial (SYF): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. Headquartered in Fort Worth, TX, American Airlines GroupAAL operates as a network air carrier. Selecting the Winning Stocks In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
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Headquartered in Fort Worth, TX, American Airlines GroupAAL operates as a network air carrier. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Synchrony Financial (SYF): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report To read this article on Zacks.com click here. One such strategy is focus on sales growth.
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8e4e8bc2-33cb-4138-9b61-cfbcb90cfd9d
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7155.0
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2018-02-13 00:00:00 UTC
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Pilot Discontent Continues at American Airlines
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AAL
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https://www.nasdaq.com/articles/pilot-discontent-continues-american-airlines-2018-02-13
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nan
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nan
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Five years ago, support from American Airlines ' (NASDAQ: AAL) top labor groups helped pave the way for US Airways to take over its larger competitor, rescuing it from bankruptcy. American's labor unions saw a merger as the best way to avoid pay cuts.
For a while, it seemed that the merger might have ended American Airlines' long-running history of labor discord. However, American's pilots have become increasingly militant in recent years, as pilots at rivals like Delta Air Lines (NYSE: DAL) have received bigger raises. It appears that management's decisions to voluntarily boost wage rates and to implement a profit-sharing program have not created any goodwill among the pilots.
Closing the nascent pay gap
In early 2015, American Airlines pilots ratified a five-year contract by a 2:1 margin. The new deal immediately raised wage rates by an average of 23%, with 3% annual raises in subsequent years. This put American's pilots at the top of the industry in terms of pay rates, in keeping with a promise made by CEO Doug Parker.
However, it didn't take long for American Airlines pilots to become dissatisfied with the contract they had signed. In 2015, airline industry profits surged due to low oil prices . As a result, profit-sharing payouts for Delta pilots soared to as much as 21% of their annual pay . Meanwhile, American Airlines' management had made a philosophical decision to offer higher base wages instead of profit sharing.
Faced with growing employee discontent, American Airlines announced that it would pay out 5% of its annual pre-tax profit as profit sharing beginning in 2016.
This decision built some goodwill, but it didn't last long. United Continental pilots negotiated big raises in early 2016, locking in base pay increases of at least 22% by 2018. Towards the end of the year, Delta's pilots approved a deal that will raise their base pay a total of 30% by 2019. Consequently, American Airlines pilots ended up at the back of the pack in terms of pay.
Management responded by offering pilots an 8% mid-contract pay increase last spring in order to get them back to parity with their peers at Delta and United. This move, along with a smaller 5% pay bump for American's flight attendants, will have an annual cost of $350 million. Parker (the American Airlines CEO) argued that the pay raises were necessary to keep employees engaged and providing good service to customers.
Pilots still aren't happy
Parker and the rest of American Airlines' management team have bent over backwards to keep the company's pilots happy. Given that the union had agreed to a contract running through early 2020, American would have been perfectly justified in deferring any pay changes until then.
Unfortunately, these gestures haven't won any credit with the pilot union. The union president has complained recently that American Airlines pilots are receiving much lower profit-sharing payouts than pilots at rivals like Delta Air Lines.
Indeed, Delta has a particularly generous profit-sharing program. It's also significantly more profitable than American Airlines. Delta pilots earned payouts equal to as much as 15% of their 2017 pay, compared to a measly 2% for American Airlines pilots.
This may seem unfair. But nearly half of the difference is the result of American Airlines' lower profitability relative to Delta. Furthermore, the current contract will end in early 2020, giving the union an opportunity to negotiate a better deal. Lastly, union leaders' claim that management still needs to " validate the trust " of employees doesn't stand up to scrutiny, given that American voluntarily gave the pilots raises totaling hundreds of millions of dollars in 2016 and 2017.
Did management make a mistake?
Back in April, I believed that American Airlines' management had made the right decision to boost pay rates for the carriers' pilots and flight attendants. While there was no obligation to renegotiate either deal before the end of 2019, it seemed better to incur higher costs in the short term -- recognizing that wages would have risen by 2020 in any case -- than to alienate a large part of the carrier's workforce.
Now, I'm not so sure . American Airlines' unit costs have skyrocketed in the past couple of years, contributing to a steep decline in its adjusted pre-tax margin, from 15.3% in 2015 to 9.1% last year. As of now, American seems likely to post another year-over-year earnings decrease in 2018.
In the meantime, management's goodwill gestures haven't done anything to appease the pilots (or at least the leaders of the pilot union). It appears that the pilots -- who are already very well compensated -- won't be content until they are the best-paid pilots in the industry at all times.
Management is now in an unenviable position. One option is to accede to the pilots' demands, now and forever, driving the company's pre-tax margin even further into single-digit territory. Alternatively, American will have to cope with both high costs and labor discord for the foreseeable future. This is one more reason for investors to steer clear of American Airlines.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
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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Five years ago, support from American Airlines ' (NASDAQ: AAL) top labor groups helped pave the way for US Airways to take over its larger competitor, rescuing it from bankruptcy. Lastly, union leaders' claim that management still needs to " validate the trust " of employees doesn't stand up to scrutiny, given that American voluntarily gave the pilots raises totaling hundreds of millions of dollars in 2016 and 2017. While there was no obligation to renegotiate either deal before the end of 2019, it seemed better to incur higher costs in the short term -- recognizing that wages would have risen by 2020 in any case -- than to alienate a large part of the carrier's workforce.
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Five years ago, support from American Airlines ' (NASDAQ: AAL) top labor groups helped pave the way for US Airways to take over its larger competitor, rescuing it from bankruptcy. Meanwhile, American Airlines' management had made a philosophical decision to offer higher base wages instead of profit sharing. The union president has complained recently that American Airlines pilots are receiving much lower profit-sharing payouts than pilots at rivals like Delta Air Lines.
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Five years ago, support from American Airlines ' (NASDAQ: AAL) top labor groups helped pave the way for US Airways to take over its larger competitor, rescuing it from bankruptcy. Pilots still aren't happy Parker and the rest of American Airlines' management team have bent over backwards to keep the company's pilots happy. The union president has complained recently that American Airlines pilots are receiving much lower profit-sharing payouts than pilots at rivals like Delta Air Lines.
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Five years ago, support from American Airlines ' (NASDAQ: AAL) top labor groups helped pave the way for US Airways to take over its larger competitor, rescuing it from bankruptcy. It appears that management's decisions to voluntarily boost wage rates and to implement a profit-sharing program have not created any goodwill among the pilots. Towards the end of the year, Delta's pilots approved a deal that will raise their base pay a total of 30% by 2019.
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f9160829-d057-467b-852d-3bfcec767938
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7156.0
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2018-02-12 00:00:00 UTC
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Will Plunging Oil Prices Bring Relief for Airlines?
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AAL
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https://www.nasdaq.com/articles/will-plunging-oil-prices-bring-relief-airlines-2018-02-12
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nan
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nan
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For most of the past few months, it seemed that oil prices could only go one way: up. The spot price of Brent crude oil spiked from around $55/barrel in early October to a high of more than $71/barrel in late January.
Jet fuel prices quickly moved higher as well, cutting into airlines' profitability. Airlines with the tightest profit margins -- particularly United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) -- had the most to lose. However, oil prices have taken a big step backward since the beginning of February, including a 10% decline last week. Barring another oil rally in the near future, this will reduce the pressure on airlines' profitability.
Oil fundamentals shift quickly
The oil rally of the past few months was driven by improving global economic growth and a successful attempt by OPEC, Russia, and several other major oil exporters to limit output. This combination of factors promised to quickly end the supply-demand imbalance that undermined oil prices beginning in 2014. Plunging oil production in Venezuela (caused by unrest, crumbling infrastructure, and poor management) also contributed to this rebalancing of the market.
However, U.S. crude oil stocks -- and stocks of petroleum products more broadly -- have increased for two consecutive weeks, according to the Energy Information Administration (EIA). Furthermore, the EIA reported a huge jump in U.S. oil production last week: to 10.25 million barrels per day, up from 9.92 million barrels per day a week earlier. At this time last year, output averaged just 9 million barrels per day.
The EIA supply numbers are based on estimates, so a big jump in a single week isn't always indicative of a broader trend. However, Baker Hughes reported on Friday that the number of oil rigs working in the U.S. jumped to 791 last week from 765 a week earlier.
U.S. Oil Rig Count , data by YCharts .
In short, all signs are pointing to strong supply growth in the U.S. as nimble shale oil drillers take advantage of higher oil prices to ramp up production. If U.S. output does increase faster than previously expected in 2018, it will help keep a lid on oil prices.
Good news for two low-margin airlines
As of a few weeks ago, airlines expected to face steep fuel price increases in 2018. American Airlines projected that it would pay $2.07 to $2.12 per gallon for fuel in the first quarter, up from $1.70/gallon in the year-ago period. United Continental expected to pay $2.11/gallon, compared to $1.71/gallon a year earlier.
Fuel price increases of this magnitude would have a roughly 4 percentage point negative impact on most airlines' pre-tax margins. Typically, airlines would try to recoup these cost increases by raising prices.
However, United Continental has committed to a long-term strategy of increasing capacity in its Chicago, Denver, and Houston hubs in order to improve its competitiveness with its larger rivals. This is contributing to moderate overcapacity in the U.S. airline industry. Additionally, United hasn't been cooperating with rivals' attempts to raise fares.
The net result is that as of last month, United expected a breakeven first-quarter earnings performance, while American's guidance called for a meager 2% to 4% pre-tax margin. American Airlines CEO Doug Parker bluntly told analysts last month that fares are too low relative to oil prices.
A short-term fix, but not a long-term solution
If the market price of jet fuel stays near $1.80/gallon -- compared to roughly $2.00/gallon in late January -- airlines would still be paying more for fuel than they did in 2017. Nevertheless, with a smaller fuel price headwind, airlines would have a better chance of stabilizing their profit margins.
In the short run, this is obviously good news for American Airlines and United Continental. Both carriers' pre-tax margins fell into single-digit territory last year and are likely to fall even further in 2018 if fuel prices rise significantly.
However, from a longer-term perspective, it's worrisome that airlines are becoming dependent on low jet fuel prices to earn decent profits. Much of investors' renewed interest in airline stocks has been driven by the belief that airlines would adjust capacity when necessary to maintain their profitability. If such capacity discipline is now a thing of the past, investors may need to reevaluate the sustainability of airlines' profits.
10 stocks we like better than United Continental Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and United Continental Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
Adam Levine-Weinberg 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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Airlines with the tightest profit margins -- particularly United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) -- had the most to lose. However, United Continental has committed to a long-term strategy of increasing capacity in its Chicago, Denver, and Houston hubs in order to improve its competitiveness with its larger rivals. The net result is that as of last month, United expected a breakeven first-quarter earnings performance, while American's guidance called for a meager 2% to 4% pre-tax margin.
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Airlines with the tightest profit margins -- particularly United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) -- had the most to lose. Furthermore, the EIA reported a huge jump in U.S. oil production last week: to 10.25 million barrels per day, up from 9.92 million barrels per day a week earlier. A short-term fix, but not a long-term solution If the market price of jet fuel stays near $1.80/gallon -- compared to roughly $2.00/gallon in late January -- airlines would still be paying more for fuel than they did in 2017.
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Airlines with the tightest profit margins -- particularly United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) -- had the most to lose. Oil fundamentals shift quickly The oil rally of the past few months was driven by improving global economic growth and a successful attempt by OPEC, Russia, and several other major oil exporters to limit output. Good news for two low-margin airlines As of a few weeks ago, airlines expected to face steep fuel price increases in 2018.
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Airlines with the tightest profit margins -- particularly United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) -- had the most to lose. United Continental expected to pay $2.11/gallon, compared to $1.71/gallon a year earlier. A short-term fix, but not a long-term solution If the market price of jet fuel stays near $1.80/gallon -- compared to roughly $2.00/gallon in late January -- airlines would still be paying more for fuel than they did in 2017.
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f2a7cb28-2b1e-4cfe-a543-ea984cb56e89
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7157.0
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2018-02-12 00:00:00 UTC
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Allegiant Reports Impressive January Traffic Statistics
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AAL
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https://www.nasdaq.com/articles/allegiant-reports-impressive-january-traffic-statistics-2018-02-12
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Allegiant Travel CompanyALGT has recently reported traffic numbers for January. Traffic for the total system including scheduled service and fixed fee contract, measured in revenue passenger miles (RPMs), increased 9.3% on a year-over-year basis to 877.42 million. System capacity, calculated in available seat miles (ASMs), improved 6.1% to 1.1 billion.
With traffic growth outpacing capacity expansion, load factor (percentage of seats filled with passengers) rose 240 basis points year over year to 79.9%.
Allegiant's passenger count gained 8.7% in January while its system-wide average fuel cost per gallon was approximately $2.23 in the month.
Allegiant Travel Company Price
Allegiant Travel Company Price | Allegiant Travel Company Quote
The robust traffic results were released just a few days after the company reported fourth-quarter 2017 financial numbers with better-than-expected earnings per share and revenues. Moreover, both the metrics improved substantially from the year-ago figures. The bottom line was aided by higher revenues while the top line was boosted, primarily by a significant increase in ancillary revenues.
For the first quarter of 2018, this Zacks Rank #2 (Buy) company expects average seat miles (scheduled and system) to rise year over year in the 10-14% band. Additionally, it anticipates ASMs (scheduled and system) to grow in the range of 11-15% year over year for the current year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Other key airline players namely United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL have also recently announced fourth-quarter earnings performance, each reporting better-than-expected figures.
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Southwest Airlines Company (LUV): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other key airline players namely United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL have also recently announced fourth-quarter earnings performance, each reporting better-than-expected figures. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Traffic for the total system including scheduled service and fixed fee contract, measured in revenue passenger miles (RPMs), increased 9.3% on a year-over-year basis to 877.42 million.
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Other key airline players namely United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL have also recently announced fourth-quarter earnings performance, each reporting better-than-expected figures. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel Company Price Allegiant Travel Company Price | Allegiant Travel Company Quote The robust traffic results were released just a few days after the company reported fourth-quarter 2017 financial numbers with better-than-expected earnings per share and revenues.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other key airline players namely United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL have also recently announced fourth-quarter earnings performance, each reporting better-than-expected figures. Allegiant Travel Company Price Allegiant Travel Company Price | Allegiant Travel Company Quote The robust traffic results were released just a few days after the company reported fourth-quarter 2017 financial numbers with better-than-expected earnings per share and revenues.
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Other key airline players namely United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL have also recently announced fourth-quarter earnings performance, each reporting better-than-expected figures. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel CompanyALGT has recently reported traffic numbers for January.
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7abc61c4-543a-4713-902c-2d12d33d4ad9
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7158.0
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2018-02-12 00:00:00 UTC
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Notable Monday Option Activity: FLR, IT, AAL
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AAL
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https://www.nasdaq.com/articles/notable-monday-option-activity-flr-it-aal-2018-02-12
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Fluor Corp. (Symbol: FLR), where a total volume of 11,605 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 63.5% of FLR's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $57 strike put option expiring February 16, 2018 , with 7,177 contracts trading so far today, representing approximately 717,700 underlying shares of FLR. Below is a chart showing FLR's trailing twelve month trading history, with the $57 strike highlighted in orange:
Gartner Inc (Symbol: IT) options are showing a volume of 3,256 contracts thus far today. That number of contracts represents approximately 325,600 underlying shares, working out to a sizeable 42.4% of IT's average daily trading volume over the past month, of 767,510 shares. Especially high volume was seen for the $115 strike call option expiring September 21, 2018 , with 600 contracts trading so far today, representing approximately 60,000 underlying shares of IT. Below is a chart showing IT's trailing twelve month trading history, with the $115 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 25,234 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42% of AAL's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $55 strike call option expiring August 17, 2018 , with 1,581 contracts trading so far today, representing approximately 158,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for FLR options , IT 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 $55 strike call option expiring August 17, 2018 , with 1,581 contracts trading so far today, representing approximately 158,100 underlying shares of AAL. Below is a chart showing IT's trailing twelve month trading history, with the $115 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 25,234 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42% 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 2.5 million underlying shares, working out to a sizeable 42% of AAL's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing IT's trailing twelve month trading history, with the $115 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 25,234 contracts thus far today. Particularly high volume was seen for the $55 strike call option expiring August 17, 2018 , with 1,581 contracts trading so far today, representing approximately 158,100 underlying shares of AAL.
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That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42% of AAL's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $55 strike call option expiring August 17, 2018 , with 1,581 contracts trading so far today, representing approximately 158,100 underlying shares of AAL. Below is a chart showing IT's trailing twelve month trading history, with the $115 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 25,234 contracts thus far today.
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That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42% 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 $55 strike highlighted in orange: For the various different available expirations for FLR options , IT options , or AAL options , visit StockOptionsChannel.com. Below is a chart showing IT's trailing twelve month trading history, with the $115 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 25,234 contracts thus far today.
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127010c5-8252-4ade-87e4-a49ea67c92a8
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7159.0
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2018-02-11 00:00:00 UTC
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Don't Blame Spirit Airlines for Low Airfares
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AAL
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https://www.nasdaq.com/articles/dont-blame-spirit-airlines-low-airfares-2018-02-11
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Oil prices have increased significantly from their lows of early 2016. Nevertheless, air travelers in the U.S. are still benefiting from surprisingly low ticket prices. In the third quarter of 2017 -- the most recent period for which official statistics are available -- the average domestic airfare was $335.83, down from $396.37 three years earlier.
American Airlines (NASDAQ: AAL) CEO Doug Parker told analysts on the company's recentearnings callthat fares are too low given the price of oil. Some pundits are blaming fast-growing budget carrier Spirit Airlines (NYSE: SAVE) for the depressed fare environment . However, the growing battle for connecting traffic between American Airlines and United Continental (NYSE: UAL) has been a much bigger contributor to the recent fare weakness.
United Airlines is supplying the most growth
Earlier this week, Spirit Airlines stated that it plans to expand capacity by about 23% this year. That would be significantly faster than its 16.1% capacity growth in 2017.
Twenty-three percent certainly sounds like a big number, so it might seem natural to attribute the ongoing fare wars to Spirit's growth. However, Spirit Airlines remains quite small compared with most of its rivals. In fact, United Continental's plan to increase its capacity 4%-6% this year (and even faster in the domestic market) is having a bigger impact on the supply demand balance.
In the first quarter of 2017, United's domestic capacity totaled 32.5 million available seat miles (ASMs). By contrast, Spirit's total capacity, which includes some flights to the Caribbean and Latin America, came in at 6.9 million ASMs during the same period.
Looking at Spirit's Q1 2018 guidance, it appears that the carrier will increase its capacity by about 1.5 million ASMs. Meanwhile, United's domestic ASMs will increase by about 2 million, with additional growth outside the United States. Thus, on an absolute basis, 5% growth at United adds more incremental capacity than 20%-25% growth at Spirit Airlines.
United Airlines will add more capacity in the U.S. than Spirit Airlines in 2018. Image source: United Airlines.
Spirit Airlines' growth isn't very disruptive
The number of seats being added to the market isn't the only factor that affects pricing. It also matters where the extra capacity is being deployed.
Spirit Airlines has been focusing much of its capacity growth on midsize cities recently. It's adding flights in places like Hartford, Connecticut; Pittsburgh, Pennsylvania; Richmond, Virginia; and Columbus, Ohio -- primarily serving leisure destinations such as Orlando, Fort Lauderdale, and Las Vegas.
These routes are ideal for Spirit Airlines because it's usually easy to stimulate leisure travel demand by offering low fares. Furthermore, the carrier doesn't compete directly with the likes of United Airlines and American Airlines on most of its new routes.
Indeed, Spirit's management hasn't highlighted any of these cities as causes of its recent unit revenue declines. Instead, most of the trouble is coming from big hub markets like Chicago, Dallas, and Houston, where Spirit Airlines is growing very little -- or not at all.
The legacy carriers are fighting for volume
It's not a coincidence that Spirit is seeing the most pricing pressure in these legacy carrier hub markets. (United Airlines has hubs in Chicago and Houston, while American Airlines has hubs in Chicago and Dallas.) United and American are in the midst of a winner-take-all fight to create the best connecting hubs in the mid-continent region.
As top executives at both airline giants have emphasized recently, scale has a big impact on hub profitability. By operating more flights at a given hub, an airline can enable a greater number of potential connecting itineraries, thereby capturing more high-yield connecting traffic from smaller cities. Driving more volume through each hub also allows legacy carriers to upgauge to larger airplanes that have lower unit costs.
The net result is that United Airlines and American Airlines are battling for market share. Both carriers hope to increase their margins by boosting traffic at their connecting hubs.
Instead, consumers are benefiting from the workings of the "invisible hand." The quest by two of the three largest U.S. airlines to drive ever more volume through the same number of hubs is pushing fares down, with little tangible benefit to either carrier. Spirit Airlines isn't the main cause of the current low-fare environment -- it's more like collateral damage.
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*Stock Advisor returns as of February 5, 2018
Adam Levine-Weinberg owns shares of Spirit Airlines. The Motley Fool owns shares of and recommends Spirit Airlines. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL) CEO Doug Parker told analysts on the company's recentearnings callthat fares are too low given the price of oil. In fact, United Continental's plan to increase its capacity 4%-6% this year (and even faster in the domestic market) is having a bigger impact on the supply demand balance. It's adding flights in places like Hartford, Connecticut; Pittsburgh, Pennsylvania; Richmond, Virginia; and Columbus, Ohio -- primarily serving leisure destinations such as Orlando, Fort Lauderdale, and Las Vegas.
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American Airlines (NASDAQ: AAL) CEO Doug Parker told analysts on the company's recentearnings callthat fares are too low given the price of oil. However, the growing battle for connecting traffic between American Airlines and United Continental (NYSE: UAL) has been a much bigger contributor to the recent fare weakness. In fact, United Continental's plan to increase its capacity 4%-6% this year (and even faster in the domestic market) is having a bigger impact on the supply demand balance.
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American Airlines (NASDAQ: AAL) CEO Doug Parker told analysts on the company's recentearnings callthat fares are too low given the price of oil. United Airlines is supplying the most growth Earlier this week, Spirit Airlines stated that it plans to expand capacity by about 23% this year. United Airlines will add more capacity in the U.S. than Spirit Airlines in 2018.
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American Airlines (NASDAQ: AAL) CEO Doug Parker told analysts on the company's recentearnings callthat fares are too low given the price of oil. However, the growing battle for connecting traffic between American Airlines and United Continental (NYSE: UAL) has been a much bigger contributor to the recent fare weakness. United Airlines will add more capacity in the U.S. than Spirit Airlines in 2018.
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cd17548a-a151-46f9-81eb-a526ffba63cb
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7160.0
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2018-02-08 00:00:00 UTC
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Southwest Airlines Posts Impressive January Traffic Figures
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-posts-impressive-january-traffic-figures-2018-02-08
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nan
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Southwest Airlines CompanyLUV has reported a substantial rise in traffic figures for January. Traffic (measured in revenue passenger miles or RPMs) rose 4% to around 9.73 billion in the month. Meanwhile, capacity or available seat miles (ASMs) inched up 1.9% to 12.5 billion.
Load factor (percentage of seats filled by passengers) improved 150 basis points to 77.8% in the month as traffic growth outpaced capacity expansion. Additionally, passenger count increased 6% to 11.99 billion.
The robust traffic report comes close on the heels of an impressive performance dished out by the company in the final quarter of 2017, having reported better-than-expected earnings per share and revenues. Moreover, earnings and revenues improved significantly year over year. Robust growth in passenger revenues on the back of strong demand for air travel, aided the top line.
For the first quarter of 2018, this Zacks Rank #2 (Buy) company expects revenue per available seat mile (RASM) to rise between 1% and 2%. First-quarter unit costs excluding fuel and oil expense, profit-sharing expense and special items are estimated to grow in the band of 0.5-1.5%. While economic fuel costs for the period are predicted in the range of $2.10-$2.15 per gallon. For 2018, the metric is anticipated in the same range, reflecting a 2% increase from the year-ago figure. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Southwest Airlines Company Price
Southwest Airlines Company Price | Southwest Airlines Company Quote
Other key airline players like United Continental Holdings UAL , American Airlines AAL and Alaska Air Group ALK also recently announced fourth-quarter earnings results. While United Continental and American Airlines reported better-than-expected earnings, Alaska Air Group posted in-line earnings but higher-than-expected revenues in the reported quarter.
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Southwest Airlines Company (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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Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote Other key airline players like United Continental Holdings UAL , American Airlines AAL and Alaska Air Group ALK also recently announced fourth-quarter earnings results. Click to get this free report Southwest Airlines Company (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. Load factor (percentage of seats filled by passengers) improved 150 basis points to 77.8% in the month as traffic growth outpaced capacity expansion.
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Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote Other key airline players like United Continental Holdings UAL , American Airlines AAL and Alaska Air Group ALK also recently announced fourth-quarter earnings results. Click to get this free report Southwest Airlines Company (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. While United Continental and American Airlines reported better-than-expected earnings, Alaska Air Group posted in-line earnings but higher-than-expected revenues in the reported quarter.
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Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote Other key airline players like United Continental Holdings UAL , American Airlines AAL and Alaska Air Group ALK also recently announced fourth-quarter earnings results. Click to get this free report Southwest Airlines Company (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. While United Continental and American Airlines reported better-than-expected earnings, Alaska Air Group posted in-line earnings but higher-than-expected revenues in the reported quarter.
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Click to get this free report Southwest Airlines Company (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. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote Other key airline players like United Continental Holdings UAL , American Airlines AAL and Alaska Air Group ALK also recently announced fourth-quarter earnings results. Meanwhile, capacity or available seat miles (ASMs) inched up 1.9% to 12.5 billion.
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93f39f7a-d783-4fb4-8978-736c5e72ca54
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7161.0
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2018-02-06 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Airlines, American Airlines, Ryanair Holdings, Southwest Airlines and United Continental
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-airlines-american-airlines-ryanair-holdings
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For Immediate Release
Chicago, IL - February 6, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Airlines DAL , American Airlines Group AAL , Ryanair Holdings RYAAY , Southwest Airlines LUV and United Continental Holdings UAL.
Industry: Airlines, Part 3
Link: https://www.zacks.com/commentary/148231/factors-that-may-get-in-the-way-of-an-airline-revival
There is no denying that stocks in the airline space are witnessing good times on the back of a number of tailwinds like improved unit revenues and financial prosperity. Despite the optimism, there are certain roadblocks one must be mindful of before investing in the sector. Let's delve into the details.
Rising Fuel Costs Hurting Bottom Line
Fuel costs are on the rise lately, with oil prices crossing the $60-a-barrel threshold. This upsurge can be attributed to the decision of OPEC member nations and Russia to extend production cuts to the end of 2018. This upsurge, however, does not spell good news for carriers.
As fuel costs represent one of the largest input costs for airline companies, the rise in oil prices naturally pushed up operating expenses, in turn, hurting the bottom line of carriers.
In fact, in the last three months, oil prices have increased significantly. The fact that fuel costs are on the rise can be made out from Delta Airlines' fourth-quarter earnings report. Average fuel price (adjusted) was up 20.9% year over year to $1.93 per gallon at this Atlanta, GA-based carrier.
The scenario is unlikely to change this year. Delta, which carries a Zacks Rank #3 (Hold), expects fuel prices, including taxes and refinery impact, between $2.05 and $2.10 per gallon in the first quarter of 2018, which is much higher than the year-ago figure. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Moreover, the International Air Transport Association ("IATA") projects that jet fuel prices will escalate around 12.5% to $73.80 per barrel in 2018. The fuel bill is likely to account for 20.5% of total costs in 2018 (18.8% in 2017).
Labor-Related Issues - Another Drag
Apart from the rise in fuel costs, the surge in labor expenses is hurting the bottom line of carriers. This is primarily due to deals inked by carriers with various labor groups.
Evidently, the improved financial health of the carriers has not gone unnoticed by their employees, who are eager to get a share of the pie. This has propelled frequent new labor deals across the airline industry.
Even in the ongoing fourth quarter of 2017, labor costs have limited the bottom-line growth of carriers. For example, at American Airlines Group, expenses pertaining to salaries and benefits were up 7%. This was primarily due to the significantly higher pay offered to pilots by the company to operate unassigned flights during the busy winter travel period.
This followed the infamous scheduling glitch, which allowed pilots of the carrier to take leave during the winter holiday period, giving rise to an acute pilot shortage during the busy travel period. The crisis was finally averted after talks between the company and its pilots' union - Allied Pilots Association.
The surge in labor costs is augmented in IATA's forecast for 2018. According to the projection, expenses related to labor are expected to be the largest expense item for airlines this year. Labor costs are projected to account for 30.9% of total expenses, and total unit costs are expected to increase 4.3% (much higher than the 1.7% increase in 2017).
Moreover, issues related to labor strife have been hurting airlines quite a bit. Recently, Irish carrier Ryanair Holdings' pilots resorted to a four-hour strike. This was reportedly the first time its pilots ever struck.
Computer Glitches Hurting Airline Operations
American Airlines is not the only carrier to suffer from a scheduling glitch. A similar issue had hurt Ryanair Holdings. According to a CNBC report , the carrier had to cancel 2,000 flights, resulting in significant customer dissatisfaction.
Technical glitches, in fact, have been creating a nuisance for carriers. For example, in November 2017, a computer glitch disrupted operations at Southwest Airlines. Operations at British Airways were also crippled last year due to a major IT system failure. Since expenditure on technological infrastructure is significant for stocks in the airline space, their profitability might be hurt in the event of such malfunctions.
Capacity-Related Woes & Declining Airfare
Woes related to capacity overexpansion plagued airline stocks in the not so distant past (particularly 2015). These fears were re-ignited when United Continental Holdings, while releasing fourth-quarter results on Jan 23, stated that it expects 2018 capacity growth between 4% and 6% year over year. Moreover, similar growth in the metric is forecast for 2019 and 2020. Following the guidance, investors fear that similar actions might be taken by rivals, triggering a price war.
Capacity expansion may lead to oversupply in the market even as fuel costs remain well below the highs of mid-2014, despite the recent resurgence. Moreover, airfares have remained low, with the metric declining in November. Capacity over-expansion is believed to be the primary reason for the decline in airfares. Low air fares are favorable for fliers but a drag on the top line of carriers due to their lesser profits.
Conclusion
Thus the airline industry, despite the air of optimism surrounding it, is not bereft of headwinds. The challenges may prove to be detrimental to investors, especially the risk-averse ones, unless attention is paid to resolve the above issues.
Check out our latest Airline Industry Outlook for more news on the current state of affairs in this market from an earnings perspective, and how the trend looks ahead for this important sector at the moment.
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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 Company (LUV): Free Stock Analysis Report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - February 6, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Airlines DAL , American Airlines Group AAL , Ryanair Holdings RYAAY , Southwest Airlines LUV and United Continental Holdings UAL. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta, which carries a Zacks Rank #3 (Hold), expects fuel prices, including taxes and refinery impact, between $2.05 and $2.10 per gallon in the first quarter of 2018, which is much higher than the year-ago figure.
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For Immediate Release Chicago, IL - February 6, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Airlines DAL , American Airlines Group AAL , Ryanair Holdings RYAAY , Southwest Airlines LUV and United Continental Holdings UAL. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Rising Fuel Costs Hurting Bottom Line Fuel costs are on the rise lately, with oil prices crossing the $60-a-barrel threshold.
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For Immediate Release Chicago, IL - February 6, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Airlines DAL , American Airlines Group AAL , Ryanair Holdings RYAAY , Southwest Airlines LUV and United Continental Holdings UAL. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. As fuel costs represent one of the largest input costs for airline companies, the rise in oil prices naturally pushed up operating expenses, in turn, hurting the bottom line of carriers.
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For Immediate Release Chicago, IL - February 6, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Airlines DAL , American Airlines Group AAL , Ryanair Holdings RYAAY , Southwest Airlines LUV and United Continental Holdings UAL. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The fact that fuel costs are on the rise can be made out from Delta Airlines' fourth-quarter earnings report.
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e0201add-cd25-41d4-a3e3-eb00ed1d25f4
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7162.0
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2018-02-05 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Air Lines, American Airlines, Southwest Airlines, United Continental and Alaska Air
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-air-lines-american-airlines-southwest-airlines
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nan
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nan
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For Immediate Release
Chicago, IL - February 5, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Air Lines DAL , American Airlines Group AAL , Southwest Airlines LUV , United Continental Holdings UAL and Alaska Air Group ALK.
Industry: Airlines, Part 2
Link: https://www.zacks.com/commentary/147831/airlines-to-soar-on-tax-cut-economic-growth-better-results
Airline stocks have rebounded nicely after struggling for most of 2017. Headwinds ranging from flight cancellations and the resultant loss of revenues due to hurricanes and other calamities, high costs and customer dissatisfaction contributed to the sector's struggles in the year gone by.
However, things are looking up for stocks in the space post-hurricanes. The fact that the overall picture is brightening up for airlines can be made out from the fact that the NYSE ARCA Airline Index has increased 10.9% over the last three months.
Impressive Q4 Highlights Turnaround
The ongoing Q4 reporting cycle has seen major sector participants like Delta Air Lines, American Airlines Group, Southwest Airlines and United Continental Holdings reporting better-than-expected earnings per share and revenues.
Moreover, their performances with respect to unit revenues (a measure of sales relative to capacity for a carrier) have been impressive. More heartening are the projections provided by these key sector participants with respect to this closely watched metric.
For example, American Airlines expects total revenue per available seat miles (TRASM: a key measure of unit revenue) to increase in the band of 2% to 4% in the first quarter of 2018. Southwest Airlines expects first-quarter revenue per available seat mile (RASM) to rise between 1% and 2%.
Non-Fuel Unit Costs Likely to Hurt Less Going Forward
Apart from bullish unit revenues, the bottom lines of carriers are likely to be less severely impacted by non-fuel unit costs going forward. This is evident from the improved outlook provided by the key sector players with respect to cost per available seat miles (excluding fuel).
For example, Southwest Airlines expects unit costs (excluding fuel and oil expense, profit-sharing and special items) to grow in the band of 0.5-1.5% in the first quarter of 2018. The projection is favorable compared with the 4.1% rise in the metric in the fourth quarter. American Airlines expects unit costs (excluding fuel and special items) to increase 2% year over year in 2018, which again is better than the reading in the fourth quarter of 2017.
Tax Cuts and Jobs Act to Boost Airlines
Airlines are expected to get a significant boost from the new tax law (Tax Cuts and Jobs Act). The optimism can be made out from the fact that the likes of American Airlines, Southwest Airlines, Alaska Air Group and others declared bonuses following the tax reform.
American Airlines stated on its fourth-quarter conference call that it expects to receive cash tax refunds to the tune of approximately $170 million in both 2019 and 2020 pertaining to the repeal of the corporate alternative minimum tax.
Moreover, in the new tax scenario, companies will be able to deduct their capital expenditures from taxable income immediately, which was not allowed earlier. This provision will benefit airlines hugely as they spend extensively on this front.
Furthermore, the huge savings due to the reduction in corporate tax rate implies that more cash will be available to fund their capital expenditures, acquisitions and share repurchases among others. This means good news for shareholders too as dividend hikes and more buybacks are likely going forward.
Improving Domestic Economy Bodes Well
With the domestic economy on a solid footing, it is of little surprise that U.S. stock markets are hitting all-time highs on a fairly regular basis. Bullish domestic data released recently are indicative of the healthy position of the U.S. economy.
Improvement in domestic economy bodes well for travel-focused stocks like airlines. With consumer confidence remaining strong, more and more Americans are taking vacations. Further, cheap ticket prices have been an added incentive for consumers, who are benefiting from a much-improved job market and rising disposable income.
IATA Forecast Hints at More Profits in 2018
IATA predicts global net profit of $38.4 billion for the industry in 2018. This is much higher than the profitability forecast of $34.5 billion for the current year. The bright projection can be attributed to strong demand for air travel. The bulk of the global profits in 2018 is expected from the North American region ($16.4 billion). The estimated figure is higher than that in 2017.
The top line is projected to come in at $824 billion in 2018 compared with $754 billion projected for 2017. According to the forecast, load factor (percentage of seats filled by passengers) for 2018 is expected to touch record levels of 81.4%.
According to the report, yields are expected to improve 3% in 2018. The research firm has also predicted that the average net profit per departing passenger would be $8.90 per passenger in 2018 compared with $8.45 in 2017.
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Media Contact
Zacks Investment Research
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support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit 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 Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
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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For Immediate Release Chicago, IL - February 5, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Air Lines DAL , American Airlines Group AAL , Southwest Airlines LUV , United Continental Holdings UAL and Alaska Air Group ALK. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Headwinds ranging from flight cancellations and the resultant loss of revenues due to hurricanes and other calamities, high costs and customer dissatisfaction contributed to the sector's struggles in the year gone by.
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For Immediate Release Chicago, IL - February 5, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Air Lines DAL , American Airlines Group AAL , Southwest Airlines LUV , United Continental Holdings UAL and Alaska Air Group ALK. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Impressive Q4 Highlights Turnaround The ongoing Q4 reporting cycle has seen major sector participants like Delta Air Lines, American Airlines Group, Southwest Airlines and United Continental Holdings reporting better-than-expected earnings per share and revenues.
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For Immediate Release Chicago, IL - February 5, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Air Lines DAL , American Airlines Group AAL , Southwest Airlines LUV , United Continental Holdings UAL and Alaska Air Group ALK. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Impressive Q4 Highlights Turnaround The ongoing Q4 reporting cycle has seen major sector participants like Delta Air Lines, American Airlines Group, Southwest Airlines and United Continental Holdings reporting better-than-expected earnings per share and revenues.
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For Immediate Release Chicago, IL - February 5, 2018 - Today, Zacks Equity Research discusses the Airlines, including Delta Air Lines DAL , American Airlines Group AAL , Southwest Airlines LUV , United Continental Holdings UAL and Alaska Air Group ALK. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Impressive Q4 Highlights Turnaround The ongoing Q4 reporting cycle has seen major sector participants like Delta Air Lines, American Airlines Group, Southwest Airlines and United Continental Holdings reporting better-than-expected earnings per share and revenues.
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5dccb173-e2f5-4682-bcd2-20754be10f1f
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7163.0
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2018-02-05 00:00:00 UTC
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3 Airline Stocks to Pick Up at a Discount
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-pick-discount-2018-02-05
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Along with reporting better-than-expected fourth-quarter earnings last week, United Continental Holdings Inc (NYSE: UAL ) also announced plans to increase its capacity in the coming years in an effort to fight off competition from low-cost carriers that have been going after the larger airlines recently. The goal is to boost capacity 4%-6% annually between 2018 and 2020.
The news sparked an industry-wide sell-off as it raised concerns of a price war that could hurt the related companies' bottom lines. However, now that the selling appears to have slowed, it is creating an opportunity for investors to scoop up the airliners at a discount.
10 Secret Stocks Top Investors Are Betting On
A few names in particular stand out to me:
Airline Stocks: American Airlines (AAL)
American Airlines Group Inc (NASDAQ: AAL ) was flying high before the UAL news brought it back down to earth, having climbed to its best level in a decade in early January. Its latest earnings report was solid, with revenue growth 8% year-over-year and PRASM (passenger revenue per available seat mile, one of the most important metrics for airline companies) increasing 5.8% over the previous quarter.
I like that the stock held above its 50-day moving average (the blue line) as well as important price support at $52 amid the recent selling, and I believe it is now setting up for a bounce off the current levels.
Airline Stocks: Delta Air Lines (DAL)
Delta Air Lines, Inc. (NYSE: DAL ) stock is very similar to AAL in that it had traded up to an all-time high last month before falling on the back of United Continental's announcement. Its latest earnings report was also strong - it beat on both the top and bottom lines - and management showed increased confidence by raising their forward guidance.
7 Stocks to Buy That Are Winning With Tech
The chart may also look familiar. DAL held its ground in the weakness, managing to stick above both price support at $55 and its 50-day moving average, and is now poised to bounce from here
Airline Stocks: Southwest Airlines (LUV)
Southwest Airlines Co (NYSE: LUV ) has a different business model than Delta and American Airlines, but again the recent action followed a similar pattern. After hitting an all-time high on the back of solid fourth-quarter numbers, LUV pulled back on the UAL news to price support near $60.
While it has been able to hold that level, it did breach the 50-day moving average at $62.50.
Because Southwest is a discount airline, it could be more affected by price cuts from its larger peers in the future. I do believe it has potential from current prices, though, and I also like that it provides diversification within the broad airline sector.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the "next" generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on.Click here for more information on the "NexGen" Experience .
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The post 3 Airline Stocks to Pick Up at a Discount 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 Secret Stocks Top Investors Are Betting On A few names in particular stand out to me: Airline Stocks: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) was flying high before the UAL news brought it back down to earth, having climbed to its best level in a decade in early January. Airline Stocks: Delta Air Lines (DAL) Delta Air Lines, Inc. (NYSE: DAL ) stock is very similar to AAL in that it had traded up to an all-time high last month before falling on the back of United Continental's announcement. I like that the stock held above its 50-day moving average (the blue line) as well as important price support at $52 amid the recent selling, and I believe it is now setting up for a bounce off the current levels.
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10 Secret Stocks Top Investors Are Betting On A few names in particular stand out to me: Airline Stocks: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) was flying high before the UAL news brought it back down to earth, having climbed to its best level in a decade in early January. Airline Stocks: Delta Air Lines (DAL) Delta Air Lines, Inc. (NYSE: DAL ) stock is very similar to AAL in that it had traded up to an all-time high last month before falling on the back of United Continental's announcement. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Along with reporting better-than-expected fourth-quarter earnings last week, United Continental Holdings Inc (NYSE: UAL ) also announced plans to increase its capacity in the coming years in an effort to fight off competition from low-cost carriers that have been going after the larger airlines recently.
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10 Secret Stocks Top Investors Are Betting On A few names in particular stand out to me: Airline Stocks: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) was flying high before the UAL news brought it back down to earth, having climbed to its best level in a decade in early January. Airline Stocks: Delta Air Lines (DAL) Delta Air Lines, Inc. (NYSE: DAL ) stock is very similar to AAL in that it had traded up to an all-time high last month before falling on the back of United Continental's announcement. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Along with reporting better-than-expected fourth-quarter earnings last week, United Continental Holdings Inc (NYSE: UAL ) also announced plans to increase its capacity in the coming years in an effort to fight off competition from low-cost carriers that have been going after the larger airlines recently.
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10 Secret Stocks Top Investors Are Betting On A few names in particular stand out to me: Airline Stocks: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) was flying high before the UAL news brought it back down to earth, having climbed to its best level in a decade in early January. Airline Stocks: Delta Air Lines (DAL) Delta Air Lines, Inc. (NYSE: DAL ) stock is very similar to AAL in that it had traded up to an all-time high last month before falling on the back of United Continental's announcement. Its latest earnings report was also strong - it beat on both the top and bottom lines - and management showed increased confidence by raising their forward guidance.
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5bf2dd42-fe00-414e-815d-c7bec26bf7e6
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7164.0
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2018-02-05 00:00:00 UTC
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Delta (DAL) Dips on Disappointing January Traffic Statistics
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AAL
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https://www.nasdaq.com/articles/delta-dal-dips-on-disappointing-january-traffic-statistics-2018-02-05
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nan
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nan
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Shares of Delta Air Lines , Inc. DAL dipped 3.2% at the close of business on Feb 2, following the traffic release for January. Consolidated traffic, measured in revenue passenger miles (RPMs), came in at 15.64 billion, flat year over year. Traffic on the international front declined 2% year over year.
Consolidated capacity (or available seat miles/ASMs) inched up 1.8% to 19.62 billion on a year-over-year basis. Consolidated load factor or percentage of seats filled by passengers fell 150 basis points to 79.7%. This is because capacity expanded while traffic remained flat, leading to vacant seats on planes.
Additionally, the Atlanta, GA-based carrier recorded an 84.2% on-time performance and 98% completion factor (mainline) for the period under review.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote
Last month, this Zacks Rank #3 (Hold) company reported fourth-quarter 2017 financial numbers. On a positive note, both earnings and revenues surpassed expectations. The bottom line improved 17.1% on a year-over-year basis, aided by higher revenues. Also, the top line increased 8.3% from the year-ago figure. Strong demand for air travel during the holiday season drove the revenues. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
For the first quarter of 2018, the carrier expects operating margin within 6-8%. Fuel price including taxes and refinery impact is estimated between $2.05 and $2.10 per gallon in the same period. System capacity is anticipated to be up approximately 3% on a year-over-year basis.
The company projects total unit revenues (excluding refinery sales) to increase in the 2.5-4.5% band year over year, for the quarter. Also, non-fuel consolidated unit cost (normalized) including profit sharing is forecast to rise 2-4%.
Other key airline players like United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL also recently announced fourth-quarter earnings results, each better than expected.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other key airline players like United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL also recently announced fourth-quarter earnings results, each better than expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Delta Air Lines , Inc. DAL dipped 3.2% at the close of business on Feb 2, following the traffic release for January.
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Other key airline players like United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL also recently announced fourth-quarter earnings results, each better than expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. Price Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote Last month, this Zacks Rank #3 (Hold) company reported fourth-quarter 2017 financial numbers.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other key airline players like United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL also recently announced fourth-quarter earnings results, each better than expected. Consolidated traffic, measured in revenue passenger miles (RPMs), came in at 15.64 billion, flat year over year.
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Other key airline players like United Continental Holdings UAL , Southwest Airlines LUV and American Airlines AAL also recently announced fourth-quarter earnings results, each better than expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated traffic, measured in revenue passenger miles (RPMs), came in at 15.64 billion, flat year over year.
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055d20a4-bed2-45ef-811b-33acf4a2f73a
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7165.0
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2018-02-02 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for February 05, 2018
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-february-05-2018-2018-02-02
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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 February 05, 2018. A cash dividend payment of $0.1 per share is scheduled to be paid on February 20, 2018. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 15th quarter that AAL has paid the same dividend.
The previous trading day's last sale of AAL was $53.88, representing a -8.8% decrease from the 52 week high of $59.08 and a 37.41% increase over the 52 week low of $39.21.
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 $3.91. Zacks Investment Research reports AAL's forecasted earnings growth in 2018 as 18.37%, compared to an industry average of 7%.
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:
First Trust Nasdaq Transportation ETF ( FTXR )
iShares Transportation Average ETF ( IYT )
Franklin LibertyQ U.S. Mid Cap Equity ETF ( FLQM )
Direxion NASDAQ-100 Equal Weighted Index Shares ( QQQE ).
The top-performing ETF of this group is IYT with an increase of 16.09% over the last 100 days. FTXR has the highest percent weighting of AAL at 4.32%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). Zacks Investment Research reports AAL's forecasted earnings growth in 2018 as 18.37%, compared to an industry average of 7%. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 05, 2018.
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The following ETF(s) have AAL as a top-10 holding: First Trust Nasdaq Transportation ETF ( FTXR ) iShares Transportation Average ETF ( IYT ) Franklin LibertyQ U.S. 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 February 05, 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: First Trust Nasdaq Transportation ETF ( FTXR ) iShares Transportation Average ETF ( IYT ) Franklin LibertyQ U.S.
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The following ETF(s) have AAL as a top-10 holding: First Trust Nasdaq Transportation ETF ( FTXR ) iShares Transportation Average ETF ( IYT ) Franklin LibertyQ U.S. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 05, 2018. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment.
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d99f1ac5-d3ea-497a-8c44-dc3969054a78
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7166.0
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2018-02-02 00:00:00 UTC
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Noteworthy Friday Option Activity: AAL, HES, MAN
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AAL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-aal-hes-man-2018-02-02
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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 American Airlines Group Inc (Symbol: AAL), where a total volume of 24,821 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 42.7% of AAL's average daily trading volume over the past month, of 5.8 million shares. Especially high volume was seen for the $53.50 strike call option expiring February 02, 2018 , with 2,677 contracts trading so far today, representing approximately 267,700 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $53.50 strike highlighted in orange:
Hess Corp (Symbol: HES) saw options trading volume of 18,652 contracts, representing approximately 1.9 million underlying shares or approximately 42.3% of HES's average daily trading volume over the past month, of 4.4 million shares. Particularly high volume was seen for the $52.50 strike put option expiring February 16, 2018 , with 4,151 contracts trading so far today, representing approximately 415,100 underlying shares of HES. Below is a chart showing HES's trailing twelve month trading history, with the $52.50 strike highlighted in orange:
And ManpowerGroup (Symbol: MAN) saw options trading volume of 1,432 contracts, representing approximately 143,200 underlying shares or approximately 41.7% of MAN's average daily trading volume over the past month, of 343,790 shares. Particularly high volume was seen for the $125 strike put option expiring February 16, 2018 , with 250 contracts trading so far today, representing approximately 25,000 underlying shares of MAN. Below is a chart showing MAN's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for AAL options , HES options , or MAN 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 $53.50 strike call option expiring February 02, 2018 , with 2,677 contracts trading so far today, representing approximately 267,700 underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 24,821 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 42.7% of AAL's average daily trading volume over the past month, of 5.8 million shares.
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Especially high volume was seen for the $53.50 strike call option expiring February 02, 2018 , with 2,677 contracts trading so far today, representing approximately 267,700 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $53.50 strike highlighted in orange: Hess Corp (Symbol: HES) saw options trading volume of 18,652 contracts, representing approximately 1.9 million underlying shares or approximately 42.3% of HES's average daily trading volume over the past month, of 4.4 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 24,821 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).
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 24,821 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). Below is a chart showing AAL's trailing twelve month trading history, with the $53.50 strike highlighted in orange: Hess Corp (Symbol: HES) saw options trading volume of 18,652 contracts, representing approximately 1.9 million underlying shares or approximately 42.3% of HES's average daily trading volume over the past month, of 4.4 million shares. That number works out to 42.7% of AAL's average daily trading volume over the past month, of 5.8 million shares.
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Especially high volume was seen for the $53.50 strike call option expiring February 02, 2018 , with 2,677 contracts trading so far today, representing approximately 267,700 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $53.50 strike highlighted in orange: Hess Corp (Symbol: HES) saw options trading volume of 18,652 contracts, representing approximately 1.9 million underlying shares or approximately 42.3% of HES's average daily trading volume over the past month, of 4.4 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 24,821 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).
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04d4d571-f716-4b0e-9929-c7d105d05fee
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7167.0
|
2018-02-01 00:00:00 UTC
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Ex-Dividend Reminder: American Airlines Group, AZZ and Carpenter Technology
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AAL
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https://www.nasdaq.com/articles/ex-dividend-reminder-american-airlines-group-azz-and-carpenter-technology-2018-02-01
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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 2/5/18, American Airlines Group Inc (Symbol: AAL), AZZ Inc (Symbol: AZZ), and Carpenter Technology Corp. (Symbol: CRS) will all trade ex-dividend for their respective upcoming dividends. American Airlines Group Inc will pay its quarterly dividend of $0.10 on 2/20/18, AZZ Inc will pay its quarterly dividend of $0.17 on 2/20/18, and Carpenter Technology Corp. will pay its quarterly dividend of $0.18 on 3/1/18. As a percentage of AAL's recent stock price of $53.82, this dividend works out to approximately 0.19%, so look for shares of American Airlines Group Inc to trade 0.19% lower - all else being equal - when AAL shares open for trading on 2/5/18. Similarly, investors should look for AZZ to open 0.37% lower in price and for CRS to open 0.36% lower, all else being equal.
Below are dividend history charts for AAL, AZZ, and CRS, showing historical dividends prior to the most recent ones declared.
American Airlines Group Inc (Symbol: AAL) :
AZZ Inc (Symbol: AZZ) :
Carpenter Technology Corp. (Symbol: CRS) :
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 0.74% for American Airlines Group Inc, 1.48% for AZZ Inc, and 1.45% for Carpenter Technology Corp..
In Thursday trading, American Airlines Group Inc shares are currently down about 0.9%, AZZ Inc shares are up about 0.7%, and Carpenter Technology Corp. shares are down about 3.4% 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 $53.82, this dividend works out to approximately 0.19%, so look for shares of American Airlines Group Inc to trade 0.19% lower - all else being equal - when AAL shares open for trading on 2/5/18. Looking at the universe of stocks we cover at Dividend Channel , on 2/5/18, American Airlines Group Inc (Symbol: AAL), AZZ Inc (Symbol: AZZ), and Carpenter Technology Corp. (Symbol: CRS) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for AAL, AZZ, and CRS, 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 2/5/18, American Airlines Group Inc (Symbol: AAL), AZZ Inc (Symbol: AZZ), and Carpenter Technology Corp. (Symbol: CRS) will all trade ex-dividend for their respective upcoming dividends. American Airlines Group Inc (Symbol: AAL) : AZZ Inc (Symbol: AZZ) : Carpenter Technology Corp. (Symbol: CRS) : 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 $53.82, this dividend works out to approximately 0.19%, so look for shares of American Airlines Group Inc to trade 0.19% lower - all else being equal - when AAL shares open for trading on 2/5/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 2/5/18, American Airlines Group Inc (Symbol: AAL), AZZ Inc (Symbol: AZZ), and Carpenter Technology Corp. (Symbol: CRS) will all trade ex-dividend for their respective upcoming dividends. American Airlines Group Inc (Symbol: AAL) : AZZ Inc (Symbol: AZZ) : Carpenter Technology Corp. (Symbol: CRS) : 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 $53.82, this dividend works out to approximately 0.19%, so look for shares of American Airlines Group Inc to trade 0.19% lower - all else being equal - when AAL shares open for trading on 2/5/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 2/5/18, American Airlines Group Inc (Symbol: AAL), AZZ Inc (Symbol: AZZ), and Carpenter Technology Corp. (Symbol: CRS) will all trade ex-dividend for their respective upcoming dividends. As a percentage of AAL's recent stock price of $53.82, this dividend works out to approximately 0.19%, so look for shares of American Airlines Group Inc to trade 0.19% lower - all else being equal - when AAL shares open for trading on 2/5/18. Below are dividend history charts for AAL, AZZ, and CRS, showing historical dividends prior to the most recent ones declared.
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366b4048-beb2-4221-8b80-d82768626685
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7168.0
|
2018-01-31 00:00:00 UTC
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Transport Stocks' Q4 Earnings Lineup: UPS, SNDR, SKYW, HTLD
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AAL
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https://www.nasdaq.com/articles/transport-stocks-q4-earnings-lineup%3A-ups-sndr-skyw-htld-2018-01-31
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nan
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nan
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The picture that has been unfolding in the Q4 earnings season is a rosy one so far. According to the latest Earnings Preview, this positive scenario is anticipated to continue. In fact, the above report projects that companies in the prestigious S&P 500 space will end Q4 with an overall bottom-line growth of 11.4% year over year. Additionally, stocks in this highly sought-after fraternity are expected to end Q4 with their top line expanding 7.5%. Both these figures compare favorably with the readings in the previous quarter, when bottom line expanded 6.7% and revenues grew 5.9%.
In fact, 14 of the 16 Zacks sectors are anticipated to end the reporting cycle with earnings growth, one being the widely-diversified Zacks Transportation sector . The bottom line for this sector is projected to increase 2.6% compared to the year-over-year decline of 13.9% in preceding quarter.
Transports Bounce Back
Stocks in the transportation space seem to be back in favour, after being laid low for most of 2017 due to multiple headwinds like the back-to-back hurricanes. Also, the new tax law (Tax Cuts and Jobs Act) is a huge positive for the companies in this space. Notably, the $1.5 trillion tax overhaul package signed into law by President Trump on Dec 22, 2017, reduces corporate taxes from 35% to 21%.
Buoyed by the new law, various sector participants like Southwest Airlines and Kansas City Southern KSU have declared bonuses for their employees. Apart from the huge drop in corporate tax rate, the fact that companies are now allowed to deduct their capital expenditures from taxable income immediately has proved to be favorable for transport stocks as they will be able to invest toward capital expenditures considerably.
String of Outperformances in Q4
In line with the optimism surrounding the sector, the key players like American Airlines AAL and Norfolk Southern NSC have reported better-than-expected results in Q4.
Moreover, the likes of Norfolk Southern and Alaska Air Group have announced hikes in their respective quarterly dividend payouts. This signifies their financial prosperity and shareholder-friendly attitude.
What Lies Ahead?
Given this healthy backdrop, investors interested in the transportation space will keenly await Q4 reports from key sector participants like United Parcel Service UPS , Schneider National SNDR , SkyWest SKYW and Heartland Express HTLD .
According to our quantitative model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
United Parcel Service is the world's largest express carrier and package delivery company. The company provides specialized transportation and logistics services in the United States and internationally. E-commerce growth is likely to aid the company's results in the soon to-be-reported quarter. Revenues from the company's U.S. Domestic Package unit are also likely to benefit from increased package volumes on the back of e-commerce growth.
In the to-be-reported quarter, we expect the company to report better-than-expected earnings per share. This is because it has an Earnings ESP of +0.10 and a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Our model had predicted an earnings beat earlier too when we issued its Q4 earnings preview article . The company carried a Zacks Rank #3 while the Earnings ESP was the same. UPS is scheduled to report on Feb 1.
United Parcel Service, Inc. Price and EPS Surprise
United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote
Schneider National , headquartered in Green Bay, WI, is a transportation and logistics services company. Our proven model shows that the company is likely to beat earnings estimates in Q4. This is because it has an Earnings ESP of +0.27 and a Zacks Rank #2 (Buy). Schneider National is scheduled to report on Feb 1.
Schneider National, Inc. Price and EPS Surprise
Schneider National, Inc. Price and EPS Surprise | Schneider National, Inc. Quote
SkyWest , through its subsidiaries, operates a regional airline in the United States. Our proven model shows that the company is likely to beat earnings estimates in Q4. This is because it has an Earnings ESP of +5.67 (as Most Accurate estimate is pegged at 4 cents above the Zacks Consensus Estimate of 71 cents). Also, it currently carries a Zacks Rank #2. SkyWest is scheduled to report on Feb 1.
SkyWest, Inc. Price and EPS Surprise
SkyWest, Inc. Price and EPS Surprise | SkyWest, Inc. Quote
Heartland Express , based in North Liberty, IO, operates as a short-to-medium haul truckload carrier of general commodities. Our proven model does not show conclusively that this trucking company will beat earnings estimates in Q4, despite carrying a Zacks Rank #3. This is because it has an Earnings ESP of -4.1%, which acts as a spoiler. The company is expected to report its results on Feb 1.
Heartland Express, Inc. Price and EPS Surprise
Heartland Express, Inc. Price and EPS Surprise | Heartland Express, Inc. Quote
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
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Kansas City Southern (KSU): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): Free Stock Analysis Report
Heartland Express, Inc. (HTLD): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
Schneider National, Inc. (SNDR): 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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String of Outperformances in Q4 In line with the optimism surrounding the sector, the key players like American Airlines AAL and Norfolk Southern NSC have reported better-than-expected results in Q4. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report Heartland Express, Inc. (HTLD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report Schneider National, Inc. (SNDR): Free Stock Analysis Report To read this article on Zacks.com click here. Buoyed by the new law, various sector participants like Southwest Airlines and Kansas City Southern KSU have declared bonuses for their employees.
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report Heartland Express, Inc. (HTLD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report Schneider National, Inc. (SNDR): Free Stock Analysis Report To read this article on Zacks.com click here. String of Outperformances in Q4 In line with the optimism surrounding the sector, the key players like American Airlines AAL and Norfolk Southern NSC have reported better-than-expected results in Q4. Given this healthy backdrop, investors interested in the transportation space will keenly await Q4 reports from key sector participants like United Parcel Service UPS , Schneider National SNDR , SkyWest SKYW and Heartland Express HTLD .
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report Heartland Express, Inc. (HTLD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report Schneider National, Inc. (SNDR): Free Stock Analysis Report To read this article on Zacks.com click here. String of Outperformances in Q4 In line with the optimism surrounding the sector, the key players like American Airlines AAL and Norfolk Southern NSC have reported better-than-expected results in Q4. According to our quantitative model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise.
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String of Outperformances in Q4 In line with the optimism surrounding the sector, the key players like American Airlines AAL and Norfolk Southern NSC have reported better-than-expected results in Q4. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report Heartland Express, Inc. (HTLD): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report Schneider National, Inc. (SNDR): Free Stock Analysis Report To read this article on Zacks.com click here. Given this healthy backdrop, investors interested in the transportation space will keenly await Q4 reports from key sector participants like United Parcel Service UPS , Schneider National SNDR , SkyWest SKYW and Heartland Express HTLD .
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bf13c38a-3cb5-4355-ad42-b078f1dfbe98
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7169.0
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2018-01-31 00:00:00 UTC
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As United Struggles, This Airline IPO With 5,600% Growth May Take Flight
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AAL
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https://www.nasdaq.com/articles/united-struggles-airline-ipo-5600-growth-may-take-flight-2018-01-31
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nan
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nan
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While industry leaders like United Airlines ( UAL ), Southwest Airlines ( LUV ) and American Airlines ( AAL ) are struggling to take flight, Brazil's Azul ( AZUL ) has been testing a new buy zone.
[ibd-display-video id=2368044 width=50 float=left autostart=true] United nose-dived more than 11% on Jan. 24 after reporting earnings, then skidded below its 200-day moving average the next day. The Chicago-based flyer is trying (and so far failing) to retake that benchmark line, and the 50-day line is still below its longer-term cousin.
Southwest has retreated from a December breakout and is now below its 10-week moving average, and American Airlines is testing support at the lower end of the buy zone it entered earlier this month.
Meanwhile, Azul, which has 792 daily flights to more than 100 locations and was ranked as the most on-time airline in the Americas in 2017 , is trading right around a 29.53 buy point.
Is Rising EPS Growth Sustainable?
Azul delivered a whopping 5,600% spike in earnings in Q3, and analysts expect a 520% increase when the Brazilian airline releases Q4 numbers. The company has not yet announced a reporting date.
Founded in 2008, Azul has reported triple-digit or better EPS growth in four of the last five quarters, but three of those are based on comparisons to year-over-year quarters that showed a loss.
Sales growth has ranged from 15% to 32% over the last five reports, including an increase to 18% in Q3.
Signs of institutional demand for Azul include an A- Accumulation/Distribution Rating, 1.8 up/down volume ratio and two quarters of rising fund ownership.
Taking Flight From New Base?
Since going public last April, Azul has formed two bases. The stock has shown good signs of accumulation while building the right side of its current pattern, and the relative strength line has been moving sharply higher.
Another sign of renewed technical strength is how the 10-day and 21-day lines recently moved back above the longer-term 50-day moving average.
Early Wednesday, Azul gapped up to clear the 29.53 entry, but fell back to fill that gap and close the day below the buy point. Volume was 32% above average.
On Thursday, the stock again flew into the 29.53-30.90 buy range, but reduced its altitude in the afternoon to close the day pennies below the buy point. The stock as up 1.5% in after-hours trading.
Keep in mind three key points.
First, newer IPO stocks can be volatile so be sure to keep them on a tight leash.
Second, it can be risky to buy stocks just before they report and it's not yet clear when Azul will release its latest numbers.
Finally, keep a close eye on the general market , which has been showing signs of potential topping action in recent days.
You May Also Like:
Airline Stocks To Watch And Industry News
How To Find And Track The Best IPO Stocks
Looking For The Next Nvidia? Start With These Lists
A Tale Of 4 IPOs: Facebook, Alibaba, Snap And Square
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While industry leaders like United Airlines ( UAL ), Southwest Airlines ( LUV ) and American Airlines ( AAL ) are struggling to take flight, Brazil's Azul ( AZUL ) has been testing a new buy zone. Southwest has retreated from a December breakout and is now below its 10-week moving average, and American Airlines is testing support at the lower end of the buy zone it entered earlier this month. Signs of institutional demand for Azul include an A- Accumulation/Distribution Rating, 1.8 up/down volume ratio and two quarters of rising fund ownership.
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While industry leaders like United Airlines ( UAL ), Southwest Airlines ( LUV ) and American Airlines ( AAL ) are struggling to take flight, Brazil's Azul ( AZUL ) has been testing a new buy zone. Another sign of renewed technical strength is how the 10-day and 21-day lines recently moved back above the longer-term 50-day moving average. Start With These Lists A Tale Of 4 IPOs: Facebook, Alibaba, Snap And Square The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While industry leaders like United Airlines ( UAL ), Southwest Airlines ( LUV ) and American Airlines ( AAL ) are struggling to take flight, Brazil's Azul ( AZUL ) has been testing a new buy zone. On Thursday, the stock again flew into the 29.53-30.90 buy range, but reduced its altitude in the afternoon to close the day pennies below the buy point. Second, it can be risky to buy stocks just before they report and it's not yet clear when Azul will release its latest numbers.
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While industry leaders like United Airlines ( UAL ), Southwest Airlines ( LUV ) and American Airlines ( AAL ) are struggling to take flight, Brazil's Azul ( AZUL ) has been testing a new buy zone. Founded in 2008, Azul has reported triple-digit or better EPS growth in four of the last five quarters, but three of those are based on comparisons to year-over-year quarters that showed a loss. Another sign of renewed technical strength is how the 10-day and 21-day lines recently moved back above the longer-term 50-day moving average.
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091d843a-078f-41aa-8f54-eae0c31d663b
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7170.0
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2018-01-31 00:00:00 UTC
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Wednesday Sector Leaders: Trucking, Airlines
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AAL
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https://www.nasdaq.com/articles/wednesday-sector-leaders-trucking-airlines-2018-01-31
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nan
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nan
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In trading on Wednesday, trucking shares were relative leaders, up on the day by about 1.1%. Leading the group were shares of Knight-Swift Transportation Holdings ( KNX ), up about 10% and shares of Schneider National ( SNDR ) up about 2.8% on the day.
Also showing relative strength are airlines shares, up on the day by about 1.1% as a group, led by China Southern Airlines Company ( ZNH ), trading up by about 3.4% and American Airlines Group ( AAL ), trading up by about 3.4% on Wednesday.
VIDEO: Wednesday Sector Leaders: Trucking, 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 showing relative strength are airlines shares, up on the day by about 1.1% as a group, led by China Southern Airlines Company ( ZNH ), trading up by about 3.4% and American Airlines Group ( AAL ), trading up by about 3.4% on Wednesday. In trading on Wednesday, trucking shares were relative leaders, up on the day by about 1.1%. VIDEO: Wednesday Sector Leaders: Trucking, 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 showing relative strength are airlines shares, up on the day by about 1.1% as a group, led by China Southern Airlines Company ( ZNH ), trading up by about 3.4% and American Airlines Group ( AAL ), trading up by about 3.4% on Wednesday. In trading on Wednesday, trucking shares were relative leaders, up on the day by about 1.1%. VIDEO: Wednesday Sector Leaders: Trucking, 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 showing relative strength are airlines shares, up on the day by about 1.1% as a group, led by China Southern Airlines Company ( ZNH ), trading up by about 3.4% and American Airlines Group ( AAL ), trading up by about 3.4% on Wednesday. VIDEO: Wednesday Sector Leaders: Trucking, 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 showing relative strength are airlines shares, up on the day by about 1.1% as a group, led by China Southern Airlines Company ( ZNH ), trading up by about 3.4% and American Airlines Group ( AAL ), trading up by about 3.4% on Wednesday. In trading on Wednesday, trucking shares were relative leaders, up on the day by about 1.1%. Leading the group were shares of Knight-Swift Transportation Holdings ( KNX ), up about 10% and shares of Schneider National ( SNDR ) up about 2.8% on the day.
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aeb9f308-b18c-4f5b-8843-fa8c0e427dbb
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7171.0
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2018-01-29 00:00:00 UTC
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After a Hard Landing, American Airlines Group Inc Is Ready for Lift Off
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AAL
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https://www.nasdaq.com/articles/after-hard-landing-american-airlines-group-inc-ready-lift-2018-01-29
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After a sharp upside breakout, shares of American Airlines Group Inc (NASDAQ: AAL ) have descended rapidly. The previous high flier has seen a nearly 13% drop since making a intraday high of $59.08 on Jan. 16. Given the solid fundamental backdrop and much improved technical picture, I expect AAL to come out of the recent tailspin and begin to regain some altitude over the coming weeks.
Click to Enlarge
Implied volatility (IV) is still at the 50th percentile even following earnings, so option prices are still comparatively rich. This means option selling strategies are still viable. So to position for American Airlines stock to begin to consolidate and hold support, a bullish put credit spread makes sense.
AAL Stock Trade Idea
Buy AAL Feb $49 puts and sell the AAL Feb $51 puts for a 40-cent net credit
Maximum gain on the trade is $40 per spread with maximum risk of $160 per spread. Return on risk is 25%. The short $51 strike is positioned below the $52 support area and provides a nearly 4% downside cushion to the $53.06 closing price of AAL.
As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities. Anyone interested in finding out more about option-based strategies or for a free trial of the Delta Desk Research Report can email Tim at timbiggam@gmail.com
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The post After a Hard Landing, American Airlines Group Inc Is Ready for Lift Off appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After a sharp upside breakout, shares of American Airlines Group Inc (NASDAQ: AAL ) have descended rapidly. Given the solid fundamental backdrop and much improved technical picture, I expect AAL to come out of the recent tailspin and begin to regain some altitude over the coming weeks. AAL Stock Trade Idea Buy AAL Feb $49 puts and sell the AAL Feb $51 puts for a 40-cent net credit Maximum gain on the trade is $40 per spread with maximum risk of $160 per spread.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After a sharp upside breakout, shares of American Airlines Group Inc (NASDAQ: AAL ) have descended rapidly. AAL Stock Trade Idea Buy AAL Feb $49 puts and sell the AAL Feb $51 puts for a 40-cent net credit Maximum gain on the trade is $40 per spread with maximum risk of $160 per spread. Given the solid fundamental backdrop and much improved technical picture, I expect AAL to come out of the recent tailspin and begin to regain some altitude over the coming weeks.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After a sharp upside breakout, shares of American Airlines Group Inc (NASDAQ: AAL ) have descended rapidly. AAL Stock Trade Idea Buy AAL Feb $49 puts and sell the AAL Feb $51 puts for a 40-cent net credit Maximum gain on the trade is $40 per spread with maximum risk of $160 per spread. Given the solid fundamental backdrop and much improved technical picture, I expect AAL to come out of the recent tailspin and begin to regain some altitude over the coming weeks.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips After a sharp upside breakout, shares of American Airlines Group Inc (NASDAQ: AAL ) have descended rapidly. Given the solid fundamental backdrop and much improved technical picture, I expect AAL to come out of the recent tailspin and begin to regain some altitude over the coming weeks. AAL Stock Trade Idea Buy AAL Feb $49 puts and sell the AAL Feb $51 puts for a 40-cent net credit Maximum gain on the trade is $40 per spread with maximum risk of $160 per spread.
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2018-01-26 00:00:00 UTC
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American Airlines Group (AAL) Q4 2017 Earnings Conference Call Transcript
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-q4-2017-earnings-conference-call-transcript-2018-01-26
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American Airlines Group (NASDAQ: AAL)
Q4 2017 Earnings Conference Call
Jan. 25, 2018 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Please stand by, we're about to begin. Good morning and welcome to the American Airlines Group Fourth-Quarter 2017 Earnings Call. Today's call is being recorded. At this time all lines are in a listen-only mode.
Following the presentation, we will conduct a question-and-answer session. To signal for a question or comment during that time, please press *1 on your telephone keypad. And now, I'd like to turn the conference over to your moderator, Managing Director of Investor Relations Mr. Dan Cravens. Please go ahead, sir.
Dan Cravens -- Managing Director of Investor Relations
Thanks, Alan, and good morning, everyone, and welcome to the American Airlines Group fourth-quarter 2017 earnings conference call. In the room with us this morning is Doug Parker, our chairman and CEO; Robert Isom, president; and Derek Kerr, our chief financial officer. Also in the room with us for our Q&A session is Elise Eberwein, our EVP of people and communications; Maya Leibman, our chief information officer; Steve Johnson, our EVP of corporate affairs; and Don Casey, our senior vice president of revenue management. We're going to start the call today with Doug, and he'll provide an overview of financial results.
Derek will then walk us through the details on the fourth quarter and provide some additional information on our 2018 guidance. Robert will then follow with commentary on the operational performance and revenue environment. And then after we hear from those comments, we'll open the call for analysts' questions and, lastly, questions from the media. To get in as many questions as possible, please limit yourself to one question and a follow-up.
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Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues and costs; forecast of capacity, traffic, load factor, fleet plans, and fuel prices. These statements represent our predictions and expectations as to future events, but numerous risks and uncertainties could cause actual results to differ from those projected. Information about some of those risks and uncertainties can be found in our earnings press release issued this morning and our Form 10-Q for the quarter ended September 30, 2017. In addition, we will be discussing certain non-GAAP financial measures this morning, such as pre-tax profit and CASM, excluding unusual items.
A reconciliation of those numbers to the GAAP financial measures is included in the earnings release, and that can be found on our website at aa.com. A webcast of this call will also be archived on our website. The information that we're giving you on the call is as of today's date, and we undertake no obligation to update the information subsequently. Thanks, again, for joining us.
And at this point, we'll turn the call over to our chairman and CEO, Doug Parker.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Dan. Thanks to everybody for being on. 2017 was a great year for American Airlines from a financial perspective. As we announced this morning, we made, excluding special items, $3.8 billion pre-tax.
That's $2.4 billion after tax, or $4.88 a share. In terms of accomplishments, the teams did a phenomenal job through sometimes difficult circumstances. We -- in regards to creating a world-class customer experience, we produced record-setting operational reliability at American. We did that while we continued the most aggressive and successful aircraft modernization program in the history of commercial aviation.
We've introduced the best lounge product ever created by a U.S. carrier, with Flagship Lounges in Miami, LAX, JFK, and improvements in Chicago. We successfully rolled out our basic and premium economy products. We expanded our network where we have strategic advantage, which is in and out of our hubs, and it's all working.
Our customer service -- our customer survey data on likelihood to recommend is the highest in American Airlines' history, and our year-over-year growth and unit revenue was industry-leading. As to making culture a competitive advantage, we started the year by giving each team member two round-trip positive-space tickets in appreciation of their work in allowing American Airlines to win the Air Transport World Airline of the Year award, the first time American won that since 1988. We ensured our team-member pay remain competitive through initiatives such as a unilateral mid-contract pay adjustment for pilots and flight attendants. We invested several hundred million dollars in team-member facilities throughout the system as well as equipment improvements.
We've brought some maintenance work back in-house. We launched the first team-member survey in over a decade and we ended the year by sharing the long-term benefits of the recent Tax Cuts and Job Acts by issuing $1,000 payments to all of our non-officer team members. All that added up to ensuring -- to helping us ensure some long-term financial strength. We returned $1.7 billion to shareholders through repurchases and dividends.
The total since 2014 now is $11.4 billion. We announced $3.9 billion in revenue and cost initiatives expected to be realized by the end of 2021. And then finally, and in terms of thinking forward and leading forward, we formed a strategic alliance with China Southern, which strengthened our relationship with our other key global partners. We made important advancements in next-generation technology, and we improved our long-term strategic positioning in critical airports like LAX and Chicago.
So we are extremely proud of what our team accomplished and our 120,000 team members, who made it happen. We ended 2018 with great momentum, and we are bullish about our future. So with that said, I'll turn it over to Derek, who will give you some more detail on the financials, and then we'll go to Robert with some more color on the revenue and the operations performance. Derek?
Derek Kerr -- Chief Financial Officer
Thanks, Doug. Good morning, everybody. Before I begin, I'd like to thank our team members for the great job they did in 2017 taking care of our customers. Our company continues to take great strides forward, and the progress we made is entirely due to their efforts.
We filed our fourth-quarter and full-year earnings press release this morning. In that release, our fourth-quarter 2017 GAAP net profit was $258 million, or $0.54 per diluted share, down $31 million from our fourth-quarter 2016 GAAP net profit of $289 million. On a full-year basis, our GAAP net profit for 2017 was $1.9 billion, or $3.90 per diluted share, compared to our 2016 GAAP net profit of $2.7 billion. Excluding net special items, we reported a net profit of $455 million in the fourth quarter 2017, versus our fourth quarter 2016 net profit excluding special items of $475 million.
Our diluted earnings per share, excluding net special items, were $0.95 per share, which was up 3.5% from $0.92 per diluted share that we had in the fourth quarter of 2016. For the full year of 2017, net income, excluding special items, was $2.4 billion, or $4.88 per diluted share, versus 2016 at $3.2 billion, or $5.71 per diluted share. On a pre-tax basis, our GAAP fourth-quarter 2017 pre-tax profit was $425 million. Excluding net special items, our fourth-quarter pre-tax profit was $739 million, resulting in a pre-tax margin of 7%.
For the full year, our GAAP pre-tax profit is $3.1 billion. If we exclude special items, the number is $3.8 billion and a pre-tax margin of 9.1%. For the sixth consecutive quarter, our fourth-quarter revenue performance led the industry. Total operating revenues were up 3 point -- or excuse me, 8.3% year over year to $10.6 billion.
Passenger revenues were up 8.1% to $9 billion, primarily driven by a 4.4% yield improvement. Our cargo team continues to produce great results. Cargo revenues were up 19.7% to $232 million in the fourth quarter due in part to a 12.2% increase in volume. Other operating revenues were $1.3 billion, up 8.1% year over year, primarily driven by higher bag fees and frequent-flyer revenue.
Total GAAP operating expenses for the fourth quarter of 2017 were $9.9 billion, up 9.8% versus the same period last year. This increase was driven by higher consolidated fuel expense, which was up 23.5%, higher salaries and benefits expenses as a result of the mid-contract base pay increase given to our pilots and flight attendants in April 2017, and higher revenue-related expenses and depreciation. As a result, consolidated CASM was $0.1471, up 7.1% year over year, and our consolidated CASM ex fuel and special items was $0.1125, up 3.8% year over year, due primarily to the expense increases I just mentioned. We ended the year with approximately $7.6 billion in total available liquidity, comprised of cash and investments of $5.1 billion and $2.5 billion in undrawn revolver capacity.
The company also had a restricted cash position of $318 million. Our treasury team continued to be busy in the fourth quarter, completing five aircraft mortgages and two sale-leaseback transactions. In tradition, we successfully repriced two term loans, bringing our entire term loan performance portfolio to an industry-leading rate of 200 basis points over LIBOR. All of these transactions helped contribute to the long-term financial strength of American.
During the fourth quarter, the company made dividend payments of $48 million and repurchased 4.6 million shares at a cost of $227 million. Total capital return to shareholders in 2017 was $1.7 billion, $1.6 billion in share repurchases and $200 million in dividends. And since mid-2014, as Doug said, our total is $11.3 billion of capital returned to shareholders. As a result of these repurchases, our share count outstanding as of December 31, 2017, was 475.5 million, a reduction of 37% from the merger close in December 2013.
In addition to our earnings release, we also filed our investor update this morning. As discussed at our Investor Day in September, we will now provide guidance on a consolidated basis and longer-term CASM, CAPEX, and fleet guidance. We also disclosed in our update that due to the adoption of new accounting standards on January 1, 2018, relating to revenue recognition, as well as the income statement classification of certain pension and benefit costs, we would provide recast numbers for 2017 reflecting those changes. Under the new revenue standard, our 2017 pre-tax income will receive a noncash benefit of $311 million.
The reclassification of certain pension and benefit costs resulted in a net $138 million gain moving from operating to nonoperating expense and has no effect on the 2017 pre-tax income. The recast financial statements are included along with the investor update we filed as an 8-K this morning and should be used as a baseline for your models. We continue to expect our 2018 capacity to be up approximately 2.5% on a schedule-over-schedule basis, which is consistent with guidance provided on our third-quarter 2017 earnings call and in line with anticipated GDP growth. The hurricanes that hit Florida and the Caribbean last September, which resulted in more than 8,000 flight cancellations, is expected to add approximately 50 basis points to this guidance on a schedule-over-actual basis.
The full-year growth is driven by an increase in utilization of about 2 points, completion factor increase of about 0.5 point, and gauge of about 0.5 point. By region, we expect 2018 system capacity to be up approximately 3%, both domestically and internationally. By quarter, we expect first-quarter consolidated capacity to be up 66.2 billion ASMs, second quarter to be 73.4 billion ASMs, third quarter 76 billion ASMs, and the fourth quarter to be 69.1 billion ASMs. As discussed at our Investor Day and reiterated on our third-quarter 2017 earnings call, we continue to anticipate that our unit cost growth rates will trend lower throughout the year, and expect 2018 full-year, non-fuel CASM to increase by approximately 2%, excluding the impact of any new labor agreements.
This guidance includes approximately $250 million of cost reductions from our One Airline initiative, which is $50 million higher than we had outlined at our Investor Day. We expect our first-quarter consolidated CASM, excluding special -- fuel and special items, to be up approximately 3% to 5% on a year-over-year basis, with the increase driven in part by the rate increases given to our pilots and flight attendants last April, which is not in our 2017 first-quarter base; higher depreciation and amortization; increases in revenue-related expenses; and increases in rent and landing fees. For the remainder of the year, we expect our CASM growth to trend lower. In the second quarter, CASM was up 1.5% to 3.5%; third quarter, 0.5% to 2.5%; and fourth quarter will be up approximately 0 to 2% versus 2017.
Based on the forward curve as of January 22, we are forecasting a 24.1% year-over-year increase in consolidated fuel expense in 2018, or about $1.8 billion year over year. We anticipate paying between $2.06 to $2.11 per gallon for the year. By quarter, in the first, it's $2.07 to $2.12; second quarter, $2.07 to $2.12 also in the second quarter; in the third quarter, $2.06 to $2.11; and in the fourth quarter, $2.03 to $2.08. Following the passing of the recent Tax Cuts and Job Act, our book-tax rate has been reduced from approximately 38% to approximately 24%.
As a result of tax reform, the company recorded a special noncash tax benefit of $7 million to reflect the impact of the lower rate on our deferred-tax accounts. In addition, under the new law, we expect to receive cash tax refunds of approximately $170 million in both 2019 and 2020 related to the repeal of the corporate alternative minimum tax. While we currently do not pay federal cash income taxes, the new law will substantially reduce the company's tax bill in the future when we do become a tax -- cash taxpayer, which will be a significant benefit for all of our American stakeholders. Robert will talk more about our first-quarter 2018 TRASM forecast increase of 2% or 4%.
But when we combine the cost guidance we just gave, we expect the first-quarter 2018 pre-tax margin, excluding special items, to be between 2% and 4%. In addition, we also are providing long-term earnings per share guidance at this point. We expect our 2018 earnings per diluted share to be between $5.50 to $6.50, and we will intend to tighten that range as the year progresses. Our capital plans for 2018 include a decline in spending from previous years due primarily to lower aircraft CAPEX.
Our fleet renewal program will continue in 2018, but at a much slower rate. For the full year, we expect gross CAPEX to total $1.8 billion, as compared to $4.1 billion in 2017. This includes the delivery of 22 mainline and five regional aircraft. These will replace older super 80s, -8s and CRJ-200 aircraft.
We also expect to commit $1.8 billion in non-aircraft CAPEX to continue the merger integration and complete projects to improve our product and operations, such as narrow-body retrofit programs, the ongoing installation of premium economy on our wide-body aircraft, and improvement in our clubs and new campus facilities. With respect to our pensions, on our last call, I had estimated that our 2018 pension contribution would be approximately $780 million, which will fund our pensions to 80%. However, in 2017, our pension assets had strong investment performance. And as a result, we now expect to make pension contributions of only $465 million in 2018 to reach that 80%-funded level.
This amount is significantly more than the minimum required contribution of approximately $35 million in 2018. So in conclusion, I'd like to once again congratulate our entire team for another excellent year, and thank them for getting our customers where they need to go safely and on time. With that, I will turn the call over to Robert.
Robert Isom -- President
Thanks, Derek, and good morning, everybody. Before I begin my remarks, I'd like to echo what both Doug and Derek said and thank our entire team for taking care of our customers throughout the year. They worked through hot temperatures, cold temperatures, rain, snow, ice, hurricanes, and even earthquakes, and demonstrated to the world what teamwork at American Airlines is all about. So from all of us, I'd like to offer our sincere thank you for a great year.
In 2017, we worked hard to validate the trust placed in us by our customers, team members, and shareholders. Our efforts were focused on key areas that would help us earn and maintain that trust, such as improved reliability and revenue performance, service to important new markets, customer experience enhancements, and improved team-member relations. As we look at our operations, the investments we made in prior years are starting to pay off. We reduced schedule churn, implemented airport service management tools at key hubs, brought innovative automation tools online, and enhanced our maintenance processes.
All of these changes are evident in our operating stats, and so our performance was significantly better in 2017 versus 2016. In 2017, we posted our best full-year results in on-time departures, on-time arrivals, and baggage handling since our merger closed in 2013. Our completion factor would have set records, too, but was significantly impacted by the back-to-back-to-back hurricanes in September that impacted the Caribbean and southeast United States. In November, we set records in each of the core metrics and, equally important, our operational performance during the peak summer and holiday periods were significantly improved versus 2016.
Our full-year 2017 revenue performance finished well ahead of 2016, with a 3.9% year-over-year TRASM improvement. Our investments in our product and our team members, together with highly effective marketplace execution across all commercial areas, set us apart as we outperformed the industry in every quarter during 2017. We continue to innovate in revenue management with our focus on the premium cabin, which delivered a full two points to system unit revenue improvement. We attracted nearly 24,000 new, small to medium-size corporate accounts through revitalized sales efforts and investments, and saw improvements in our revenue share premium to fair share in the business agency channel of 2.6 points.
The effective launch of our basic economy and premium economy products in 2017 were well-accepted by the marketplace, and we're looking forward to expanding those products further in 2018 and beyond. 2017 also brought the highly anticipated opening of the Flagship Lounges in JFK, Miami, Chicago, Los Angeles, which have been met with enthusiastic reviews. Flagship Lounges will be added to DFW, Philadelphia, London Heathrow in the future. We also opened new Admiral Club locations in Orlando, Houston, Los Angeles Terminal 5, and Toronto, with refurbished clubs opening in JFK, Chicago, and Los Angeles Terminal 4.
In 2017, we also introduced several new customer service tools with dynamic reaccommodation, customer bag notification, Notify All and a refreshed mobile app. All of those tools will help to provide a smooth customer journey, both on the ground and the air. We're also enhancing the customer experience in Main Cabin Extra. As we announced in September, we'll be adding free drinks and easier-to-use overhead bin space in Main Cabin Extra.
The new placards will go onto the overhead bins next week, and that free drink is coming in the spring. On the fleet side, 2017 was the final year of our accelerated fleet renewal program, where we inducted more than 400 mainline and 100 regional aircraft. We added an average of 97 aircraft per year from 2014 to 2017 but expect to only induct 27 aircraft in 2018. We also made good progress on several projects that will improve profitability, enhance the customer experience.
The 777-200 retrofit program, which involved updating the aircraft interiors, adding new IFE and WiFi, was completed in mid-2017. Premium economy officially launched in early May on the 787-9 aircraft, and customer response has been very positive. More than half of the planned wide-body fleet now features this highly differentiated product, and all planned aircraft will have it installed by the fourth quarter of this year. The 777-200 fleet -- the high-density 777-200 fleet and the 330-200s are fully installed, and work is under way on the 777-300 fleets as well.
In addition, the narrow-body satellite WiFi project that we outlined at the Investor Day in September commenced in the fourth quarter. And lastly, we completed the mainline livery repainting project in the fourth quarter. So all mainline aircraft that are planned to stay in the fleet have now been painted. Turning to revenue.
The demand environment continues to be strong. Our fourth-quarter consolidated PRASM was up 5.4%, and our fourth-quarter TRASM was up 5.6%, marking the fifth consecutive quarter of positive unit revenue growth and the sixth consecutive quarter where we outpaced the industry average growth rate. Improvement was broad-based, with every entity in a positive territory for the quarter. In fact, we closed out the year with every entity with positive unit revenue growth for the entire year.
We had another quarter of strong performance in the corporate segment, and forward outlook remains positive as our sales investments and initiatives continue to take hold. Corporate revenue continued to improve quarter over quarter, ending the fourth quarter 2017 with the highest year-over-year growth of the last eight quarters. In the domestic, our consolidated PRASM was up 5.7%. We're able to deliver both load factor and yield improvements with continually improving management execution in both the trough and peak periods.
DFW and Phoenix led the way in improved performance, but improvements were broad-based, with every hub exhibiting unit revenue growth. Our Latin America performance was very strong, with PRASM up 6.3%, notwithstanding Brazil unit revenue being flat year over year. The rest of South America, the Caribbean, and Central America all had double-digit revenue -- unit revenue growth. Atlantic unit revenue was up 7.7%, the best result we've seen since the merger.
And proved execution of low-cost carrier price-matching, together with strong premium cabin performance due to our premium cabin initiatives, were the primary drivers. And the U.K. led the way with double-digit growth. Across the Pacific, PRASM was up 1.2% year over year, in line with performance from previous quarters, while growing capacity by 7.5% with the launch of Los Angeles to Beijing.
Again, our strong premium cabin performance made the material difference. Fourth-quarter cargo revenue improved 19.7% year over year on both strong volume and yields, continuing a positive trend that we've seen since the second half of 2016. We expect our year-over-year TRASM to be up 2% to 4% in the first quarter. This will mark the sixth quarter in a row of positive unit revenue growth.
Consistent with 2017, we expect all four entities to have positive unit revenue growth, led by Latin, followed by Atlantic, then domestic and Pacific. As we look to 2018, we continue to be encouraged with the revenue environment and are excited about what that means for American. Over the past three years, we've made significant investments in our team, our product, and our operations. And those are all paying off.
We're proud of what our team has accomplished so far, and we look forward to the future. And with that, I'd like to turn the call back over to the operator and begin our question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you, sir. And ladies and gentlemen, once again, as a reminder, to signal for a question or comment, please press *1 on your telephone keypad. And if you're using a speakerphone today please make sure your mute function is turned off to allow your signal to reach our equipment. Once again, *1 to ask the question, and we'll pause for just a moment to allow everyone an opportunity to signal for questions.
And we will take our first question from Michael Linenberg with Deutsche Bank.
Michael Linenberg -- Deutsche Bank -- Analyst
Oh, hey, good morning, guys. Two questions here. Just on the guidance in the non-op area, it looks like you're getting a $300 million benefit there. And it does look like, I guess, Republic's in there.
Is some of that, what, just with the pension? I know you've had a pension benefit that ran through the P&L. Is that showing up in there? What's driving that number?
Doug Parker -- Chairman and Chief Executive Officer
Yes. That's all -- Mike, most of that is the pension benefit. The Republic, since we're 25% ownership, we do have to use the equity method of accounting, but that's a small portion. In '17, it was only $14 million.
So most of this is the pension credit, the $138 million coming down to that bottom line.
Michael Linenberg -- Deutsche Bank -- Analyst
OK. So that -- under the old accounting, Derek, that pension piece would just have shown up in salary and wage expense?
Derek Kerr -- Chief Financial Officer
Correct. It would have been a credit to salaries and wages.
Michael Linenberg -- Deutsche Bank -- Analyst
OK, perfect. And then second question, I really appreciate the fact that you guys are providing a fleet plan all the way out to 2020. This is great. Curious on two things.
It looks like the A330-100s, do they go away? And I'm curious if they're going to be offset by other wide-bodies. It looks like your wide-body fleet actually shrinks in 2020. Are we going to see international capacity down? And then the E190s also look like they'd go away at the end of 2018. Am I reading that right?
Derek Kerr -- Chief Financial Officer
Yes. I think two things to look at. I think focus more on '18 and '19 because we know where we are on those two. The plan is to take the Embraer 190 fleet and the MD -80 fleet out by the end of '19, and that's firm in the plan.
We are working, from a wide-body perspective, as we talked about on the calls before, you see the A350s coming in, in 2020. We have had conversations about that. Those would replace -- they're currently set to replace A330-300s and other wide-bodies as they come in. We have talked about that.
We're working with Airbus and Boeing on other options from a wide-body perspective just to see where we go with that. So I think this can change out in the farther years in 2020. I think the fleet plan over the time periods has stayed pretty flat. Right now, we have it going down a little bit in 2020 because this just represents the transactions that we have in place today and that are firm, nothing other than that.
So I would expect probably from an aircraft standpoint, that the 951 we have at 2018 probably stays pretty flat in that 940 to 950 range through 2020. And then the -- as we see on the regional aircraft, we do stay within the 600 -- 590 to 600 range. So there'll be some tweaks, and we'll continue to update you as we move forward on each of these, but I would assume that the fleet stays pretty flat over the next two to three years.
Michael Linenberg -- Deutsche Bank -- Analyst
OK, great. Thanks, Derek.
Derek Kerr -- Chief Financial Officer
Thank you, Mike.
Operator
And we will take our next question from Kevin Crissey with Citi.
Kevin Crissey -- Citi -- Analyst
Good morning. Thanks for the time. Kind of an unusual question, I think, and maybe it's for Derek or I'm not sure who should answer this. If we think about the return on invested capital of the underlying airline, it's improved significantly.
And while cargo has improved in -- you mentioned that, how well cargo is doing on a year-over-year basis, I wanted to get an understanding of how cargo return on invested capital, fully allocated, compares to that of the airline. Because my sense is, historically, is that it did -- hasn't had -- it maybe was contributing when the airline was weaker, but it maybe not be meeting that standard now. So I wanted to understand how you think about cargo's return relative to the airline. Thanks.
Doug Parker -- Chairman and Chief Executive Officer
Kevin, I'll start, and then Robert can just give more color, if he'd like, on the cargo business. But to try to put a return on invested capital on the cargo business, which basically assumes that capital is dedicated to the cargo business, is hard for us to do. We invest in capital to fly people and cargo, and we invest in airplanes and a lot more for people than for cargo. So you need to put them together.
And it's impossible. It really -- it's really difficult, and we certainly don't attempt to put returns on just the cargo business. They come together when you acquire the capital and aircraft. We certainly don't think there's enough return in that business for an airline like American to go invest in freighters, for example.
That's someone else's business. But because we invest -- because we do, do a really nice job of connecting people around the globe, we can indeed fly around a lot of cargo. And again, that business is, as you noted and as we noted, is picking up. Anything to add, Robert?
Robert Isom -- President
No, just that belly space on those aircraft is going to be flying around no matter what we do. And the cool thing about the fleet renewal program is that, as we take a look at 767s leaving the fleet and bringing on things like 787s, the capacity that comes with that is really helpful. So we're seeing benefit from that, both in the opportunity to put more cargo on the planes. And at the end of the day, I'm really confident that the profitability -- the marginal profitability of that product is well worth being in the business.
Kevin Crissey -- Citi -- Analyst
How is it that you determine the appropriate pricing levels then forward if it's seen as like basically free belly space?
Robert Isom -- President
It's free belly space. Of course, there's equipment and people in that. And we price it to achieve -- and we're not going to get into that today, but we price it to achieve what we consider a significant margin, and a margin that, in many cases, exceeds what we would see from aspects of our passenger revenue. We've got a great cargo team, led by Rick Elieson, who was appointed earlier this past year, taking over from Jim Butler.
We're returning to levels of production that we really haven't seen since 2014. And when you take a look at what we've actually produced over this -- the last couple of quarters, it's both volume- and yield-based. So all good.
Kevin Crissey -- Citi -- Analyst
Thanks for taking the kind of off-peak questions.
Doug Parker -- Chairman and Chief Executive Officer
No problem. Thanks, Kevin
Operator
And we will take our next question from Hunter Keay with Wolfe Research.
Hunter Keay -- Wolfe Research -- Analyst
Hey, thank you, guys, good morning. Doug, appreciate your leap of faith on the earnings guide. I really do. But then I probably know the answer to this, but was this the same EPS range that you expected to provide a couple of days ago before United announced their little, let's just call it, ambitious capacity plan?
Doug Parker -- Chairman and Chief Executive Officer
Yes.
Hunter Keay -- Wolfe Research -- Analyst
OK. And then just a quick follow-up. Does this include buybacks or no? I guess, it does, right?
Doug Parker -- Chairman and Chief Executive Officer
There's a range for a reason. There's an EPS --
Hunter Keay -- Wolfe Research -- Analyst
OK, fine. And then, Robert, in the opening remarks, it's funny, you cited effective LCC price matching as a tailwind to your transatlantic RASM. It's funny, you're calling out price matching as the reason your RASM was good. Can you -- if I wasn't misinterpreting the comment, can you just elaborate on what you meant by that, and maybe feel free to talk about that entire LCC trans-Atlantic dynamic for a second, too, while you're at it? Thank you.
Robert Isom -- President
Well, I'm going to let Don start on that, but -- go ahead.
Don Casey -- Senior Vice President of Revenue Management
Sure, this was a price-matching. The industry ended up much more comprehensively matching the Atlantic LCCs in October of 2016. So we're kind of lapping the period where we started the matching. And over the kind of intervening year, we've become, as we looked at the results, more effective at where we match and how the yield management system views those fares and when we're open and closed.
So this is really a benefit associated to better execution, right, of a strategy that really the industry started to employ in October of 2016.
Hunter Keay -- Wolfe Research -- Analyst
I see. Thank you, Don.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Hunter.
Operator
And we will take our next question from Jamie Baker with JP Morgan.
Jamie Baker -- JP Morgan -- Analyst
Hey, good morning. Doug, a follow-up to Hunter's question. Why should we believe the 2018 guide? Why should we believe anything Derek just said about aircraft? Why shouldn't we expect an incremental aircraft order in order to offset what United is doing? I'm obviously trying to bait you, but I'd appreciate if you can help respond.
Doug Parker -- Chairman and Chief Executive Officer
Yes, OK. Yes, I'll try not to take the bait, but let me try and help because I know it's important, obviously. American Airlines' shareholders got caught up in this yesterday, too, so it's important you all have a chance to at least understand somewhat our view. But, look, we're not going to opine on other airlines' capacity plans.
That's for them to decide what to do and to describe to you their plans. What I can tell -- what we're happy to talk about is American's growth, which may or may not provide some insight into what's going on at other airlines. And, again, it may be helpful or maybe not, but I can talk about what we're doing. So Derek told you that we estimate at American that we're going to grow, schedule-to-schedule anyway, 2.5% growth, '18 versus '17, 3% when you include the fact that we had the hurricanes in '17.
That number by itself is somewhat meaningful. But it's really important, I think, to understand [Inaudible] understand what type of growth we're talking about in that 2.5% or 3% and how it relates to our existing set of assets. So -- and to be clear, as we discussed at Investor Day, our network assets, our privileged set of assets is our hub-and-spoke basis. So if we were to tell you, for example, "Oh, that 2.5%, 3%, here's what we decided.
We're the biggest airline in the world, so we think we should serve the largest point-to-point markets in the United States. So we're going to go out and acquire some airplanes, and we're going to start adding service to San Francisco, Minneapolis, to Atlanta, Houston, because those are really big markets, and we don't serve them nonstop. And again, we're a big airline. We think we should be in big markets." That would be growth outside of our core asset base, and that would engender a certain competitive response from those carriers that do have a strategic advantage in those markets, the airlines that do have hubs on the other ends of those markets.
And over time, we lose a good bit of money in those markets because we'd only have local traffic, and our competitors would have flow traffic filling up most of their seats. And that would be not good growth for our shareholders. So, look, well, that's an example based on today's world. It's indicative of the kind of things we all used to see in the old days.
And I think, again, we're still a victim of our past. When people just hear growth, they think, "Well, here they go again." And indeed, that's the kind of stuff that happened, I mean, not so much that example. But what happened in the old days, when -- in a less mature business, we -- airlines without real network assets were looking to use the good times to build some network assets and to take out the weakest when they did that. And that kind of growth tended to have much different kind of competitive impacts, competitive ramifications than what we're talking about here with our growth.
So let's talk about what we are doing. So we're not doing that at all. What we're doing is we're taking existing aircraft, increasing the utilization on it, redeploying aircraft from markets that maybe aren't doing quite as well to places where we know we can do well, where we have real strategic advantage. We're growing where we have a competitive advantage.
We're creating better-connecting markets. We're doing it in three ways. New cities. First off, and this is -- I know you noticed this, Jamie, because fair enough, it wasn't easy.
We announced a couple of weeks ago a schedule change through the summer, which is -- which defines most of where we're going to be -- where that expansion is. So you can see it there, but we're -- some new cities. And look, there's some that get some attention and are little more exciting, like Reykjavík and Budapest and Prague. But the three cities in the United States are South Bend, Missoula, and Panama City.
That's where we can create better-connecting markets. We connect -- we don't fly to Panama City, when we add Panama City to Dallas, we open up markets to the people of Panama City and people who want to get to Panama City that don't really exist today and certainly give them better connections than they have today. So, yes, I mean, look, that's going to have -- that means whoever's flying to Panama City, they maybe lose a little share, but that doesn't start fare wars. That doesn't start -- there's not an ability to -- that doesn't engender some sort of enormous competitive response, because what do you do? We're flying -- we're just making our existing assets stronger, and we're providing better service and better utility to customers as a result.
So that's part of it, but it's not most of it. It's -- the second thing we do is add frequency to existing cities. That's a good bit of our growth. A lot of these cities have one or two departures today.
We take them up to three. Cities like Stillwater and Lake Charles get up to three departures a day instead of one or two. It has the same sort of effect. We just make the connections.
We create more connections for our customers, make the hubs even stronger. And then lastly, and the biggest one, is connecting existing cities to new hubs. And this -- look, this is really -- this is much of the promise of the merger. For example, American Airlines has always done really well in Oklahoma City for obvious reasons, proximity to Dallas.
And we have a pretty strong base of customers there, but we've never flown from Philadelphia to Oklahoma City. And that's one of the routes we announced. Once we do that, we'll all of a sudden create unique connections to Europe for a customer base that flies us a lot already. Similarly, we flew Wilmington to Charlotte.
We didn't fly to Dallas. So in our announcement, you see new nonstop from Wilmington-Dallas. This just opens up customers and connections to places like Mexico, ski markets, Hawaii, all of which are one-stop markets that customers had. So of the 52 new routes we added, 47 of them fall into that category, existing cities and new hubs.
So, look, that's where we are at American. We think it's smart, efficient growth, where we have competitive advantage. It doesn't result in yield decline. It doesn't result in fare wars.
It does move share from competitors. I mean, we're not -- I'm not trying to suggest that this is all stimulative. It's not. But it just doesn't engender the kind of response that it feels like people seem to think by just looking at a number because we are doing what we think makes sense, given our competitive advantage.
And, again, I think one way to characterize this, we've talked a lot about how we think the domestic U.S. airline market has become mature. I do believe that it's mature because we have three hub-and-spoke carriers that compete aggressively against each other, that can take people all over the world with a lot -- between a national low-cost carrier like Southwest and a lot of other competitors like the JetBlues, Alaska, Spirits of the world, intensely competitive, but feeling very mature. Growing out hubs is just a continuation of that maturity and, perhaps, kind of the final stages of the maturing business.
Because once you get to a point that those are your assets, it makes sense, I think, to strengthen them. And some of us are further along than others. So a long way of me saying, look, the number matters, but it can always make sense to go figure out where the growth is coming from. And sometimes, you can get overreactions to a number and just would encourage people to go look at where -- what people are saying about actually where they intend to grow.
So that's what we think. Hunter asked if we changed our estimate based upon what we heard. We have not. It doesn't, nor have we changed, nor do we have any plans to change.
Everything we just -- I just rattled off about our growth plans were in place before and remain in place now. We don't have any intention to change those based from what we know now. And, look, we'll see where people grow. We'll see where people decide to compete.
We will obviously respond where we think it makes sense, but it's always going to be around our core strategic assets.
Jamie Baker -- JP Morgan -- Analyst
Doug, if I were to -- that's very helpful, exceedingly helpful. But if I were to paraphrase that into a soundbite, do you characterize OA growth, provided it's hub-centric, as not uniquely damaging to the American Airlines franchise? Yes or no?
Doug Parker -- Chairman and Chief Executive Officer
I'm not going to opine on other airlines' growth, I told you.
Jamie Baker -- JP Morgan -- Analyst
You just did.
Doug Parker -- Chairman and Chief Executive Officer
I spoke for five minutes, and you gave a sentence that I didn't say. So make your own conclusions from what I told you about American's growth, but look, we're not here to talk about what other people are doing in their networks. That's for them to decide. And, again, we know who we are.
We know the assets we have. We feel good about our growth. And, look, all I'm pointing out is, you can look at our 2.5%, 3% growth and say, "Gosh. Why do you guys think that makes sense?" And I just gave you the answer.
Jamie Baker -- JP Morgan -- Analyst
Sure. My follow-up will be American-centric, OK? So shifting the spotlight back to -- and thank you for indulging me. It's what people needed to hear. So thank you for that first question.
Doug Parker -- Chairman and Chief Executive Officer
No, it's important. No problem.
Jamie Baker -JP Morgan -- Analyst
The high end of your 2018 EPS guide still falls, I don't know, around $1 billion short of that mid-cycle $5 billion target. Revenue trends are looking good at the moment. Labor pretty much industrywide has been remarked, but capacity is starting to creep. Margins appear to have stagnated.
I don't know, it just sort of feels mid-cycle to me right now. So I'm wondering what's holding you or holding American back from achieving that $5 billion mid-cycle target. Or should we just assume that the 3, 5, 7 needs to be downwardly adjusted maybe by $1 billion for each post?
Doug Parker -- Chairman and Chief Executive Officer
Absolutely not on the last point. We continue to believe $3 billion, 5$billion, $7 billion is the right range. We continue -- and, again, don't take our word for it, we just had our -- we had a board meeting yesterday setting our 2018 objectives. And our management team's bonus payments are based upon that exact same formula.
So that's how we're paying ourselves on short-term incentive based on our ability to -- not by the way -- you're right, our guidance doesn't have us there, so I'm not suggesting that our guidance has us hitting it. What I'm saying is, it's still in the range of 3, 5, 7, and this feels like a year, at least looking at it right now, that isn't one of the -- is somewhat a below-average year for our kind of steady-state earnings power. The reason I believe that is because fuel prices have run up so quickly. And if you look, as Derek stated -- I mean, you're right.
Your numbers are right, of course. If you take, I guess, the midpoint of the range, kind of year-over-year earnings are pretty flat in our forecast -- our pre-tax basis, of course. After tax, because of the tax rate, they're up a good bit. But on a pre-tax basis, they're pretty flat.
But look, our fuel price alone is driving $1.8 billion of higher expenses. So for us to be producing flat earnings on one of our -- what's become, again, our largest costs going up by $1.8 billion says a good bit. Now, again, you should rightfully say, "Well, gosh, if it's a real business, like you've been saying, that we'll figure out a way to pass its cost increases along to customers. Why don't you pass it on?" There definitely is a lag on things like this.
We saw it in, whatever it was, 2014, when prices fell really quickly, and how long it took for kind of capacity to respond to the new economics. And when prices go up this fast, it does -- it takes a while to respond. So as we sit here today, if oil stays where it is, I happen to believe you'll see the industry -- you'll -- the fares are too low for oil prices this high. And over time, you'll see that adjustment, it takes time.
Part of it is that requires some capacity refinement. Part of it is people want to believe it's there. This has gone -- oil -- Brent's gone from, what, $50 to $70 in five months, a 40% increase? And it took a while for us all to think that $50 was a real number when it's fallen from $100 down to $50. It may take a while for people to really understand that if $70 is the real normal, the new normal, you certainly will see, I think, us get to a point where we can produce the kind of earnings that you're talking about in this -- in $70 oil.
But we've done it in $100 oil, but in the past. So anyway, long way of me saying, it's -- I'm not saying just because oil is $70, we can't make those numbers. What I'm saying is it's run up so fast, it makes it hard to get there. If it falls back down quickly, we're absolutely right back in that range.
Jamie Baker -- JP Morgan -- Analyst
Doug, thanks for taking so much time. Certainly appropriate if you want to ding my Advantage account by 20 or 25,000 miles in light of the time. Totally fair. Thanks.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Jamie. We'll do that.
Operator
And we will take our next question from Helane Becker with Cowen and Company.
Helane Becker -- Cowen and Company -- Analyst
Hi, Tim. Thanks for the time. It's kind of hard to follow that up. That was a great explanation.
I just have two questions. One, can you say -- I know you don't report traffic, but I'm wondering if you can say what your loads are looking like and maybe your bookings, how they're coming along for the rest of the quarter or as far along as you're willing to comment? And then the other question is, is there a shift in mix that you're seeing? Like on the Atlantic, are you seeing more? I think you said maybe more premium traffic and a shift. But can you talk about the buy-up that you may be seeing from like basic economy into the forward section of that cabin?
Don Casey -- Senior Vice President of Revenue Management
OK. It's Don. So let me just start with the buy-up. So we've had basic economy in the market now, but broadly domestically since the 5th of September.
We rolled it out to the Caribbean -- a subset of the Caribbean and Mexico markets in late November. And the product is working entirely as we expected. And so we're seeing the buy-up rates that we expected to see, and we're seeing the sell-up amounts that we expected to see. So basic economy is really, at this point, working as designed.
In the Atlantic, the premier market, we saw a very strong premium performance last year. This was a combination of the product improvements that we've made. We didn't get to a fully lie-flat product across our entire wide-body fleet until June, July of '17, and now we can have that product consistently in the marketplace. In addition to that, we've changed some of the infrastructure that we use in revenue management to have more inventories, which led us to do -- be more effective at pricing.
And the combination of those changes have led to a very strong premium cabin performance. And in fact, for the full year of 2017, our unit revenue in the premium cabin was up 13%.
Robert Isom -- President
And Helane, as you take a look at kind of the strength of bookings, we're seeing just a continuation of what we saw in December. And so it's relatively flat, but that was a pretty good spot to be in.
Helane Becker -- Cowen and Company -- Analyst
OK. And then can I just ask a different cargo-related question? Because your volumes are up a lot. And you're -- obviously, you reported a very strong number, and you commented to Kevin's question. But I'm kind of wondering, what are you carrying? Is this packages for Amazon? Is it packages for the postal service, which would be Amazon? Do you know what's in those? I mean, you must have to know what's in the bellies, right, because you have to know your customer.
Don Casey -- Senior Vice President of Revenue Management
Well, we do know the customer. And I guess, what that --
Derek Kerr -- Chief Financial Officer
I guess, what I would tell you is we've seen strength across the board, especially from Asia. But the kind of things that you see out of Asia, phones and phone parts, when you think about telecommunications going down into Buenos Aires. There's another big one. We're seeing commodity-like products, fish and salmon out of South America and Central America coming up that's adding revenue.
We're seeing meat out of the South Pacific. They're coming in into the U.S., wine as well from Europe. The airbags, as everybody knows, is still a driver of volume. So it's broad-based, and it's everything from technology to more food and perishables.
And so -- and then as well, I would note that just general mail has been pretty strong, too.
Helane Becker -- Cowen and Company -- Analyst
OK. Great, thank you so much for your help, I appreciate it, team.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Helane. Hopefully, you're impressed by that answer, like I know I was.
Helane Becker -- Cowen and Company -- Analyst
Absolutely.
Doug Parker -- Chairman and Chief Executive Officer
Thanks.
Operator
And we would take our next question from Daniel McKenzie with Buckingham Research.
Dan McKenzie -- Buckingham Research -- Analyst
Hey, good morning. Thanks, guys. Yes, Doug, thanks from me as well for the wonderful response earlier here. It's very helpful to investors.
But leave it to me to kick a dead horse here. So just going back to the opening remarks of strategic advantage at your hubs, how do we think about strategic advantage in those markets where American is not dominant, but obviously important? So just reverting back to your opening remarks of investments in Los Angeles and Chicago, what's the key to achieving strategic advantage in these more competitive markets?
Doug Parker -- Chairman and Chief Executive Officer
Yes. First off, Dan, I mean, strategic advantage doesn't mean we have to be No. 1. It means we have to have an advantage.
In LAX, we, today, are the largest -- it's definitely a fragmented market, but a very large market. American's the largest carrier there, and we think we have the ability to continue to expand there as much as we're able to. And there'd be issue with LAX's terminal space. And my comments were directly around the fact that we've been able to work up a situation with the airport authority.
We'll be able to expand there. And Chicago is a similar story. We're not the largest hub carrier in Chicago, but we're awfully close and another enormous market, where we do well, even though we're not the absolute largest. And the good news is, we just worked with the airport authority of five more gates there, which allows us to become even stronger.
Derek Kerr -- Chief Financial Officer
I'd just add one more thing. In a place like New York, where we have great assets, but same thing, fragmented market, highly competitive, important for us to be there, we have to be different in some ways. And we've done that with things like the shuttle product, the 321Ts having three class domestic transcon service. And then making sure that -- with our partner, BA, that we're doing the best that we can with our JFK-Heathrow franchise.
Dan McKenzie -- Buckingham Research -- Analyst
OK. I appreciate the perspective. And then second question really is for Robert. The earnings release -- well, the cloud hosting and machine learning to speed time to value in the earnings release.
So for those that are not AI programmers, can you help give us an idea of what the technology means for the income statement at this point? And what could it mean at some point down the road? My sense is that it is driving better nonfuel cost and better revenue. But is it material? And can it become material at some point?
Doug Parker -- Chairman and Chief Executive Officer
Dan, we're going to let Maya Leibman, our CIO, answer that for you
Maya Leibman -- Chief Information Officer
Dan, really, the goal around adoption of these next-generation technologies is the fact that we have so many fantastic ideas of things that we want to achieve. And frankly, there are just more ideas than we have the capacity to actually get through. And what we have found is that there's been this explosion in new technologies that allow us to basically take some shortcuts and get things done more quickly than we were previously able to do if we really adopt them in a thoughtful way. So cloud technology allows us to sort of circumvent the hosting process because it provides infrastructure ready to go, and machine learning and artificial intelligence allows us to create algorithms that are smarter and that learn as the context around them changes.
And so we're really aggressively looking at these next-generation technologies in order to work through this list of amazing ideas we have that ultimately generate value for the airline.
Dan McKenzie -- Buckingham Research -- Analyst
Got it. More on the cost side? More on the revenue side? If can you just help us understand.
Maya Leibman -- Chief Information Officer
Yes. On the revenue side, we have a lot of fantastic opportunities that we're working with Don Casey's group on. On the cost side, we have opportunities to really streamline our processes and the product that we provide. And a lot of it is really just better customer experience.
And we're very focused on providing things to our customers that really make the whole experience with American better.
Don Casey -- Senior Vice President of Revenue Management
Yes. And Dan, I would say, for us to get the $3.9 billion worth of initiatives that we're talking about, this work will help us bring it in quicker and do what we need to do. Some of that is required, a lot of IT help to get us done. We can't get there without the IT group helping us get through this.
And what they're doing is really helping us get through it quicker and figuring out ways to bring things to the market quicker on both the revenue and the cost side.
Dan McKenzie -- Buckingham Research -- Analyst
Thanks for the time, guys.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Dan
Operator
And will take our next question from Brandon Oglenski with Barclays.
Brandon Oglenski -- Barclays -- Analyst
Hey, good morning, everyone, and thank for taking my question. And Robert, I appreciate, because we've got more airfreight discussions here on this call than I've heard probably in 10 years of covering calls.
Robert Isom -- President
We're ready to go more, and we can go deeper.
Brandon Oglenski -- Barclays -- Analyst
Well, I'm going to ask a more nerdy analyst question about your EPS outlook. So we do appreciate the range, but to get to $6.50, if I just put in your guidance on cost, I'm getting like a 7% to 8% range on revenue. Now my math is not perfect, but I think that's implying like a RASM north of 5% at the top range, assuming your capacity stays where you've guided. So can you talk to -- should we be thinking the upside on EPS is more cost-based? Or do you really think significant revenue acceleration in this market is achievable?
Doug Parker -- Chairman and Chief Executive Officer
Well, first off, you should work with Derek and Dan. I think we don't have that type of number in order to get to the top of the range. I think it was like 3% to 4%.
Derek Kerr -- Chief Financial Officer
Yes.
Doug Parker -- Chairman and Chief Executive Officer
Three at the bottom, 4 at the top. But the point's still valid, but let's make sure we're all working with similar math. But, yes, based on where we closed the year and what we think the ASM growth is going to be next year, you would need 3% to 4% RASM growth. And look, we wouldn't have given that as our EPS guidance if we didn't think that was a reasonable revenue guidance.
We just grew our quarter 5.5%. So yes, it's -- and again, if fuel prices stay where they are, we think that's well within the realm of possibilities.
Brandon Oglenski -- Barclays -- Analyst
OK. I appreciate the details there. And then I do want to nitpick a little bit on CAPEX because it looks like since your analyst meeting, you've taken up the FIN level about $0.5 billion for the next two years. Can you talk to, was this driven by tax reform or just incremental opportunities that you found even before tax rates came down?
Derek Kerr -- Chief Financial Officer
Yes. I think there's two things. One is, from an aircraft standpoint, we did announce that we were bringing in 10 more E175 aircraft to replace an outsourced contract that we had and take out some CRJ-200s. So that's the increase on the aircraft CAPEX side.
From the non-aircraft CAPEX side, as Maya said, there's just so much demand going on out there. Half of the -- there's seven projects that make up half of that '18 and '19 number that are just major projects that we've announced and that we want to do as quick as we can, which is, we talked about WiFi, oasis, some facility projects. We still have three big integration projects that we want to complete with our HR systems, our pilots, flight attendants, and tech ops. So we're trying to bring those in as quick as we can and bring those in earlier.
So we've raised the CAPEX in '18 and '19 by $200 million each year for non-aircraft CAPEX mainly due to those projects and facility projects and trying to get those brought in as fast as we can, moving them forward. So those are the two big differences from the Investor Day. The five new -- or the 10 new Embraer 175s, and just bringing projects in earlier in '18 and '19 and the major -- the big projects that we have on our plate that make up half of each one of those years.
Brandon Oglenski -- Barclays -- Analyst
OK. Appreciate the disclosure discussion in this call. It's been very helpful.
Doug Parker -- Chairman and Chief Executive Officer
Thanks, Brandon
Operator
And we will take our next question from Duane Pfennigwerth with Evercore ISI.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hey, thanks. I certainly respect the dynamic inputs to your planning process and fuel in particular, but I -- well, I wonder if you could talk a little bit about how fuel is an input to your planning process and how you think about route profitability. In the old days, we thought about red-eye flying to leisure destinations as the first candidates for capacity trends. Of course, this would put some upward pressure on your unit cost as you shrink the day.
But can you talk about how higher fuel impacts network planning, and if it has started to lead to any cuts? And if so, what profile of markets that would include?
Derek Kerr -- Chief Financial Officer
I'll go ahead and start with that. Right now, we have, within our flight profitability system, which gives us great detail in terms of where we are making money and gives us different views as to what expenses are more fixed and flexible in the long run, we've got a pretty good idea of where we're doing well and not, and what the impact of variations of fuel expense are. So this is something that we look at certainly every month, if not more, and especially as we take a look out into the longer term. So we've got a pretty good handle on it.
And at the end of the day, we feel really confident with the schedule that we have built right now that we're profitable at these levels and that we're flying to where we ought to be. So I think we've got a good handle on both the short- and long-range plan for it as part of the process that we've put the team through as we build the schedule. That's about what I can tell you.
Doug Parker -- Chairman and Chief Executive Officer
Yes. And Duane, look, I remember the old days. In the old days, the reason you'd cut that flyer is because it was cash-negative, and it made sense to cut it as oil prices got to a certain level. We're getting close to that in today's world.
So if we were to cut flying because oil prices ran up from $50 to $70, we would reduce profits. Instead, it turns into a $4 billion a year instead of a $5 billion a year. And over time, we adjust pricing and capacity over time just to where we think -- where fuel price starts to stall out. But yes, this is an entirely different world.
It would be, certainly from American's perspective, going and reducing flying because oil prices went up from $50 to $70 would reduce the profits of the firm.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Appreciate that commentary. And then just as a follow-up, maybe some dated thinking as well. But with regional aircraft, which have the highest fuel intensity, the highest sort of gallons per passenger, if you want to think about it that way, obviously, a lot less 50-seaters than there used to be, and you're growing with 76-seaters, which are more fuel-efficient. But where do you start to see the breakpoints on fuel for regional lift? Is it $80? Is it $90? Where does that become more of a focus? Thanks for taking the question.
Doug Parker -- Chairman and Chief Executive Officer
Hard for us to answer. I don't know that we can, Duane. Again, we're nowhere near the point of, look, of believing that fuel prices are at a level that we should be reducing flying because it's all profitable in the regional fleet, in particular, because of what we said. How it helps us create connections is among some of the best flying on a cash basis, irrespective of where fuel prices are.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Thank you.
Doug Parker -- Chairman and Chief Executive Officer
Thanks.
Operator
And at this time, if members of the media would like to signal for a question or comment, please do so by pressing *1 on your telephone keypad. Again, *1 on your telephone keypad. And we'll pause once more to allow everyone an opportunity to signal. And we will take our next question from Mary Schlangenstein with Bloomberg News.
Mary Schlangenstein -- Bloomberg News -- Reporter
Hi, good morning. Derek, can we go back to your comment about the A350s? And you said you're working with Airbus and Boeing on other options from a wide-body perspective and where to go on that. Can you talk a little bit more in detail on what you're looking at and what you're considering?
Derek Kerr -- Chief Financial Officer
Yes. We -- I mean, we currently have an order for 22 A350s that come in 2020. We're just looking at other options. There's nothing to announce right now.
Whether -- I mean, our options are to take the A350, turn that into A330-900 or the other option is this 787-9. So there is -- we have the order in place. The A350 is a great aircraft, but it does add complexity to our fleet by a new aircraft type. So it's not about the aircraft, it's about the complexity that it brings to our operating group for having more aircraft.
So we haven't made a determination yet. We may take the A350, but the other two options are A330-900 or 787-9 for that wide-body lift.
Mary Schlangenstein -- Bloomberg News -- Reporter
Is there a date by which you need to make that decision?
Derek Kerr -- Chief Financial Officer
There is no date that we need to make that decision. I mean, the first delivery's not until 2020.
Mary Schlangenstein -- Bloomberg News -- Reporter
OK. Thank you.
Operator
And we will take our next question from Conor Shine with The Dallas Morning News.
Conor Shine -- Dallas Morning News -- Reporter
Hi, good morning, guys. Thanks for taking the question. I just wondered what the -- obviously, you've rolled out basic economy this last year, what the plans for 2018 will be for that. Did you see that changing in terms of giving customers more options to buy some of the things that have been subtracted out of that product? And then, also, do you see it expanding to other markets beyond domestic, and then that -- your Caribbean stuff you guys did a little bit ago?
Derek Kerr -- Chief Financial Officer
Yes. Conor, as Don said earlier, the product's been out about six months now. It's meeting expectations, which is great. We'll always take a look at ways to refine and optimize.
And then I think, as we've said before, we'll look at opportunities for application in other places. And so as you take a look internationally, is it something that might be appropriate for trans-Atlantic? Probably in a different form, but those are the kind of things that we think about there. But we don't have anything to announce. We like what's going on right now, and we're staying the course with it.
Conor Shine -- Dallas Morning News -- Reporter
Thank you.
Operator
And we would take our final question from Alana Weiss with Reuters.
Alana Weiss -- Reuters -- Analyst
Hi everybody. Thanks so much for taking my question. I'm sure we've talked a little bit about this already, but United earlier this week announcing that they were going to be adding capacity at a fairly rapid clip. Obviously, sent shares down quite a bit and [Inaudible] some concerns of a growing industry fare war, my question is, just how are you at American addressing these concerns to shareholders? And just what's the general view on capacity growth and how it's affecting the market?
Doug Parker -- Chairman and Chief Executive Officer
Yes, thanks. I mean, we did talk about this, and the comment for the record is we're not going to opine on other airlines' growth plans. We're confident in American's growth and very bullish on prospects for American Airlines, knowing everything we know today.
Alana Weiss -- Reuters -- Analyst
Thank you.
Doug Parker -- Chairman and Chief Executive Officer
Thank you.
Operator
And that concludes today's question-and-answer session. At this time, I would like to turn the call over to our presenters for any additional or closing remarks.
Doug Parker -- Chairman and Chief Executive Officer
We appreciate everyone's interest, and thank you for tuning in. If you have any questions and you're an investor, call Dan. If you have any questions and you're in the media, call corp comm. Thanks so much.
Operator
And ladies and gentlemen, that does conclude today's conference. We'd like to thank everyone for their participation. You may now disconnect.
Duration: 75 minutes
Call Participants:
Dan Cravens -- Managing Director of Investor Relations
Doug Parker -- Chairman and Chief Executive Officer
Derek Kerr -- Chief Financial Officer
Robert Isom -- President
Michael Linenberg -- Deutsche Bank -- Analyst
Kevin Crissey -- Citi -- Analyst
Hunter Keay -- Wolfe Research -- Analyst
Don Casey -- Senior Vice President of Revenue Management
Jamie Baker -- JP Morgan -- Analyst
Helane Becker -- Cowen and Company -- Analyst
Dan McKenzie -- Buckingham Research -- Analyst
Maya Leibman -- Chief Information Officer
Brandon Oglenski -- Barclays -- Analyst
Duane Pfennigwerth -- Evercore ISI -- Analyst
Mary Schlangenstein -- Bloomberg News -- Reporter
Conor Shine -- Dallas Morning News -- Reporter
Alana Weiss -- Reuters -- Analyst
More AAL analysis
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 2, 2018
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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American Airlines Group (NASDAQ: AAL) Q4 2017 Earnings Conference Call Jan. 25, 2018 8:30 a.m. Duration: 75 minutes Call Participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Derek Kerr -- Chief Financial Officer Robert Isom -- President Michael Linenberg -- Deutsche Bank -- Analyst Kevin Crissey -- Citi -- Analyst Hunter Keay -- Wolfe Research -- Analyst Don Casey -- Senior Vice President of Revenue Management Jamie Baker -- JP Morgan -- Analyst Helane Becker -- Cowen and Company -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Maya Leibman -- Chief Information Officer Brandon Oglenski -- Barclays -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Mary Schlangenstein -- Bloomberg News -- Reporter Conor Shine -- Dallas Morning News -- Reporter Alana Weiss -- Reuters -- Analyst More AAL analysis This article is a transcript of this conference call produced for The Motley Fool. We launched the first team-member survey in over a decade and we ended the year by sharing the long-term benefits of the recent Tax Cuts and Job Acts by issuing $1,000 payments to all of our non-officer team members.
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Duration: 75 minutes Call Participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Derek Kerr -- Chief Financial Officer Robert Isom -- President Michael Linenberg -- Deutsche Bank -- Analyst Kevin Crissey -- Citi -- Analyst Hunter Keay -- Wolfe Research -- Analyst Don Casey -- Senior Vice President of Revenue Management Jamie Baker -- JP Morgan -- Analyst Helane Becker -- Cowen and Company -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Maya Leibman -- Chief Information Officer Brandon Oglenski -- Barclays -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Mary Schlangenstein -- Bloomberg News -- Reporter Conor Shine -- Dallas Morning News -- Reporter Alana Weiss -- Reuters -- Analyst More AAL analysis This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2017 Earnings Conference Call Jan. 25, 2018 8:30 a.m. *Stock Advisor returns as of January 2, 2018 Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues and costs; forecast of capacity, traffic, load factor, fleet plans, and fuel prices.
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Duration: 75 minutes Call Participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Derek Kerr -- Chief Financial Officer Robert Isom -- President Michael Linenberg -- Deutsche Bank -- Analyst Kevin Crissey -- Citi -- Analyst Hunter Keay -- Wolfe Research -- Analyst Don Casey -- Senior Vice President of Revenue Management Jamie Baker -- JP Morgan -- Analyst Helane Becker -- Cowen and Company -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Maya Leibman -- Chief Information Officer Brandon Oglenski -- Barclays -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Mary Schlangenstein -- Bloomberg News -- Reporter Conor Shine -- Dallas Morning News -- Reporter Alana Weiss -- Reuters -- Analyst More AAL analysis This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2017 Earnings Conference Call Jan. 25, 2018 8:30 a.m. By quarter, we expect first-quarter consolidated capacity to be up 66.2 billion ASMs, second quarter to be 73.4 billion ASMs, third quarter 76 billion ASMs, and the fourth quarter to be 69.1 billion ASMs.
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Duration: 75 minutes Call Participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Derek Kerr -- Chief Financial Officer Robert Isom -- President Michael Linenberg -- Deutsche Bank -- Analyst Kevin Crissey -- Citi -- Analyst Hunter Keay -- Wolfe Research -- Analyst Don Casey -- Senior Vice President of Revenue Management Jamie Baker -- JP Morgan -- Analyst Helane Becker -- Cowen and Company -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Maya Leibman -- Chief Information Officer Brandon Oglenski -- Barclays -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Mary Schlangenstein -- Bloomberg News -- Reporter Conor Shine -- Dallas Morning News -- Reporter Alana Weiss -- Reuters -- Analyst More AAL analysis This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2017 Earnings Conference Call Jan. 25, 2018 8:30 a.m. 2017 was a great year for American Airlines from a financial perspective.
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552d2169-3c61-4430-9e06-e708abe47759
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7173.0
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2018-01-26 00:00:00 UTC
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American Airlines Group, Inc.: Solid Q4 Earnings, but Turbulence Ahead
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-solid-q4-earnings-turbulence-ahead-2018-01-26
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nan
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nan
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During the past two years, American Airlines (NASDAQ: AAL) has faced significant pressure on its profitability. Initially, steep unit-revenue declines were the culprit. More recently, revenue per available seat mile (RASM) has been growing at a healthy clip -- but surging fuel prices and labor costs have become a recurring headache.
Last quarter, American Airlines managed to deliver a solid profit despite these headwinds, soaring past its fairly weak initial guidance. Earnings per share (EPS) returned to growth on a year-over-year basis. However, looking ahead to 2018, American Airlines' pre-tax income is likely to decline further, driven by higher fuel costs and rising competition from United Continental (NYSE: UAL) .
Ending 2017 on a strong note
Back in October, American Airlines projected that its fourth-quarter pre-tax margin would fall to 4.5%-6.5% -- down from 7.9% a year earlier -- due to severe cost pressure. Indeed, unit costs rose 7.1% year over year during the quarter. Most of that increase was caused by a $0.34/gallon uptick in jet-fuel prices. However, non-fuel unit costs continued to increase at an elevated rate, as well.
Fortunately, American Airlines posted stellar unit-revenue growth last quarter. RASM surged 5.6% year over year, well ahead of management's initial forecast. As a result, American Airlines managed to report a 7% adjusted pre-tax margin for the fourth quarter.
Obviously, this was still down on a year-over-year basis. But the margin decline was partially offset by a strong 8.3% revenue increase. American Airlines' share-buyback program provided an additional boost to EPS. The net result was that American posted quarterly adjusted EPS of $0.95, up from $0.92 a year earlier. Analysts had expected EPS to remain flat, at $0.92.
The outlook is less pleasant
During 2018, unit-revenue comparisons will be tougher. Furthermore, while non-fuel unit cost pressure is subsiding, fuel costs have increased substantially in the past few months. This means that American Airlines is likely to experience further margin erosion this year.
Management projects that RASM will rise 2%-4% year over year in the first quarter. However, fuel costs could reach $2.07/gallon-$2.12/gallon, up from $1.70/gallon a year earlier, more than offsetting the expected revenue growth.
Non-fuel unit costs are also set to increase. The net result is that American Airlines expects its adjusted pre-tax margin to crash to a range of 2%-4% this quarter compared to 6.7% in the year-ago period.
American's projected first-quarter pre-tax margin is still better than that of United Continental, which expects a break-even performance . However, it's well below Delta Air Lines ' guidance range of 6%-8%.
Can American Airlines fend off United?
American Airlines provided full-year EPS guidance on Thursday. It expects adjusted EPS to reach $5.50-$6.50 in 2018. This compares to $5.27 on an adjusted basis last year.
At first glance, this might look promising. However, American Airlines expects its book tax rate to fall from 38% to 24% due to tax reform. Including the impact of share repurchases, it appears that even American's best-case EPS projection contemplates another year-over-year margin decline this year.
Furthermore, the threat from United Continental's aggressive growth will increase during 2018 and beyond. United plans to increase capacity significantly in its mid-continent hubs (Chicago, Houston, and Denver) to capture more connecting traffic and boost unit revenue. Unfortunately, American Airlines also operates a sizable hub in Chicago, and its massive Dallas-Fort Worth hub competes for the same connecting traffic as United's Houston operation.
Thus, American Airlines could have more to lose from United's growth than any other airline. It may be forced to respond with its own capacity increases and fare cuts in certain markets to prevent United Continental from stealing its customers. As a result, there's no end in sight to American Airlines' margin compression.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 2, 2018
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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During the past two years, American Airlines (NASDAQ: AAL) has faced significant pressure on its profitability. More recently, revenue per available seat mile (RASM) has been growing at a healthy clip -- but surging fuel prices and labor costs have become a recurring headache. However, looking ahead to 2018, American Airlines' pre-tax income is likely to decline further, driven by higher fuel costs and rising competition from United Continental (NYSE: UAL) .
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During the past two years, American Airlines (NASDAQ: AAL) has faced significant pressure on its profitability. The net result was that American posted quarterly adjusted EPS of $0.95, up from $0.92 a year earlier. However, fuel costs could reach $2.07/gallon-$2.12/gallon, up from $1.70/gallon a year earlier, more than offsetting the expected revenue growth.
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During the past two years, American Airlines (NASDAQ: AAL) has faced significant pressure on its profitability. However, looking ahead to 2018, American Airlines' pre-tax income is likely to decline further, driven by higher fuel costs and rising competition from United Continental (NYSE: UAL) . Ending 2017 on a strong note Back in October, American Airlines projected that its fourth-quarter pre-tax margin would fall to 4.5%-6.5% -- down from 7.9% a year earlier -- due to severe cost pressure.
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During the past two years, American Airlines (NASDAQ: AAL) has faced significant pressure on its profitability. Ending 2017 on a strong note Back in October, American Airlines projected that its fourth-quarter pre-tax margin would fall to 4.5%-6.5% -- down from 7.9% a year earlier -- due to severe cost pressure. It expects adjusted EPS to reach $5.50-$6.50 in 2018.
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6db297d9-de64-460d-8b9a-5f3d4dd16147
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7174.0
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2018-01-25 00:00:00 UTC
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Look At These Corporate Earnings
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AAL
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https://www.nasdaq.com/articles/look-at-these-corporate-earnings-2018-01-25
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nan
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nan
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Along with a new full slate of Q4 earnings results ahead of today's opening bell, we also see Initial Jobless Claims reported for last week. The headline number of 233K is higher than the previous week by 17K claims (the previous week itself was revised down to 216K from 220K originally reported), but falls nicely within the comfortable range between 225K-250K jobless claims we've largely seen over the past couple years.
Continuing claims fell last week to 1.937 million from an upwardly revised 1.965 million the previous week. The 4-week moving average now sits at 240K initial jobless claims per week, which smooths out a bit of the week-to-week volatility we've seen recently, going back to the hurricanes that ripped through the Caribbean and the Gulf of Mexico late last summer. In fact, claims numbers in Puerto Rico and the U.S. Virgin Islands indicate that a full recovery in those areas has not yet been realized.
Two Dow components reported solid Q4 earnings results in today's pre-market, as well - Zacks Rank #1 (Strong Buy)-rated Caterpillar Inc. CAT and Zacks Rank #3 (Hold)-rated 3M Corp. MMM both outperformed expectations, and are sending the Dow 30 index up more than 100 points ahead of the market open.
Heavy equipment manufacturer Caterpillar posted a 22% positive earnings surprise when it put up $2.16 per share, breezing past the $1.77 in the Zacks consensus estimate. Revenues in the quarter of $12.9 billion beat estimates by a cool $1 billion, and continues its impressive string of bottom-line beats - now 12 straight quarters. Full-year guidance also looks robust, now at a range of $8.25-9.25 per share; the Zacks consensus estimate had been $8.02 per share. For more on CAT's earnings, click here.
3M also outperformed expectations on its top and bottom lines this morning, with $2.10 per share on $7.99 billion in revenues outpacing the $2.03 per share and $7.88 billion we were looking for. Full-year guidance was also ratcheted up significantly to $10.20-10.70 per share; the previous Zacks consensus was $9.83 per share. MMM shares are up 2.5% in the pre-market. For more on MMM's earnings, click here.
More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Southwest LUV beat by a penny to 77 cents per share, and revenues of $5,274 million topped the $5,242 million in the Zacks consensus.
Defense companies also hit the tape ahead of the bell: Northrop Grumman NOC surpassed expectations to $2.82 per share versus the $2.75 expected, with revenues of $6.63 billion easily beat the $6.37 billion we were looking for. Raytheon RTN , however, although it beat bottom-line estimates by a penny to $2.03 per share, missed its top-line estimate when it posted $6.78 billion as opposed to the $6.83 billion estimate.
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Southwest Airlines Company (LUV): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
3M Company (MMM): Free Stock Analysis Report
Raytheon Company (RTN): 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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More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Along with a new full slate of Q4 earnings results ahead of today's opening bell, we also see Initial Jobless Claims reported for last week.
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More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Two Dow components reported solid Q4 earnings results in today's pre-market, as well - Zacks Rank #1 (Strong Buy)-rated Caterpillar Inc. CAT and Zacks Rank #3 (Hold)-rated 3M Corp. MMM both outperformed expectations, and are sending the Dow 30 index up more than 100 points ahead of the market open.
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More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Two Dow components reported solid Q4 earnings results in today's pre-market, as well - Zacks Rank #1 (Strong Buy)-rated Caterpillar Inc. CAT and Zacks Rank #3 (Hold)-rated 3M Corp. MMM both outperformed expectations, and are sending the Dow 30 index up more than 100 points ahead of the market open.
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More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Along with a new full slate of Q4 earnings results ahead of today's opening bell, we also see Initial Jobless Claims reported for last week.
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8202f5ce-adfe-41fa-82eb-57e60da698b8
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7175.0
|
2018-01-25 00:00:00 UTC
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Jobless Claims at 233K Meet Fresh Q4 Earnings: CAT, MMM & More
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AAL
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https://www.nasdaq.com/articles/jobless-claims-233k-meet-fresh-q4-earnings-cat-mmm-more-2018-01-25
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nan
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nan
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Thursday, January 25, 2018
Along with a new full slate of Q4 earnings results ahead of today's opening bell, we also see Initial Jobless Claims reported for last week. The headline number of 233K is higher than the previous week by 17K claims (the previous week itself was revised down to 216K from 220K originally reported), but falls nicely within the comfortable range between 225K-250K jobless claims we've largely seen over the past couple years.
Continuing claims fell last week to 1.937 million from an upwardly revised 1.965 million the previous week. The 4-week moving average now sits at 240K initial jobless claims per week, which smooths out a bit of the week-to-week volatility we've seen recently, going back to the hurricanes that ripped through the Caribbean and the Gulf of Mexico late last summer. In fact, claims numbers in Puerto Rico and the U.S. Virgin Islands indicate that a full recovery in those areas has not yet been realized.
Two Dow components reported solid Q4 earnings results in today's pre-market, as well - Zacks Rank #1 (Strong Buy)-rated Caterpillar Inc. CAT and Zacks Rank #3 (Hold)-rated 3M Corp. MMM both outperformed expectations, and are sending the Dow 30 index up more than 100 points ahead of the market open.
Heavy equipment manufacturer Caterpillar posted a 22% positive earnings surprise when it put up $2.16 per share, breezing past the $1.77 in the Zacks consensus estimate. Revenues in the quarter of $12.9 billion beat estimates by a cool $1 billion, and continues its impressive string of bottom-line beats - now 12 straight quarters. Full-year guidance also looks robust, now at a range of $8.25-9.25 per share; the Zacks consensus estimate had been $8.02 per share. For more on CAT's earnings, click here.
3M also outperformed expectations on its top and bottom lines this morning, with $2.10 per share on $7.99 billion in revenues outpacing the $2.03 per share and $7.88 billion we were looking for. Full-year guidance was also ratcheted up significantly to $10.20-10.70 per share; the previous Zacks consensus was $9.83 per share. MMM shares are up 2.5% in the pre-market. For more on MMM's earnings, click here.
More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Southwest LUV beat by a penny to 77 cents per share, and revenues of $5,274 million topped the $5,242 million in the Zacks consensus.
Defense companies also hit the tape ahead of the bell: Northrop Grumman NOC surpassed expectations to $2.82 per share versus the $2.75 expected, with revenues of $6.63 billion easily beat the $6.37 billion we were looking for. Raytheon RTN , however, although it beat bottom-line estimates by a penny to $2.03 per share, missed its top-line estimate when it posted $6.78 billion as opposed to the $6.83 billion estimate.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
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Southwest Airlines Company (LUV): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
3M Company (MMM): Free Stock Analysis Report
Raytheon Company (RTN): Free Stock Analysis Report
Caterpillar, Inc. (CAT): 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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More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Thursday, January 25, 2018 Along with a new full slate of Q4 earnings results ahead of today's opening bell, we also see Initial Jobless Claims reported for last week.
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More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Two Dow components reported solid Q4 earnings results in today's pre-market, as well - Zacks Rank #1 (Strong Buy)-rated Caterpillar Inc. CAT and Zacks Rank #3 (Hold)-rated 3M Corp. MMM both outperformed expectations, and are sending the Dow 30 index up more than 100 points ahead of the market open.
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More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. Two Dow components reported solid Q4 earnings results in today's pre-market, as well - Zacks Rank #1 (Strong Buy)-rated Caterpillar Inc. CAT and Zacks Rank #3 (Hold)-rated 3M Corp. MMM both outperformed expectations, and are sending the Dow 30 index up more than 100 points ahead of the market open.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report To read this article on Zacks.com click here. More airlines companies have also posted new earnings results: American AAL posted 95 cents per share for a 2-cent beat on $10.6 billion in revenues that squeaked out a beat over the $10.58 billion expected. from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises.
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294c60f8-ca06-40de-9d5b-e37cf526b1cd
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7176.0
|
2018-01-25 00:00:00 UTC
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Nasdaq 100 Movers: AAL, WDC
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-wdc-2018-01-25
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nan
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nan
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In early trading on Thursday, shares of Western Digital Corp ( WDC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%. Year to date, Western Digital Corp registers a 11.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. American Airlines Group is showing a gain of 1.8% looking at the year to date performance.
Two other components making moves today are Broadcom ( AVGO ), trading down 2.9%, and ASML Holding ( ASML ), trading up 1.6% on the day.
VIDEO: Nasdaq 100 Movers: AAL, WDC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, WDC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Western Digital Corp registers a 11.3% gain.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, WDC 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 Western Digital Corp ( WDC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, WDC 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 Western Digital Corp ( WDC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, WDC 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 Western Digital Corp ( WDC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%.
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dc13fdb7-4877-478c-a776-f15d8523f50c
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7177.0
|
2018-01-25 00:00:00 UTC
|
American Airlines (AAL) Beats on Q4 Earnings
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-beats-on-q4-earnings-2018-01-25
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nan
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American Airlines Group AAL reported fourth-quarter 2017 earnings per share (excluding 41 cents from non-recurring items) of 95 cents, beating the Zacks Consensus Estimate of 92 cents. Earnings increased 3.3% 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 rosy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for fourth-quarter earnings being revised 29.6% upward over the last 30 days
Moreover, the carrier has an impressive earnings surprise history. Even before posting the earnings beat in the fourth-quarter, the company delivered positive surprises in three of the past four quarters. The average earnings beat was 3%.
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Revenues Better Than Expected
American Airlines recorded revenues of $10,600 million, which surpassed the Zacks Consensus Estimate of $10, 581 million. Moreover, it compared favorably with the year-ago number of $9,789 million.
Key Statistics: Operating cost per available seat mile excluding fuel and special items increased 3.8% on a year over year basis. Total revenue per available seat miles (TRASM) improved 5.6% in the reported quarter. Yield improved 4.4%.
During 2017, the company returned $1.7 billion to shareholders through dividends and buybacks. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on Feb 20, to the shareholders on Feb 6. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments. TRASM is expected to increase in the band of 2% to 4% in the first quarter of 2018. Pre-tax margin excluding special items is projected in the range of 2% to 4%. Adjusted earnings per share in 2018 are expected between $5.50 and $6.50. The Zacks Consensus Estimate for 2018 earnings is currently pegged at $5.14 per share.
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!
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group AAL reported fourth-quarter 2017 earnings per share (excluding 41 cents from non-recurring items) of 95 cents, beating the Zacks Consensus Estimate of 92 cents. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Even before posting the earnings beat in the fourth-quarter, the company delivered positive surprises in three of the past four quarters.
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American Airlines Group AAL reported fourth-quarter 2017 earnings per share (excluding 41 cents from non-recurring items) of 95 cents, beating the Zacks Consensus Estimate of 92 cents. 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 Group, Inc. Price and EPS Surprise American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote Revenues Better Than Expected American Airlines recorded revenues of $10,600 million, which surpassed the Zacks Consensus Estimate of $10, 581 million.
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American Airlines Group AAL reported fourth-quarter 2017 earnings per share (excluding 41 cents from non-recurring items) of 95 cents, beating the Zacks Consensus Estimate of 92 cents. 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 fourth-quarter earnings being revised 29.6% upward over the last 30 days Moreover, the carrier has an impressive earnings surprise history.
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American Airlines Group AAL reported fourth-quarter 2017 earnings per share (excluding 41 cents from non-recurring items) of 95 cents, beating the Zacks Consensus Estimate of 92 cents. 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 fourth-quarter earnings being revised 29.6% upward over the last 30 days Moreover, the carrier has an impressive earnings surprise history.
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9c40a3a5-10b0-45d1-b180-849cd8dbc562
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7178.0
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2018-01-25 00:00:00 UTC
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American Airlines Backs Growth Plans, Outlook Despite Price War Fears
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AAL
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https://www.nasdaq.com/articles/american-airlines-backs-growth-plans-outlook-despite-price-war-fears-2018-01-25
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While United Airlines ' ( UAL ) ambitious expansion plans have raised anxieties over a coming airfare war, American Airlines ( AAL ) CEO Doug Parker said his company had no plans to change its own growth goals this year - "based on what we know now."
[ibd-display-video id=3102805 width=50 float=left autostart=true] He also said United's plans won't change American's earnings guidance for this year, despite concerns that lower fares and more competing flights will erode profits.
"Look, we'll see where people grow, we'll see where people decide to compete," he said during the company's fourth-quarter earnings call. "We will obviously respond where we think it makes sense, but it's always going to be around our core strategic assets."
But he said that the carrier would grow in a way that was unlikely to cause new skirmishes on fares, and that fares were "too low for oil prices this high. Over time, you'll see it adjust."
American plans to expand flight capacity by 2.5% this year, and 3% when factoring in cancellations resulting from hurricanes in Florida and the Caribbean last year. Still, that's lower than United's plans for 4%-6% growth this year and a similar rate for next year and 2020.
But analysts pressed Parker on why they should trust American's longer-term profit and growth targets, which include a minimal fleet expansion and 2018 earnings per share of $5.50-$6.50.
He responded by saying "we're not going to opine on other airlines' capacity plans," but that American plans to expand in areas where it has a competitive advantage.
The growth, he said, would come from 1) new service to smaller cities like Panama City, Fla., and South Bend, Ind., 2) adding more frequent flights to existing cities like Stillwater, Okla., and 3) connecting those cities to new hubs.
While he acknowledged that service to new markets means other carriers may lose "a little share," he maintained it won't start a fare war or "some sort of enormous competitive response." He later added: "Sometimes, you can get overreactions to a number."
In spite of his efforts to add nuance to American's expansion plans, shares closed down 3.2% at 53.05 on the stock market today , piling on to Wednesday's 6% dive. United fell 4.3% after plunging 11.4%, and Delta Air Lines ( DAL ), which reported earnings earlier this month , lost 3.5% after dropping 5% yesterday.
IBD'S TAKE: Read IBD'sThe BigPicturecolumn each day to stay on top of the market direction, a key indicator that lets you know when you can be aggressive and when you should move to the sidelines.
Meanwhile, travel demand and unit revenue - an important measure of an airline's operating efficiency - continue to rebound for American. The carrier forecast unit revenue growth of 2%-4%, reflecting expected continued improvement in demand for both business and leisure travel. But that forecast would mark a slowdown from the 5.6% unit-revenue gain in the fourth quarter.
"Customers are responding positively to the options American offers, from international First Class to Basic Economy," said American Airlines President Robert Isom in a statement. "We are far ahead of our U.S. competitors in offering Premium Economy on our international flights, which comes just as we begin to prepare for the busy summer travel season."
During the call, management said the "premium" section of its cabins did much of the heavy lifting in helping unit revenue to rebound internationally, as more passengers seek more comfort on longer flights over the Atlantic and Pacific. American's results over the Atlantic, where low-cost, long-haul rivals have proliferated, got better due to premium offerings and matching fares more precisely.
American earned 95 cents a share in the fourth quarter, better than expectations for 92 cents. Revenue came in at $10.6 billion, compared to estimates for $10.58 billion. Operating expenses climbed 9.8%, due to a 23.5% jump in fuel costs and a 7% increase in salaries and benefits.
Also Thursday, Southwest Airlines ' ( LUV ) earnings per share of 77 cents and revenue of $5.27 billion also topped estimates. CEO Gary Kelly said "our goal remains to achieve positive unit revenue growth in 2018, year-over-year."
The carrier said it expects 2018 capacity growth to be in the low 5% range, according to a Raymond James research note. That's in line with the carrier's earlier forecast for growth of under 5.7%.
Shares retreated 3.2% after tumbling 4.7% on Wednesday.
Alaska Air Group ( ALK ) sank 4% after it forecast a 3.5%-4.5% drop in first-quarter unit revenue. The carrier also announced a 7% dividend hike. JetBlue (JBLU) tumbled 6.2% after missing earnings estimates.
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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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While United Airlines ' ( UAL ) ambitious expansion plans have raised anxieties over a coming airfare war, American Airlines ( AAL ) CEO Doug Parker said his company had no plans to change its own growth goals this year - "based on what we know now." [ibd-display-video id=3102805 width=50 float=left autostart=true] He also said United's plans won't change American's earnings guidance for this year, despite concerns that lower fares and more competing flights will erode profits. While he acknowledged that service to new markets means other carriers may lose "a little share," he maintained it won't start a fare war or "some sort of enormous competitive response."
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While United Airlines ' ( UAL ) ambitious expansion plans have raised anxieties over a coming airfare war, American Airlines ( AAL ) CEO Doug Parker said his company had no plans to change its own growth goals this year - "based on what we know now." [ibd-display-video id=3102805 width=50 float=left autostart=true] He also said United's plans won't change American's earnings guidance for this year, despite concerns that lower fares and more competing flights will erode profits. The carrier forecast unit revenue growth of 2%-4%, reflecting expected continued improvement in demand for both business and leisure travel.
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While United Airlines ' ( UAL ) ambitious expansion plans have raised anxieties over a coming airfare war, American Airlines ( AAL ) CEO Doug Parker said his company had no plans to change its own growth goals this year - "based on what we know now." [ibd-display-video id=3102805 width=50 float=left autostart=true] He also said United's plans won't change American's earnings guidance for this year, despite concerns that lower fares and more competing flights will erode profits. United, American, Delta Rule Air Travel, But Higher Costs Loom United Airlines Weighs These Options As Boeing Eyes New Midsize Jet For 2020s Airline Industry News And Stocks To Watch A fter Delays, SpaceX Performs Key Test Of Falcon Heavy Rocket The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While United Airlines ' ( UAL ) ambitious expansion plans have raised anxieties over a coming airfare war, American Airlines ( AAL ) CEO Doug Parker said his company had no plans to change its own growth goals this year - "based on what we know now." [ibd-display-video id=3102805 width=50 float=left autostart=true] He also said United's plans won't change American's earnings guidance for this year, despite concerns that lower fares and more competing flights will erode profits. That's in line with the carrier's earlier forecast for growth of under 5.7%.
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124b5bc2-ca80-43f9-bf22-a630f1bad9e8
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7179.0
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2018-01-25 00:00:00 UTC
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Update: Wall Street Ends Mostly Higher as Dow Climbs Fourth Day in Five
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AAL
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https://www.nasdaq.com/articles/update-wall-street-ends-mostly-higher-dow-climbs-fourth-day-five-2018-01-25
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nan
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The Dow Jones Industrial Average rallied for a fourth time in five days to hit another record high amid earnings from component 3M ( MMM ) that bolstered the blue-chip measure, while selling pressure constrained moves on the S&P 500 and the Nasdaq Composite.
A stronger finish for equipment company Caterpillar ( CAT ) also bolstered the Dow, with the stock higher to reverse earlier losses as it reported upbeat earnings. The S&P's industrials group rose 0.2% by the bell, while the best advance among the sectors was a 1.5% increase for utilities.
On the downside, sliding oil prices sent energy stocks down 0.8% while losses in American Airlines ( AAL ) and another day of declines in tech heavyweight Apple ( AAPL ) dented the Nasdaq Composite.
Apple weakened 1.8% after Morgan Stanley lowered its price target to $200 from $205, while maintaining its overweight rating on the stock. The S&P's tech group fell 0.2% by the close although the declines were moderated by increases in the FANG group, with Netflix ( NFLX ) up 3.2%.
American Airlines was down as it said GAAP-basis earnings slipped in the fourth quarter, although the adjusted measure rose. Also dented the Nasdaq was a 2.4% decrease in Tesla (TSLA) after CNBC reported that the electric car company's employees are expecting delays in its Model 3.
Friday's calendar includes more earnings, with pre-bell reports due from companies including Honeywell (HON), Colgate-Palmolive (CL) and Rockwell Collins (COL).
Here's where the markets stood by the close:
US MARKETS
Dow Jones Industrial Average was up 140.67 points (+0.54%)
S&P 500 was up 1.71 points (+0.06%)
Nasdaq Composite Index was down 3.89 points (-0.05%)
GLOBAL SENTIMENT
FTSE 100 was down 0.36%
Nikkei 225 was down 1.13%
Hang Seng Index was down 0.92%
Shanghai China Composite Index was down 0.31%
UPSIDE MOVERS
(+) TAL (+17.71%) Posts beat in fiscal Q3 results
(+) FTFT (+15.5%) Subsidiary buys 60% of blockchain development project's digital assets
(+) SMMT (+12.86%) Reported positive phase 2 results of ezutromid
(+) RMGN (+8.74%) Announced five-year, $460,000 contract for SaaS platform with large resort & casino
DOWNSIDE MOVERS
(-) OCUL (-14.22%) Plans to raise $32.5 million in share offering at $5 per share
(-) CRR (-11.59%) Posts wider Q4 loss vs year ago
(-) VUZI (-9.72%) Plans to raise $30 million in direct offering
(-) DLX (-5.12%) Issues mixed guidance for Q1 and FY18
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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On the downside, sliding oil prices sent energy stocks down 0.8% while losses in American Airlines ( AAL ) and another day of declines in tech heavyweight Apple ( AAPL ) dented the Nasdaq Composite. The Dow Jones Industrial Average rallied for a fourth time in five days to hit another record high amid earnings from component 3M ( MMM ) that bolstered the blue-chip measure, while selling pressure constrained moves on the S&P 500 and the Nasdaq Composite. A stronger finish for equipment company Caterpillar ( CAT ) also bolstered the Dow, with the stock higher to reverse earlier losses as it reported upbeat earnings.
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On the downside, sliding oil prices sent energy stocks down 0.8% while losses in American Airlines ( AAL ) and another day of declines in tech heavyweight Apple ( AAPL ) dented the Nasdaq Composite. (-) OCUL (-14.22%) Plans to raise $32.5 million in share offering at $5 per share (-) CRR (-11.59%) Posts wider Q4 loss vs year ago (-) VUZI (-9.72%) Plans to raise $30 million in direct offering (-) DLX (-5.12%) Issues mixed guidance for Q1 and FY18 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the downside, sliding oil prices sent energy stocks down 0.8% while losses in American Airlines ( AAL ) and another day of declines in tech heavyweight Apple ( AAPL ) dented the Nasdaq Composite. The Dow Jones Industrial Average rallied for a fourth time in five days to hit another record high amid earnings from component 3M ( MMM ) that bolstered the blue-chip measure, while selling pressure constrained moves on the S&P 500 and the Nasdaq Composite. (-) OCUL (-14.22%) Plans to raise $32.5 million in share offering at $5 per share (-) CRR (-11.59%) Posts wider Q4 loss vs year ago (-) VUZI (-9.72%) Plans to raise $30 million in direct offering (-) DLX (-5.12%) Issues mixed guidance for Q1 and FY18 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the downside, sliding oil prices sent energy stocks down 0.8% while losses in American Airlines ( AAL ) and another day of declines in tech heavyweight Apple ( AAPL ) dented the Nasdaq Composite. The S&P's tech group fell 0.2% by the close although the declines were moderated by increases in the FANG group, with Netflix ( NFLX ) up 3.2%. Dow Jones Industrial Average was up 140.67 points (+0.54%) S&P 500 was up 1.71 points (+0.06%) Nasdaq Composite Index was down 3.89 points (-0.05%)
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2dc68ddc-893f-415d-bbf5-d1ec956a8137
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7180.0
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2018-01-25 00:00:00 UTC
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American Airlines (AAL) Q4 Earnings Top Estimates, Up Y/Y
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q4-earnings-top-estimates-up-y-y-2018-01-25
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American Airlines Group Inc. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Quarterly earnings increased 3% on a year-over-year basis despite higher costs. Results were aided by higher revenues.
Revenues of $10,600 million were 8.3% above the year-ago figure. The Zacks Consensus Estimate for fourth-quarter revenues of $10,581.1 million. Strong demand for air travel coupled with improving yields drove the top line in the quarter under review.
Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 5.6% to 15.74 cents in the reported quarter. In fact, this quarter marked the fifth successive one in which the metric grew on a year-over-year basis, since the fourth quarter of 2014.
Consolidated yield improved 4.4%. Passenger revenue per available seat miles improved 5.4%. While traffic (measured by revenue passenger miles) was up 3.5%, capacity (measured by average seat miles) was up 2.5%. Consolidated load factor (percentage of seats filled by passengers) increased to 82.1% from 81.4% a year-ago as traffic growth outpaced capacity expansion in the final quarter of 2017.
Total operating expenses climbed 9.8% year over year to $9.9 billion primarily due to the rise in fuel costs. Expenses pertaining to salaries and benefits were up 7%. Consolidated operating costs per available seat miles (CASM: excluding fuel and special items) increased 3.8%.
During 2017, the company returned $1.7 billion to shareholders through dividends and buybacks. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on Feb 20, to the shareholders on Feb 6. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments.
Meanwhile, the carrier remains focused on introducing new aircraft and retiring old ones from its fleet. In fact, keeping in with its aim to modernize its fleet, the carrier invested $4.1 billion during 2017 in new aircraft.
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 2% to 4% in the first quarter of 2018. Pre-tax margin excluding special items is projected in the range of 2% to 4%. Adjusted earnings per share in 2018 are expected between $5.50 and $6.50. The Zacks Consensus Estimate for 2018 earnings is currently pegged at $5.14 per share.
Consolidated CASM (excluding special items and fuel) is expected to increase 4% in the first quarter of 2018. The metric is also anticipated to increase approximately 2% in 2018. The metric is expected to increase in the band of 1% to 2% in each of 2019 and 2020. Capacity (system) in 2018 is projected to increase 2.5% year over year.
Upcoming Releases
Investors interested in the Zacks Airline industry are keenly awaiting fourth-quarter earnings reports from key players like Hawaiian Holdings HA , Allegiant Travel Company ALGT and Spirit Airlines SAVE in the coming days. While Hawaiian Holdings is scheduled to report on Jan 29, Allegiant and Spirit Airlines are scheduled to do the same on Jan 31 and Feb 6, respectively.
Zacks Rank
American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
Allegiant Travel Company (ALGT): 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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American Airlines Group Inc. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Strong demand for air travel coupled with improving yields drove the top line in the quarter under review.
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American Airlines Group Inc. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 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 2% to 4% in the first quarter of 2018.
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American Airlines Group Inc. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 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 2% to 4% in the first quarter of 2018.
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American Airlines Group Inc. 's AAL fourth-quarter 2017 earnings (excluding 41 cents from non-recurring items) of 95 cents per share surpassed the Zacks Consensus Estimate by 3 cents. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Furthermore, the carrier also declared a dividend of 10 cents per share.
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ca76818f-4abf-458c-9f07-7eaa037b7d2f
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7181.0
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2018-01-25 00:00:00 UTC
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Despite This Week’s Headlines, Southwest Airlines Co Is Going to Be Fine
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AAL
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https://www.nasdaq.com/articles/despite-weeks-headlines-southwest-airlines-co-going-be-fine-2018-01-25
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Southwest Airlines Co (NYSE: LUV ) shares tanked on Thursday, and in the grand scheme of things, it's not terribly surprising.
Though Southwest topped its fourth quarter revenue and earnings estimates, the entire industry - from major names like American Airlines Group Inc (NASDAQ: AAL ) to the smaller outfits like Alaska Air Group, Inc. (NYSE: ALK ) are still reeling from yesterday's news. United Continental Holdings Inc (NYSE: UAL ) has announced that it's planning a major expansion. And now, a profit-gouging price war could be in the cards.
Still, for investors that can look beyond the fog of hysterical headlines and put their finger on the true pulse of the air-travel market, this is an opportunity. Thursday's follow-up dip from Wednesday's 5% setback could make this a great time to step into underestimated LUV shares.
Southwest Airlines Earnings
For the quarter ending in December, Southwest turned $5.27 billion worth of revenue into a per-share operating profit of 77 cents. Prior to the report, analysts were collectively expecting a per-share profit of 77 cents on revenue of $5.25 billion. Both figures also compare favorably to the year-earlier quarter, when Southwest Airlines drove $5.08 billion in sales and posted a profit of 75 cents per share.
7 Overbought Stocks to Watch as the Market Turns
Though the average fare per passenger was down nearly 3% , in light of the circumstances that's actually a fairly healthy outcome.
While hurricanes Harvey and Irma hit during the third fiscal quarter of the year, the impact - stifled commerce - lingered. Further slowing things down for the company during calendar Q4 was a winter weather season - though this one wasn't quite as bad as the last quarter of 2016 - and a computer foul-up in November that was not debilitating, but embarrassing.
It wasn't embarrassing enough to keep passengers from flying, however.
In December, the airline ferried a total of 11.08 million revenue-bearing passengers, up 4.9% from 2016 , and revenue passenger miles grew 2.6%. Load factor was up 70 basis points, to 83.3%. For the whole quarter, the 2.0% increase in seat-miles for sale translated into a 1.2% improvement in operating revenues per seat. On average, Southwest's planes were 85% full for Q4.
For the full year, Southwest earned a record-breaking $3.49 billion, up from 2016's bottom line of $2.24 billion.
None of it really mattered, however, with United Continental's expansion bearing down.
State of the Industry
On the surface, Wednesday's announcement from United is good reason for concern. More competition is never a good thing for any of the players in a market. But there are two things to consider that oppose the market's bearish knee-jerk response.
First, United Continental may simply be ramping up its capacity in step with new demand rooted in global economic strength and greater accessibility to air travel all over the world. Aircraft maker Boeing Co (NYSE: BA ) says the air travel market in 2037 will be 2.5 times larger than it is now as infrastructure is built and consumers are better able to afford flying. With a larger market for everyone, an expanded United Continental is not quite as scary.
Second, when United President Scott Kirby commented on the expansion, he said:
"The best way to compete with a low-cost carrier is matching prices. No one chooses to fly on an ultra-low-cost carrier if they can get the same price on United Airlines, nobody."
He may be right, but it's far from a sure thing.
There's little doubt that Kirby's comments are at least partially aimed at Southwest Airlines, which is the most recognizable name among consumers on the low-cost air travel space. What investors need to consider, however, is that Southwest is already operating as a discount carrier. So it has experience running lean. United Continental is trying to become a low-cost airline, but it's difficult to break old habits.
5 Energy Stocks Coming Back From the Dead
Said in simpler terms, Southwest can do "cheap" already. United has to learn how.
So Southwest is not apt to lose much, if any, market share, and a price war will hurt Southwest the least among the major names.
Bottom Line for LUV Stock
In the short run, LUV shareholders clearly still see the glass as half empty rather than half full. But that's because headlines and hysteria drive stocks in the short run.
Given enough time though, stocks reflect their underlying value. And LUV stock still has plenty of it, regardless of Thursday's response to Q4 numbers.
In my opinion, investors are in the process of throwing the baby out with the bathwater.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter , at @jbrumley.
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The post Despite This Week's Headlines, Southwest Airlines Co Is Going to Be Fine 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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Though Southwest topped its fourth quarter revenue and earnings estimates, the entire industry - from major names like American Airlines Group Inc (NASDAQ: AAL ) to the smaller outfits like Alaska Air Group, Inc. (NYSE: ALK ) are still reeling from yesterday's news. Further slowing things down for the company during calendar Q4 was a winter weather season - though this one wasn't quite as bad as the last quarter of 2016 - and a computer foul-up in November that was not debilitating, but embarrassing. First, United Continental may simply be ramping up its capacity in step with new demand rooted in global economic strength and greater accessibility to air travel all over the world.
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Though Southwest topped its fourth quarter revenue and earnings estimates, the entire industry - from major names like American Airlines Group Inc (NASDAQ: AAL ) to the smaller outfits like Alaska Air Group, Inc. (NYSE: ALK ) are still reeling from yesterday's news. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines Co (NYSE: LUV ) shares tanked on Thursday, and in the grand scheme of things, it's not terribly surprising. Southwest Airlines Earnings For the quarter ending in December, Southwest turned $5.27 billion worth of revenue into a per-share operating profit of 77 cents.
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Though Southwest topped its fourth quarter revenue and earnings estimates, the entire industry - from major names like American Airlines Group Inc (NASDAQ: AAL ) to the smaller outfits like Alaska Air Group, Inc. (NYSE: ALK ) are still reeling from yesterday's news. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines Co (NYSE: LUV ) shares tanked on Thursday, and in the grand scheme of things, it's not terribly surprising. Southwest Airlines Earnings For the quarter ending in December, Southwest turned $5.27 billion worth of revenue into a per-share operating profit of 77 cents.
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Though Southwest topped its fourth quarter revenue and earnings estimates, the entire industry - from major names like American Airlines Group Inc (NASDAQ: AAL ) to the smaller outfits like Alaska Air Group, Inc. (NYSE: ALK ) are still reeling from yesterday's news. United Continental Holdings Inc (NYSE: UAL ) has announced that it's planning a major expansion. Southwest Airlines Earnings For the quarter ending in December, Southwest turned $5.27 billion worth of revenue into a per-share operating profit of 77 cents.
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2018-01-24 00:00:00 UTC
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Stocks Open Higher; GE Reveals SEC Inquiry, Grainger Breaks Out
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AAL
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https://www.nasdaq.com/articles/stocks-open-higher-ge-reveals-sec-inquiry-grainger-breaks-out-2018-01-24
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Stocks showed early strength Wednesday, with the Dow Jones industrial average leading the charge after opening above the 26,300 mark.
[ibd-display-video id=3102574 width=50 float=left autostart=true]The Dow jumped 0.4% above fair value, led by General Electric ( GE ) despite its announcement of a regulatory investigation.
The Nasdaq Composite climbed nearly 0.2%, held back by heavy losses from Texas Instruments ( TXN ) and airlines including Delta Air ( DAL ) and American Airlines Group ( AAL ).
The S&P 500 opened 0.3% higher, with W.W. Grainger ( GWW ) posting the index's top gain.
Early economic news included the Federal Housing Finance Agency's Housing Price Index, which slowed to a 0.4% increase for November, down from October's 0.6% advance and below views for a 0.5% gain. December existing home sales data from the National Association of Realtors are expected at 10 a.m. ET.
GE Surges, United Leads Airlines Lower, Qualcomm Fined By EU
General Electric opened 1.9% higher, despite revealing during a conference call with analysts that the Securities & Exchange Commission was investigating a review of the company's insurance reserves. Management also reported plans to restate its 2016 and 2017 financial results.
Shares had received an early, premarket boost - despite fourth-quarter earnings and revenue below analyst projections, as revenue from its oil, gas and energy segments outperformed expectations.GE shares have lost 50% in the past 12 months as the company has struggled with restructuring efforts .
Microsoft (MSFT) popped 0.5% after Nomura initiated coverage on the stock with a buy rating and a 102 price target, 12% above Wednesday closing price. Microsoft shares are just out of buy range above an 86.20 buy point in a flat base .
Dow peer United Technologies (UTX) gained 0.4%, as its adjusted fourth-quarter revenue and earnings topped consensus views . But competition for its Otis elevator unit in China and an estimated $1.5 billion cash charge related to new tax laws hurt the unadjusted performance. United Technologies shares are trading near new highs, up 10% from a mid-December breakout.
Apple (AAPL) slipped 0.4% and the four of the FANG stock tech leaders opened in mixed territory. Facebook (FB) is the only FANG name still in a buy range, trading just above a 184.35 buy point in a flat base.
Among the biggest winners in early earnings news, MarineMax (HZO) spiked 9%.
Industrial supplies distributor W.W. Grainger ( GWW ) shot ahead 13% after reporting a big fourth-quarter beat on its earnings line, with revenue and full-year 2018 guidance above expectations. The gain marked a breakout past a 240.59 buy point in a deep, year-long cup-with-handle base .
United Airlines (UAL) dived 9%, after fourth-quarter earnings reported after Tuesday's close topped analyst targets and revenue growth met views. But management forecast a 4% to 6% increase in capacity, stirring fears of similar moves among competitors and a price war . American and Delta Air Lines ( DAL ) each dropped 7% in early action. United has formed a seven-month cup-with-handle base with a 79.10 buy point .
Chipmakers were busy at the starting bell.
Texas Instruments backed off 6% in early trade. The Dallas-based chip leader's fourth-quarter results, reported late Tuesday, just met analysts expectations across the board. The report also said recently reformed tax laws would drop the company's corporate tax rate to 18% from 31%. Texas Instruments is extended, after a seven-week run-up following a rebound from 10-week support in December.
LED chipmaker Cree (CREE) spiked 10% after reporting better-than-expected adjusted fiscal second-quarter earnings, and a smaller slip in revenue than forecast by analysts. Cree shares have pulled back from a late-December high, but still are up 75% since August.
Qualcomm (QCOM) opened down 0.6%. European regulators imposed a $1.2 billion fine on the company after finding it made illegal payments to Apple in order to secure exclusive use of its chips in a range of products, including smartphones. The EU said Qualcomm made the payments between 2011 and 2016, effectively shutting out competing bids and limiting competition. Qualcomm shares remain just below a 69 buy point in a three-month cup-with-handle base.
January PMI Rises, Misses Views; Weekly Oil Inventories Coming Up
Researcher Markit reported its composite purchasing managers index inched up to a reading of 53.8 for January, up from December's 53 tally and just shy of consensus views for a reading of 54.
The Energy Information Administration reports its weekly crude oil inventories estimates at 10:30 a.m. ET.
OTHER IMPORTANT EARLY STOCK MARKET NEWS:
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These Are The 20 Stocks Millennial Investors Are Holding, Says Robinhood
These 7 Key Earnings Reports Are On Tap: Investing Action Plan
United Airlines Drags Delta, Others Lower Amid Planned Expansion Through 2020
Looking For The Next Nvidia? Start With This Simple Routine
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 Nasdaq Composite climbed nearly 0.2%, held back by heavy losses from Texas Instruments ( TXN ) and airlines including Delta Air ( DAL ) and American Airlines Group ( AAL ). GE Surges, United Leads Airlines Lower, Qualcomm Fined By EU General Electric opened 1.9% higher, despite revealing during a conference call with analysts that the Securities & Exchange Commission was investigating a review of the company's insurance reserves. Industrial supplies distributor W.W. Grainger ( GWW ) shot ahead 13% after reporting a big fourth-quarter beat on its earnings line, with revenue and full-year 2018 guidance above expectations.
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The Nasdaq Composite climbed nearly 0.2%, held back by heavy losses from Texas Instruments ( TXN ) and airlines including Delta Air ( DAL ) and American Airlines Group ( AAL ). GE Surges, United Leads Airlines Lower, Qualcomm Fined By EU General Electric opened 1.9% higher, despite revealing during a conference call with analysts that the Securities & Exchange Commission was investigating a review of the company's insurance reserves. Dow peer United Technologies (UTX) gained 0.4%, as its adjusted fourth-quarter revenue and earnings topped consensus views .
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The Nasdaq Composite climbed nearly 0.2%, held back by heavy losses from Texas Instruments ( TXN ) and airlines including Delta Air ( DAL ) and American Airlines Group ( AAL ). Shares had received an early, premarket boost - despite fourth-quarter earnings and revenue below analyst projections, as revenue from its oil, gas and energy segments outperformed expectations.GE shares have lost 50% in the past 12 months as the company has struggled with restructuring efforts . United Airlines (UAL) dived 9%, after fourth-quarter earnings reported after Tuesday's close topped analyst targets and revenue growth met views.
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The Nasdaq Composite climbed nearly 0.2%, held back by heavy losses from Texas Instruments ( TXN ) and airlines including Delta Air ( DAL ) and American Airlines Group ( AAL ). Dow peer United Technologies (UTX) gained 0.4%, as its adjusted fourth-quarter revenue and earnings topped consensus views . Facebook (FB) is the only FANG name still in a buy range, trading just above a 184.35 buy point in a flat base.
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2018-01-24 00:00:00 UTC
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Airline Stocks' Q4 Earnings Due on Jan 25: LUV, AAL & ALK
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AAL
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https://www.nasdaq.com/articles/airline-stocks-q4-earnings-due-on-jan-25%3A-luv-aal-alk-2018-01-24
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The Q4 earnings season is picking up pace with multiple companies reporting earnings each passing day. According to the latest Earnings Preview , 81 S&P 500 companies will release quarterly numbers during the course of this week .
Per the report, the entire S&P 500 fraternity is projected to end the Q4 reporting cycle with bottom-line growth of 10.3% on a year-over-year basis. The same set of companies is projected to witness top-line growth to the tune of 7.1%. These projections compare favorably with the readings in Q3, when revenues increased 5.9% and earnings improved 6.7%.
In fact, of the 16 Zacks sectors, 14 are anticipated to end the reporting cycle with earnings growth, one being the widely-diversified Zacks Transportation sector . The bottom line for this sector is projected to increase 1.6% compared with the year-over-year decline of 13.9% in preceding quarter.
Will Airlines Fly High in Q4?
Given that the airline stocks form an integral part of the transportation sector, it is needless to say that companies in this space share the buoyant picture of the broader sector. Notably, the better-than-expected results reported by the likes of Delta Air Lines DAL and United Continental Holdings UAL in Q4 highlight the air of optimism surrounding airlines.
The improved unit revenue scenario bodes well for airline stocks as they seem to be back in favor post hurricanes. Evidently, the likes of American Airlines Group AAL and JetBlue Airways JBLU have issued improved Q4 projections with respect to the metric, which measures sales relative to capacity for a carrier.
The favorable scenario supports the bullish Zacks Industry Rank of 87 (out of 250 plus groups) carried by the Zacks Airline industry . This rank places the companies within the top 34% of the Zacks industries.
Buoyed by the bullish sentiment surrounding the airline stocks, interested investors keenly await Q4 reports from key sector participants like Southwest Airlines LUV , American Airlines and Alaska Air Group ALK on Jan 25.
According to our quantitative model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
In the quarter to be reported, we expect high costs to hurt the bottom line of Dallas-based Southwest Airlines, similar to the previous quarter. Unit costs (excluding fuel and oil expenses, special items and profit-sharing expenses) are expected to be flat to up 1.5%. The Zacks Consensus Estimate for average fuel cost per gallon is pegged at $2.12, higher than $2 in the third quarter.
In fact, our proven model too does not conclusively show that Southwest Airlines is likely to beat earnings estimates in Q4. This is because the company has an Earnings ESP of 0.00% (as the Zacks Consensus Estimate of 76 cents per share is in line with the Most Accurate estimate) and a Zacks Rank #3 (Read more: Can Southwest Airlines Pull a Surprise in Q4 Earnings? ).
Southwest Airlines Company Price and EPS Surprise
Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote
You can see t he complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The next company, American Airlines, is headquartered in Fort Worth, TX. It operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. The carrier's Q4 results are likely to be aided by higher passenger revenues. However, higher costs are expected to limit bottom-line growth.
In fact, our proven model too does not conclusively show that American Airlines is likely to beat earnings estimates in the soon-to-be reported quarter. This is because the company has an Earnings ESP of 0.00% ( as the Zacks Consensus Estimate of 92 cents per share is in line with the Most Accurate estimate) and a Zacks Rank #3 (Read more: American Airlines Q4 Earnings: What's in the Cards? ).
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Also, the Seattle, WA-based Alaska Air Group is anticipated to be hurt by high costs in Q4 like the previous one. As a result, the company expects non-fuel unit costs to be in the range of 8.65 cents to 8.67 cents much higher than 8.45 cents in the year-ago quarter. The increased projection can be attributed to the costs associated with the pay-related deal inked with its pilots.
Increased in fuel costs are likely to pressurize the bottom line as well. Our proven model too does not conclusively show that Alaska Air Group is likely to beat earnings estimates this quarter. This is because the company has an Earnings ESP of 0.00% (as the Zacks Consensus Estimate of 83 cents per share is in line with the Most Accurate estimate) and a Zacks Rank #3 (Read more: Alaska Air Group Q4 Earnings: What's in the Offing? ).
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote
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
Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Evidently, the likes of American Airlines Group AAL and JetBlue Airways JBLU have issued improved Q4 projections with respect to the metric, which measures sales relative to capacity for a carrier. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, our proven model too does not conclusively show that American Airlines is likely to beat earnings estimates in the soon-to-be reported quarter.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Evidently, the likes of American Airlines Group AAL and JetBlue Airways JBLU have issued improved Q4 projections with respect to the metric, which measures sales relative to capacity for a carrier. Southwest Airlines Company Price and EPS Surprise Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote You can see t he complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Evidently, the likes of American Airlines Group AAL and JetBlue Airways JBLU have issued improved Q4 projections with respect to the metric, which measures sales relative to capacity for a carrier. Southwest Airlines Company Price and EPS Surprise Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote You can see t he complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Evidently, the likes of American Airlines Group AAL and JetBlue Airways JBLU have issued improved Q4 projections with respect to the metric, which measures sales relative to capacity for a carrier. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. These projections compare favorably with the readings in Q3, when revenues increased 5.9% and earnings improved 6.7%.
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2018-01-24 00:00:00 UTC
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Canadian National (CNI) Down on Q4 Earnings & Revenue Miss
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AAL
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https://www.nasdaq.com/articles/canadian-national-cni-down-on-q4-earnings-revenue-miss-2018-01-24
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Canadian National Railway Company 's CNI fourth-quarter 2017 earnings per share (excluding $1.79 from non-recurring items) of 94 cents (C$1.20) fell short of the Zacks Consensus Estimate of 98 cents. However, the bottom line inched up 1.1% from the year-ago tally.
Quarterly revenues of $2,573 million (C$3,285 million) also lagged the Zacks Consensus Estimate of $2,612.2 million but increased 7.2% year over year. Rail freight revenues, accounting for bulk of the top line in the reported quarter, improved 2%. The top line got a boost from strong international container traffic via the ports of Prince Rupert and Vancouver and increased volumes of frac sand, freight rate hikes and higher applicable fuel surcharge rates.
The earnings and revenue miss seem to have disappointed investors. Consequently, shares of the company were down 2.3% in after-hours trading on Jan 23.
Operating Results
On a year-over-year basis, freight revenues rose in segments like Metals and Minerals (20%), Coal (7%), Intermodal (13%) and Automotive (1%). However, the metric declined in Forest Products (2%), Grain and Fertilizers (10%) and Petroleum and Chemicals (5%). Overall, carloads (volumes) expanded 7% and revenue ton miles (RTMs) inched up 1% year over year. However, Rail freight revenues per carload declined 4% in the reported quarter.
The Coal sub-group performed most impressively with respect to car loads that surged 29%. The Metals and minerals segment reported 8% growth. While Forest products and Automotive segments registered an ascent of 4% and 2%, respectively. However, Petroleum and Chemicals segment declined 4% while Grain and fertilizers slid 1%. Also, the intermodal segment volumes fell 5% year over year.
In the quarter under review, operating income reduced 7% year over year to C$1,301 million. Operating ratio (defined as operating expenses as a percentage of revenues) was 60.4% compared with 56.6% in the year-ago quarter. Higher fuel and labor costs contributed to this key metric's deterioration.
Canadian National Railway Company Price, Consensus and EPS Surprise
Canadian National Railway Company Price, Consensus and EPS Surprise | Canadian National Railway Company Quote
Liquidity
This Zacks Rank #3 (Hold) company exited the fourth quarter with free cash flow of C$457 million compared with C$777 million a year ago. Adjusted debt at the end of the quarter was C$11,306 million compared with C$11,470 million a year ago. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Dividend Hike
The company's board of directors has recently approved a 10% dividend raise to C$0.45 per share, payable on Mar 29, 2018 to shareholders of record as of Mar 8.
2018 Outlook
The company expects adjusted earnings per share of C$5.25-C$5.40 for 2018 compared with C$4.99 in 2017.
C$3.2 Billion Capital Program
The company's C$3.2 billion capital program will focus on its core capacity projects to meet the growing freight demand and investments pertaining to infrastructural maintenance, thereby enhancing safety and efficiency of its network in the process. The program consists of $700 million investment to increase capacity as well as cover the acquisition of 60 new locomotives, track infrastructure expansion and improvements at intermodal terminals. The program also includes around C$1.6 billion for track infrastructure maintenance and approximately, C$400 million for the installation of Positive Train Control in the United States.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await fourth-quarter earnings reports from the key players like American Airlines Group, Inc. AAL , Southwest Airlines Company LUV and Union Pacific Corporation UNP , all scheduled to report respective earnings numbers on Jan 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
Southwest Airlines Company (LUV): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await fourth-quarter earnings reports from the key players like American Airlines Group, Inc. AAL , Southwest Airlines Company LUV and Union Pacific Corporation UNP , all scheduled to report respective earnings numbers on Jan 25. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. The program consists of $700 million investment to increase capacity as well as cover the acquisition of 60 new locomotives, track infrastructure expansion and improvements at intermodal terminals.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await fourth-quarter earnings reports from the key players like American Airlines Group, Inc. AAL , Southwest Airlines Company LUV and Union Pacific Corporation UNP , all scheduled to report respective earnings numbers on Jan 25. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Canadian National Railway Company Price, Consensus and EPS Surprise Canadian National Railway Company Price, Consensus and EPS Surprise | Canadian National Railway Company Quote Liquidity This Zacks Rank #3 (Hold) company exited the fourth quarter with free cash flow of C$457 million compared with C$777 million a year ago.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation sector keenly await fourth-quarter earnings reports from the key players like American Airlines Group, Inc. AAL , Southwest Airlines Company LUV and Union Pacific Corporation UNP , all scheduled to report respective earnings numbers on Jan 25. Quarterly revenues of $2,573 million (C$3,285 million) also lagged the Zacks Consensus Estimate of $2,612.2 million but increased 7.2% year over year.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await fourth-quarter earnings reports from the key players like American Airlines Group, Inc. AAL , Southwest Airlines Company LUV and Union Pacific Corporation UNP , all scheduled to report respective earnings numbers on Jan 25. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Quarterly revenues of $2,573 million (C$3,285 million) also lagged the Zacks Consensus Estimate of $2,612.2 million but increased 7.2% year over year.
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2018-01-24 00:00:00 UTC
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Nasdaq 100 Movers: AAL, JD
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-jd-2018-01-24
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In early trading on Wednesday, shares of JD.com ( JD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.8%. Year to date, JD.com registers a 14.4% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. American Airlines Group is showing a gain of 5.9% looking at the year to date performance.
Two other components making moves today are Texas Instruments ( TXN ), trading down 5.3%, and Fastenal ( FAST ), trading up 3.5% on the day.
VIDEO: Nasdaq 100 Movers: AAL, 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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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is showing a gain of 5.9% looking at the year to date performance.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, 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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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of JD.com ( JD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.8%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is showing a gain of 5.9% looking at the year to date performance.
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2018-01-24 00:00:00 UTC
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United Continental (UAL) Q4 Earnings Surpass, Decline Y/Y
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AAL
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https://www.nasdaq.com/articles/united-continental-ual-q4-earnings-surpass-decline-y-y-2018-01-24
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United Continental HoldingsUAL reported better-than-expected earnings and revenues in the fourth quarter of 2017. The company's earnings (excluding 59 cents from non-recurring items) came in at $1.40 per share, beating the Zacks Consensus Estimate of $1.34. The bottom line was however, 21.4% lower than the year-ago figure due to higher costs.
Operating revenues of $9,438 million in the fourth quarter were also ahead of the Zacks Consensus Estimate of $9,427.9 million. The top line also increased 4.3% year over year.
Operating Results
The company reported a marginal year-over-year rise in consolidated passenger revenue per available seat mile (PRASM: a key measure of unit revenues) to 12.43 cents.
Yield on a consolidated basis inched up 0.9% from the fourth quarter of 2016 while passenger revenues climbed 4.1% to $8,080 million. Cargo revenues increased 21.6% and other revenues grew 1.2% in the said time frame. Higher international freight volumes and yields boosted cargo revenues in the quarter.
During the reported quarter, airline traffic measured in revenue passenger miles, improved 3.1% year over year on a consolidated basis. Capacity (or available seat miles) rose 4%. Load factor (percentage of seat occupancy) declined 70 basis points to 81.7% as capacity expansion outpaced traffic growth. Average fuel price per gallon (on a consolidated basis) excluding hedge loss escalated 19.4% year over year to $1.91.
Total operating expenses jumped 8.2% year over year to $8.7 billion. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, third-party business expenses and profit sharing - nudged up 1.5% year over year, primarily on the labor deals inked by the company. During the quarter under review, United Continental bought back $553 million of its common stock.
United Continental Holdings, Inc. Price, Consensus and EPS Surprise
United Continental Holdings, Inc. Price, Consensus and EPS Surprise | United Continental Holdings, Inc. Quote
Liquidity
United Continental exited the fourth quarter with $5.8 billion in unrestricted liquidity, which included $2 billion of undrawn commitments under its revolving credit facility. This Zacks Rank #3 (Hold) company generated $728 million as operating cash flow in the quarter under discussion. Free cash outflow (adjusted) at the end of the quarter was $318 million. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Expansion and Fleet Upgrade Efforts in 2017
The company, constantly looking to grow and upgrade its fleet, made a substantial progress in expansion and fleet upgrade during 2017. The company announced 44 new domestic routes from seven of its mainland hubs and increased frequency on 11 routes to the Hawaiian Islands. Additionally, the carrier announced 13 new global routes last year.
During the same period, the airline took delivery of 19 Boeing aircrafts, including 12 777-300ER, three 787-9 and four 737-800. Also, eight used Airbus aircrafts including two A320 and six A319 were purchased by the company.
The carrier has also announced an agreement with Airbus for changes in its A350 order. The contract calls for conversion of the model type from A350-1000 to A350-900, an increase in the order size from 35 to 45 aircrafts and a postponement of the first delivery to 2022. On another agreement announced with Boeing, the company wishes to convert 100 of its existing 737 MAX orders into 737 MAX 10 aircrafts, beginning late 2020.
Q118 Guidance
For the first quarter of 2018, the carrier anticipates capacity to expand between 3.5% and 4.5%. Pre-tax margin (adjusted) is expected to be flat year over year. First-quarter consolidated passenger revenue per available seat mile (PRASM) is predicted to be flat to up 2% year over year. Consolidated cost per available seat mile (CASM) excluding third-party business expenses, fuel & profit sharing is estimated in the range of flat to up 1% in the first quarter. While first-quarter consolidated average aircraft fuel price per gallon is predicted at approximately $2.11. Additionally, Effective Income Tax Rate in the first quarter is expected between 22% and 24%.
2018 Outlook
For 2018, the company expects capacity to augment between 4% and 6% year over year. Moreover, a similar growth in the metric is forecast in 2019 and 2020. The carrier's move to inflate capacity in 2018 has not gone down too well with investors. Consequently, shares of the company were down 6.4% in after-hours trading on Jan 23.
Notably, the airline's move seems prudent as it aims to compete with low-cost carriers. However, it remains to be seen how the low fares affect the company's bottom line going forward.
The move also led to share price decline of other airline heavyweights like Delta Air Lines DAL and American Airlines AAL in after market.
Additionally, the company expects 2018 earnings per share between $6.50 and $8.50, while capex is anticipated in the range of $3.6 billion-$3.8 billion.
Benefits of the Tax Reform
The Tax Cuts and Jobs Act, put into effect on Dec 22, 2017, is expected to reduce the company's federal income tax liability this year onward. Notably, the new tax law lowers corporate tax rate to 21% from 35%. For 2018, the company projects a tax rate of around 22-24%. Net operating loss carry forwards are anticipated to offset the company's taxable income and no cash taxes are likely to be paid in 2018.
Upcoming Release
Investors interested in the airline space now keenly await fourth-quarter earnings report of Southwest Airlines LUV , scheduled to be out on Jan 25.
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Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The move also led to share price decline of other airline heavyweights like Delta Air Lines DAL and American Airlines AAL in after market. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor (percentage of seat occupancy) declined 70 basis points to 81.7% as capacity expansion outpaced traffic growth.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The move also led to share price decline of other airline heavyweights like Delta Air Lines DAL and American Airlines AAL in after market. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, third-party business expenses and profit sharing - nudged up 1.5% year over year, primarily on the labor deals inked by the company.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The move also led to share price decline of other airline heavyweights like Delta Air Lines DAL and American Airlines AAL in after market. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, third-party business expenses and profit sharing - nudged up 1.5% year over year, primarily on the labor deals inked by the company.
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The move also led to share price decline of other airline heavyweights like Delta Air Lines DAL and American Airlines AAL in after market. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The top line also increased 4.3% year over year.
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9246f43f-c456-4521-bf01-de8a82d189bb
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7187.0
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2018-01-24 00:00:00 UTC
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Go Long United Continental Holdings Inc Stock on This Earnings Dip
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AAL
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https://www.nasdaq.com/articles/go-long-united-continental-holdings-inc-stock-earnings-dip-2018-01-24
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
United Continental Holdings Inc (NYSE: UAL ) reported earnings last night, but after an initial pop on a good scorecard, the stock is falling hard. While the quarter metrics were great, the rhetoric was about capacity expansion, and traders did not like that at all. This is code for higher costs and increased competition. This morning's dip is widespread among all airline stocks.
Source: Shutterstock
Luckily, UAL stock came into the report up 9% in the last 6 months, so long-term investors are not immediately decimated.
However, since we see the selling extend into other major airlines, there is reason to worry from a trading perspective.
So you'd think I am sharing a bearish trade today. On the contrary, today I am brave enough to catch this falling knife. This United Airlines report confirmed that their fundamentals are intact, and therein lies my opportunity.
To me it sounds like management realizes that they can improve their execution so they are taking steps towards that. So in the long run, the stock will be better for it. As it is with a price-to-earnings ratio barely over 10, UAL stock is cheap and getting cheaper. This is low in absolute terms and in line within its sector. So owning it at a further discount from here is not going to be a mistake.
10 Super Bowl Stocks to Buy and Sell
Today my strategy is to generate income with no money out of pocket. So I am setting a bullish trade but without buying the shares and hoping they bounce so I can profit. I am a conservative investor so I want some room for error. I learned decades ago that calling tops and bottoms is a low probability occurrence. So I use fundamentals to set trades that have a high probability of success and a certain margin of error.
Click to Enlarge On this dip and while most investors are running from the stock, I want to sell downside risk into their fears then let time do the work for me. If price stays above my support levels then the options expire in my favor and I would have instant profits.
Technically, UAL stock's 10% dip erases the two-week spike we just had and brings it back into a three-year-old pivot zone. Those tend to be in contention. So the bulls are likely to fight over it, thereby creating support.
UAL Stock Trade Idea
The Trade: Sell the UAL Jun $57.50 naked put and collect $1.25 to open. Here I have a 85% theoretical chance that I would retain maximum gains. But if the price falls below my strike then I accrue losses below $56.25.
Selling naked puts is daunting, especially near all time high stock markets. Those who want to mitigate that risk can sell spreads instead.
The Alternate Trade: Sell the UAL Jun $57.50/$55 credit put spread. The spread has the same odds but would deliver 15% yield on risk. Neither trade require a rally to profit.
Johnson & Johnson Stock Is In The Perfect Buy Zone
Today's trade, although it would benefit from one, doesn't need a rally to profit. I merely need UAL stock to hold its support for the next few months. I am betting that the value in the stock will prevent sellers from taking too far. It is important know that if they do, then I want to own the shares at a discount from here.
Ultimately, regardless of how careful I am, investing in stocks is fraught with danger, so I never risk more than I am willing to lose.
Get my newsletter for free here . Nicolas Chahine is the managing director of SellSpreads.com . As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on twitter and stocktwits .
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The post Go Long United Continental Holdings Inc Stock on This Earnings Dip appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to Enlarge On this dip and while most investors are running from the stock, I want to sell downside risk into their fears then let time do the work for me. Technically, UAL stock's 10% dip erases the two-week spike we just had and brings it back into a three-year-old pivot zone. Compare Brokers The post Go Long United Continental Holdings Inc Stock on This Earnings Dip appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Continental Holdings Inc (NYSE: UAL ) reported earnings last night, but after an initial pop on a good scorecard, the stock is falling hard. UAL Stock Trade Idea The Trade: Sell the UAL Jun $57.50 naked put and collect $1.25 to open. Compare Brokers The post Go Long United Continental Holdings Inc Stock on This Earnings Dip appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Continental Holdings Inc (NYSE: UAL ) reported earnings last night, but after an initial pop on a good scorecard, the stock is falling hard. UAL Stock Trade Idea The Trade: Sell the UAL Jun $57.50 naked put and collect $1.25 to open. Johnson & Johnson Stock Is In The Perfect Buy Zone Today's trade, although it would benefit from one, doesn't need a rally to profit.
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This morning's dip is widespread among all airline stocks. UAL Stock Trade Idea The Trade: Sell the UAL Jun $57.50 naked put and collect $1.25 to open. I merely need UAL stock to hold its support for the next few months.
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e36b448d-ea25-4ff4-9caf-2766c6de176b
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7188.0
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2018-01-24 00:00:00 UTC
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What To Expect From American's Q4 Earnings
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AAL
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https://www.nasdaq.com/articles/what-expect-americans-q4-earnings-2018-01-24
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nan
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nan
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Just like many of its competitors, American Airlines ( AAL ) reported a pretty disappointing earnings in Q3, managing to beat the earnings and revenues estimates, albeit marginally. The company's operations were hurt significantly on adverse weather conditions that forced the airline to cancel over 8,000 flights. Rising fuel costs also played a major role in maintaining a drag on earnings. That said, unit revenues came in positive for a fourth straight quarter, making American the only airline among its peers to achieve such a long streak. Given the price performance thus far, in Q4 we can expect better than expected growth in the top line, while earnings come in relatively flat on higher fuel expenses.
Overall passenger demand for air travel increased significantly in the holiday quarter as the U.S. economy shows signs of recovery. We expect this to have a positive impact on the company's top line in Q4.
In this respect, the company expects TRASM (total revenue per available seat mile) to grow in the 5-6% range, compared with 2.5-4.5% projected earlier. The increased outlook is primarily the product of higher yields across all geographical regions and better-than-expected domestic close-in bookings.
That said, the airline will see costs hamper its bottom line in the quarter. Average fuel price per gallon is expected to come in around $1.88-$1.93 for Q4, while ex-fuel CASM is expected to come in around 4% higher year-over-year.
Lastly, American is expected to record a special non-cash credit of about $10 million to income tax expense in the quarter.
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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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Just like many of its competitors, American Airlines ( AAL ) reported a pretty disappointing earnings in Q3, managing to beat the earnings and revenues estimates, albeit marginally. That said, unit revenues came in positive for a fourth straight quarter, making American the only airline among its peers to achieve such a long streak. In this respect, the company expects TRASM (total revenue per available seat mile) to grow in the 5-6% range, compared with 2.5-4.5% projected earlier.
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Just like many of its competitors, American Airlines ( AAL ) reported a pretty disappointing earnings in Q3, managing to beat the earnings and revenues estimates, albeit marginally. Given the price performance thus far, in Q4 we can expect better than expected growth in the top line, while earnings come in relatively flat on higher fuel expenses. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Just like many of its competitors, American Airlines ( AAL ) reported a pretty disappointing earnings in Q3, managing to beat the earnings and revenues estimates, albeit marginally. Given the price performance thus far, in Q4 we can expect better than expected growth in the top line, while earnings come in relatively flat on higher fuel expenses. Average fuel price per gallon is expected to come in around $1.88-$1.93 for Q4, while ex-fuel CASM is expected to come in around 4% higher year-over-year.
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Just like many of its competitors, American Airlines ( AAL ) reported a pretty disappointing earnings in Q3, managing to beat the earnings and revenues estimates, albeit marginally. That said, unit revenues came in positive for a fourth straight quarter, making American the only airline among its peers to achieve such a long streak. Given the price performance thus far, in Q4 we can expect better than expected growth in the top line, while earnings come in relatively flat on higher fuel expenses.
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3a110952-c8ad-423f-8750-4929d541fbf3
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7189.0
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2018-01-24 00:00:00 UTC
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Nasdaq Slips As Chip Stocks, Airlines Weigh; Dow, S&P 500 Firm
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AAL
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https://www.nasdaq.com/articles/nasdaq-slips-chip-stocks-airlines-weigh-dow-sp-500-firm-2018-01-24
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nan
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nan
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The Nasdaq composite was poised to end a three-session winning streak Wednesday, although the index was rallying back in afternoon trading, down just 0.3% after falling 1.1% intraday.
[ibd-display-video id=3102795 width=50 float=left autostart=true] Meanwhile, after rising 0.7% early, the Dow faded to a gain of 0.2%. The S&P 500 added 0.1%, and the Russell 2000 small-cap index gave back 0.5%. Volume on the NYSE and Nasdaq was tracking higher than Tuesday's levels in the stock market today .
Inside the Dow, shares of Apple ( AAPL ) lost 1.5% to 174.46 as they test support at the 50-day moving average. Recent analyst chatter has raised concerns about iPhone X sales.
American Airlines ( AAL ) and Texas Instruments ( TXN ) weighed on the Nasdaq 100, with losses of around 7% to 8%. Other semiconductor names weighed, with Xilinx ( XLNX ), Microchip Technology ( MCHP ), Lam Research (LRCX) and Broadcom (AVGO) showing losses of 2% or more.
Lam Research was a drag on the chip equipment group as shares lost 2% to 210.75. Lam is working on a late-stage cup-shaped base with a 219.80 buy point.
In related news, Texas Instruments ( TXN ) gapped down, falling 8% to 110.20 after the company reported Q4 results. The last base breakout for the chipmaker was in mid-September over an 84.34 buy point. It was well-extended in price ahead of Tuesday evening's earnings. Even with today's fall, the stock is still holding comfortably above the 50-day moving average, a key support level.
IBD's airline group took a hit, falling 5%, hurt by an 11% plunge for United Airlines (UAL). Shares were weak after the company reported earnings and said it planned to match fares from low-cost rivals, renewing fears of a price war that could hurt earnings. In addition, United's plans to increase capacity over the next few years will likely pressure profit margin.
Inside the IBD 50 , sellers were in Universal Display (OLED) again after a breakout from a late-stage base. The maker of organic light-emitting diodes for flat-panel displays pierced the 50-day moving average, slumping nearly 6% to 178.41. Shares are down 12% so far this week.
Alibaba (BABA) was a bright spot, rising 2% to 196.31 ahead of next week's earnings report. It's still in buy range after a breakout from a later-stage base with a 191.85 buy point.
The 10-year Treasury yield was up 3 basis points to 2.64%, while U.S. crude oil futures settled at $65.61 a barrel, up nearly 2%, after the EIA reported the 10th straight weekly drop in domestic crude stockpiles.
After a recent breakout, SPDR Gold Shares (GLD) added more than 1% to 129.04. April gold was trading around $1,364.40 an ounce, up 1.7%. Gold is benefiting from continued weakness in the U.S. dollar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines ( AAL ) and Texas Instruments ( TXN ) weighed on the Nasdaq 100, with losses of around 7% to 8%. The Nasdaq composite was poised to end a three-session winning streak Wednesday, although the index was rallying back in afternoon trading, down just 0.3% after falling 1.1% intraday. Other semiconductor names weighed, with Xilinx ( XLNX ), Microchip Technology ( MCHP ), Lam Research (LRCX) and Broadcom (AVGO) showing losses of 2% or more.
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American Airlines ( AAL ) and Texas Instruments ( TXN ) weighed on the Nasdaq 100, with losses of around 7% to 8%. Brazil's PagSeguro Digital Raises $2.3 Billion With IPO As Stock Jumps Bitcoin Pulls Back After Rally As Early Adopter Abandons Currency The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and 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 ) and Texas Instruments ( TXN ) weighed on the Nasdaq 100, with losses of around 7% to 8%. Shares were weak after the company reported earnings and said it planned to match fares from low-cost rivals, renewing fears of a price war that could hurt earnings. It's still in buy range after a breakout from a later-stage base with a 191.85 buy point.
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American Airlines ( AAL ) and Texas Instruments ( TXN ) weighed on the Nasdaq 100, with losses of around 7% to 8%. Inside the Dow, shares of Apple ( AAPL ) lost 1.5% to 174.46 as they test support at the 50-day moving average. After a recent breakout, SPDR Gold Shares (GLD) added more than 1% to 129.04.
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f9044240-ad50-45c8-8448-e0617dd2485c
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7190.0
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2018-01-24 00:00:00 UTC
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Noteworthy Wednesday Option Activity: MAC, MAR, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-mac-mar-aal-2018-01-24
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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 Macerich Co (Symbol: MAC), where a total volume of 58,067 contracts has been traded thus far today, a contract volume which is representative of approximately 5.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 338.8% of MAC's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $70 strike call option expiring March 16, 2018 , with 18,631 contracts trading so far today, representing approximately 1.9 million underlying shares of MAC. Below is a chart showing MAC's trailing twelve month trading history, with the $70 strike highlighted in orange:
Marriott International, Inc. (Symbol: MAR) options are showing a volume of 67,532 contracts thus far today. That number of contracts represents approximately 6.8 million underlying shares, working out to a sizeable 300.7% of MAR's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $135 strike call option expiring January 18, 2019 , with 30,000 contracts trading so far today, representing approximately 3.0 million underlying shares of MAR. Below is a chart showing MAR's trailing twelve month trading history, with the $135 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 112,749 contracts, representing approximately 11.3 million underlying shares or approximately 268.6% of AAL's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $56 strike call option expiring February 16, 2018 , with 12,205 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $56 strike highlighted in orange:
For the various different available expirations for MAC options , MAR 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 $56 strike call option expiring February 16, 2018 , with 12,205 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing MAR's trailing twelve month trading history, with the $135 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 112,749 contracts, representing approximately 11.3 million underlying shares or approximately 268.6% of AAL's average daily trading volume over the past month, of 4.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $56 strike highlighted in orange: For the various different available expirations for MAC options , MAR options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing MAR's trailing twelve month trading history, with the $135 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 112,749 contracts, representing approximately 11.3 million underlying shares or approximately 268.6% of AAL's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $56 strike call option expiring February 16, 2018 , with 12,205 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $56 strike highlighted in orange: For the various different available expirations for MAC options , MAR options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing MAR's trailing twelve month trading history, with the $135 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 112,749 contracts, representing approximately 11.3 million underlying shares or approximately 268.6% of AAL's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $56 strike call option expiring February 16, 2018 , with 12,205 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $56 strike highlighted in orange: For the various different available expirations for MAC options , MAR options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing MAR's trailing twelve month trading history, with the $135 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 112,749 contracts, representing approximately 11.3 million underlying shares or approximately 268.6% of AAL's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $56 strike call option expiring February 16, 2018 , with 12,205 contracts trading so far today, representing approximately 1.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $56 strike highlighted in orange: For the various different available expirations for MAC options , MAR options , or AAL options , visit StockOptionsChannel.com.
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220e0557-b358-4553-bbf7-8db681576fc2
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7191.0
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2018-01-23 00:00:00 UTC
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United Airlines Weighs These Options As Boeing Eyes New Midsize Jet For 2020s
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AAL
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https://www.nasdaq.com/articles/united-airlines-weighs-these-options-boeing-eyes-new-midsize-jet-2020s-2018-01-23
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nan
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nan
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United Airlines ( UAL ) is waiting to see if Boeing ( BA ) will release a new midsize jet over the next decade or so before it considers other possibilities to replace its 757 and 767 planes, an executive for the airline said on Tuesday.
[ibd-display-video id=3100183 width=50 float=left autostart=true] The carrier will also consider the most compact version of the 787 Dreamliner and the Airbus ( EADSY ) A321neo as part of those replacement plans, said the executive, Senior Vice President of Finance Gerry Laderman, according to Reuters . Laderman was speaking at a conference in Dublin.
Both the 787 and A321neo seat more than 200 passengers and are more fuel-efficient than older aircraft. The smallest 787 can fly up to around 8,500 miles; the A321neo is a single-aisle jet with a range of up to 4,600 miles.
Boeing's project - to potentially release a new midsize aircraft in the mid-2020s - could become "well defined" later this year, Laderman said, according to Reuters. He added that it was too early to weigh options for the Bombardier ( BDRBF ) CSeries and other smaller planes. Airbus has taken a majority stake in Bombardier's CSeries, which faces punitive U.S. tariffs.
United Airlines rose 1.4% to 77.97 in the stock market today , working on a cup-with-handle base with a 79.10 buy point. Boeing dipped 0.7%. Airbus fell 1.3%. Bombardier sank 0.4%.
Laderman's remarks follow plans from United and American Airlines ( AAL ), both announced this month, to extend their reach into smaller cities. They also come as United prepares to report fourth-quarter earnings after the market close on Tuesday.
The carrier will hold what it described as an "investor event" at 4:30 ET after the results are released to, in part, "provide an update on the company's overall strategic plan and issue 2018 guidance."
That overall strategic plan, and whether United would stay committed to financial targets attached to it for this year, was the source of a major Wall Street breakdown in October after United gave only vague answers as to how it was approaching 2018.
Delta Air Lines (DAL) last month decided to buy 100 A321neo jets , with deliveries set to begin in 2020 - a move considered a snub to Boeing. Delta had been in talks to buy around 100 midsize, shorter-range, single-aisle 737 Max 10 jets, whose seating capacity reaches into the low 200s.
Southwest Airlines (LUV) this month said it would exercise an option to order 40 short-range Boeing 737 MAX 8 aircraft - 15 next year and 25 in 2020. It deferred 737 MAX 7 orders.
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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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Laderman's remarks follow plans from United and American Airlines ( AAL ), both announced this month, to extend their reach into smaller cities. [ibd-display-video id=3100183 width=50 float=left autostart=true] The carrier will also consider the most compact version of the 787 Dreamliner and the Airbus ( EADSY ) A321neo as part of those replacement plans, said the executive, Senior Vice President of Finance Gerry Laderman, according to Reuters . Delta Air Lines (DAL) last month decided to buy 100 A321neo jets , with deliveries set to begin in 2020 - a move considered a snub to Boeing.
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Laderman's remarks follow plans from United and American Airlines ( AAL ), both announced this month, to extend their reach into smaller cities. Delta had been in talks to buy around 100 midsize, shorter-range, single-aisle 737 Max 10 jets, whose seating capacity reaches into the low 200s. Southwest Airlines (LUV) this month said it would exercise an option to order 40 short-range Boeing 737 MAX 8 aircraft - 15 next year and 25 in 2020.
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Laderman's remarks follow plans from United and American Airlines ( AAL ), both announced this month, to extend their reach into smaller cities. United Airlines ( UAL ) is waiting to see if Boeing ( BA ) will release a new midsize jet over the next decade or so before it considers other possibilities to replace its 757 and 767 planes, an executive for the airline said on Tuesday. Southwest Airlines (LUV) this month said it would exercise an option to order 40 short-range Boeing 737 MAX 8 aircraft - 15 next year and 25 in 2020.
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Laderman's remarks follow plans from United and American Airlines ( AAL ), both announced this month, to extend their reach into smaller cities. [ibd-display-video id=3100183 width=50 float=left autostart=true] The carrier will also consider the most compact version of the 787 Dreamliner and the Airbus ( EADSY ) A321neo as part of those replacement plans, said the executive, Senior Vice President of Finance Gerry Laderman, according to Reuters . Boeing's project - to potentially release a new midsize aircraft in the mid-2020s - could become "well defined" later this year, Laderman said, according to Reuters.
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220f16ee-9a50-4405-8969-b6502671ce39
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7192.0
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2018-01-23 00:00:00 UTC
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These Fightin' Words From United Just Ignited Another Airline Meltdown
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AAL
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https://www.nasdaq.com/articles/these-fightin-words-united-just-ignited-another-airline-meltdown-2018-01-23
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nan
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nan
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Airline stocks are sinking Wednesday, in a repeat of last October's dive, after United Airlines ( UAL ) vowed to keep matching fares from low-cost rivals, renewing fears of a price war that could hit earnings across the industry.
[ibd-display-video id=3102574 width=50 float=left autostart=true] The carrier appears unlikely to back off anytime soon, forecasting greater expansion this year, next year and in 2020, even as it sees tighter cost management and stronger earnings per share over that time.
"The best way to compete with a low-cost carrier is to match their prices," United President Scott Kirby said on a conference call late Tuesday. "Half our revenue approximately comes from customers that are mostly shopping on price, and we cannot ignore half of our revenue and we can't let low cost carriers have price advantages in our hubs."
He added: "No one chooses to fly on an ultra-low-cost carrier if they can get the same price on United Airlines - nobody - at least if they know what they're buying."
United expects capacity to rise 4%-6% this year, with similar increases coming in 2019 and 2020, as it tries to dig into domestic strongholds, push flight connectivity and regain relevance, the carrier said during a presentation after its fourth-quarter earnings.
Prior to the presentation, analysts had already been worried that United's flight-capacity growth might balloon at a bigger rate than its rivals. The company's overall strategic plan, and whether United would stay committed to financial targets attached to it for this year, was the source of a major Wall Street breakdown on Oct. 19 after United gave only vague answers as to how it was approaching 2018. Management's handling of analyst questions about 2018 tanked United's stock by 12% that day and briefly raised questions of whether a shake-out at the top was ahead.
In a rerun of that meltdown, shares of United collapsed 11.4% to 69.05 on the stock market today , dipping below their 200-day average. Delta Air Lines ( DAL ), which reported Q4 results earlier this month , fell 5.2%. American Airlines ( AAL ) and Southwest ( LUV ), which report next week, tumbled 6% and 4.7%, respectively. Ultra-low-cost carrier Spirit Airlines ( SAVE ) sank 6.9%.
IBD'S TAKE : With thousands of publicly traded companies to choose from, how can you quickly find the best stocks to buy right now? A good starting point is to regularly reviewscreens that highlight the top-rated equities.
An expansion is likely to revive investor fears that United's rivals will expand in retaliation, and cut ticket prices to fill those extra seats. Still, CEO Oscar Munoz said during the presentation: "It's about margins this year and forward."
The forecast followed plans announced this month by both United and American to pour more flights into smaller cities. During the presentation Tuesday, United's Kirby outlined a strategy to redouble its efforts to connect more flights to smaller, higher-yielding destinations via its hubs in Chicago, Denver and Houston - mid-continent areas he said were in "ideal" locations geographically.
Still, United forecast non-fuel unit costs to come in at flat to down 1% this year. But the carrier said increased regional flying, tech investments and higher labor costs posed difficulties to containing those expenses. The carrier expects those costs to come in "flat or better" next year and in 2020. And the company is targeting 2018 earnings per share of $6.50-$8.50, a figure that will swell to $11-$13 a share in 2020. Analysts expect EPS of $6.63 this year.
United forecast Q1 unit revenue in a range of flat to up 2% - better than the 0.2% increase it put up for Q4, which was largely in line with the company's expectations. That important industry statistic tries to gauge how efficiently an airline is operating by measuring revenue as it relates to an airline's overall available seats and flights.
United also forecast Q1 non-fuel unit cost growth of flat to up 1%, better than the 1.5% growth in the Q4, which rose largely due to higher labor costs. Capacity growth was seen coming in at 3.5%-4.5%.
For Q4, earnings per share of $1.40 topped estimates for $1.34, while revenue of $9.4 billion just beat views for $9.43 billion. Pretax margins were 6.7%.
Since October, United's shares have rebounded as strong travel demand gives airlines room to charge more for tickets, and as United showed signs of clamping down on cost growth.
And much of the worry about this year comes as unit revenue - largely the only financial metric Wall Street has cared about in recent years - solidifies with higher prices and demand. And the big three legacy carriers' struggles internationally, particularly in Europe and in Asia, appear to be easing as economies abroad start to tick higher.
Delta, in reporting Q4 results earlier this month, said unit revenue in the Pacific region turned up positive for the first time in four and a half years. Management said it was "bullish" on international results this year also due to what it expects to be an easier foreign exchange situation.
American in November launched daily nonstop service from Los Angeles to Beijing; United this month said it would remove charges on passengers' second checked bag on flights from North America to China and Hong Kong. United is also offering round trip fares from the U.S. to China for as low as below $500 this month and next to celebrate Chinese New Year.
And in the U.S., Delta said it expected more people will want to fly due to the GOP's tax cuts signed into law last month.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines ( AAL ) and Southwest ( LUV ), which report next week, tumbled 6% and 4.7%, respectively. United expects capacity to rise 4%-6% this year, with similar increases coming in 2019 and 2020, as it tries to dig into domestic strongholds, push flight connectivity and regain relevance, the carrier said during a presentation after its fourth-quarter earnings. During the presentation Tuesday, United's Kirby outlined a strategy to redouble its efforts to connect more flights to smaller, higher-yielding destinations via its hubs in Chicago, Denver and Houston - mid-continent areas he said were in "ideal" locations geographically.
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American Airlines ( AAL ) and Southwest ( LUV ), which report next week, tumbled 6% and 4.7%, respectively. United also forecast Q1 non-fuel unit cost growth of flat to up 1%, better than the 1.5% growth in the Q4, which rose largely due to higher labor costs. And much of the worry about this year comes as unit revenue - largely the only financial metric Wall Street has cared about in recent years - solidifies with higher prices and demand.
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American Airlines ( AAL ) and Southwest ( LUV ), which report next week, tumbled 6% and 4.7%, respectively. Still, United forecast non-fuel unit costs to come in at flat to down 1% this year. United also forecast Q1 non-fuel unit cost growth of flat to up 1%, better than the 1.5% growth in the Q4, which rose largely due to higher labor costs.
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American Airlines ( AAL ) and Southwest ( LUV ), which report next week, tumbled 6% and 4.7%, respectively. Airline stocks are sinking Wednesday, in a repeat of last October's dive, after United Airlines ( UAL ) vowed to keep matching fares from low-cost rivals, renewing fears of a price war that could hit earnings across the industry. He added: "No one chooses to fly on an ultra-low-cost carrier if they can get the same price on United Airlines - nobody - at least if they know what they're buying."
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2b94cc47-c4c0-4b75-b08a-196b011e6052
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7193.0
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2018-01-22 00:00:00 UTC
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American Airlines (AAL) Q4 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q4-earnings%3A-whats-in-the-cards-2018-01-22
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nan
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nan
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American Airlines GroupAAL is scheduled to report fourth-quarter 2017 results on Jan 25, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 2.2%. However, quarterly earnings declined significantly on a year-over-year basis due to high costs. Revenues of $10,878 million were also below the Zacks Consensus Estimate of $10,882.9 million. Multiple cancellations by the company due to the hurricanes negatively impacted results.
Nonetheless, things seem to be looking up for the company post hurricanes. This is evident from American Airlines' impressive price performance in the last three months. While the stock has gained 13.9%, the Zacks Airline industry rallied 13.7%.
Given this backdrop, let's delve deeper to unearth the factors that are likely to influence the company's fourth-quarter results:
We expect American Airlines' top line to be driven by higher passenger revenues owing to strong demand for air travel during the holiday season.
The Zacks Consensus Estimate for fourth-quarter 2017 mainline passenger revenues is pegged at $7,101 million, up 5.7% year over year.
Buoyed by the improved scenario, the company issued an improved outlook with respect to consolidated total revenue per available seat miles (TRASM: a key measure of unit revenue) for the to-be-reported quarter. The company now expectsTRASM to rise in the range of 5-6% year over year compared with 2.5-4.5% projected earlier. The improved outlook can be attributed to higher yields across all the geographical regions and better-than-expected domestic close-in bookings.
The Zacks Consensus Estimate for fourth-quarter TRASM (consolidated) is pegged at 15.42 cents, higher than 14.89 cents reported in the third quarter of 2017.
Apart from TRASM, American Airlines expects pre-tax margin between 6.5% and 7% for the quarter. Earlier forecast was in the 4.5-6.5% band.
Also, the key airline players like United Continental Holdings UAL and JetBlue Airways JBLU have issued improved projections with respect to unit revenues for the fourth quarter.
Nevertheless, we expect American Airlines' bottom-line growth to be restricted by increased costs (fuel and labor). Average fuel price per gallon (mainline jet fuel, including taxes) is estimated in the range of $1.88-$1.93 for the final quarter of 2017, higher than the Zacks Consensus Estimate of $1.84.
Consolidated operating cost per available seat mile (CASM), excluding fuel and special items, is forecasted to grow approximately 4% year over year in the to-be-reported quarter. Additionally, it anticipates capacity to increase 1% year over year.
Further, American Airlines expects to record a special non-cash credit of $10 million to income tax expense in the quarter. This is owing to the impact of the recent tax reform on its deferred tax assets and liabilities.
What Does Our Model Say?
Our proven model does not show conclusively that American Airlines will beat earnings in fourth-quarter 2017. This is because a stock needs to have both - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. However, that is not the case as highlighted below.
Zacks ESP : American Airlines has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 92 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : American Airlines carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company's 0.00% ESP makes surprise prediction inconclusive. You can see the complete list of today's Zacks #1 Rank stocks here .
The Zacks Consensus Estimate for fourth-quarter earnings is projected to be flat on a year-over-year basis, mainly due to higher fuel costs. However, the same for sales is projected at $10.58 billion, up 8.1% year over year. The uptick is primarily owing the anticipated growth in passenger revenues.
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Another Stock That Warrants a Look
Investors interested in the Zacks Airline industry may also consider SkyWest SKYW as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
SkyWest has an Earnings ESP of +7.80% and a Zacks Rank #1. The company will release fourth-quarter 2017 results on Feb 1.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): 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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American Airlines GroupAAL is scheduled to report fourth-quarter 2017 results on Jan 25, before the market opens. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, let's delve deeper to unearth the factors that are likely to influence the company's fourth-quarter results: We expect American Airlines' top line to be driven by higher passenger revenues owing to strong demand for air travel during the holiday season.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to report fourth-quarter 2017 results on Jan 25, before the market opens. Also, the key airline players like United Continental Holdings UAL and JetBlue Airways JBLU have issued improved projections with respect to unit revenues for the fourth quarter.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to report fourth-quarter 2017 results on Jan 25, before the market opens. Zacks ESP : American Airlines has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 92 cents per share.
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American Airlines GroupAAL is scheduled to report fourth-quarter 2017 results on Jan 25, before the market opens. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for fourth-quarter 2017 mainline passenger revenues is pegged at $7,101 million, up 5.7% year over year.
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abd13013-d535-4bb5-a345-5135c0a136a8
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7194.0
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2018-01-18 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, American Airlines Group, JetBlue Airways, Gol Linhas Aereas Inteligentes S.A. and Spirit Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-american-airlines-group-jetblue-airways
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nan
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nan
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For Immediate Release
Chicago, IL - Jan 18, 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 LinesDAL , American Airlines GroupAAL , JetBlue AirwaysJBLU , Gol Linhas Aereas Inteligentes S.A.GOL and Spirit AirlinesSAVE .
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: DAL, AAL, JBLU and More
It was a week which saw Delta Air Lines kick-starting the fourth-quarter earnings season for the airline space on an impressive note. The company's earnings as well as revenues surpassed expectations.
Moreover, this Atlanta, GA-based company's top and bottom lines expanded on a year-over-year basis. Strong demand for air travel during the holiday season aided results.
On the non-earnings front, the key sector players like American Airlines Group and JetBlue Airways revealed bullish projections on unit revenues for fourth-quarter 2017. Latin American carrier Gol Linhas Aereas Inteligentes S.A. also grabbed headlines as it provided encouraging fourth-quarter guidance.
Spirit Airlines grabbed headlines by virtue of its improved fourth-quarter unit revenue guidance.
Transportation - Airline Industry 5YR % Return
(Read the last Airline Stock Roundup for Jan 10, 2018 ).
Recap of the Past Week's Most Important Stories
1. Delta's fourth-quarter earnings (excluding 16 cents from non-recurring items) of 96 cents per share beat the Zacks Consensus Estimate of 88 cents. Moreover, the bottom line expanded 17.1% on a year-over-year basis. Results were aided by higher revenues. Passenger revenue per available seat mile (PRASM: a key measure of unit revenue) was up 4.2% year over year.
Delta lifted its earnings per share guidance for 2018. The new tax law, which will reduce its corporate tax rate significantly, is expected to aid the company's performance (Read more: Delta Air Lines Q4 Earnings Beat, FY18 View Upped ).
2. American Airlines issued an upbeat guidance for the fourth quarter of 2017. The company now expects total revenue per available seat mile (TRASM) for the quarter to rise in the range of 5-6% year over year compared with 2.5-4.5% projected earlier. The improved outlook can be attributed to higher yields across all the geographical regions and better-than-expected domestic close-in bookings.
Additionally, the company expects pre-tax margin between 6.5% and 7% for the to-be reported quarter. Earlier forecast was in the band of 4.5-6.5% (Read more: American Airlines' Shares Rise on Bullish Q4 Outlook ).
3. GOL Linhas anticipates fourth-quarter operating margin in the range of 13.2%-14.2%. This metric (excluding non-recurring expenses) was 12.8% in the year-ago quarter. GOL expects third-quarter unit revenue (RASK) to increase in the 7%-7.5% band.
The airline expects earnings before interest, tax, depreciation and amortization (EBITDA) and earnings before interest and taxes (EBIT) margins, both excluding non-recurring expenses, in the range of 17.5-18.5% and 13.2-14.2%, respectively. Ancillary Revenues (cargo and other) are projected between 12% and 12.2% of total net revenues. Aircraft Rent is projected to be approximately R$230 million in the soon-to-be-reported quarter.
Average fuel price per liter is anticipated to be between R$2.25 and R$2.28. Meanwhile, the carrier expects to incur non-recurring expenses in the range of R$30-R$35 million in the fourth quarter.
Passenger unit revenue (PRASK) is projected to increase between 7% and 7.5% year over year in the to-be-reported quarter as the airline is benefiting from capacity discipline and revenue management strategies. The carrier expects non-fuel unit costs (CASK ex-fuel), excluding non-recurring expenses, to increase approximately 1.6% year over year. Also, capacity (ASK) is projected to expand around 3% year over year in the same time period.
Currently, GOL Linhas sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
4. JetBlue also provided an improved guidance for fourth-quarter RASM. The carrier now expects RASM to increase approximately 1.8%. Previous view had hinted the metric in the band of -0.5% to +1.5%. The low-cost carrier raised its projection for fourth-quarter cost per available seat miles (excluding fuel) by 2 percentage points as a result of the bonus of $1,000 per member, following the new tax law. Fourth-quarter fuel cost per gallon is expected in the band of $1.89 to $1.92.
Meanwhile, December load factor declined 140 basis points to 82.7% as traffic growth (2.7%) was outpaced by capacity expansion (4.4%). In the same month, the carrier registered a completion factor (system wide) of 99.8% with 74.1% flights on schedule.
5. At Spirit Airlines, traffic - measured in revenue passenger miles (RPMs) - came in at 2.14 billion, up 14.8% on a year-over-year basis. Consolidated capacity (or available seat miles/ASMs) also expanded 14.7% to 2.66 billion.
Load factor increased 10 basis points to 80.4% in December 2017. The improvement was owing to traffic growth outpacing capacity expansion. In the same month, the carrier registered a completion factor (system wide) of 98.7% with 80.4% flights on schedule.
Spirit Airlines now expects fourth-quarter TRASM to decline roughly 2% year over year, (previous guidance: decline in the band of 4% to 6%). Better-than-expected yields during the peak holiday periods contributed to the improved guidance. Adjusted cost per available seat miles (excluding fuel) is expected to decline approximately 4% in the soon-to-be-reported quarter.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Delta Air LinesDAL , American Airlines GroupAAL , JetBlue AirwaysJBLU , Gol Linhas Aereas Inteligentes S.A.GOL and Spirit AirlinesSAVE . Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: DAL, AAL, JBLU and More It was a week which saw Delta Air Lines kick-starting the fourth-quarter earnings season for the airline space on an impressive note. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Delta Air LinesDAL , American Airlines GroupAAL , JetBlue AirwaysJBLU , Gol Linhas Aereas Inteligentes S.A.GOL and Spirit AirlinesSAVE . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: DAL, AAL, JBLU and More It was a week which saw Delta Air Lines kick-starting the fourth-quarter earnings season for the airline space on an impressive note.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Delta Air LinesDAL , American Airlines GroupAAL , JetBlue AirwaysJBLU , Gol Linhas Aereas Inteligentes S.A.GOL and Spirit AirlinesSAVE . Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: DAL, AAL, JBLU and More It was a week which saw Delta Air Lines kick-starting the fourth-quarter earnings season for the airline space on an impressive note.
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Stocks recently featured in the blog include Delta Air LinesDAL , American Airlines GroupAAL , JetBlue AirwaysJBLU , Gol Linhas Aereas Inteligentes S.A.GOL and Spirit AirlinesSAVE . Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: DAL, AAL, JBLU and More It was a week which saw Delta Air Lines kick-starting the fourth-quarter earnings season for the airline space on an impressive note. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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0cd128c4-3c33-4996-93ac-ad82cf453e43
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7195.0
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2018-01-18 00:00:00 UTC
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United Continental's (UAL) Q4 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/united-continentals-ual-q4-earnings%3A-whats-in-the-cards-2018-01-18
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nan
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nan
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United Continental HoldingsUAL is scheduled to report its fourth-quarter earnings on Jan 23, after the market closes .
Last quarter, the company delivered a positive earnings surprise of 1.8%. However, the bottom line declined 28.6% on a year-over-year basis due to higher costs.
Operating revenues of $9,878 million were also marginally ahead of the Zacks Consensus Estimate of $9,857.3 million. Nevertheless, the top line shrunk 0.4% on a year-over-year basis. Multiple cancellations by the company due to the hurricanes negatively impacted the top line with passenger revenues declining 0.9% year over year.
However, things seem to be looking up for the company post hurricanes. This is evident from United Continental's impressive price performance in the last three months. While the stock has gained 28.1%,the Zacks Airline industry rallied 12.1%.
We expect United Continental's top line to be driven by higher passenger revenues owing to strong demand for air travel during the holiday season. In fact, the carrier performed exceedingly well in the Thanksgiving travel week (Nov 19 to Nov 26) smashing various records.
Buoyed by the improved scenario, the company issued an improved outlook with respect to consolidated passenger revenue per available seat miles (PRASM: a key measure of unit revenue) for the fourth quarter of 2017. United Continental now expects PRASM to be flat year over year (previous guidance had projected the metric in the band of down 2% to flat). Pre-tax margin (adjusted) is anticipated between 6% and 7% (previous guidance had projected the metric in the 3% to 5% range).
The Zacks Consensus Estimate for fourth-quarter PRASM (consolidated) is pegged at 12.23 cents, higher than 12.17 cents reported in the third quarter of 2017.
Apart from United Continental, key airline players like American Airlines Group AAL and JetBlue Airways JBLU have issued improved projections with respect to unit revenues for the fourth quarter of 2017.
However, we expect United Continental's bottom-line growth to be restricted by increased costs (fuel and labor). Fuel price is forecasted to be $1.91 per gallon, higher than the Zacks Consensus Estimate of $1.80.
Cost per available seat miles, excluding fuel, profit-sharing, third-party business expenses and other special items, are estimated to increase between 1.5% and 2% in the to-be-reported quarter. The company anticipates capacity to increase 4% year over year.
What Does Our Model Say?
Our proven model too does not show conclusively that United Continental will beat earnings in fourth-quarter 2017. This is because a stock needs to have both - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. However, that is not the case as highlighted below.
Zacks ESP : United Continental has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.34 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : United Continental carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company's 0.00% ESP makes surprise prediction inconclusive. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fourth-quarter earnings reflects a 24.7% decrease on a year-over-year basis mainly due to higher fuel costs. The same for sales is projected at $9.43 billion, up 4.2% year over year.
United Continental Holdings, Inc. Price and EPS Surprise
United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote
Another Stock That Warrants a Look
Investors interested in the Zacks Airline industry may also consider Spirit Airlines SAVE as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
Spirit Airlines has an Earnings ESP of +3.30% and a Zacks Rank #3. The company will release fourth-quarter 2017 results on Feb 6.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
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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Apart from United Continental, key airline players like American Airlines Group AAL and JetBlue Airways JBLU have issued improved projections with respect to unit revenues for the fourth quarter of 2017. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We expect United Continental's top line to be driven by higher passenger revenues owing to strong demand for air travel during the holiday season.
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Apart from United Continental, key airline players like American Airlines Group AAL and JetBlue Airways JBLU have issued improved projections with respect to unit revenues for the fourth quarter of 2017. Click to get this free report JetBlue Airways Corporation (JBLU): 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. United Continental Holdings, Inc. Price and EPS Surprise United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote Another Stock That Warrants a Look Investors interested in the Zacks Airline industry may also consider Spirit Airlines SAVE as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
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Click to get this free report JetBlue Airways Corporation (JBLU): 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. Apart from United Continental, key airline players like American Airlines Group AAL and JetBlue Airways JBLU have issued improved projections with respect to unit revenues for the fourth quarter of 2017. Zacks ESP : United Continental has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.34 per share.
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Apart from United Continental, key airline players like American Airlines Group AAL and JetBlue Airways JBLU have issued improved projections with respect to unit revenues for the fourth quarter of 2017. Click to get this free report JetBlue Airways Corporation (JBLU): 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. Multiple cancellations by the company due to the hurricanes negatively impacted the top line with passenger revenues declining 0.9% year over year.
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8cad1ae5-c0f5-47ff-84b5-805a81c5f40a
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7196.0
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2018-01-17 00:00:00 UTC
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Qtum Forges Ahead with Development of Its x86 Virtual Machine and Expanded Network
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AAL
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https://www.nasdaq.com/articles/qtum-forges-ahead-with-development-of-its-x86-virtual-machine-and-expanded-network-2018-01
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nan
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nan
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Qtum is on the move with the announcement of a partnership with Baofeng to begin running 50,000 full Qtum nodes and an upcoming x86 VM to support multiple languages for smart contracts.
Qtum is a hybrid of Bitcoin and Ethereum that is based on proof-of-stake consensus instead of proof of work, and is compatible with existing Ethereum contracts as well as Bitcoin gateways. Supporting the Ethereum Virtual Machine ( EVM ) wasn't enough for Qtum co-founder Jordan Earls, who has been working on an x86 Virtual Machine for the Qtum system.
Earls comments that a great reason to build a x86 VM is to add more programming language support for smart contracts, his favorite being Rust . The overall list of objectives is much bigger though:
Programming Language Support
Standard Library
Optimized Gas Model
Unlock the full power of the Account Abstraction Layer ( AAL )
New possibilities for smart contracts
First-Class Oracles
Blockchain Analysis
Alternative Data Storage
Explicit Dependency Trees
Bitcoin Magazine spoke with Earls with some more in depth questions about some of those items:
Bitcoin Magazine : What proof of concept or scalability testing have you done for the VM?
Jordan Earls : We have a very rough proof of concept we completed a few months ago where we integrated a prototype x86 VM into the Qtum network. This success is what led us to pursue this plan. We are confident that the x86 VM will be more scalable than the EVM, but we are thus far unsure how much. We are designing the VM and all of its APIs and other aspects to be scalable. We are making a big shift in the smart contract world where we actually reward smart-contract developers (in the form of cheaper gas costs) for limiting the features their smart contract has access to, and we are confident it will be faster than current EVM technology.
Bitcoin Magazine : What are you doing to address the problem with x86 programming in general, where they assume near infinite memory and CPU time being available?
Jordan Earls : We think smart contract development crossed with this x86 paradigm will resemble something similar to real-time or embedded programming, where there are various constraints that developers must always be optimizing for.
We foresee the same kind of design optimizations happening in the smart contract world as happen in the embedded world, and, for the first time, Qtum's blockchain will allow for these small optimizations to be directly rewarded for all users of the smart contract.
We know these optimizations are not cheap for smart contract developers to spend their time on, so we need to reward developers for taking such steps to keep the Qtum blockchain running smoothly and efficiently.
Bitcoin Magazine : What are some of the advantages with the Standard Library that will help keep smart contract code tight?
Jordan Earls : Currently in Ethereum, if you want to do a simple operation, like testing if two pieces of text are equal, you need to write your own code to do it.
This is a problem for a number of reasons: Developers in a secure context should rely on existing code that's been tested and verified, if possible. A naive implementation of this function will be slow, but a more complex and optimized implementation could have security problems. Deploying this code with your contract means another 100 bytes or so of wasted code that every node in the ecosystem now has to worry about.
Qtum will provide a standard library of functions that contract developers can rely on to have reasonable gas costs, secure and validated implementation and an easy to use interface. This means less bloat on the blockchain, easier to write and understand smart contracts and even a faster blockchain (since these functions can be optimized with native code).
Bitcoin Magazine : What about executable size? These x86 programs tend to be quite large.
Jordan Earls : This is true but also misleading. If I write a C program that just prints "hello world," about 8kB of that is going to just be the number "0." This is because x86 processors (as well as many others including ARM) benefit from a thing called "alignment." The important thing for Qtum is that the wasted bytes doing alignment can be discarded without performance impact. This immediately brings down that C program build to ~1-2kB.
We can reduce even more because we don't need all the baggage required by a standard program for Windows: We have our own "operating system" for smart contracts, so only a dozen or so bytes of actual setup code is wasted.
We have done some actual physical tests with these configurations to compare what an x86 smart contract might look like compared to an EVM smart contract. Our findings indicate that x86 programs are around 10-20 percent smaller than their EVM equivalent and, in many cases, significantly more so. And this was done without the standard library concept that was discussed above. We are not worried about getting usable executable sizes from x86 programs.
Bitcoin Magazine : So the language compiler has to be modified to support the VM? What kinds of modifications?
Jordan Earls : Only minor modifications need to be made. The language compilers do support our x86 VM already, but the Qtum smart contract environment is different from a traditional operating system like Windows or Linux. So, basically, the only big modification we have to make is to tell the language how to communicate with our smart-contract operating system.
Bitcoin Magazine : Is QTUM going to provide language packages or libraries to support the VM so people can just use those?
Jordan Earls : C and C++ will be the first languages we support "out of the box" because they tend to be the easiest due to the way they are designed. We also plan to support Rust. Go should easily be possible. For interpreted languages like Python and Perl, it becomes more complex and we must do research to ensure that they can be supported in an efficient and secure manner.
Bitcoin Magazine : Is this going to impact the development of your eSML smart contract language?
Jordan Earls : We are continuing to research the eSML approach and will decide at a later point if it is still a requirement to achieve our goals. We prefer to not do more work if it won't have a tangible benefit to our ecosystem.
Helping to support all this growth is the partnership announced on January 4, 2018, with Chinese video portal giant, Baofeng. With the help of Baofeng, the Qtum network will be boosted to 50,000 full network nodes, making it the most decentralized blockchain platform with the largest number of nodes with more than Bitcoin and Ethereum combined. The increased size of the Qtum system should provide for improved security, stability and speed, all of which will provide a solid base for the upcoming x86 VM later this year.
Earls projects that the x86 will be integrated into the Qtum main network in Q3 of 2018 but hopes to have a prototype to test with before Q2.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 overall list of objectives is much bigger though: Programming Language Support Standard Library Optimized Gas Model Unlock the full power of the Account Abstraction Layer ( AAL ) New possibilities for smart contracts First-Class Oracles Blockchain Analysis Alternative Data Storage Explicit Dependency Trees Bitcoin Magazine spoke with Earls with some more in depth questions about some of those items: Bitcoin Magazine : What proof of concept or scalability testing have you done for the VM? Qtum will provide a standard library of functions that contract developers can rely on to have reasonable gas costs, secure and validated implementation and an easy to use interface. We can reduce even more because we don't need all the baggage required by a standard program for Windows: We have our own "operating system" for smart contracts, so only a dozen or so bytes of actual setup code is wasted.
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The overall list of objectives is much bigger though: Programming Language Support Standard Library Optimized Gas Model Unlock the full power of the Account Abstraction Layer ( AAL ) New possibilities for smart contracts First-Class Oracles Blockchain Analysis Alternative Data Storage Explicit Dependency Trees Bitcoin Magazine spoke with Earls with some more in depth questions about some of those items: Bitcoin Magazine : What proof of concept or scalability testing have you done for the VM? Qtum is on the move with the announcement of a partnership with Baofeng to begin running 50,000 full Qtum nodes and an upcoming x86 VM to support multiple languages for smart contracts. Supporting the Ethereum Virtual Machine ( EVM ) wasn't enough for Qtum co-founder Jordan Earls, who has been working on an x86 Virtual Machine for the Qtum system.
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The overall list of objectives is much bigger though: Programming Language Support Standard Library Optimized Gas Model Unlock the full power of the Account Abstraction Layer ( AAL ) New possibilities for smart contracts First-Class Oracles Blockchain Analysis Alternative Data Storage Explicit Dependency Trees Bitcoin Magazine spoke with Earls with some more in depth questions about some of those items: Bitcoin Magazine : What proof of concept or scalability testing have you done for the VM? Qtum is on the move with the announcement of a partnership with Baofeng to begin running 50,000 full Qtum nodes and an upcoming x86 VM to support multiple languages for smart contracts. We foresee the same kind of design optimizations happening in the smart contract world as happen in the embedded world, and, for the first time, Qtum's blockchain will allow for these small optimizations to be directly rewarded for all users of the smart contract.
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The overall list of objectives is much bigger though: Programming Language Support Standard Library Optimized Gas Model Unlock the full power of the Account Abstraction Layer ( AAL ) New possibilities for smart contracts First-Class Oracles Blockchain Analysis Alternative Data Storage Explicit Dependency Trees Bitcoin Magazine spoke with Earls with some more in depth questions about some of those items: Bitcoin Magazine : What proof of concept or scalability testing have you done for the VM? We are making a big shift in the smart contract world where we actually reward smart-contract developers (in the form of cheaper gas costs) for limiting the features their smart contract has access to, and we are confident it will be faster than current EVM technology. Deploying this code with your contract means another 100 bytes or so of wasted code that every node in the ecosystem now has to worry about.
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b6ec9582-ac74-4eb6-aabd-ac797d92c0f4
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7197.0
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2018-01-16 00:00:00 UTC
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American Airlines Earns Technical Rating Upgrade
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AAL
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https://www.nasdaq.com/articles/american-airlines-earns-technical-rating-upgrade-2018-01-16
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nan
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nan
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In a welcome move, American Airlines ( AAL ) saw its Relative Strength Rating improve from 65 to 73 on Tuesday.
[ibd-display-video id=2881825 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
History shows that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they launch their largest climbs. See if American Airlines can continue to rebound and hit that benchmark.
See How IBD Helps You Make More Money In Stocks
American Airlines is now considered extended and out of buy range after clearing a 53.84 buy point in a first-stage cup with handle . See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
The company posted -19% earnings growth in its most recent report. Sales increased 3%. The company is expected to report its latest numbers on or around Jan. 27.
American Airlines holds the No. 9 rank among its peers in the Transportation-Airline industry group. China South Airline ( ZNH ), China E Airlines ( CEA ) and Copa ( CPA ) are among the top 5 highly rated stocks within the group.
RELATED:
Airline Industry News And Stocks To Watch
Stocks With Rising Relative Strength Ratings
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 welcome move, American Airlines ( AAL ) saw its Relative Strength Rating improve from 65 to 73 on Tuesday. [ibd-display-video id=2881825 width=50 float=left autostart=true] This exclusive rating from Investor's Business Daily measures price movement with a 1 (worst) to 99 (best) score. History shows that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they launch their largest climbs.
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In a welcome move, American Airlines ( AAL ) saw its Relative Strength Rating improve from 65 to 73 on Tuesday. Airline Industry News And Stocks To Watch Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating? How Relative Strength Line Can Help You Judge A Stock The views and 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 welcome move, American Airlines ( AAL ) saw its Relative Strength Rating improve from 65 to 73 on Tuesday. China South Airline ( ZNH ), China E Airlines ( CEA ) and Copa ( CPA ) are among the top 5 highly rated stocks within the group. Airline Industry News And Stocks To Watch Stocks With Rising Relative Strength Ratings Why Should You Use IBD's Relative Strength Rating?
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In a welcome move, American Airlines ( AAL ) saw its Relative Strength Rating improve from 65 to 73 on Tuesday. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database. American Airlines holds the No.
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3ddc966d-ddf6-49c2-90c9-842e22a24e2c
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7198.0
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2018-01-16 00:00:00 UTC
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Noteworthy Tuesday Option Activity: NSC, AAL, UAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-nsc-aal-ual-2018-01-16
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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 Norfolk Southern Corp. (Symbol: NSC), where a total volume of 8,409 contracts has been traded thus far today, a contract volume which is representative of approximately 840,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 64.8% of NSC's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $150 strike put option expiring February 16, 2018 , with 2,751 contracts trading so far today, representing approximately 275,100 underlying shares of NSC. Below is a chart showing NSC's trailing twelve month trading history, with the $150 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 28,896 contracts, representing approximately 2.9 million underlying shares or approximately 61.6% of AAL's average daily trading volume over the past month, of 4.7 million shares. Particularly high volume was seen for the $55 strike call option expiring February 16, 2018 , with 4,275 contracts trading so far today, representing approximately 427,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange:
And United Continental Holdings Inc (Symbol: UAL) options are showing a volume of 25,777 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 61.1% of UAL's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $80 strike call option expiring February 16, 2018 , with 6,182 contracts trading so far today, representing approximately 618,200 underlying shares of UAL. Below is a chart showing UAL's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for NSC options , AAL options , or UAL 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 $55 strike call option expiring February 16, 2018 , with 4,275 contracts trading so far today, representing approximately 427,500 underlying shares of AAL. Below is a chart showing NSC's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 28,896 contracts, representing approximately 2.9 million underlying shares or approximately 61.6% of AAL's average daily trading volume over the past month, of 4.7 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) options are showing a volume of 25,777 contracts thus far today.
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Below is a chart showing NSC's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 28,896 contracts, representing approximately 2.9 million underlying shares or approximately 61.6% of AAL's average daily trading volume over the past month, of 4.7 million shares. Particularly high volume was seen for the $55 strike call option expiring February 16, 2018 , with 4,275 contracts trading so far today, representing approximately 427,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) options are showing a volume of 25,777 contracts thus far today.
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Below is a chart showing NSC's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 28,896 contracts, representing approximately 2.9 million underlying shares or approximately 61.6% of AAL's average daily trading volume over the past month, of 4.7 million shares. Particularly high volume was seen for the $55 strike call option expiring February 16, 2018 , with 4,275 contracts trading so far today, representing approximately 427,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) options are showing a volume of 25,777 contracts thus far today.
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Below is a chart showing NSC's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 28,896 contracts, representing approximately 2.9 million underlying shares or approximately 61.6% of AAL's average daily trading volume over the past month, of 4.7 million shares. Particularly high volume was seen for the $55 strike call option expiring February 16, 2018 , with 4,275 contracts trading so far today, representing approximately 427,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) options are showing a volume of 25,777 contracts thus far today.
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12d7b83e-7bae-482a-8726-b8b81819b66e
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7199.0
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2018-01-16 00:00:00 UTC
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Consumer ETFs to Perk Up in 2018 on Wage Hikes?
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AAL
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https://www.nasdaq.com/articles/consumer-etfs-perk-2018-wage-hikes-2018-01-16
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nan
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nan
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As soon as the tax reform got into effect, a flurry of wage hikes and bonus payments started showing up. The tax bill cuts "the corporate rate from 35% to 21%, gives pass-through businesses like the Trump Organization a 20% tax deduction, raises the standard deduction, expands the child tax credit, and temporarily lowers individual rates across the board (read: Tax Bill: What ETF Investors Need to Know )."
The Trump administration is also proposing a move from the current worldwide tax system to a territorial system, allowing companies to send their offshore profits back to the United States without extra taxes. This will result in extra cash, which may prove beneficial for shareholder-value maximization.
Per a Tax Policy Center analysis, the bill will lower taxes for Americans in all income groups in 2018, but increase after-tax income by an average of 2.2%. However, the tax cut for individuals will gradually decrease over time and close completely in 2025.
For individuals, the final version keeps the seven tax brackets intact but lowers the rates for most others. The new tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37% compared with the current structure of 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. The framework offers tax relief to middle-class families by doubling the standard deduction to $12,000 for single filers and $24,000 for a married couple filing jointly (read: ETFs to Bet on the Final Tax Bill: What Hot, What's Not ).
Impact on Consumers
Since corporates will be benefiting from steep cuts, an increasing number of companies are paying one-time cash bonuses. Many employers are boosting wages. And a certain group of companies say that they will raise matching contributions to workers' 401(k) plans .
Walmart announced recently that it plans to hike the starting pay for hourly workers to $11 and pay up to $1,000 in a one-time cash bonus to suitable associates based on seniority. As per an article published on usatoday.com, many reputed U.S. companies including AT&TT , Alaska AirlinesALK , American AirlinesAAL , Bank of AmericaBAC , JetBlueJBLU , PNC FinancialPNC and Walmart WMT have announced bonuses.
The source went on to explain that BB&T also increased the minimum hourly pay rate from $12 to $15, effective Jan 1, 2018. Fifth Third Bank hiked the minimum wage to $15 per hour for all employees while PNC Financial will raise the minimum pay rate to $15 an hour by the end of 2018.
Added to this, companies like VisaV and Aflac IncAFL have announced that they are taking steps to help employees save for retirement. These companies are "boosting matching contributions to employees' 401(k) retirement plans."
Consumer ETFs in Focus
The dual effect of wage hike and tax cuts should translate into higher disposable income for consumers. As a result, consumer ETFs should be investors' top focus. iShares U.S. Consumer Services ETFIYC , First Trust Consumer Discretionary AlphaDEX FundFXD , and PowerShares S&P SmallCap Consumer Discretionary PortfolioPSCD , each carrying a Zacks ETF Rank #2, should thus be great picks (read: E-Commerce Face-Off: Wal-Mart Vs. Amazon ETFs ).
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 >>
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
PNC Financial Services Group, Inc. (The) (PNC): Free Stock Analysis Report
Bank of America Corporation (BAC): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
FT-CONSUMR DIS (FXD): ETF Research Reports
PWRSH-SP SC C D (PSCD): ETF Research Reports
ISHARS-US CN CY (IYC): ETF Research Reports
Aflac Incorporated (AFL): Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report
Visa Inc. (V): 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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As per an article published on usatoday.com, many reputed U.S. companies including AT&TT , Alaska AirlinesALK , American AirlinesAAL , Bank of AmericaBAC , JetBlueJBLU , PNC FinancialPNC and Walmart WMT have announced bonuses. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report PNC Financial Services Group, Inc. (The) (PNC): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report AT&T Inc. (T): Free Stock Analysis Report FT-CONSUMR DIS (FXD): ETF Research Reports PWRSH-SP SC C D (PSCD): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports Aflac Incorporated (AFL): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report To read this article on Zacks.com click here. Impact on Consumers Since corporates will be benefiting from steep cuts, an increasing number of companies are paying one-time cash bonuses.
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report PNC Financial Services Group, Inc. (The) (PNC): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report AT&T Inc. (T): Free Stock Analysis Report FT-CONSUMR DIS (FXD): ETF Research Reports PWRSH-SP SC C D (PSCD): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports Aflac Incorporated (AFL): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report To read this article on Zacks.com click here. As per an article published on usatoday.com, many reputed U.S. companies including AT&TT , Alaska AirlinesALK , American AirlinesAAL , Bank of AmericaBAC , JetBlueJBLU , PNC FinancialPNC and Walmart WMT have announced bonuses. The tax bill cuts "the corporate rate from 35% to 21%, gives pass-through businesses like the Trump Organization a 20% tax deduction, raises the standard deduction, expands the child tax credit, and temporarily lowers individual rates across the board (read: Tax Bill: What ETF Investors Need to Know )."
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report PNC Financial Services Group, Inc. (The) (PNC): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report AT&T Inc. (T): Free Stock Analysis Report FT-CONSUMR DIS (FXD): ETF Research Reports PWRSH-SP SC C D (PSCD): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports Aflac Incorporated (AFL): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report To read this article on Zacks.com click here. As per an article published on usatoday.com, many reputed U.S. companies including AT&TT , Alaska AirlinesALK , American AirlinesAAL , Bank of AmericaBAC , JetBlueJBLU , PNC FinancialPNC and Walmart WMT have announced bonuses. The tax bill cuts "the corporate rate from 35% to 21%, gives pass-through businesses like the Trump Organization a 20% tax deduction, raises the standard deduction, expands the child tax credit, and temporarily lowers individual rates across the board (read: Tax Bill: What ETF Investors Need to Know )."
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report PNC Financial Services Group, Inc. (The) (PNC): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report AT&T Inc. (T): Free Stock Analysis Report FT-CONSUMR DIS (FXD): ETF Research Reports PWRSH-SP SC C D (PSCD): ETF Research Reports ISHARS-US CN CY (IYC): ETF Research Reports Aflac Incorporated (AFL): Free Stock Analysis Report Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report To read this article on Zacks.com click here. As per an article published on usatoday.com, many reputed U.S. companies including AT&TT , Alaska AirlinesALK , American AirlinesAAL , Bank of AmericaBAC , JetBlueJBLU , PNC FinancialPNC and Walmart WMT have announced bonuses. The tax bill cuts "the corporate rate from 35% to 21%, gives pass-through businesses like the Trump Organization a 20% tax deduction, raises the standard deduction, expands the child tax credit, and temporarily lowers individual rates across the board (read: Tax Bill: What ETF Investors Need to Know )."
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a579d317-726b-4f66-83d1-41cee8e69276
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