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7300.0
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2017-10-22 00:00:00 UTC
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The Southwest Effect May Not Be All It's Cracked Up to Be
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AAL
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https://www.nasdaq.com/articles/southwest-effect-may-not-be-all-its-cracked-be-2017-10-22
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nan
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nan
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The so-called "Southwest Effect" has been back in the news lately, after Southwest Airlines (NYSE: LUV) announced that it plans to begin flying to Hawaii next year. This phrase was first coined in a DOT report in the early 1990s, and it refers to a pattern of lower fares and higher passenger traffic after Southwest Airlines enters a new market.
Some pundits have argued that Southwest's entry into the West Coast-Hawaii market will lead to big savings for consumers. Many proponents of this view have cited a recent University of Virginia study that claims the Southwest Effect is alive and well. Other pundits have questioned whether the Southwest Effect is really still intact -- or whether it will apply to Hawaii.
There's definitely room for fares to fall on some routes to Hawaii. But in general, the evidence for the Southwest Effect isn't nearly as clear-cut as the authors of the University of Virginia paper would have you think.
The changing competitive position of Southwest Airlines
The original DOT study of the Southwest Effect found that on several California routes, the arrival of Southwest Airlines in the market caused fares to fall by about 50% and traffic to more than triple. This highlights the massive impact of Southwest's growth on air travel at that time.
Clearly, Southwest doesn't have such a dramatic effect anymore. Legacy carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have cut their costs through the bankruptcy process, while Southwest's own costs have risen. In addition, there are far more budget carriers around today, including ultra-low-cost carriers like Spirit Airlines (NASDAQ: SAVE) that have significantly lower costs than Southwest.
The authors of the University of Virginia study acknowledge these factors. However, they note that Southwest's transition to flying longer routes -- which obviously have higher fares -- means that even a smaller percentage drop in the average fare could lead to big savings for consumers.
The case for the Southwest Effect today
The authors assert that the Southwest Effect has remained significant even in the past five years. Specifically, their study finds that fares fell by an average of 15% and traffic grew by an average of 28% on routes where Southwest has added service since 2012. In addition, they find that fares are $45 lower on routes served nonstop by Southwest, controlling for various other factors.
A case study of Dallas is perhaps the most convincing part of the paper. The authors show that after Southwest Airlines added 34 new routes out of Dallas Love Field in late 2014 and 2015, fares on those routes fell by an average of 25% and origin-and-destination traffic (as opposed to connecting traffic) increased by 37%.
Sifting the evidence
In evaluating the significance of the Southwest Effect, it's important to remember that airfares have fallen throughout the U.S. in the past three years or so. This has occurred even in markets where Southwest isn't growing much.
Consider Seattle. Seattle-Tacoma International Airport has been the fastest growing major airport in the U.S. for the past few years, thanks to a fare war between local heavyweight Alaska Air (NYSE: ALK) and Delta Air Lines.
Delta has more than quadrupled the number of daily flights it operates in Seattle since the beginning of 2013. Alaska Airlines has responded by cutting fares and adding more service. As a result, the average fare in Seattle has fallen from $380 in 2013 to $333 for the past four reported quarters. This is almost exactly equal to the decline in airfares seen in Dallas during that period. Meanwhile, passenger traffic in Seattle surged by 31% between 2013 and 2016.
(In case you were wondering, the average number of daily departures on Southwest Airlines in Seattle ticked up only marginally between 2013 and 2016, from 34 to 37.)
The regression analysis showing that fares are $45 lower in Southwest Airlines markets also seems open to question. The study's authors don't control for market size. However, Southwest only flies to cities large enough to support service on full-size mainline jets. Fares in smaller cities that mainly see the regional jet and turboprop flights tend to be much higher, but that's largely because unit costs are a lot higher for those smaller planes.
Thus, it's possible that fares are lower on routes served by Southwest simply because they are popular routes served by large planes that have low unit costs. The regression may not be measuring the Southwest Effect at all.
Even in Dallas, the Southwest Effect may not have been quite as powerful as it seemed. In 2015, American Airlines -- by far the largest airline in Dallas -- started matching the fares of ultra-low-cost carriers like Spirit Airlines. At the time, Spirit operated on 25 high-traffic routes in Dallas. American's price-matching activity would have led to falling fares and higher traffic in Dallas during 2015 even without Southwest's expansion at Love Field.
Competition is really the key
Southwest Airlines still helps bring down fares and boost traffic on routes where it adds service. It's just the existence of a specific "Southwest Effect" that's doubtful. Seattle has experienced an equally powerful "Delta Effect" over the past few years, even though Delta has a relatively high cost structure and isn't known for low fares.
To be blunt, it all boils down to competition. The more competition there is in a given market, the lower fares are likely to be. Who exactly the competitors tends to be less important (especially if at least one is a low-fare carrier).
Circling back to Hawaii, the biggest West Coast-Hawaii markets already have four or five airlines competing today. As a result, Southwest Airlines isn't likely to bring fares down that much. By contrast, Southwest's entry into the Hawaii market is likely to have the biggest impact on routes where only one or two airlines provide nonstop service today.
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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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Legacy carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have cut their costs through the bankruptcy process, while Southwest's own costs have risen. This phrase was first coined in a DOT report in the early 1990s, and it refers to a pattern of lower fares and higher passenger traffic after Southwest Airlines enters a new market. American's price-matching activity would have led to falling fares and higher traffic in Dallas during 2015 even without Southwest's expansion at Love Field.
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Legacy carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have cut their costs through the bankruptcy process, while Southwest's own costs have risen. In addition, there are far more budget carriers around today, including ultra-low-cost carriers like Spirit Airlines (NASDAQ: SAVE) that have significantly lower costs than Southwest. The authors show that after Southwest Airlines added 34 new routes out of Dallas Love Field in late 2014 and 2015, fares on those routes fell by an average of 25% and origin-and-destination traffic (as opposed to connecting traffic) increased by 37%.
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Legacy carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have cut their costs through the bankruptcy process, while Southwest's own costs have risen. The changing competitive position of Southwest Airlines The original DOT study of the Southwest Effect found that on several California routes, the arrival of Southwest Airlines in the market caused fares to fall by about 50% and traffic to more than triple. The case for the Southwest Effect today The authors assert that the Southwest Effect has remained significant even in the past five years.
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Legacy carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have cut their costs through the bankruptcy process, while Southwest's own costs have risen. The case for the Southwest Effect today The authors assert that the Southwest Effect has remained significant even in the past five years. Even in Dallas, the Southwest Effect may not have been quite as powerful as it seemed.
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b4233f3d-135f-4994-b2be-888d365254e5
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7301.0
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2017-10-19 00:00:00 UTC
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United Airlines Dives On Disastrous Earnings Call; Rival Carriers Fall
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AAL
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https://www.nasdaq.com/articles/united-airlines-dives-disastrous-earnings-call-rival-carriers-fall-2017-10-19
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nan
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nan
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Analysts spent much of United Airlines ' ( UAL ) third-quarter earnings call Thursday morning asking about the carrier's plans to shore up profit, costs, capacity and margins in 2018 and beyond. And much of the time United executives on those fronts were unable to provide specifics.
That sent United Air's stock crashing, amid doubts about the carrier's ability to deliver on goals outlined at its investor day last year and management's ability to turn the company around as its margins lag those of Delta Air Lines ( DAL ).
"Is This a Catalyst for Management Change?" read a research note from Stifel analyst Joseph DeNardi after the call. "That's the #1 question we've received today, which is both surprising and not surprising."
United late Wednesday forecast weaker fourth-quarter unit revenue - a much-watched measure of sales in relation to an airline's flight capacity - rising unit costs and expanding capacity.
[ibd-display-video id=2381940 width=50 float=left autostart=true]CEO Oscar Munoz on Wednesday said several times during the call that United was "in the middle" of assembling a clearer forecast. He urged patience, and stressed that relative to rivals, United's management was still new.
"We're just getting our mojo working," he said.
Mojo aside, investors mashed the "sell" button on Thursday. United shares collapsed 12.1% to 59.78 in the stock market today , tumbling through their 50-day moving average. Delta lost 1.1% and American Airlines ( AAL ) 1%. Southwest Airlines ( LUV ) dipped 0.3%. Delta, American and Southwest have all been building the right side of cup bases .
At its investor day last year, United said it planned to reduce capital expenditures by roughly $1 billion in 2017 and 2018. The airline also laid out long-term plans to produce $4.8 billion in "earnings improvement" by 2020, via a combination of stronger revenue management, better flight connectivity, and expanding "segmentation," or different types of fare classes that offer different degrees of amenities.
United faces higher costs related to employee benefits next year, among other things, and has been actively trying to chase Spirit Airlines ( SAVE ) and other low-cost carriers, which are offering fares are low as $10, out of its major hubs.
Analysts over the summer worried whether United, which has tried to match Spirit on fares, could absorb the impact of the discounting and whether other airlines might get sucked into the fare war. But in recent weeks they grew more optimistic that fare discounting, which chips away at sales and profits, had eased.
"United's unit revenue outlook confirms that prices are firming," Cowen analyst Helane Becker said, "but United's forecast is not as optimistic as Delta's and may also not be as optimistic as American's when they provide it next week."
Delta reported solid Q3 earnings and guidance last week.
Over the past six to eight weeks, United management said that not much has changed in the way United or the ultra-discounters were approaching the way they do battle.
Late Wednesday, United forecast a fourth-quarter unit-revenue decline of 1%-3%. United said it sees flat unit revenue for October and November, with December declining due to what President Scott Kirby said were the "vagaries of the calendar," with much of the holiday return traffic pushed into January.
United sees Q4 adjusted pretax margin coming in at 3%-5%, below consensus. The carrier forecast unit costs to increase 2.5%-3.5% in the fourth quarter, also a letdown for analysts. United also sees roughly 3.5% fourth-quarter capacity growth.
"Further, with fourth-quarter capacity expansion remaining elevated (as the schedule data has indicated), we expect investors will be skeptical that management's plan to improve relative profitability is gaining momentum," Barclays analyst Brandon Oglenski said in a research note released before the call.
Spirit Airlines retreated 3.3%.
RELATED:
United Airlines, AmEx, United Rentals Beat Views; Alcoa Misses
Delta Air Lines Sees Turnaround In Crucial, Highly Competitive Market
Airline Stocks To Watch And Industry News
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta lost 1.1% and American Airlines ( AAL ) 1%. The airline also laid out long-term plans to produce $4.8 billion in "earnings improvement" by 2020, via a combination of stronger revenue management, better flight connectivity, and expanding "segmentation," or different types of fare classes that offer different degrees of amenities. United faces higher costs related to employee benefits next year, among other things, and has been actively trying to chase Spirit Airlines ( SAVE ) and other low-cost carriers, which are offering fares are low as $10, out of its major hubs.
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Delta lost 1.1% and American Airlines ( AAL ) 1%. United late Wednesday forecast weaker fourth-quarter unit revenue - a much-watched measure of sales in relation to an airline's flight capacity - rising unit costs and expanding capacity. United also sees roughly 3.5% fourth-quarter capacity growth.
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Delta lost 1.1% and American Airlines ( AAL ) 1%. United late Wednesday forecast weaker fourth-quarter unit revenue - a much-watched measure of sales in relation to an airline's flight capacity - rising unit costs and expanding capacity. "United's unit revenue outlook confirms that prices are firming," Cowen analyst Helane Becker said, "but United's forecast is not as optimistic as Delta's and may also not be as optimistic as American's when they provide it next week."
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Delta lost 1.1% and American Airlines ( AAL ) 1%. United late Wednesday forecast weaker fourth-quarter unit revenue - a much-watched measure of sales in relation to an airline's flight capacity - rising unit costs and expanding capacity. United also sees roughly 3.5% fourth-quarter capacity growth.
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f13a9fef-1eb0-4163-a471-53ba16b9a684
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7302.0
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2017-10-19 00:00:00 UTC
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Copa Holdings (CPA) Posts Robust September Traffic Numbers
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AAL
|
https://www.nasdaq.com/articles/copa-holdings-cpa-posts-robust-september-traffic-numbers-2017-10-19
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nan
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nan
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Copa Holdings, S.A.CPA posted a substantial rise in traffic for September. Measured in revenue passenger miles (RPMs), traffic came in at 1.59 billion, up 10.7% from 1.45 billion reported a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) climbed 8.9% to 1.9 billion. As the increase in traffic outpaced capacity growth, load factor (% of seats filled by passengers) expanded 130 basis points (bps) to 84.1% in the month.
For the first nine months of 2017, Copa Holdings generated RPMs of 14.83 billion (up 13% year over year) and ASMs of 17.82 billion (up 8.6%). Load factor registered a rise of 320 bps year over year to 83.2% during the period.
With the earnings season on, several major airline companies are scheduled to report third-quarter earnings numbers next week. American Airlines AAL and Alaska Airlines ALK will reveal third-quarter financial numbers on Oct 26 and Oct 25, respectively.
Copa Holdings is slated to release third-quarter 2017 results on Nov 8. Last quarter, the carrier's earnings per share (on an adjusted basis) of $1.48 beat the Zacks Consensus Estimate of $1.42. The bottom line also comfortably surpassed the year-ago count of 51 cents. Quarterly revenues improved 16.8% year over year to $578.1 million, exceeding the Zacks Consensus Estimate of $548 million. It remains to be seen how the carrier performs in the third quarter.
Last week, Delta Air Lines DAL reported third-quarter earnings numbers.The company's earnings as well as revenues outpaced expectations, despite recent natural calamities.
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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 Alaska Airlines ALK will reveal third-quarter financial numbers on Oct 26 and Oct 25, respectively. 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Copa Holdings, S.A.CPA posted a substantial rise in traffic for September.
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American Airlines AAL and Alaska Airlines ALK will reveal third-quarter financial numbers on Oct 26 and Oct 25, respectively. 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Last week, Delta Air Lines DAL reported third-quarter earnings numbers.The company's earnings as well as revenues outpaced expectations, despite recent natural calamities.
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL and Alaska Airlines ALK will reveal third-quarter financial numbers on Oct 26 and Oct 25, respectively. For the first nine months of 2017, Copa Holdings generated RPMs of 14.83 billion (up 13% year over year) and ASMs of 17.82 billion (up 8.6%).
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL and Alaska Airlines ALK will reveal third-quarter financial numbers on Oct 26 and Oct 25, respectively. For the first nine months of 2017, Copa Holdings generated RPMs of 14.83 billion (up 13% year over year) and ASMs of 17.82 billion (up 8.6%).
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952e5295-a9f9-4b29-91ce-2124f91fe4d5
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7303.0
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2017-10-19 00:00:00 UTC
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Noteworthy Thursday Option Activity: MU, VMC, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-mu-vmc-aal-2017-10-19
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Micron Technology Inc. (Symbol: MU), where a total of 284,561 contracts have traded so far, representing approximately 28.5 million underlying shares. That amounts to about 67.6% of MU's average daily trading volume over the past month of 42.1 million shares. Particularly high volume was seen for the $41 strike call option expiring November 17, 2017 , with 24,545 contracts trading so far today, representing approximately 2.5 million underlying shares of MU. Below is a chart showing MU's trailing twelve month trading history, with the $41 strike highlighted in orange:
Vulcan Materials Co (Symbol: VMC) saw options trading volume of 5,184 contracts, representing approximately 518,400 underlying shares or approximately 59.3% of VMC's average daily trading volume over the past month, of 874,680 shares. Particularly high volume was seen for the $130 strike call option expiring November 17, 2017 , with 3,000 contracts trading so far today, representing approximately 300,000 underlying shares of VMC. Below is a chart showing VMC's trailing twelve month trading history, with the $130 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 30,930 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 59.2% of AAL's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $50.50 strike call option expiring October 20, 2017 , with 5,112 contracts trading so far today, representing approximately 511,200 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50.50 strike highlighted in orange:
For the various different available expirations for MU options , VMC 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 $50.50 strike call option expiring October 20, 2017 , with 5,112 contracts trading so far today, representing approximately 511,200 underlying shares of AAL. Below is a chart showing VMC's trailing twelve month trading history, with the $130 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 30,930 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 59.2% of AAL's average daily trading volume over the past month, of 5.2 million shares.
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Below is a chart showing VMC's trailing twelve month trading history, with the $130 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 30,930 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 59.2% of AAL's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $50.50 strike call option expiring October 20, 2017 , with 5,112 contracts trading so far today, representing approximately 511,200 underlying shares of AAL.
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Below is a chart showing VMC's trailing twelve month trading history, with the $130 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 30,930 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 59.2% of AAL's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $50.50 strike call option expiring October 20, 2017 , with 5,112 contracts trading so far today, representing approximately 511,200 underlying shares of AAL.
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Below is a chart showing VMC's trailing twelve month trading history, with the $130 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 30,930 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 59.2% of AAL's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $50.50 strike call option expiring October 20, 2017 , with 5,112 contracts trading so far today, representing approximately 511,200 underlying shares of AAL.
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36ff3b58-d7d9-42d6-9649-8741eab6eb25
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7304.0
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2017-10-17 00:00:00 UTC
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Guggenheim S&P 500 Equal Weight ETF Experiences Big Inflow
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AAL
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https://www.nasdaq.com/articles/guggenheim-sp-500-equal-weight-etf-experiences-big-inflow-2017-10-17
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Guggenheim S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $260.8 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 144,652,663.0 to 147,352,663.0). Among the largest underlying components of RSP, in trading today Micron Technology Inc. (Symbol: MU) is off about 1.5%, General Motors Co. (Symbol: GM) is down about 0.8%, and American Airlines Group Inc (Symbol: AAL) is lower by about 0.3%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average:
Looking at the chart above, RSP's low point in its 52 week range is $79.90 per share, with $96.78 as the 52 week high point - that compares with a last trade of $96.46. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of RSP, in trading today Micron Technology Inc. (Symbol: MU) is off about 1.5%, General Motors Co. (Symbol: GM) is down about 0.8%, and American Airlines Group Inc (Symbol: AAL) is lower by about 0.3%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $79.90 per share, with $96.78 as the 52 week high point - that compares with a last trade of $96.46. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of RSP, in trading today Micron Technology Inc. (Symbol: MU) is off about 1.5%, General Motors Co. (Symbol: GM) is down about 0.8%, and American Airlines Group Inc (Symbol: AAL) is lower by about 0.3%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $79.90 per share, with $96.78 as the 52 week high point - that compares with a last trade of $96.46. Click here to find out which 9 other ETFs had notable inflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of RSP, in trading today Micron Technology Inc. (Symbol: MU) is off about 1.5%, General Motors Co. (Symbol: GM) is down about 0.8%, and American Airlines Group Inc (Symbol: AAL) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Guggenheim S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $260.8 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 144,652,663.0 to 147,352,663.0). For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $79.90 per share, with $96.78 as the 52 week high point - that compares with a last trade of $96.46.
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Among the largest underlying components of RSP, in trading today Micron Technology Inc. (Symbol: MU) is off about 1.5%, General Motors Co. (Symbol: GM) is down about 0.8%, and American Airlines Group Inc (Symbol: AAL) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Guggenheim S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $260.8 million dollar inflow -- that's a 1.9% increase week over week in outstanding units (from 144,652,663.0 to 147,352,663.0). For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average: Looking at the chart above, RSP's low point in its 52 week range is $79.90 per share, with $96.78 as the 52 week high point - that compares with a last trade of $96.46.
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a6ff7df7-dfae-42a6-9ea7-ce643827bc09
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7305.0
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2017-10-16 00:00:00 UTC
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Q3 Guidance Gets a Little Better at American Airlines and United Continental
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AAL
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https://www.nasdaq.com/articles/q3-guidance-gets-little-better-american-airlines-and-united-continental-2017-10-16
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nan
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nan
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Shares of airline giants American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) were in free fall from mid-July until late September. A series of major hurricanes that disrupted air travel across large swaths of the U.S., rising fuel prices, and a brewing fare war all contributed to the poor stock performances.
Stocks of American Airlines and United Continental have bounced back in the past few weeks, though, propped up by bullish long-term outlooks from their management teams.
American Airlines and United Continental Stock Performance. Data by YCharts .
Both companies kept their share price rallies alive last week by posting favorable third-quarter guidance updates. Nevertheless, neither one is producing an acceptable level of profitability right now.
Guidance comes down
Entering the third quarter, American Airlines' initial forecast called for an adjusted pretax margin of 10%-12%. United's original adjusted pretax margin guidance range was somewhat better at 12.5%-14.5%.
However, United Continental had to slash its margin outlook by 4.5 percentage points in early September, reflecting some strategic missteps, higher fuel prices, and the severe impact of Hurricane Harvey. This left its Q3 adjusted pretax margin forecast range at a measly 8%-10%.
A week later, American Airlines cut its adjusted pretax margin guidance range to 8.5%-10.5%. It blamed the 1.5-percentage-point reduction to its forecast on revenue losses related to Hurricane Irma and an uptick in jet fuel prices.
Management becomes more optimistic
Fortunately, the increase in fuel prices during September was not as bad as initially feared. Moreover, the airline industry pricing environment is starting to rebound.
As a result, in the past week, American Airlines and United Continental have both raised their forecasts again. American now expects to produce a Q3 adjusted pretax margin of 9%-11%, while United has a similar 10%-10.5% adjusted pretax margin forecast.
American Airlines indicated in last week's investor update that Hurricane Irma reduced pretax profit by about $75 million. The financial impact of Hurricane Harvey on United was probably significantly higher, but the company has not provided a final tally of the cost yet.
These results still aren't acceptable
Although the third quarter didn't turn out to be quite as bad for American Airlines and United Continental as investors had feared a month ago, their results aren't especially good, either. Both companies are set to report adjusted pretax margins of around 10% for Q3, compared to 14% for American and 15.7% for United in the year-earlier period.
While a 10% pretax margin is better than what most airlines were achieving a few years ago, it's important to remember that the third quarter includes the summer peak season. Profit margins tend to be a lot lower during the first and fourth quarters.
It's also discouraging that airline profit margins are receding so quickly when fuel prices are still quite low by historical standards and the economy is growing steadily. True, American Airlines and United Continental faced some unusual hurricane-related headwinds last quarter, but the underlying macroeconomic trends are still about as favorable as possible for airlines.
Can investors expect a rebound in the fourth quarter?
One reason why investors have reacted positively to airlines' recent guidance updates is that many airlines expect unit revenue trends to improve in the fourth quarter. American Airlines' management has been particularly outspoken in this regard, repeatedly predicting that unit revenue will grow at a faster pace in Q4 than the roughly 1% increase American will report for Q3.
That said, based on its current outlook for fuel prices and nonfuel unit costs, American Airlines would need a roughly 5%-6% unit revenue increase just to keep its pretax margin steady this quarter. Thus, even if it posts a solid 3%-4% unit revenue gain, American's adjusted pretax margin will recede again relative to the uninspiring 7.9% adjusted pretax margin it reported for the fourth quarter of 2016.
American and United have both outlined a variety of initiatives to improve profit going forward. However, this isn't the first time that they have made big promises. Considering the extent of both companies' earnings declines over the past year, investors should be cautious about blindly trusting management's prognostications. American Airlines and United Continental still need to prove that they are worthy long-term investments.
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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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Shares of airline giants American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) were in free fall from mid-July until late September. A series of major hurricanes that disrupted air travel across large swaths of the U.S., rising fuel prices, and a brewing fare war all contributed to the poor stock performances. Stocks of American Airlines and United Continental have bounced back in the past few weeks, though, propped up by bullish long-term outlooks from their management teams.
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Shares of airline giants American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) were in free fall from mid-July until late September. One reason why investors have reacted positively to airlines' recent guidance updates is that many airlines expect unit revenue trends to improve in the fourth quarter. That said, based on its current outlook for fuel prices and nonfuel unit costs, American Airlines would need a roughly 5%-6% unit revenue increase just to keep its pretax margin steady this quarter.
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Shares of airline giants American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) were in free fall from mid-July until late September. American now expects to produce a Q3 adjusted pretax margin of 9%-11%, while United has a similar 10%-10.5% adjusted pretax margin forecast. That said, based on its current outlook for fuel prices and nonfuel unit costs, American Airlines would need a roughly 5%-6% unit revenue increase just to keep its pretax margin steady this quarter.
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Shares of airline giants American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) were in free fall from mid-July until late September. American Airlines and United Continental Stock Performance. One reason why investors have reacted positively to airlines' recent guidance updates is that many airlines expect unit revenue trends to improve in the fourth quarter.
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4e54bb87-9d6c-4292-8a7f-e7d9fcd2d07d
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7306.0
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2017-10-14 00:00:00 UTC
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American Airlines reports October 19
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AAL
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https://www.nasdaq.com/articles/american-airlines-reports-october-19-2017-10-14
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What's Happening
American Airlines ( AAL ) is expected to release its Q3 numbers before the market open on October 19. The stock has enjoyed a nice bounce over the last month, pushing shares up 13.3% on the year. For the most recent quarter, analysts expect earnings of $1.31 per share, down from $1.76 during the same period last year.
Technical Analysis
AAL was recently trading at $52.45, down $2.03 from its 12-month high and $15.65 above its 12-month low. Technical indicators for AAL are bullish and the stock is in a strong upward trend. The stock has recent support above $50.25 and has recent resistance below $53.75. Of the 16 analysts who cover the stock, seven rate it a "strong buy", one rates it a "buy", six rate it a "hold", one rates it a "sell", and one rates it a "strong sell". AAL gets a score of 52 in InvestorsObserver's stock scoring system.
Analyst's Thoughts
Despite firming oil prices , AAL is trading in the upper end of its 52-week range, and analysts see additional upside in the stock, with an average price target of $55.63, versus its current $52.45 price. A big reason to believe the stock has additional upside potential is its current valuation. AAL has a P/E of 13.0. With oil prices on the rise, the company's earnings are forecast to drop 19.8% during the current year, which is why shares are trading at such a low P/E, but analysts see earnings rising next year, forecasting 10.7% growth in 2018. The company has topped estimates on both the top and bottom lines the last two quarters, but the street is not very optimistic regarding the upcoming report. The consensus calls for $1.37, but the street has a lower whisper number of $1.33. The good news is that the market has already priced this into the stock, so a small earnings miss will not have a major impact on the stock as long as sales are OK and results are not lower than the $1.33 whisper.
Stock Only Trade
If you're looking to establish a long stock position in AAL, consider buying the stock under $52.50. Sell if it falls below $47.25 or take profits if it gets to $60.50.
Bullish Trade
If you want to set up a bullish hedged trade on AAL, consider a January 40/45 bull-put credit spread for a 50-cent credit. That's a potential 11.1% return (41.4% annualized*) and the stock would have to fall 13.2% to cause a problem.
Bearish Trade
If you want to take a bearish stance on the stock at this time, consider a January 60/65 bear-call credit spread for a 50-cent credit. That's a potential 11.1% return (41.4% annualized*) and the stock would have to rise 15.4% to cause a problem.
Covered Call Trade
If you like the stock, but wish to lower your cost basis on a new position, you may want to consider a January $50.00 covered call. Buy AAL shares (typically 100 shares, scale as appropriate), while selling the January $50.00 call for a debit of $47.70 per share. The trade has a target assigned return of 4.8%, and a target annualized return of 18.1% (for comparison purposes only).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What's Happening American Airlines ( AAL ) is expected to release its Q3 numbers before the market open on October 19. Technical indicators for AAL are bullish and the stock is in a strong upward trend. Technical Analysis AAL was recently trading at $52.45, down $2.03 from its 12-month high and $15.65 above its 12-month low.
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What's Happening American Airlines ( AAL ) is expected to release its Q3 numbers before the market open on October 19. Technical Analysis AAL was recently trading at $52.45, down $2.03 from its 12-month high and $15.65 above its 12-month low. Technical indicators for AAL are bullish and the stock is in a strong upward trend.
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Analyst's Thoughts Despite firming oil prices , AAL is trading in the upper end of its 52-week range, and analysts see additional upside in the stock, with an average price target of $55.63, versus its current $52.45 price. Stock Only Trade If you're looking to establish a long stock position in AAL, consider buying the stock under $52.50. What's Happening American Airlines ( AAL ) is expected to release its Q3 numbers before the market open on October 19.
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AAL has a P/E of 13.0. Buy AAL shares (typically 100 shares, scale as appropriate), while selling the January $50.00 call for a debit of $47.70 per share. What's Happening American Airlines ( AAL ) is expected to release its Q3 numbers before the market open on October 19.
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7307.0
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2017-10-12 00:00:00 UTC
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Say Aloha To Another Airfare Price War
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AAL
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https://www.nasdaq.com/articles/say-aloha-another-airfare-price-war-2017-10-12
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Cheaper flights to Hawaii may be coming soon, as Southwest Airlines ( LUV ) confirms it will finally fly to the Pacific islands with help from the latest Boeing ( BA ) 737 jets.
[ibd-display-video id=2350309 width=50 float=left autostart=true]Southwest has long hinted at - and passengers have long hoped for - such a move. The airline, which recently became the first in North America to fly the 737 Max 8, linked its decision to this new and upgraded Boeing model.
"For us, it's the perfect fit for Hawaii," Chief Revenue Officer Andrew Watterson told Bloomberg. "The Max has got 14% better range and 14% better fuel burn" than the model it succeeded.
The discount carrier plans to kick off services to Hawaii within the next two years, initially from California.
Flights to Hawaii can be logistically challenging, but the 737 Max 8's flying range of about 3,500 nautical miles is enough to comfortably cover most flights from the West Coast to Hawaii.
For Southwest, an advanced new reservation system is also making the flights there possible. It expects to lower fares to Hawaii, one of the most popular destinations for travel within the United States. Regulatory approvals are pending.
Southwest shares closed up 0.4% at 58.81 on the stock market today , eyeing a 59.67 entry off a first-stage, cup-with-handle base . Hawaiian Airlines ( HA ) dived as much as 6% on the news, before trimming losses to 2.5%. Boeing added 0.2% and is now extended 7% from a mid-September breakout from a second-stage flat base .
IBD'S TAKE:As investors fret over airlines' pricing and expansion plans, Tesla CEO Elon Musk is looking way beyond. Here's a look at how SpaceX could upend the airline and aerospace industries.
Airline stocks are on the mend after getting pummeled over the course of the third quarter. Investors had cooled on the industry group amid intense pricing wars, higher fuel costs and the shock of a string of hurricanes.
However, Delta Air Lines ( DAL ) beat Q3 EPS and revenue estimates Wednesday, while signaling that it expects improvement in the key trans-Atlantic market in the months to come. Delta shares changed little Thursday, just 4% below a 55.85 buy point off a cup base.
American Airlines ( AAL ) and United Airlines (UAL) nudged 0.3% and 1.1% lower respectively, but both industry stalwarts on Tuesday forecast better-than-expected unit revenue and margins for Q3. American is forming a cup base with a 54.58 buy point.
RELATED :
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Defense And Aerospace Stocks To Watch And Industry News
American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 United Airlines (UAL) nudged 0.3% and 1.1% lower respectively, but both industry stalwarts on Tuesday forecast better-than-expected unit revenue and margins for Q3. Cheaper flights to Hawaii may be coming soon, as Southwest Airlines ( LUV ) confirms it will finally fly to the Pacific islands with help from the latest Boeing ( BA ) 737 jets. Investors had cooled on the industry group amid intense pricing wars, higher fuel costs and the shock of a string of hurricanes.
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American Airlines ( AAL ) and United Airlines (UAL) nudged 0.3% and 1.1% lower respectively, but both industry stalwarts on Tuesday forecast better-than-expected unit revenue and margins for Q3. Flights to Hawaii can be logistically challenging, but the 737 Max 8's flying range of about 3,500 nautical miles is enough to comfortably cover most flights from the West Coast to Hawaii. Defense And Aerospace Stocks To Watch And Industry News American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap The views and 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 United Airlines (UAL) nudged 0.3% and 1.1% lower respectively, but both industry stalwarts on Tuesday forecast better-than-expected unit revenue and margins for Q3. Cheaper flights to Hawaii may be coming soon, as Southwest Airlines ( LUV ) confirms it will finally fly to the Pacific islands with help from the latest Boeing ( BA ) 737 jets. Defense And Aerospace Stocks To Watch And Industry News American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap The views and 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 United Airlines (UAL) nudged 0.3% and 1.1% lower respectively, but both industry stalwarts on Tuesday forecast better-than-expected unit revenue and margins for Q3. Delta shares changed little Thursday, just 4% below a 55.85 buy point off a cup base. Defense And Aerospace Stocks To Watch And Industry News American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3cde2f66-09ab-434a-a276-a5adab9c71d8
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7308.0
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2017-10-11 00:00:00 UTC
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Stocks Trade Mixed; Retailers Struggle, J&J Nears Breakout
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AAL
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https://www.nasdaq.com/articles/stocks-trade-mixed-retailers-struggle-jj-nears-breakout-2017-10-11
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The major market indexes treaded water in early morning trade Wednesday ahead of the release of the Fed minutes from last month's policy meeting at 2 p.m. ET. All three major indexes - the tech-heavy Nasdaq, S&P 500 and Dow Jones industrial average - traded quietly higher.
[ibd-display-video id=2349756 width=50 float=left autostart=true] Among the Dow Jones Industrial components, Johnson& Johnson ( JNJ ) moved up 1.5% after being upgraded from hold to buy at Jefferies & Co. The medical products maker is forming a flat base with a 137.18 potential entry.
Meanwhile, Wal-Mart Stores ( WMT ) followed up on Tuesday's breakout with a 1% advance. Shares remain within the 5% buy range from a 82.09 flat-base entry. Cisco Systems ( CSCO ) edged slightly higher as it etches a handle onto its cup-shaped base. Its potential buy point is 34.20 - a dime above the high on Sept. 26.
Among companies reporting earnings , Delta Air Lines ( DAL ) reported strong Q3 results , launching shares over 2% higher in opening trade. But that gain had been trimmed to just 0.2%. The airline carrier is forging a cup base with a potential buy point at 55.85. Fellow airline American Airlines ( AAL ) reversed lower, falling 0.8%, as it approaches its own cup-base 54.58 entry.
Leading payment processor PayPal (PYPL) jumped 2% higher after seeing an analyst upgrade from Morgan Stanley. The analyst raised its rating from equal-weight to overweight with a price target of 76 - a 15% premium to Tuesday's closing price. Shares of the IBD 50 member are over 50% from a 55.24 flat-base buy point.
Among leading growth stocks , electric automaker Tesla (TSLA) continues to swing around its 50-day line , falling back below it today with its 1% decline.
Within the S&P 500, apparel makers were on the decline. Ralph Lauren (RL), Under Armour (UAA) and Coach (COH) all fell over 2%. Ralph Lauren gave up its 50-day line in above-average trade, while Under Armour was approaching multiyear lows.
Within the IBD 50 , Atlassian (TEAM) looked to rise for an 11th straight day, moving 1.7% higher. The stock still in the 5% buy range from a 39.35 buy point.
On the downside, Electronic Arts (EA) faltered 0.6% as it battles for support at its 50-day line. A flat-base breakout on July 26 hasn't led to any gains, and the stock has paused long enough to create a new flat base - one that sports a 122.89 entry.
RELATED:
Delta Air Lines Beats Q3 Forecasts, Gives Strong Q4 Outlook
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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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Fellow airline American Airlines ( AAL ) reversed lower, falling 0.8%, as it approaches its own cup-base 54.58 entry. The major market indexes treaded water in early morning trade Wednesday ahead of the release of the Fed minutes from last month's policy meeting at 2 p.m. Among leading growth stocks , electric automaker Tesla (TSLA) continues to swing around its 50-day line , falling back below it today with its 1% decline.
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Fellow airline American Airlines ( AAL ) reversed lower, falling 0.8%, as it approaches its own cup-base 54.58 entry. All three major indexes - the tech-heavy Nasdaq, S&P 500 and Dow Jones industrial average - traded quietly higher. Among companies reporting earnings , Delta Air Lines ( DAL ) reported strong Q3 results , launching shares over 2% higher in opening trade.
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Fellow airline American Airlines ( AAL ) reversed lower, falling 0.8%, as it approaches its own cup-base 54.58 entry. The stock still in the 5% buy range from a 39.35 buy point. A flat-base breakout on July 26 hasn't led to any gains, and the stock has paused long enough to create a new flat base - one that sports a 122.89 entry.
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Fellow airline American Airlines ( AAL ) reversed lower, falling 0.8%, as it approaches its own cup-base 54.58 entry. The airline carrier is forging a cup base with a potential buy point at 55.85. Shares of the IBD 50 member are over 50% from a 55.24 flat-base buy point.
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7309.0
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2017-10-11 00:00:00 UTC
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U.S. Dollar Drifting Lower as Trump Tax Hopes Dim
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AAL
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https://www.nasdaq.com/articles/u.s.-dollar-drifting-lower-as-trump-tax-hopes-dim-2017-10-11
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks drifted higher on Tuesday, as the biggest news of the day was a 4.5% rise in Wal-Mart Stores Inc (NYSE: WMT ) after the company announced a $20 billion buyback over the next two years amid very confident forward guidance on its e-commerce ramp-up plans.
That was enough to push the Dow Jones Industrial Average to incremental new highs amid ongoing light volume, with the NYSE's trading activity at just 84% of the 30-day average. Treasury bonds strengthened, the dollar was weaker, gold gained 0.7%, and oil rallied 2.7%.
Click to Enlarge In a sign of the times, consumer staples led the way higher with a 1% rise, followed by utilities, up just a hair less. Financials were up 0.4%. Airlines were on the move, with American Airlines Group Inc (NASDAQ: AAL ) up 4.8% and United Continental Holdings Inc (NYSE: UAL ) up 4.7% on solid Q3 updates that cleared the air of concerns over competitive pricing.
10 Best Stocks to Buy and Hold for the Next Decade
AAL is closing in on its prior high from July near $54, as shown above.
Conclusion
Click to Enlarge
Political headlines seem to suggest the odds of an easy passage for President Donald Trump's current tax cut proposal are slipping from possible to nil amid concerns about its cost and the share of the benefit that goes to the rich.
A breakdown in relations between Trump and so-called "establishment" Republicans in Congress isn't helping either.
As a result, the U.S. dollar is drifting lower again as shown by the chart of the US Dollar Bullish Fund (NYSEARCA: UUP ) above, after a multiweek reprieve from the downtrend that started in April as healthcare reform efforts faded to black. Should this continue, it will provide upward impetus to inflation pressure, which will encourage the Federal Reserve to stick with its aggressive policy tightening plans.
Click to Enlarge
Amid ultra-light volumes and ultra-low volatility, currencies are pretty much the only area of the market showing any kind of texture right now. Indeed, the folks at SentimenTrader note that despite October's history as one of the most volatile and volume-heavy months of the year, trading activity in most of the primary index ETFs was among the lowest of the year so far.
Here's Why You Should Sell Your Twitter Inc (TWTR) Stock Immediately
The SPDR S&P 500 ETF Trust (NYSEARCA: SPY ) hit a new high, for instance, but on volume more than 25% below its average of the last three months; an average that was already quite low to begin with.
Check out Serge Berger's Trade of the Day for Oct. 11.
Today's Trading Landscape
To see a list of the companies reporting earnings today, click here .
For a list of this week's economic reports due out, click here .
Tell us what you think about this article! Drop us an email ateditor@investorplace.com,chat with us on Twitter at@InvestorPlaceorcomment on the post on Facebook. Read more about ourcomments policy here.
Anthony Mirhaydari is founder of theEdge(ETFs) andEdge Pro(Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to Investorplace readers.
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The post U.S. Dollar Drifting Lower as Trump Tax Hopes Dim 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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Airlines were on the move, with American Airlines Group Inc (NASDAQ: AAL ) up 4.8% and United Continental Holdings Inc (NYSE: UAL ) up 4.7% on solid Q3 updates that cleared the air of concerns over competitive pricing. 10 Best Stocks to Buy and Hold for the Next Decade AAL is closing in on its prior high from July near $54, as shown above. Conclusion Click to Enlarge Political headlines seem to suggest the odds of an easy passage for President Donald Trump's current tax cut proposal are slipping from possible to nil amid concerns about its cost and the share of the benefit that goes to the rich.
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Airlines were on the move, with American Airlines Group Inc (NASDAQ: AAL ) up 4.8% and United Continental Holdings Inc (NYSE: UAL ) up 4.7% on solid Q3 updates that cleared the air of concerns over competitive pricing. 10 Best Stocks to Buy and Hold for the Next Decade AAL is closing in on its prior high from July near $54, as shown above. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks drifted higher on Tuesday, as the biggest news of the day was a 4.5% rise in Wal-Mart Stores Inc (NYSE: WMT ) after the company announced a $20 billion buyback over the next two years amid very confident forward guidance on its e-commerce ramp-up plans.
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Airlines were on the move, with American Airlines Group Inc (NASDAQ: AAL ) up 4.8% and United Continental Holdings Inc (NYSE: UAL ) up 4.7% on solid Q3 updates that cleared the air of concerns over competitive pricing. 10 Best Stocks to Buy and Hold for the Next Decade AAL is closing in on its prior high from July near $54, as shown above. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks drifted higher on Tuesday, as the biggest news of the day was a 4.5% rise in Wal-Mart Stores Inc (NYSE: WMT ) after the company announced a $20 billion buyback over the next two years amid very confident forward guidance on its e-commerce ramp-up plans.
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Airlines were on the move, with American Airlines Group Inc (NASDAQ: AAL ) up 4.8% and United Continental Holdings Inc (NYSE: UAL ) up 4.7% on solid Q3 updates that cleared the air of concerns over competitive pricing. 10 Best Stocks to Buy and Hold for the Next Decade AAL is closing in on its prior high from July near $54, as shown above. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks drifted higher on Tuesday, as the biggest news of the day was a 4.5% rise in Wal-Mart Stores Inc (NYSE: WMT ) after the company announced a $20 billion buyback over the next two years amid very confident forward guidance on its e-commerce ramp-up plans.
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2017-10-11 00:00:00 UTC
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United Continental's September Traffic Down, Q3 View Bullish
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AAL
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https://www.nasdaq.com/articles/united-continentals-september-traffic-down-q3-view-bullish-2017-10-11
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United Continental Holdings, Inc. 's UAL wholly owned subsidiary, United Airlines, reported traffic numbers for September. Traffic has been affected by back-to-back impact of natural calamities. Measured in revenue passenger miles (RPMs), traffic was 17.24 billion, down 1.6% from 17.52 billion, recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 1.7% to 21.42 billion. However, load factor (percentage of seats occupied by passengers) decreased 270 basis points (bps) to 80.5% as capacity expanded while traffic declined.
At the end of the first nine months of 2017, the carrier registered a 2.7% rise in RPMs to 163.11 billion while ASMs increased 3.3% to 197.36 billion, both on a year-over-year basis. Load factor contracted 50 bps to 82.6% in the period as capacity growth exceeded traffic expansion.
The company posted an on-time performance of 74.3% and a completion factor of 97.3% for September.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
View Tweaked
United Continental has raised guidance for the third quarter, following which, shares of the company rose 4.7% to $67.72 at the close of trading session on Oct 10.
The carrier now expects passenger revenue per available seat mile (PRASM: a key measure of unit revenue) to fall between 3.5% and 4%, better than the previous view of deterioration in the 3-5% range. The airline pegs pre-tax margin between 10% and 10.5% (previous projection had called for the metric to be in the 8-10% band).
Fuel price per gallon is now lowered to $1.70 (earlier view: $1.72-$1.77). Cost per available seat miles, excluding fuel, profit-sharing, third-party business expenses and other special items are now estimated to vary between 2.5% and 3% (earlier outlook had called for a rise of 2.5-3.5%).
The Chicago-based company now anticipates capacity to increase 3% year over year. Previous guidance had called for the metric to improve at 3-3.5%.
Other airline heavy weights like American Airlines AAL and Delta Air Lines DAL too have increased guidance for the quarter to be reported.
Zacks Rank & Key Pick
United Continental currently carries a Zacks Rank #5 (Strong Sell).
A better-ranked stock in the airline space is Deutsche Lufthansa AG DLAKY , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Deutsche Lufthansa have surged 30.6% in a year.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 airline heavy weights like American Airlines AAL and Delta Air Lines DAL too have increased guidance for the quarter to be reported. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, load factor (percentage of seats occupied by passengers) decreased 270 basis points (bps) to 80.5% as capacity expanded while traffic declined.
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Other airline heavy weights like American Airlines AAL and Delta Air Lines DAL too have increased guidance for the quarter to be reported. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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 United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote View Tweaked United Continental has raised guidance for the third quarter, following which, shares of the company rose 4.7% to $67.72 at the close of trading session on Oct 10.
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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 Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other airline heavy weights like American Airlines AAL and Delta Air Lines DAL too have increased guidance for the quarter to be reported. United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote View Tweaked United Continental has raised guidance for the third quarter, following which, shares of the company rose 4.7% to $67.72 at the close of trading session on Oct 10.
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Other airline heavy weights like American Airlines AAL and Delta Air Lines DAL too have increased guidance for the quarter to be reported. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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. 's UAL wholly owned subsidiary, United Airlines, reported traffic numbers for September.
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345dffe7-62bc-4238-8dcc-dc44e0a943ac
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7311.0
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2017-10-11 00:00:00 UTC
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Delta Air Lines Sees Turnaround In Crucial, Highly Competitive Market
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-sees-turnaround-crucial-highly-competitive-market-2017-10-11
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nan
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nan
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Delta Air Lines ( DAL ) on Wednesday said that the trans-Atlantic market would see the biggest quarter-to-quarter improvement in Q4, as business travel strengthens on Europe's emergence from a recession.
[ibd-display-video id=2350309 width=50 float=left autostart=true] That forecast comes even as low-cost, long-haul carriers in Europe have proliferated in the airspace above the Atlantic Ocean. Competition from those carriers has added a layer of stress for Delta, American Airlines ( AAL ) and United Airlines ( UAL ), which have tried to shore up sales by adding a wider variety of high-end and low-end seating classes to their cabins.
But the resilience in Delta's international business overall, management said on Wednesday's conference call to discuss the carrier's strong Q3 results and Q4 outlook, has been a bit of a "surprise" and a key aspect in driving positive unit revenue.
Management said domestic performance would see the second-highest level of improvement. President Glen Hauenstein noted that the carrier hadn't seen any "material decline" in traffic to and from Las Vegas following last week's mass shooting which killed at least 58 people.
"That was a surprise, and I hope it's not a sad commentary on the human state that we're getting used to this," he said.
The company expects the Pacific region to see the third-best level of sequential improvement in the fourth quarter, followed by the Latin America region, where a string of hurricanes and an earthquake have ravaged the Caribbean and Mexico.
Delta forecast Q4 passenger unit revenue - a key industry metric that looks at revenue as it relates to an airline's total flight coverage - to rise 2%-4%, with operating margins of 11%-13%. Wall Street expected Delta to forecast a roughly 1.5% unit-revenue gain for Q4, according to a Cowen research note last week.
Meanwhile, CEO Ed Bastian vowed not to pay import duties on Bombardier's C Series jets, of which Delta has agreed to buy 75 worth $5 billion at list prices, after the U.S. imposed a 300% tariff amid claims the Canadian companies received illegal state aid. The airline may delay delivery of the jets, which are due to next year.
Delta reported Q3 EPS of $1.57, down 8%, on revenue of $11.1 billion, up 5.5% - topping Zacks estimates for $1.54 and $11.037 billion.
However, the carrier said non-fuel unit costs for the full year would be up roughly 4% as a result of a new profit-sharing plan, a depreciation of narrow-body jets and of flight cancellations resulting from bad weather. Management called that rate "not sustainable" but said that moving away from its cap on growth would help.
"Capacity will play a part," CFO Paul Jacobson said on the call. "We made a decision to cap capacity at 1% this year to improve revenue performance. But this also put pressure on costs. Returning to a more normalized growth rate next year will further benefit our CASM."
Shares of Delta closed up 0.7% at 53.07 on the stock market today , making its way toward a 55.85 buy point of a cup base. American Airlines ( AAL ) dipped 0.4% to 52.83 and United Airlines ( UAL ) eased 0.5% to 67.40. On Tuesday, American rose 4.8%, nearing a 54.58 buy point of a cup base, while United Airlines jumped 4.7% as both carriers said Q3 unit revenue would be better than expected.
Southwest ( LUV ) gained 0.9% to 58.55. That stock is forming a base with a 64.49 buy point.
JetBlue ( JBLU ) shares climbed 1.5% to 20.53 despite estimating that hurricanes reduced revenue by $44 million in Q3 and $70 million-$90 million in Q4, with adjusted EPS seeing a hit of 6-7 cents in Q3 and 10-13 cents in Q4.
IBD'S TAKE:As investors fret over airlines' pricing and expansion plans, Elon Musk is looking way, way beyond. Here's a look at how SpaceX could upend companies like Boeing and the airlines.
In recent months, many airline stocks have either threatened to undercut their postelection gains or actually undercut them. In recent days, however, those stocks have rebounded.
Wall Street this summer has worried that an airfare discount battle between United, Spirit Airlines (SAVE) and Frontier Airlines in some of United's big airport hubs would swallow the rest of the industry. Those fears were followed by hurricanes Harvey, Irma and Maria along with earthquakes in Mexico, which forced thousands of flight cancellations and prompted airlines to pull back on their financial forecasts.
However, guidance this week and last from the big three airlines has indicated to analysts that airlines have kept airfare prices high enough to appease Wall Street.
American, in an investor update on Tuesday, cited "stronger than anticipated yield performance" on airfares in raising its outlook for unit revenue.
In a research note on Tuesday about United, Raymond James analyst Savanthi Syth said that "Houston appears to have recovered a bit faster from Hurricane Harvey than United had originally anticipated" and that "drags from the (ultralow-cost carrier) pricing competition and lower demand in Guam appears to have stabilized (not better, but not worse)."
Still, Southwest on Tuesday began a 72-hour sale of reduced-price tickets, some of which are advertised for as low as $49 one way. JetBlue, meanwhile, has announced a one-day sale for one-way fares as low as $31.
Further out, Delta's recent decision to increase profit-sharing for its employees - by moving them all to a single, higher-paying plan from the existing two - could temper earnings.
"Although we acknowledge the slight cost increase, part of our thesis on an improved airline industry rests on culture improvement and employee engagement in driving better operational outcomes," Barclays analyst Brandon Oglenski said in a research note. "With Delta's recent changes, we suspect the carrier has the most generous payout of the large airlines, begging the question whether others will follow."
Delta, on the call, said that it had always intended to have a single profit-sharing plan and that it would be good for employees.
RELATED:
Delta Air Lines Earnings: 3 Things To Watch
American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap
Here's Why Delta, JetBlue And Other Airlines Are Surging Today
United, American Both Wage Fare War, But Analyst Sours On One Airline
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Competition from those carriers has added a layer of stress for Delta, American Airlines ( AAL ) and United Airlines ( UAL ), which have tried to shore up sales by adding a wider variety of high-end and low-end seating classes to their cabins. American Airlines ( AAL ) dipped 0.4% to 52.83 and United Airlines ( UAL ) eased 0.5% to 67.40. But the resilience in Delta's international business overall, management said on Wednesday's conference call to discuss the carrier's strong Q3 results and Q4 outlook, has been a bit of a "surprise" and a key aspect in driving positive unit revenue.
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Competition from those carriers has added a layer of stress for Delta, American Airlines ( AAL ) and United Airlines ( UAL ), which have tried to shore up sales by adding a wider variety of high-end and low-end seating classes to their cabins. American Airlines ( AAL ) dipped 0.4% to 52.83 and United Airlines ( UAL ) eased 0.5% to 67.40. But the resilience in Delta's international business overall, management said on Wednesday's conference call to discuss the carrier's strong Q3 results and Q4 outlook, has been a bit of a "surprise" and a key aspect in driving positive unit revenue.
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Competition from those carriers has added a layer of stress for Delta, American Airlines ( AAL ) and United Airlines ( UAL ), which have tried to shore up sales by adding a wider variety of high-end and low-end seating classes to their cabins. American Airlines ( AAL ) dipped 0.4% to 52.83 and United Airlines ( UAL ) eased 0.5% to 67.40. On Tuesday, American rose 4.8%, nearing a 54.58 buy point of a cup base, while United Airlines jumped 4.7% as both carriers said Q3 unit revenue would be better than expected.
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Competition from those carriers has added a layer of stress for Delta, American Airlines ( AAL ) and United Airlines ( UAL ), which have tried to shore up sales by adding a wider variety of high-end and low-end seating classes to their cabins. American Airlines ( AAL ) dipped 0.4% to 52.83 and United Airlines ( UAL ) eased 0.5% to 67.40. "We made a decision to cap capacity at 1% this year to improve revenue performance.
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e721d35a-5238-49cc-9806-c7e2fd7ed901
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7312.0
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2017-10-11 00:00:00 UTC
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Fed Minutes Fail To Stir Market, But Check Out These Bullish Charts
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AAL
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https://www.nasdaq.com/articles/fed-minutes-fail-stir-market-check-out-these-bullish-charts-2017-10-11
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nan
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nan
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Major stock indexes held near highs and eked out tiny gains in late-afternoon trading Wednesday as Wall Street pored over the minutes from last month's Fed meeting.
[ibd-display-video id=2350024 width=50 float=left autostart=true]
The minutes showed that committee members were concerned that low inflation could be around for a while and more evidence of it would be needed to support a third rate hike this year. According to CME Group FedWatch tool, futures traders thinks there's an 87% chance that the federal funds rate will be at 1.25% to 1.5% by the end of the year. It's currently at 1% to 1.25%.
[ibd-display-video id=2350024 width=50 float=left autostart=true]The Dow Jones industrial average, S&P 500 and Nasdaq composite all showed gains of 0.1% or less. Volume on the NYSE and Nasdaq was tracking slightly lower than Tuesday's levels in the stock market today .
Among the day's movers, U.K.-based software firm Atlassian ( TEAM ) was poised for its 11th straight gain, up another 2% to 40.70. Shares jumped 10% last week and are up another 5% this week ahead of its earnings report next week. Results are due Oct. 19 after the close. Despite a big move in recent days, Atlassian is still in buy range from a 39.35 buy point.
IBD'S TAKE : Atlassian's Composite Rating of 98 is stellar but ranks it No. 2 in its industry group. See who the leader is withIBD Stock Checkup .
Airlines outperformed again Wednesday, helped by a solid earnings report from Delta Air Lines ( DAL ) before the open. Shares rose 0.8% to 53.10 as they work on a cup-shaped base with a buy point for now of 55.85. An earlier entry could come, though, if Delta gets near its old high and pulls back in light volume. This is where handle areas form and can present slightly earlier entry points.
United Continental ( UAL ) and American Airlines ( AAL ) turned in solid showings Tuesday thanks to bullish Q3 unit-revenue guidance. American is also working on a cup-shaped base but is close to its high already.
Stamps.com ( STMP ) and RH (RH) have been slow to get going after recent breakouts, due to light volume, but the charts of both are still intact. Stamps.com gave back early gains but still rose 1% to 218.10. It's still in buy range from a 212.75 cup-with-handle buy point. RH, meanwhile, jumped 4% to 77.15. The stock was volatile after a breakout over a 75.03 buy, but it's still holding above the entry and is in buy range.
Elsewhere, Kroger (KR) outperformed on news that it's exploring alternatives for its $1.4 billion convenience-store business. Kroger operates 784 convenience stores in 18 states under the banners Turkey Hill Minit Markets, KwikShop and QuickStop, just to name a few.
Inside the IBD 50 , PayPal (PYPL) was a strong performer, up 3% to 68.26, helped by an upgrade from Morgan Stanley to overweight and a raised price target to 76 from 62. Shares of PayPal are well-extended after a breakout from a flat base in July.
RELATED:
Netflix Stock Gets Price-Target Hikes On Upbeat Forecasts
Two Heavyweight Financials, Dominant Pizza Chain Set To Report
Facebook, Snap Get Positive Reviews As Price Targets Raised
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Continental ( UAL ) and American Airlines ( AAL ) turned in solid showings Tuesday thanks to bullish Q3 unit-revenue guidance. Major stock indexes held near highs and eked out tiny gains in late-afternoon trading Wednesday as Wall Street pored over the minutes from last month's Fed meeting. [ibd-display-video id=2350024 width=50 float=left autostart=true] The minutes showed that committee members were concerned that low inflation could be around for a while and more evidence of it would be needed to support a third rate hike this year.
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United Continental ( UAL ) and American Airlines ( AAL ) turned in solid showings Tuesday thanks to bullish Q3 unit-revenue guidance. Airlines outperformed again Wednesday, helped by a solid earnings report from Delta Air Lines ( DAL ) before the open. Stamps.com ( STMP ) and RH (RH) have been slow to get going after recent breakouts, due to light volume, but the charts of both are still intact.
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United Continental ( UAL ) and American Airlines ( AAL ) turned in solid showings Tuesday thanks to bullish Q3 unit-revenue guidance. Despite a big move in recent days, Atlassian is still in buy range from a 39.35 buy point. The stock was volatile after a breakout over a 75.03 buy, but it's still holding above the entry and is in buy range.
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United Continental ( UAL ) and American Airlines ( AAL ) turned in solid showings Tuesday thanks to bullish Q3 unit-revenue guidance. Shares rose 0.8% to 53.10 as they work on a cup-shaped base with a buy point for now of 55.85. An earlier entry could come, though, if Delta gets near its old high and pulls back in light volume.
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a86bff1e-2231-43ff-8b2e-cedf155d574d
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7313.0
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2017-10-11 00:00:00 UTC
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This Delta Air Rival Is Trying To Cruise Into New Buy Zone
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AAL
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https://www.nasdaq.com/articles/delta-air-rival-trying-cruise-new-buy-zone-2017-10-11
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nan
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nan
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As Delta Air Lines ( DAL ) beat estimates for Q3 earnings Wednesday, American Airlines ( AAL ) got an IBD stock rating upgrade and is within striking distance of a new breakout.
Delta, which gave strong guidance for Q4, is also forming a base that could launch a new run.
The Relative Strength ( RS ) Rating for American moved into a higher percentile with a lift from 63 to 73.
[ibd-display-video id=449423 width=50 float=left autostart=true] This unique rating identifies technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
Over 100 years of market history shows that the best stocks typically have an 80 or higher RS Rating as they launch their biggest price moves. See if American Airlines can continue to rebound and hit that benchmark.
Looking For Winning Stocks? Try This Simple Routine
American Airlines is trying to complete a cup without handle with a 54.58 entry . See if it can clear the breakout price in heavy volume.
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 8%, compared to -51% in the prior report. Revenue increased from 2% to 7%. Keep an eye out for the company's next round of numbers on Oct. 18.
American Airlines holds the No. 5 rank among its peers in the Transportation-Airline industry group. Ryanair ( RYAAY ) is the top-ranked stock within the group.
RELATED:
Airline Industry News And Stocks To Watch
IBD Stock Rating Upgrades: Rising Relative Strength
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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As Delta Air Lines ( DAL ) beat estimates for Q3 earnings Wednesday, American Airlines ( AAL ) got an IBD stock rating upgrade and is within striking distance of a new breakout. The Relative Strength ( RS ) Rating for American moved into a higher percentile with a lift from 63 to 73. Over 100 years of market history shows that the best stocks typically have an 80 or higher RS Rating as they launch their biggest price moves.
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As Delta Air Lines ( DAL ) beat estimates for Q3 earnings Wednesday, American Airlines ( AAL ) got an IBD stock rating upgrade and is within striking distance of a new breakout. The Relative Strength ( RS ) Rating for American moved into a higher percentile with a lift from 63 to 73. Airline Industry News And Stocks To Watch IBD Stock Rating Upgrades: Rising Relative Strength Why Should You Use IBD's Relative Strength Rating?
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As Delta Air Lines ( DAL ) beat estimates for Q3 earnings Wednesday, American Airlines ( AAL ) got an IBD stock rating upgrade and is within striking distance of a new breakout. Airline Industry News And Stocks To Watch IBD Stock Rating Upgrades: Rising Relative Strength 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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As Delta Air Lines ( DAL ) beat estimates for Q3 earnings Wednesday, American Airlines ( AAL ) got an IBD stock rating upgrade and is within striking distance of a new breakout. The Relative Strength ( RS ) Rating for American moved into a higher percentile with a lift from 63 to 73. Over 100 years of market history shows that the best stocks typically have an 80 or higher RS Rating as they launch their biggest price moves.
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176a4ac9-910d-45b5-a169-e0ea1e8bdc85
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7314.0
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2017-10-10 00:00:00 UTC
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American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap
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AAL
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https://www.nasdaq.com/articles/american-united-airlines-jump-strong-q3-unit-revenue-delta-tap-2017-10-10
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nan
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nan
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Shares of American Airlines ( AAL ) and United Airlines ( UAL ) led carriers higher after both forecast third-quarter unit revenue and margins that were better than prior expectations.
[ibd-display-video id=2345540 width=50 float=left autostart=true]
The forecasts mark a rebound for American, United and Delta Air Lines ( DAL ), which during the third quarter saw their stocks fall following steep fare competition, higher fuel prices and hurricanes Harvey, Irma and Maria. Delta Air reports third-quarter earnings on Wednesday.
But investor sentiment began to improve last week, when Delta's Q3 outlook for the key metric held up, in analysts' views, when factoring out the impact of Irma. The guidance lifted the carrier and its rivals and signified to some analysts that Delta was better able to shore up prices.
American on Tuesday indicated that it had been better able to keep airfares high as well - a practice that dismays travelers but boosts airlines' top and bottom lines.
American said third-quarter unit revenue was up roughly 0.5%-1.5%, better than an earlier outlook for flat to up 1%. In raising its outlook, the carrier cited "stronger than anticipated yield performance," referring to an airline's ability to charge customers more money.
The carrier said it expected adjusted pretax margin of 9%-11%, better than its previous outlook for 8.5%-10.5%.
Shares popped 4.8% to 53.03. The stock is forming a base with a 54.58 buy point.
United, meanwhile, said it expected third-quarter passenger unit revenue, which measures sales from passengers in relation to an airline's flight capacity, to be down 3.5% to 4%. But that was better than earlier expectations for a 3%-5% decrease.
United said it expected adjusted pretax margin of 10%-10.5%, up from an earlier outlook of 8%-10%.
Shares surged 4.7% to 67.72 in the stock market today , coming closer to their 200-day line, which remains above the stock's 50-day line.
IBD'S TAKE:As investors fret over airlines' pricing and expansion plans, Elon Musk is looking way, way beyond. Here's a look at how SpaceX could upend companies like Boeing ( BA ) and the airlines.
Delta rose 1.9% to 53.10. The stock is forming a base with a 55.85 buy point.
Southwest ( LUV ) climbed 0.6% to 58. The stock is forming a base with a 64.49 buy point.
Southwest announced a 72-hour sale, in its latest twice-year event. Roundtrip fares are below $100 on many routes.
RELATED:
Delta Air Lines Earnings: 3 Things To Watch
Here's Why Delta, JetBlue And Other Airlines Are Surging Today
Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake
United, American Both Wage Fare War, But Analyst Sours On One Airline
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 ( AAL ) and United Airlines ( UAL ) led carriers higher after both forecast third-quarter unit revenue and margins that were better than prior expectations. [ibd-display-video id=2345540 width=50 float=left autostart=true] The forecasts mark a rebound for American, United and Delta Air Lines ( DAL ), which during the third quarter saw their stocks fall following steep fare competition, higher fuel prices and hurricanes Harvey, Irma and Maria. But investor sentiment began to improve last week, when Delta's Q3 outlook for the key metric held up, in analysts' views, when factoring out the impact of Irma.
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Shares of American Airlines ( AAL ) and United Airlines ( UAL ) led carriers higher after both forecast third-quarter unit revenue and margins that were better than prior expectations. United, meanwhile, said it expected third-quarter passenger unit revenue, which measures sales from passengers in relation to an airline's flight capacity, to be down 3.5% to 4%. Delta Air Lines Earnings: 3 Things To Watch Here's Why Delta, JetBlue And Other Airlines Are Surging Today Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake United, American Both Wage Fare War, But Analyst Sours On One Airline The views and 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 ( AAL ) and United Airlines ( UAL ) led carriers higher after both forecast third-quarter unit revenue and margins that were better than prior expectations. [ibd-display-video id=2345540 width=50 float=left autostart=true] The forecasts mark a rebound for American, United and Delta Air Lines ( DAL ), which during the third quarter saw their stocks fall following steep fare competition, higher fuel prices and hurricanes Harvey, Irma and Maria. Delta Air Lines Earnings: 3 Things To Watch Here's Why Delta, JetBlue And Other Airlines Are Surging Today Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake United, American Both Wage Fare War, But Analyst Sours On One Airline The views and 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 ( AAL ) and United Airlines ( UAL ) led carriers higher after both forecast third-quarter unit revenue and margins that were better than prior expectations. Shares surged 4.7% to 67.72 in the stock market today , coming closer to their 200-day line, which remains above the stock's 50-day line. Delta Air Lines Earnings: 3 Things To Watch Here's Why Delta, JetBlue And Other Airlines Are Surging Today Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake United, American Both Wage Fare War, But Analyst Sours On One Airline The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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bcfbcdc7-13d4-4720-9f49-04b9ca7e0fa3
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7315.0
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2017-10-10 00:00:00 UTC
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Why American Airlines Stock Surged 5% Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-surged-5-today-2017-10-10
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nan
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nan
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What happened
Repeating its feat of last week , American Airlines Group (NASDAQ: AAL) stock jumped 5.1% in early trading Tuesday after the company filed an 8-K report with the SEC detailing its operating performance for Q3.
Despite having to cancel "approximately 8,000" flights due to the arrival of Hurricanes Harvey, Irma, and Maria in the quarter, American Airlines says that its total revenue per available seat mile (TRASM) for the quarter will probably be up "approximately 0.5 to 1.5 percent" in comparison to Q3 2016.
Shares are still up 4.9% as of 11:15 a.m. EDT.
So what
Management noted that these results are better than the "flat to up 1.0 percent" guidance it had previously issued "due to stronger than anticipated yield performance." Adding to the good news, American Airlines says that with operations going so much better than expected, its "pre-tax margin excluding net special items" (i.e., pro forma operating profit margin) will be "approximately 9.0 to 11.0 percent" -- also ahead of previous guidance, which was for pro forma operating margins between 8.5% and 10.5%.
Oh, and in case you're one of those investors who wonders what the future holds, as well as the past, American Airlines also promised that "fourth quarter TRASM growth vs. 2016 will exceed third quarter growth."
Now what
While certainly not dispositive, all of the above does tend to support American Airlines CEO Doug Parker's bold proclamation last week that his company will isn't " ever going to lose money again " -- at least if you limit the definition of "ever" to Q4 2017.
10 stocks we like better than American Airlines Group
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Rich Smith 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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What happened Repeating its feat of last week , American Airlines Group (NASDAQ: AAL) stock jumped 5.1% in early trading Tuesday after the company filed an 8-K report with the SEC detailing its operating performance for Q3. So what Management noted that these results are better than the "flat to up 1.0 percent" guidance it had previously issued "due to stronger than anticipated yield performance." Now what While certainly not dispositive, all of the above does tend to support American Airlines CEO Doug Parker's bold proclamation last week that his company will isn't " ever going to lose money again " -- at least if you limit the definition of "ever" to Q4 2017.
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What happened Repeating its feat of last week , American Airlines Group (NASDAQ: AAL) stock jumped 5.1% in early trading Tuesday after the company filed an 8-K report with the SEC detailing its operating performance for Q3. Adding to the good news, American Airlines says that with operations going so much better than expected, its "pre-tax margin excluding net special items" (i.e., pro forma operating profit margin) will be "approximately 9.0 to 11.0 percent" -- also ahead of previous guidance, which was for pro forma operating margins between 8.5% and 10.5%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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What happened Repeating its feat of last week , American Airlines Group (NASDAQ: AAL) stock jumped 5.1% in early trading Tuesday after the company filed an 8-K report with the SEC detailing its operating performance for Q3. Adding to the good news, American Airlines says that with operations going so much better than expected, its "pre-tax margin excluding net special items" (i.e., pro forma operating profit margin) will be "approximately 9.0 to 11.0 percent" -- also ahead of previous guidance, which was for pro forma operating margins between 8.5% and 10.5%. 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.
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What happened Repeating its feat of last week , American Airlines Group (NASDAQ: AAL) stock jumped 5.1% in early trading Tuesday after the company filed an 8-K report with the SEC detailing its operating performance for Q3. Now what While certainly not dispositive, all of the above does tend to support American Airlines CEO Doug Parker's bold proclamation last week that his company will isn't " ever going to lose money again " -- at least if you limit the definition of "ever" to Q4 2017. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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a1c1638e-77c6-4cb3-aba5-e0bffbd2e2f7
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7316.0
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2017-10-10 00:00:00 UTC
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Nasdaq 100 Movers: CTRP, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-ctrp-aal-2017-10-10
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nan
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nan
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In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.8%. Year to date, American Airlines Group registers a 13.5% gain.
And the worst performing Nasdaq 100 component thus far on the day is Ctrip.com International, trading down 2.4%. Ctrip.com International is showing a gain of 34.9% looking at the year to date performance.
Two other components making moves today are Symantec, trading down 2.3%, and Baidu, trading up 2.8% on the day.
VIDEO: Nasdaq 100 Movers: CTRP, AAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: CTRP, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, American Airlines Group registers a 13.5% gain. And the worst performing Nasdaq 100 component thus far on the day is Ctrip.com International, trading down 2.4%.
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VIDEO: Nasdaq 100 Movers: CTRP, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, American Airlines Group registers a 13.5% gain. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: CTRP, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.8%. The views and 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: CTRP, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of American Airlines Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.8%. And the worst performing Nasdaq 100 component thus far on the day is Ctrip.com International, trading down 2.4%.
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cac3e331-beda-4b62-b81b-1643fabad459
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7317.0
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2017-10-10 00:00:00 UTC
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S&P 500 Movers: APA, UAL
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-apa-ual-2017-10-10
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nan
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nan
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In early trading on Tuesday, shares of United Continental Holdings topped the list of the day's best performing components of the S&P 500 index, trading up 6.9%. Year to date, United Continental Holdings has lost about 5.1% of its value.
And the worst performing S&P 500 component thus far on the day is Apache, trading down 5.1%. Apache is lower by about 31.4% looking at the year to date performance.
Two other components making moves today are Best Buy, trading down 2.8%, and American Airlines Group, trading up 4.7% on the day.
VIDEO: S&P 500 Movers: APA, UAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of United Continental Holdings topped the list of the day's best performing components of the S&P 500 index, trading up 6.9%. Year to date, United Continental Holdings has lost about 5.1% of its value. And the worst performing S&P 500 component thus far on the day is Apache, trading down 5.1%.
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Year to date, United Continental Holdings has lost about 5.1% of its value. VIDEO: S&P 500 Movers: APA, UAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of United Continental Holdings topped the list of the day's best performing components of the S&P 500 index, trading up 6.9%. Two other components making moves today are Best Buy, trading down 2.8%, and American Airlines Group, trading up 4.7% on the day. VIDEO: S&P 500 Movers: APA, UAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of United Continental Holdings topped the list of the day's best performing components of the S&P 500 index, trading up 6.9%. And the worst performing S&P 500 component thus far on the day is Apache, trading down 5.1%. VIDEO: S&P 500 Movers: APA, UAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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5ec0dcee-068c-487f-8a4a-b11a8665e85a
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7318.0
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2017-10-10 00:00:00 UTC
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Notable Tuesday Option Activity: UAL, AAL, WYNN
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AAL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity-ual-aal-wynn-2017-10-10
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in United Continental Holdings Inc (Symbol: UAL), where a total of 49,270 contracts have traded so far, representing approximately 4.9 million underlying shares. That amounts to about 102.3% of UAL's average daily trading volume over the past month of 4.8 million shares. Especially high volume was seen for the $75 strike call option expiring November 17, 2017 , with 13,899 contracts trading so far today, representing approximately 1.4 million underlying shares of UAL. Below is a chart showing UAL's trailing twelve month trading history, with the $75 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,223 contracts, representing approximately 4.0 million underlying shares or approximately 64.9% of AAL's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $50 strike call option expiring January 19, 2018 , with 4,526 contracts trading so far today, representing approximately 452,600 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange:
And Wynn Resorts Ltd (Symbol: WYNN) options are showing a volume of 8,709 contracts thus far today. That number of contracts represents approximately 870,900 underlying shares, working out to a sizeable 49.1% of WYNN's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $145 strike call option expiring October 13, 2017 , with 464 contracts trading so far today, representing approximately 46,400 underlying shares of WYNN. Below is a chart showing WYNN's trailing twelve month trading history, with the $145 strike highlighted in orange:
For the various different available expirations for UAL options , AAL options , or WYNN 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 January 19, 2018 , with 4,526 contracts trading so far today, representing approximately 452,600 underlying shares of AAL. Below is a chart showing UAL's trailing twelve month trading history, with the $75 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,223 contracts, representing approximately 4.0 million underlying shares or approximately 64.9% of AAL's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: And Wynn Resorts Ltd (Symbol: WYNN) options are showing a volume of 8,709 contracts thus far today.
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Below is a chart showing UAL's trailing twelve month trading history, with the $75 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,223 contracts, representing approximately 4.0 million underlying shares or approximately 64.9% of AAL's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: And Wynn Resorts Ltd (Symbol: WYNN) options are showing a volume of 8,709 contracts thus far today. Particularly high volume was seen for the $50 strike call option expiring January 19, 2018 , with 4,526 contracts trading so far today, representing approximately 452,600 underlying shares of AAL.
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Below is a chart showing UAL's trailing twelve month trading history, with the $75 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,223 contracts, representing approximately 4.0 million underlying shares or approximately 64.9% of AAL's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $50 strike call option expiring January 19, 2018 , with 4,526 contracts trading so far today, representing approximately 452,600 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: And Wynn Resorts Ltd (Symbol: WYNN) options are showing a volume of 8,709 contracts thus far today.
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Below is a chart showing UAL's trailing twelve month trading history, with the $75 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,223 contracts, representing approximately 4.0 million underlying shares or approximately 64.9% of AAL's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $50 strike call option expiring January 19, 2018 , with 4,526 contracts trading so far today, representing approximately 452,600 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: And Wynn Resorts Ltd (Symbol: WYNN) options are showing a volume of 8,709 contracts thus far today.
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accbbe0b-08f6-4b9c-82ae-f0356a026e11
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7319.0
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2017-10-10 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 6,587.25 up 7.52 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-658725-752-points-2017-10-10
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nan
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nan
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Tuesday's session closes with the NASDAQ Composite Index at 6,587.25. The total shares traded for the NASDAQ was over 1.83 billion.
Advancers stocks led declining by 1.55 to 1 ratio. There were 1804 advancers and 1163 decliners for the day. On the NASDAQ Stock Exchange 140 stocks reached a 52 week high and 11 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 .08% for the day; a total of 4.99 points. The current value is 6,063.52. Symantec Corporation ( SYMC ) had the largest percent change down (-3.19%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.8%.
The Dow Jones index closed up .31% for the day; a total of 69.61 points. The current value is 22,830.68. UnitedHealth Group Incorporated ( UNH ) had the largest percent change down (-.83%) while Wal-Mart Stores, Inc. ( WMT ) had the largest percent change gain rising 4.47%.
NASDAQ Market Wrap
As of 10/10/2017 4:45:02 PM
BILLIONS OF 1.83 NASDAQ SHARES TRADED TODAY 140 STOCKS REACHED A 52 WEEK HIGH 11 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.8 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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Symantec Corporation ( SYMC ) had the largest percent change down (-3.19%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.8%. NASDAQ Market Wrap As of 10/10/2017 4:45:02 PM BILLIONS OF 1.83 NASDAQ SHARES TRADED TODAY 140 STOCKS REACHED A 52 WEEK HIGH 11 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.8 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 Dow Jones index closed up .31% for the day; a total of 69.61 points.
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Symantec Corporation ( SYMC ) had the largest percent change down (-3.19%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.8%. NASDAQ Market Wrap As of 10/10/2017 4:45:02 PM BILLIONS OF 1.83 NASDAQ SHARES TRADED TODAY 140 STOCKS REACHED A 52 WEEK HIGH 11 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.8 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. On the NASDAQ Stock Exchange 140 stocks reached a 52 week high and 11 those reaching lows totaled.
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NASDAQ Market Wrap As of 10/10/2017 4:45:02 PM BILLIONS OF 1.83 NASDAQ SHARES TRADED TODAY 140 STOCKS REACHED A 52 WEEK HIGH 11 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.8 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Symantec Corporation ( SYMC ) had the largest percent change down (-3.19%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.8%. On the NASDAQ Stock Exchange 140 stocks reached a 52 week high and 11 those reaching lows totaled.
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NASDAQ Market Wrap As of 10/10/2017 4:45:02 PM BILLIONS OF 1.83 NASDAQ SHARES TRADED TODAY 140 STOCKS REACHED A 52 WEEK HIGH 11 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.8 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Symantec Corporation ( SYMC ) had the largest percent change down (-3.19%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 4.8%. There were 1804 advancers and 1163 decliners for the day.
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f93f1145-3997-473e-8b81-54608e4e7b2e
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7320.0
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2017-10-10 00:00:00 UTC
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Indexes Score More Record Highs; Nvidia, Wal-Mart Follow Suit
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AAL
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https://www.nasdaq.com/articles/indexes-score-more-record-highs-nvidia-wal-mart-follow-suit-2017-10-10
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nan
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A big day for shares of Wal-Mart ( WMT ) on Tuesday helped push the Dow Jones industrial average to another record high, while Nvidia ( NVDA ) helped the Nasdaq composite's cause with a record high of its own.
[ibd-display-video id=2345484 width=50 float=left autostart=true]At the close, the Dow added 0.3%, the S&P 500 rose 0.2% and the Nasdaq edged up 0.1%. Preliminary data showed volume on the NYSE and Nasdaq coming in more than 20% Monday's levels, but keep in mind volume was light Monday due to the Columbus Day holiday.
Oil drillers outperformed as crude oil reclaimed the $50 level with conviction. Benchmark WTI crude oil futures for November delivery settled at $50.92 a barrel, up 2.7%, ahead of weekly inventory data Wednesday
In the stock market today , Wal-Mart was a big winner in the Dow, up 4.5% to 84.13, after the company at its investor day forecast a 40% jump in e-commerce sales in fiscal 2019. It also declared a $20 billion share buyback. Wal-Mart is still in buy range after a breakout from a flat base with an 82.09 buy point.
Elsewhere, airlines took flight after United Continental ( UAL ) and American Airlines ( AAL ) offered up strong Q3 unit revenue and margin guidance. Shares of United jumped nearly 5%, but it's still 18% off its high with its 200-day moving average around 71 looming large as a potential resistance. American Airlines, however, offers up a much better chart as it works on the right side of a cup-shaped base with a 54.58 buy point. Shares picked up nearly 5% to 53.03.
Inside the IBD 50 , Nvidia gained about 2% to 188.93. After retracing a 9% gain from a 174.66 buy point, Nvidia found support at the 50-day moving average, then started heading higher again. Shares were strong after the company revealed new hardware for self-driving taxis. It's extended in price now.
Group peer and fellow IBD 50 component Ichor ( ICHR ) extended gains after a recent breakout from a cup-with-handle base with a 25.41 buy point. The small cap soared nearly 12% to 30.05, helped by positive comments by Deutsche Bank and a raised price target to 32 from 26. Note that Ichor's weekly chart shows an alternate handle entry of 28.46, a justifiable entry for those that missed the initial breakout.
IBD'S TAKE : The chip-equipment group is still teeming with leaders. See who the top-rated names in the group are withIBD Stock Checkup .
Tesla (TSLA) rebounded 3.7%, recovering nearly all of Monday's loss, after Morgan Stanley upped its price target to 379 from 317, citing infrastructure development, industry expansion and Tesla Model 3 launch milestones. The stock has been under pressure lately as concerns mount regarding the production of the new Model 3 sedan . Tesla on Monday said it was delaying the launch of its semitrailer truck until November to deal with bottlenecks in Model 3 production.
Economic data was light Tuesday, but the minutes from last month's Fed meeting will be released Wednesday at 2 p.m. ET. Not that long ago, the CME Group FedWatch tool only saw a 50% chance of one more rate hike by the Fed before the end of the year. It now sees an 87% chance for a quarter-point hike to 1.25% to 1.5%.
The 10-year Treasury yield was recently trading around 2.34%, down 1 basis point.
RELATED :
Wal-Mart Breaks Out On Buyback, Bullish Online Sales Forecast
American, United Airlines Jump On Strong Q3 Unit Revenue; Delta On Tap
Two Leading Income Oil Plays In Buy Range As Benchmark Hovers Above $50
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Elsewhere, airlines took flight after United Continental ( UAL ) and American Airlines ( AAL ) offered up strong Q3 unit revenue and margin guidance. Benchmark WTI crude oil futures for November delivery settled at $50.92 a barrel, up 2.7%, ahead of weekly inventory data Wednesday In the stock market today , Wal-Mart was a big winner in the Dow, up 4.5% to 84.13, after the company at its investor day forecast a 40% jump in e-commerce sales in fiscal 2019. Group peer and fellow IBD 50 component Ichor ( ICHR ) extended gains after a recent breakout from a cup-with-handle base with a 25.41 buy point.
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Elsewhere, airlines took flight after United Continental ( UAL ) and American Airlines ( AAL ) offered up strong Q3 unit revenue and margin guidance. A big day for shares of Wal-Mart ( WMT ) on Tuesday helped push the Dow Jones industrial average to another record high, while Nvidia ( NVDA ) helped the Nasdaq composite's cause with a record high of its own. Group peer and fellow IBD 50 component Ichor ( ICHR ) extended gains after a recent breakout from a cup-with-handle base with a 25.41 buy point.
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Elsewhere, airlines took flight after United Continental ( UAL ) and American Airlines ( AAL ) offered up strong Q3 unit revenue and margin guidance. A big day for shares of Wal-Mart ( WMT ) on Tuesday helped push the Dow Jones industrial average to another record high, while Nvidia ( NVDA ) helped the Nasdaq composite's cause with a record high of its own. Group peer and fellow IBD 50 component Ichor ( ICHR ) extended gains after a recent breakout from a cup-with-handle base with a 25.41 buy point.
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Elsewhere, airlines took flight after United Continental ( UAL ) and American Airlines ( AAL ) offered up strong Q3 unit revenue and margin guidance. Shares picked up nearly 5% to 53.03. Group peer and fellow IBD 50 component Ichor ( ICHR ) extended gains after a recent breakout from a cup-with-handle base with a 25.41 buy point.
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91d9e76f-eebf-4d17-aadb-2dd4a89d803a
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7321.0
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2017-10-10 00:00:00 UTC
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Stocks Climb; Wal-Mart Takes Buy Point, Tesla Gets Price Hike
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AAL
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https://www.nasdaq.com/articles/stocks-climb-wal-mart-takes-buy-point-tesla-gets-price-hike-2017-10-10
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nan
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nan
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Stocks opened to solid gains Tuesday as Wal-Mart ( WMT ) hauled the Dow to a new high and a rallying American Airlines Group ( AAL ) helped the Nasdaq to new high ground.
[ibd-display-video id=2345165 width=50 float=left autostart=true]The Nasdaq leapt 0.3% at the start of trade, while t he Dow Jones industrial average and the S&P 500 each climbed 0.2%.
Wal-Mart, American In Buy Zones, Tesla Price Target Hiked
Wal-Mart rumbled ahead more than 3% to lead the Dow, after the company reiterated its fiscal 2018 guidance and raised its 2019 earnings per share growth guidance to 5%, ahead of its investors meeting to discuss strategic alternatives for the company. The board also approved a $20 billion share buyback initiative.
The gain put Wal-Mart shares in a buy range above an 80.57 buy point in a cup base .
Dow issue Pfizer ( PFE ) rose 0.8% after announcing it was seeking strategic alternatives for its consumer health care business, which generated $3.4 billion in 2016 revenue. The drug giant said it expected to reach a determination on the matter in 2018.
Pfizer shares are up 12% from an August low, in a possible base pattern begun in August 2016.
Apple ( AAPL ) edged up 0.4% at the open. An analyst note from RBC Capital Markets said the iPhone maker is potentially one of the biggest beneficiaries of Trump administration plans for tax reform. RBC said Apple could see a $4 to $4.50 tailwind to its earnings per share, and clear the $1 trillion valuation level in 2018 if the policies are implemented.
Apple shares stalled out of a September breakout attempt and are now forming a new base , with a possible buy point at 165.04.
American Airlines Group surged 4% to breakout past a cup base buy point at 54.58. The airline boosted its third-quarter revenue per seat mile and pre-tax margin guidance, despite a heavy slate of flight cancellations caused by hurricanes in Texas and Florida.
Tesla ( TSLA ) popped more than 2%, gaining ground after a Morgan Stanley note late Monday maintained the stock's equal-weight rating, but raised its price target to 379 from 317.
Tesla shares dropped 4% in rising trade Monday, sending the stock back below its 10-week moving average .
Tuesday's early high flier was biotech AnaptysBio (ANAB), which screamed 65% higher. The January new issue saw its first breakout from a base fail in July, then turned and gained 25% in September. Shares are now 285% above their January IPO price.
IBD 50 name Ichor Holdings (ICHR) nailed an 8% opening leap. The provider of fluid delivery systems for semiconductor manufacturers announced late Monday a "substantial" agreement with one of its key customers. Ichor shares are extended beyond buy range from a 25.41 buy point in a cup-with-handle base .
IBD 50 peer Nvidia (NVDA) snatched an early 3% advance, rising on news that the company had partnered with Deutsche Post DHL and automotive supplier ZF to release a test fleet of autonomous delivery trucks in 2018. Nvidia shares are extended after clearing a 174.66 flat base buy point on Sept. 15.
NFIB Index Slips, Asian Markets Rise
Economic news was again minimal Tuesday. The National Federation of Independent Business released its September Small Business Optimism Index, which slipped to 103 from 105.3 and disappointed expectations for a slight increase.
In addition, Minneapolis Federal Reserve Bank President Neel Kashkari is scheduled to speak at 10 a.m. ET.
Asian stock markets were all back up and running today, with the Tokyo Stock Exchange reopened and the Nikkei 225 jumping 0.6%. Markets in China also carved higher, the Shanghai Composite gaining 0.3% and Hong Kong's Hang Seng Index stepping off a 0.6% gain.
Europe's markets were mixed with London's FTSE 100 posting the strongest move, up 0.3% in afternoon trade.
RELATED:
The Big Picture: Indexes Slip, But These IBD 50 Stocks Shine
Disney Releases New Trailer, Tickets For 'Star Wars: The Last Jedi'
Move Over Techs, There's A New Sector Leader On Wall Street
These 3 Travel Stocks Should Be On Investors' Q3 Watchlists
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 opened to solid gains Tuesday as Wal-Mart ( WMT ) hauled the Dow to a new high and a rallying American Airlines Group ( AAL ) helped the Nasdaq to new high ground. The airline boosted its third-quarter revenue per seat mile and pre-tax margin guidance, despite a heavy slate of flight cancellations caused by hurricanes in Texas and Florida. Tesla ( TSLA ) popped more than 2%, gaining ground after a Morgan Stanley note late Monday maintained the stock's equal-weight rating, but raised its price target to 379 from 317.
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Stocks opened to solid gains Tuesday as Wal-Mart ( WMT ) hauled the Dow to a new high and a rallying American Airlines Group ( AAL ) helped the Nasdaq to new high ground. Wal-Mart, American In Buy Zones, Tesla Price Target Hiked Wal-Mart rumbled ahead more than 3% to lead the Dow, after the company reiterated its fiscal 2018 guidance and raised its 2019 earnings per share growth guidance to 5%, ahead of its investors meeting to discuss strategic alternatives for the company. Tesla shares dropped 4% in rising trade Monday, sending the stock back below its 10-week moving average .
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Stocks opened to solid gains Tuesday as Wal-Mart ( WMT ) hauled the Dow to a new high and a rallying American Airlines Group ( AAL ) helped the Nasdaq to new high ground. Wal-Mart, American In Buy Zones, Tesla Price Target Hiked Wal-Mart rumbled ahead more than 3% to lead the Dow, after the company reiterated its fiscal 2018 guidance and raised its 2019 earnings per share growth guidance to 5%, ahead of its investors meeting to discuss strategic alternatives for the company. The gain put Wal-Mart shares in a buy range above an 80.57 buy point in a cup base .
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Stocks opened to solid gains Tuesday as Wal-Mart ( WMT ) hauled the Dow to a new high and a rallying American Airlines Group ( AAL ) helped the Nasdaq to new high ground. Apple shares stalled out of a September breakout attempt and are now forming a new base , with a possible buy point at 165.04. Tesla shares dropped 4% in rising trade Monday, sending the stock back below its 10-week moving average .
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dc9603fc-a714-4487-99ed-8e2dc2760f7e
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7322.0
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2017-10-09 00:00:00 UTC
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Delta Air Lines Earnings: 3 Things To Watch
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-earnings-3-things-watch-2017-10-09
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nan
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nan
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Delta Air Lines ( DAL ) reports third-quarter earnings on Wednesday, kicking off the sector's results ahead of United Airlines ( UAL ), American Airlines ( AAL ) and others. Here are three things to watch.
Dimming Unit-Revenue Picture
[ibd-display-video id=2340810 width=50 float=left autostart=true]Wall Street more-or-less knows what it's getting for Delta Air Lines' third quarter, helped by the carrier's release of monthly traffic figures. So, as with all earnings seasons, investors will be turning to what Delta sees for the fourth quarter.
On that front, Wall Street expects Delta to forecast around a 1.5% increase in fourth-quarter unit revenue, or sales an airline gets from travelers in relation to its overall flight capacity.
"With continued low fuel prices and intense competition, the U.S. market is likely to remain competitive, which could cap fares from moving higher," Cowen analyst Helane Becker said in a research note last week.
Intense competition, of course, is good news for passengers because it means they're likelier to get a better bargain on airfare. But investors hate it, because lower airfares hurt sales and profits.
Much of the recent intense competition is the result of a push over the past few months by United Airlines to drive ultra-low-cost carriers like Spirit Airlines ( SAVE ) from some of the nation's busiest airports. American Airlines has remained committed to competing aggressively with the discounters. Analysts have debated whether other carriers could get sucked in, as well.
A 1.5% increase in fourth-quarter unit revenue would be slightly weaker than the carrier's Oct. 3 estimate of a roughly 2% gain for the third quarter. The Q3 forecast was hurt by Hurricane Irma. But when factoring out the storm, the quarter was regarded by some analysts as OK, lifting shares of other airlines in the process.
Wolfe Research analyst Hunter Keay said Delta's forecast last week indicated that "pricing held in pretty well in September and it isn't unreasonable to expect it's continuing into (Q4), too."
Delta, at a Cowen airline conference last month, suggested that trying to compete on sub-$40 fares might not always jibe with its vision for being the world's best global carrier. But a backslide into discounting is never too far away.
"American will tell you and Delta will tell you we're not going to match Spirit fares, but we're going to match United fares," Becker said in an interview with IBD last month.
As for the third quarter, Wall Street expects the carrier to report EPS of $1.54, down 9%, according to Zacks Investment Research. Revenue is seen increasing 5% to $11.037 billion.
Shares of Delta dipped 0.5% to 51.74 in the stock market today . Delta is forming a cup base with a 55.85 buy point.
American Airlines lost 1.4% to 50.60. American is forming a cup base with a 54.58 potential entry. Southwest Airlines ( LUV ) retreated 1.3% to 57.66 as it works its way through a cup pattern with a 64.49 potential buy point. United Airlines dipped 0.8% after retaking its 50-day line at the end of last month. All four airline stocks have rallied in recent weeks following corrections.
IBD'S TAKE:As investors fret over airlines' pricing and expansion plans, Elon Musk is looking way, way beyond. Here's a look at how SpaceX could upend companies like Boeing (BA) and the airlines.
Clear Skies Overseas?
Delta's fourth-quarter international business could outperform its domestic results, Becker said. A stronger overseas forecast from Delta could ease investor concerns even as the legacy airlines dig in in the U.S.
The improvement abroad would follow some steep competition earlier this year between U.S. carriers and the low-cost, long-haul carriers of the Atlantic.
"The Atlantic market appears to have absorbed the growth, while other legacy carriers have adjusted their capacity for the new norm," Becker said in a research note.
Better results in Brazil appear likely to improve the carrier's fortunes in Latin America, while the crowded Pacific market could still remain weak.
Labor Costs
Delta has targeted yearly adjusted unit-cost growth of under 2%. However, the carrier last month said that on Oct. 1, it would bring its staff under a single profit-sharing plan - one currently in place for the carrier's pilots.
Raymond James analyst Savanthi Syth said the adjustment could hurt earnings next year. Questions about the profit-sharing plan's impact on the bottom line could come up during Delta's earnings call.
RELATED:
Here's Why Delta, JetBlue And Other Airlines Are Surging Today
Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake
United, American Both Wage Fare War, But Analyst Sours On One Airline
These Airlines Look Like The Biggest Losers In The Latest Price War
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines ( DAL ) reports third-quarter earnings on Wednesday, kicking off the sector's results ahead of United Airlines ( UAL ), American Airlines ( AAL ) and others. Dimming Unit-Revenue Picture [ibd-display-video id=2340810 width=50 float=left autostart=true]Wall Street more-or-less knows what it's getting for Delta Air Lines' third quarter, helped by the carrier's release of monthly traffic figures. On that front, Wall Street expects Delta to forecast around a 1.5% increase in fourth-quarter unit revenue, or sales an airline gets from travelers in relation to its overall flight capacity.
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Delta Air Lines ( DAL ) reports third-quarter earnings on Wednesday, kicking off the sector's results ahead of United Airlines ( UAL ), American Airlines ( AAL ) and others. On that front, Wall Street expects Delta to forecast around a 1.5% increase in fourth-quarter unit revenue, or sales an airline gets from travelers in relation to its overall flight capacity. "With continued low fuel prices and intense competition, the U.S. market is likely to remain competitive, which could cap fares from moving higher," Cowen analyst Helane Becker said in a research note last week.
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Delta Air Lines ( DAL ) reports third-quarter earnings on Wednesday, kicking off the sector's results ahead of United Airlines ( UAL ), American Airlines ( AAL ) and others. Much of the recent intense competition is the result of a push over the past few months by United Airlines to drive ultra-low-cost carriers like Spirit Airlines ( SAVE ) from some of the nation's busiest airports. Here's Why Delta, JetBlue And Other Airlines Are Surging Today Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake United, American Both Wage Fare War, But Analyst Sours On One Airline These Airlines Look Like The Biggest Losers In The Latest Price War The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines ( DAL ) reports third-quarter earnings on Wednesday, kicking off the sector's results ahead of United Airlines ( UAL ), American Airlines ( AAL ) and others. On that front, Wall Street expects Delta to forecast around a 1.5% increase in fourth-quarter unit revenue, or sales an airline gets from travelers in relation to its overall flight capacity. "With continued low fuel prices and intense competition, the U.S. market is likely to remain competitive, which could cap fares from moving higher," Cowen analyst Helane Becker said in a research note last week.
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7323.0
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2017-10-09 00:00:00 UTC
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Zacks Industry Outlook Highlights: United Continental Holdings, Spirit Airlines, Southwest Airlines, American Airlines Group and Alaska Air Group
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-united-continental-holdings-spirit-airlines-southwest
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nan
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For Immediate Release
Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental Holdings (NYSE: UAL - Free Report ), Spirit Airlines (Nasdaq: SAVE - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ).
Industry: Airlines, Part 3
Link: https://www.zacks.com/commentary/131256/will-the-ride-get-bumpier-for-airline-stocks
It is a well-documented fact that stocks in the airline space have been plagued by multiple headwinds like weather-related disruptions, pricing issues and high costs. The turbulence in the sector is largely responsible for the NYSE ARCA Airline Index declining 2.5% over the last three months. With Q3 earnings season coming up, the ongoing turbulence may result in airlines performing disappointingly. Let's delve into the details.
Harvey, Irma Ground Airlines - Q3 Unit Revenue Views Cut
Harvey, which wreaked havoc on America's fourth-largest city, Houston, with heavy rainfall, has negatively impacted airline operations and caused multiple flight cancellations. In fact, air travel was hurt with two Houston airports, George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU), reportedly remaining closed for a few days (since the noon of Aug 27) due to Harvey-induced heavy rainfall. The airports are operational now.
United Continental Holdings (NYSE: UAL - Free Report ), the parent company of United Airlines, was the worst hit, as Houston is the carrier's second-largest hub. In September 2017, company trimmed its views with respect to pre-tax margin and passenger revenue per available seat mile (PRASM: a key measure of unit revenue) for the third quarter mainly due to Harvey. The carrier now expects PRASM to decline between 3% and 5% year over year (the earlier guidance provided in July was +1% to - 1%).
In fact, Harvey has impacted the third-quarter PRASM to the tune of approximately 150 basis points. The carrier now expects pre-tax margin between 8% and 10% (previous guidance was 12.5% and 14.5%).
Spirit Airlines (Nasdaq: SAVE - Free Report ), which also has significant exposure to Houston, expects its top line to shrink to the tune of approximately $8.5 million in the third quarter due to the natural calamity. Currently, Spirit Airlines anticipates total revenue per available seat mile (TRASM) to decline between 7% and 8.5% (the previous guidance was 2% and 4%). In fact, per the company, 100 basis points of the trimmed guidance can be attributed to the negative impact of Harvey. Also, aggressive competitive pricing in its key markets contributed to the bleak forecast.
Southwest Airlines (NYSE: LUV - Free Report ), which had to call off approximately 2,800 flights due to Harvey, now expects operating revenue per available seat mile (RASM) for the third quarter in the range of down 1% to slightly up, on a year-over-year basis. The metric was earlier projected to increase approximately 1% from the year-ago quarter.
Close on the heels of Harvey, came another natural calamity, Irma, which also hurt airline operations. American Airlines Group (Nasdaq: AAL - Free Report ), which has significant exposure to Florida including its hub at Miami International Airport, had to cancel multiple flights due to Irma. The natural calamity also caused it to trim its third-quarter TRASM view.
High Costs Likely to Hurt Q3
With labor deals in vogue in the aviation space, labor costs have escalated, thereby hurting the bottom lines in the last few quarters. The picture is likely to be no different in the third quarter. For example, labor costs shot up significantly at Alaska Air Group (NYSE: ALK - Free Report ) following the amendment to the pay-related pilots' contract at its subsidiary, Horizon Air.
Following the agreement, the company expects third-quarter cost per available seat mile (excluding fuel and other special items) between 8 cents and 8.05 cents. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Moreover, increasing fuel costs do not bode well for airlines. Oil prices are currently hovering around the $50-a-barrel mark, way higher than the lows of around $26 a barrel touched in February last year. The rise in fuel costs, which again may be Harvey induced, are also likely to distort the Q3 earnings picture for airlines.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on AAL - FREE
Get the full Report on UAL - FREE
Get the full Report on SAVE - FREE
Get the full Report on ALK - FREE
Get the full Report on LUV - FREE
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Media Contact
Zacks Investment Research
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support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
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 (Nasdaq: AAL - Free Report ), which has significant exposure to Florida including its hub at Miami International Airport, had to cancel multiple flights due to Irma. For Immediate Release Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental Holdings (NYSE: UAL - Free Report ), Spirit Airlines (Nasdaq: SAVE - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on SAVE - FREE Get the full Report on ALK - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental Holdings (NYSE: UAL - Free Report ), Spirit Airlines (Nasdaq: SAVE - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on SAVE - FREE Get the full Report on ALK - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental Holdings (NYSE: UAL - Free Report ), Spirit Airlines (Nasdaq: SAVE - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on SAVE - FREE Get the full Report on ALK - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental Holdings (NYSE: UAL - Free Report ), Spirit Airlines (Nasdaq: SAVE - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). American Airlines Group (Nasdaq: AAL - Free Report ), which has significant exposure to Florida including its hub at Miami International Airport, had to cancel multiple flights due to Irma. Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on SAVE - FREE Get the full Report on ALK - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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67a6734c-99e0-4bd7-b8a5-ded0bf813e3d
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7324.0
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2017-10-09 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Air Lines, United Continental Holdings, American Airlines Group, GOL Linhas and Ryanair Holdings
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-air-lines-united-continental-holdings-american-0
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nan
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For Immediate Release
Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and Ryanair Holdings (Nasdaq: RYAAY - Free Report ).
Industry: Airlines, Part 2
Link: https://www.zacks.com/commentary/131251/airlines-still-worth-considering-here39s-why
Even though it is true that airline stocks are being confronted with multiple headwinds, all is not lost. There exist a few bright spots that still make investment in airline stocks worthwhile. Let's delve into the details.
Oil Still Below $55 = Financial Prosperity
Despite the recent rally, oil prices are still hovering around the $50-a-barrel mark, a long way off the highs of mid-2014 when the commodity had traded in excess of $100 a barrel. As fuel costs represent one of the largest input costs for airline companies, the lower the oil prices, the better it is for sector participants. Lower oil prices imply greater financial well-being for airlines by virtue of massive savings.
Financial prosperity is reflected in the fact that the likes of Delta Air Lines (NYSE: DAL - Free Report ) have hiked their respective dividend payouts this year. Carriers have also indulged in share buybacks, which is more proof of their solid financial health.
Riding on balance sheet strength, some carriers have shelled out impressive amounts to employees as part of their profit-sharing programs. Additionally, the robust financial health of most domestic carriers has prompted them to invest substantially in improving the flying experience for travelers, in a bid to stay afloat in the competitive airline space. For example, United Airlines, the wholly owned subsidiary of United Continental Holdings (NYSE: UAL - Free Report ), announced in July the introduction of Boeing 777-300ER service (the airline's latest aircraft type featuring the all-new United Polaris business class seats) to additional routes.
Carriers are also investing substantially toward modernizing their respective fleet. For example, American Airlines Group (Nasdaq: AAL - Free Report ) invested $1.1 billion in a new aircraft during the second quarter of 2017. In fact, it aims to shell out $4.1 billion in the current year for the same purpose. Moreover, carriers like Delta are looking to reduce their debt levels based on their financial prosperity.
Bullish Readings
The global traffic data for July, released by the International Air Transport Association ("IATA") raises optimism. Load factor (percentage of seats filled by passengers) touched record levels of 84.7% in July. The upside was due to the fact that traffic growth (6.8%) outpaced capacity expansion (6.1%) for the month. The favorable load factor reading highlights the fact that demand for air travel is strong.
Moreover, demand for air freight across the globe witnessed double-digit growth (11.4%) in July. This was, in fact, the fourth month out of five where double-digit demand growth was witnessed. The reading is well above the 10-year average growth rate of 3.1%. With growth in demand outpacing capacity expansion, the scenario bodes well for airline yields.
Traffic growth witnessed by the industry in the first half of 2017 was the highest in 12 years. Load factor also touched record levels. Additionally, at its 73 rd Annual General Meeting in Cancun, Mexico, IATA stated that airline companies are expected to be more profitable in 2017 than previously expected. IATA now expects global net profit for the industry to come in at $31.4 billion (the earlier projection hinted at profits of $29.8 billion for 2017). The bulk of global profits ($15.4 billion) is expected to come from the North American region.
Traffic data for the first half of 2017 released by the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) also highlights the bullish case for carriers based in the United States. The BTS data states that a record number of passengers were transported by U.S.-based carriers in the period. The reading for load factor was also favorable.
Moreover, the busy Labor Day travel period (Aug 30-Sep 5) for U.S. airlines this year further highlights that demand for air travel remains strong. This bodes well for airlines.
Other Tailwinds
High labor costs have been hurting bottom-line growth for airlines for quite some time. Even though such costs will remain a hindrance, the good news is that the extent of their increase is expected to decline with time.
For example, American Airlines predicted in September that cost per available seat miles(excluding fuel and special Items) the year-over-year growth is likely to be around 3% in the final quarter of 2017. The metric had grown by 7.6% and 6.8%, respectively, in the first two quarters of 2017. The year-over-year growth for this measure of unit costs is likely to come down further to less than 2% in 2018/19.
Latin American carriers like GOL Linhas (NYSE: GOL - Free Report ) are seeing better times, buoyed by an improved economy. GOL's view for full-year 2017 is impressive. We expect the company's focus on capacity discipline to result in improvement in yields, going forward. GOL Linhas holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
European low-cost carrier Ryanair Holdings (Nasdaq: RYAAY - Free Report ), which is being aided by its customer-friendly 'Always Getting Better' campaign, unveiled a busy London schedule for the summer of 2018, amid Brexit-related fears. The carrier aims to transport 24.8 million customers from three London airports - Stansted, Gatwick and Luton. With the Greek economy showing signs of revival, exciting times might be in store for Ryanair as it offers multiple flights to the Greek Islands.
To Wrap Up
The above commentary clearly suggests that despite headwinds, there exist enough reasons to be bullish about the industry's prospects. Its solid fundamentals, suggested by its financial strength, highlight the fact that the sector should be able to overcome the current headwinds and fly high in the long run.
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 for this important sector at the moment.
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on DAL - FREE
Get the full Report on AAL - FREE
Get the full Report on UAL - FREE
Get the full Report on GOL - FREE
Get the full Report on RYAAY - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryanair Holdings PLC (RYAAY): 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
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 - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and Ryanair Holdings (Nasdaq: RYAAY - Free Report ). For example, American Airlines Group (Nasdaq: AAL - Free Report ) invested $1.1 billion in a new aircraft during the second quarter of 2017. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on GOL - FREE Get the full Report on RYAAY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and Ryanair Holdings (Nasdaq: RYAAY - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on GOL - FREE Get the full Report on RYAAY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Ryanair Holdings PLC (RYAAY): 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 To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and Ryanair Holdings (Nasdaq: RYAAY - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on GOL - FREE Get the full Report on RYAAY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Ryanair Holdings PLC (RYAAY): 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 To read this article on Zacks.com click here.
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For example, American Airlines Group (Nasdaq: AAL - Free Report ) invested $1.1 billion in a new aircraft during the second quarter of 2017. For Immediate Release Chicago, IL - October 9, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (Nasdaq: AAL - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and Ryanair Holdings (Nasdaq: RYAAY - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on GOL - FREE Get the full Report on RYAAY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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4bc4b26d-ea62-4666-8a96-d2d354f4c25f
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7325.0
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2017-10-09 00:00:00 UTC
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Delta Air Lines (DAL) Q3 Earnings: Disappointment in Store?
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal-q3-earnings%3A-disappointment-in-store-2017-10-09
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nan
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nan
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Delta Air Lines, Inc.DAL is scheduled to report third-quarter 2017 results on Oct 11, before the market opens.
This Atlanta, GA-based carrier's second-quarter earnings of $1.64 per share missed the Zacks Consensus Estimate of $1.66. However, earnings climbed 11.56% on a year-over-year basis on the back of a 3.3% operating revenue growth. Meanwhile, quarterly operating revenues of $10.79 billion fell short of the Zacks Consensus Estimate.
In fact, the carrier may be in for a disappointment in the third quarter too. The negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the third quarter has decreased in excess of 14% over the last three months.
Owing to multiple headwinds, the stock has struggled so far this year, underperforming the Zacks Transportation-Airline industry on a year-to-date basis. The stock has gained 5.7%, whereas the industry has rallied 15.2%.
Our proven model too does not show conclusively that Delta Air Lines will beat earnings in third-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: The Earnings ESP for Delta Air Lines is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.54 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Delta Air Lines carries a Zacks Rank #5 (Strong Sell).
In fact, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when it is witnessing negative estimate revisions like Delta Air Lines is.
Factors Likely at Play
We expect Delta Air Lines' third-quarter results to be hurt by the back-to-back hurricanes which resulted in the carrier cancelling multiple flights. Delta Air Lines expects passenger unit revenues to increase approximately 2% in third-quarter 2017 on a year-over-year basis. The guidance includes a negative impact of Irma to the tune of 1 point. Operating margin for the third quarter is projected between 15.5% and 16.5%; Hurricane Irma is likely to impact the metric to the tune of approximately 120 million.
It is not only Delta Air Lines whose third-quarter results are likely to be impacted by the natural calamities. Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events.
High fuel costs are also expected to limit earnings growth in the quarter. Fuel price per gallon in third-quarter 2017 is expected between $1.68 and $1.73. With the company inking multiple labor deals, labor costs have spiked. High labor costs have been hurting the company for quite some time and the third quarter is likely to be no different.
We are, however, appreciative of the company's efforts to enhance shareholders' wealth through dividends and share buybacks.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote
A Transportation Gem
With Delta Air Lines likely to disappoint, investors interested in the airline space may consider Hawaiian Holdings HA as our model shows that this company possesses the right combination of elements to post an earnings beat in its upcoming release.
Hawaiian Holdings has an Earnings ESP of +1.20% and a Zacks Rank #3. The company will report third-quarter results on Oct 19. You can see the complete list of today's Zacks #1 Rank stocks here .
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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Delta Air Lines, Inc. (DAL): 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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Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Click to get this free report Delta Air Lines, Inc. (DAL): 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. The negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the third quarter has decreased in excess of 14% over the last three months.
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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 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. Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Zacks Rank: Delta Air Lines carries a Zacks Rank #5 (Strong Sell).
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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 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. Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Zacks ESP: The Earnings ESP for Delta Air Lines is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.54 per share.
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Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Click to get this free report Delta Air Lines, Inc. (DAL): 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. Meanwhile, quarterly operating revenues of $10.79 billion fell short of the Zacks Consensus Estimate.
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0e55e969-e81e-4065-9207-a94dc91dae18
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7326.0
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2017-10-09 00:00:00 UTC
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Southwest Airlines' September Traffic, Load Factor Fall
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-september-traffic-load-factor-fall-2017-10-09
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Southwest Airlines Co.LUV reported disappointing traffic numbers for September. Revenue Passenger Miles (RPMs) - a measure of air traffic - declined 4.5% year over year to 9.5 billion in the month. Meanwhile Available Seat Miles (ASMs) -a measure of capacity-decreased 1.6% to 11.61 billion. Load factor (the percentage of seats filled by passengers) decreased 250 basis points (bps) to 81.7% in September. The key metric fell since the contraction in traffic was more than that in capacity leading to empty planes.
On a year-to-date basis, Southwest Airlines witnessed a 3.7% rise in RPMs to 96.85 billion. Also, ASMs grew 4.1% to 115.92 billion. As a result, the load factor decreased 40 bps to 83.5%. Additionally, passenger count in the first nine months of 2017 rose 3.8% to 117.25 billion.
The company's third-quarter results, scheduled to be revealed on Oct 26, are expected to be hurt due to the recent hurricanes (Harvey, Irma and Maria) and the earthquake in Mexico. These natural disasters have forced the airline to cancel approximately 5,000 flights.
As a result, operating revenues are likely to be hurt to the tune of $100 million. Moreover, this Dallas-based carrier expects third-quarter operating revenue per available seat mile (RASM) to be flat to down 1% year over year.
Southwest Airlines Company Price
Southwest Airlines Company Price | Southwest Airlines Company Quote
It is not only Southwest Airlines whose third-quarter results are likely to be impacted by the natural calamities. Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events.
Zacks Rank & Stock to Consider
Southwest Airlines carries a Zacks Rank #5 (Strong Sell). A better-ranked stock in airline space is GOL Linhas AéreasInteligentes S.A. GOL carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Shares of GOL Linhas have surged more than 60% in the last six months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): 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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Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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 (the percentage of seats filled by passengers) decreased 250 basis points (bps) to 81.7% in September.
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Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote It is not only Southwest Airlines whose third-quarter results are likely to be impacted by the natural calamities.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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. Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote It is not only Southwest Airlines whose third-quarter results are likely to be impacted by the natural calamities.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): 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. Results of other carriers like United Continental Holdings UAL and American Airlines Group AAL are also likely to be hurt by the events. Meanwhile Available Seat Miles (ASMs) -a measure of capacity-decreased 1.6% to 11.61 billion.
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cab5a213-91c0-4505-b9a4-a4e13f8f07b1
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7327.0
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2017-10-08 00:00:00 UTC
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Will the SpaceX BFR Kill Airline Stocks?
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AAL
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https://www.nasdaq.com/articles/will-spacex-bfr-kill-airline-stocks-2017-10-08
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Elon Musk has big plans for Mars , for the moon -- and as it just so happens, for Earth, too.
As we learned at Musk's brief talk in Adelaide, Australia , last week, SpaceX is hard at work designing a new rocket ship to replace all its existing rockets (and even to replace one that it hasn't flown yet). Dubbed the BFR, or Big Falcon Rocket, this 106-meter-tall, 4,400-ton rocket will be large enough to carry as many as 100 colonists at a time to Mars.
Perhaps the biggest impact of BFR, however, may be felt back here on Earth.
Have spacesuit, will travel -- to Shanghai
It was toward the end of his talk in Adelaide that Musk dropped this bombshell: Casting about for a way to monetize SpaceX's research, and raise the funds it will need to finance Musk's Martian ambitions, SpaceX's CEO struck upon an inspiration. He could build the BFR -- and use it to transport passengers and cargo around Earth at supersonic speeds.
By blasting BFR through the atmosphere and into the exosphere, where air resistance is minimal, SpaceX thinks its "spacecraft" can reach speeds as high as 18,000 mph. Arcing through a ballistic flight path ( a la ICBM ), BFR could circle the globe in a matter of minutes, then turn on its tail, fire retrorockets, and touch down at a complementary spaceport to disembark its passengers -- and Musk says he can do all of this for "about the same [ticket price] as full fare economy in an aircraft."
It's at this point that Earth shook with the collective vibrations of a whole lot of airline CEOs sitting up and taking notice.
A wake-up call for legacy airlines
After all, United Continental (NYSE: UAL) depends on long-haul flights across the Atlantic and Pacific Oceans for more than 30% of its annual revenue. Delta Air Lines (NYSE: DAL) depends on international flights to Europe and Asia for 22% of its business. Why, even American Airlines (NASDAQ: AAL) does more than 16% of its business in Europe and Asia, with additional revenue coming from flights to Latin America.
SpaceX just nailed a bulls-eye on the airline industry's business model.
Musk is proposing to shake up the airline industry with a potent threat: Big Falcon Rockets, each carrying perhaps 850 passengers at a time (the pressurized cabin of a BFR will be as big as a full-sized Airbus A380 superjumbo jet), taking off at regular intervals to traverse the globe in as little as 4% the time it takes an airplane to make the flight.
In one illustrated example, SpaceX depicts a hypothetical New York-to-Shanghai trip beginning with a 6:30 a.m. boat ride from New York, launching from an offshore barge half an hour later, and ending with a rocket ship touching down at a landing pad off Shanghai at 7:39 a.m. NYC-time.
Granted, nitpickers will insist on adding the ferry time to and from launchpads to the total "door-to-door" duration of a BFR trip. But that time's basically analogous to the taxi rides to and from airports that travelers already make today. As for the flight, 39 minutes from NYC to Shanghai sounds pretty good -- about 4.3% as long as the 15 hours it takes today. And the posited trip time from NYC to London -- 29 minutes -- isn't much worse, at about 6.8% the time it takes to fly there today.
Indeed, Musk says BFR should be able to fly passengers to "anywhere on Earth in under an hour," complete most "long distance trips" in "less than 30 minutes," and do it all for "about the same" price as a regular plane ticket.
How are the airlines supposed to compete with that ?
Will SpaceX kill the airlines?
Here's how: One big objection to Musk's plan is acceleration. Rocket launches routinely subject astronauts to anywhere from three to five gravities' worth of force when accelerating into orbit. G-forces on re-entry are similarly intense. Granted, Musk says that with the trajectories he has mapped out, G-forces should average no more than two or three Gs -- roughly equivalent to "a mild to moderate amusement park ride on the ascent and then smooth, peaceful, and silent in zero gravity for most of the trip until landing."
Even if that's true, though, rollercoaster rides aren't generally recommended for wide swaths of the population -- pregnant women, the elderly, small children, and people with heart conditions, to name a few. This limits the utility of BFR somewhat, and ensures Delta, American, and United will have a captive audience of customers for decades to come.
Another obstacle to widespread adoption of BFR for passenger transport is the need to launch and land at sea. On the one hand, this approach does limit risks to the population (from exploding rockets). On the other hand, if Musk's BFR is only permitted to take off from and land at floating launchpads, this will limit BFR's usefulness to travel between big coastal cities. New York to Shanghai flights might be attractive (for those who can handle the Gs). But New York to Des Moines? Maybe not so much.
What it means for airline investors
Long story short, even in the worst possible case (from an airline's perspective), Musk's BFR really only poses a threat to the long-haul air transport revenue at Delta, United, and American. Shorter, regional trips within a continent's interior should remain safe from competition.
At least, they should remain safe until Musk builds his first Hyperloop . At that point, all bets are off .
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Rich Smith 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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Why, even American Airlines (NASDAQ: AAL) does more than 16% of its business in Europe and Asia, with additional revenue coming from flights to Latin America. Arcing through a ballistic flight path ( a la ICBM ), BFR could circle the globe in a matter of minutes, then turn on its tail, fire retrorockets, and touch down at a complementary spaceport to disembark its passengers -- and Musk says he can do all of this for "about the same [ticket price] as full fare economy in an aircraft." In one illustrated example, SpaceX depicts a hypothetical New York-to-Shanghai trip beginning with a 6:30 a.m. boat ride from New York, launching from an offshore barge half an hour later, and ending with a rocket ship touching down at a landing pad off Shanghai at 7:39 a.m. NYC-time.
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Why, even American Airlines (NASDAQ: AAL) does more than 16% of its business in Europe and Asia, with additional revenue coming from flights to Latin America. Musk is proposing to shake up the airline industry with a potent threat: Big Falcon Rockets, each carrying perhaps 850 passengers at a time (the pressurized cabin of a BFR will be as big as a full-sized Airbus A380 superjumbo jet), taking off at regular intervals to traverse the globe in as little as 4% the time it takes an airplane to make the flight. What it means for airline investors Long story short, even in the worst possible case (from an airline's perspective), Musk's BFR really only poses a threat to the long-haul air transport revenue at Delta, United, and American.
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Why, even American Airlines (NASDAQ: AAL) does more than 16% of its business in Europe and Asia, with additional revenue coming from flights to Latin America. Musk is proposing to shake up the airline industry with a potent threat: Big Falcon Rockets, each carrying perhaps 850 passengers at a time (the pressurized cabin of a BFR will be as big as a full-sized Airbus A380 superjumbo jet), taking off at regular intervals to traverse the globe in as little as 4% the time it takes an airplane to make the flight. On the other hand, if Musk's BFR is only permitted to take off from and land at floating launchpads, this will limit BFR's usefulness to travel between big coastal cities.
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Why, even American Airlines (NASDAQ: AAL) does more than 16% of its business in Europe and Asia, with additional revenue coming from flights to Latin America. He could build the BFR -- and use it to transport passengers and cargo around Earth at supersonic speeds. And the posited trip time from NYC to London -- 29 minutes -- isn't much worse, at about 6.8% the time it takes to fly there today.
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aa8ff30f-3533-4b58-9228-1f91db9835c9
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7328.0
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2017-10-06 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Air Lines, United Continental Holdings, American Airlines Group, Southwest Airlines and Spirit Airlines
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-air-lines-united-continental-holdings-american-1
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For Immediate Release
Chicago, IL - October 6, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air LinesDAL - Free Report ), United Continental HoldingsUAL - Free Report ), American Airlines GroupAAL - Free Report ), Southwest AirlinesLUV - Free Report ) and Spirit AirlinesSAVE - Free Report ).
Industry: Airlines, Part 1
Link: https://www.zacks.com/commentary/131006/airline-industry-outlook---october-2017
Airline stocks are unlikely to set the stage on fire in the third quarter of 2017, results of which are around the corner. Multiple headwinds of late have prevented the space from flying higher.
This scenario is reflected in the latest three-month performance of the NYSE ARCA Airline Index. The sector tracker has shed value to the tune of 2.5% in the period. The headwinds are likely to negatively impact third-quarter results of airline stocks.
Let's delve into the challenges confronting this key sector.
Back-to-Back Natural Calamities
Hurricane Harvey, followed by Irma, caused airline stocks like Delta Air Lines ( DAL - Free Report ) and United Continental Holdings ( UAL - Free Report ) to call off multiple flights. United Continental was the worst hit by Harvey, as Houston is the carrier's second-largest hub.
The Chicago-based carrier cited Harvey as one of the reasons for trimming its views with respect to pre-tax margin and passenger revenue per available seat mile (PRASM: a key measure of unit revenue) for the third quarter. In fact, Harvey is expected to hurt third-quarter PRASM to the tune of approximately 150 basis points. American Airlines Group ( AAL - Free Report ) also trimmed guidance for the third quarter due to the devastating impact of Irma.
That said, recent comments from management teams suggest that the hurricane impact may be a lot less severe than had been expected. This has helped the stocks recover some of their earlier losses.
High Costs
High fuel costs are also likely to limit third-quarter earnings growth. Harvey contributed to an increase in fuel prices due to gasoline shortages caused by the storm. Fuel costs have been on the rise lately, with oil prices hovering around the $50-a-barrel threshold. This upsurge can be attributed to an improving demand outlook for the commodity and OPEC deal extension talks.
United Continental projects third-quarter fuel price per gallon between $1.72 and $1.77 (earlier view: $1.56 to $1.61). The likes of Delta and Southwest Airlines ( LUV - Free Report ) have also lifted their respective forecasts for fuel prices.
Escalation in fuel cost apart, the surge in labor costs is also expected to distort the earnings picture of airlines. With airline companies inking pay-related deals with various labor groups, costs on this front have spiked. Escalated labor costs have hurt the bottom lines of carriers in the last few quarters, and the third quarter of 2017 is unlikely to be any different.
Soft Air Fares & Capacity Issues
Declining air fares are hurting the top lines of carriers. Low air fares bring good news for fliers but are a bane of airline companies.
According to research firm Hopper , air fares (roundtrip) in the United States are likely hit a low of $216 in October. Problems related to capacity over expansion are also hurting carriers. This is highlighted by the fact that the likes Spirit Airlines ( SAVE - Free Report ) witnessed declining load factors (percentage of seats filled by passengers) in August as capacity expansion outweighed traffic growth in the month. July traffic reports also unveiled declining load factors for most carriers.
Other Headwinds
The price war between low-cost carriers like Spirit Airlines and legacy carriers like United Continental is another cause for concern in this sector. Issues related to customer dissatisfaction have hurt carriers this year. Apart from the infamous David Dao incident, issues relating to customer dissatisfaction have surfaced at other carriers like Spirit Airlines and Delta.
Zacks Industry Rank Highlights Gloomy Scenario
The Zacks Industry Rank of 228 (out of 250 plus groups) carried by the Zacks Airline industry further highlights the plight of the airlines. This unfavorable rank places the companies in the bottom 11% of the Zacks industries.
We classify 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 past decade, using a week's 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
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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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
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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For Immediate Release Chicago, IL - October 6, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air LinesDAL - Free Report ), United Continental HoldingsUAL - Free Report ), American Airlines GroupAAL - Free Report ), Southwest AirlinesLUV - Free Report ) and Spirit AirlinesSAVE - Free Report ). American Airlines Group ( AAL - Free Report ) also trimmed guidance for the third quarter due to the devastating impact of Irma. Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on SAVE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - October 6, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air LinesDAL - Free Report ), United Continental HoldingsUAL - Free Report ), American Airlines GroupAAL - Free Report ), Southwest AirlinesLUV - Free Report ) and Spirit AirlinesSAVE - Free Report ). 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 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. American Airlines Group ( AAL - Free Report ) also trimmed guidance for the third quarter due to the devastating impact of Irma.
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For Immediate Release Chicago, IL - October 6, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air LinesDAL - Free Report ), United Continental HoldingsUAL - Free Report ), American Airlines GroupAAL - Free Report ), Southwest AirlinesLUV - Free Report ) and Spirit AirlinesSAVE - Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on SAVE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. 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 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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For Immediate Release Chicago, IL - October 6, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air LinesDAL - Free Report ), United Continental HoldingsUAL - Free Report ), American Airlines GroupAAL - Free Report ), Southwest AirlinesLUV - Free Report ) and Spirit AirlinesSAVE - Free Report ). American Airlines Group ( AAL - Free Report ) also trimmed guidance for the third quarter due to the devastating impact of Irma. Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on SAVE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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20a956fb-c16b-447f-a91a-5cf23b33b2fb
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7329.0
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2017-10-04 00:00:00 UTC
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Delta (DAL) Stock Rallies on Encouraging Q3 Unit Revenue View
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AAL
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https://www.nasdaq.com/articles/delta-dal-stock-rallies-on-encouraging-q3-unit-revenue-view-2017-10-04
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nan
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nan
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Delta Air LinesDAL has struggled so far this year in the face of multiple headwinds including the back-to-back natural calamities (Harvey, Irma and Maria). So far this year, the stock has gained 4.2%, underperforming the 8.8% rally of the industry it belongs to.
Reasons Behind the Surge
Delta stated that it expects passenger unit revenue to increase approximately 2% in the third quarter of 2017 on a year-over-year basis. The guidance includes a negative impact of Irma to the tune of 1 point. Operating margin for the third quarter is projected between 15.5% and 16.5%. Hurricane Irma is likely to impact pre-tax income to the tune of approximately 120 million.
In September 2017, Delta had projected passenger unit revenue to grow between 2% and 3% and operating margin was forecasted in the 16.5%-17.5% range. Notably, these projections were made before Irma disrupted its operations leading to 2,200 flights cancellations at Delta.
Consequently, the fresh projections, though numerically weaker than the previous ones, pleased investors as the impact of Irma on the company's financials was softer than expected. This, in turn, led to the surge in the stock price.
Fuel price per gallon in the third quarter of 2017 is expected between $1.68 and $1.73. Non- fuel nit cost (including profit sharing) is projected to grow at approximately 2.5% on a year-over-year basis. System capacity is projected to improve 1.6%.
The stock price appreciation was not limited to Delta only. Other carriers like American Airlines Group AAL and JetBlue Airways JBLU were also boosted by Delta's projections and saw significant increase in their respective stock prices. Investors interested in these carriers must be hoping that the impact of Irma would be less severe than expected on them similar to Delta.
Traffic Results
Delta unveiled the improved projections while releasing its traffic data for the month of September. While traffic (total system) increased 0.3% year over year, capacity expanded 0.6% for the same month. Nevertheless, load factor (percentage of seats filled by passengers) declined 20 basis points to 84.4% as traffic growth was outpaced by capacity expansion in the same period.
On a year-to-date basis, traffic improved 2.1% while capacity expanded 0.6%. Load factor improved 130 basis points to 85.7%.
Zacks Rank & Stock to Consider
Delta carries a Zacks Rank #5 (Strong Sell). A better-ranked stock in the airline space is SkyWest SKYW holding a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
SkyWest has witnessed the Zacks Consensus Estimate for current-year earnings being revised 0.6% upward over the last 60 days.
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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
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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Other carriers like American Airlines Group AAL and JetBlue Airways JBLU were also boosted by Delta's projections and saw significant increase in their respective stock prices. Click to get this free 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 To read this article on Zacks.com click here. Delta Air LinesDAL has struggled so far this year in the face of multiple headwinds including the back-to-back natural calamities (Harvey, Irma and Maria).
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Other carriers like American Airlines Group AAL and JetBlue Airways JBLU were also boosted by Delta's projections and saw significant increase in their respective stock prices. Click to get this free 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 To read this article on Zacks.com click here. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Other carriers like American Airlines Group AAL and JetBlue Airways JBLU were also boosted by Delta's projections and saw significant increase in their respective stock prices. Click to get this free 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 To read this article on Zacks.com click here. Zacks Rank & Stock to Consider Delta carries a Zacks Rank #5 (Strong Sell).
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Other carriers like American Airlines Group AAL and JetBlue Airways JBLU were also boosted by Delta's projections and saw significant increase in their respective stock prices. Click to get this free 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 To read this article on Zacks.com click here. Traffic Results Delta unveiled the improved projections while releasing its traffic data for the month of September.
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1fd15081-3bb7-4175-b6e3-775d757761c9
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7330.0
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2017-10-04 00:00:00 UTC
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3 Airline Stocks Set Up Buy Points After Rebound: Investing Action Plan
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-set-buy-points-after-rebound-investing-action-plan-2017-10-04
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nan
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nan
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Here's your Investing Action Plan for Thursday: what you need to know as an investor for the coming day.
[ibd-display-video id=2326939 width=50 float=left autostart=true] Earnings are due from Costco ( COST ), Constellation Brands ( STZ ) and Yum China ( YUMC ), while shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and Southwest Airlines (LUV) are forming bases after several weeks of turbulence.
Stocks to Watch
Delta, American and Southwest are all forming cup bases with signs of accumulation after selling off in July and August then rallying.
Delta closed up 0.6% at 51.56 on the stock market today , nearing a 55.85 entry, after jumping 6.6% Tuesday, when the carrier issued a Q3 unit-revenue outlook that, without Hurricane Irma's impact, was still seen by analysts as solid.
Shares of air carriers jumped on the news - particularly those of airlines with big operations in Florida, which along with the Caribbean bore the brunt of the storm's impact.
American rallied 0.4% to 50.73, adding to yesterday's 5.8% surge and putting it closer to a 54.58 buy point .
Southwest ticked 0.2% lower to 58.38, following Tuesday's 4.5% pop, working its way toward a 64.49 entry.
Delta also kicks off the airlines' Q3 earnings season next Wednesday. Airline stocks sank this summer on fears that higher fuel costs and competitive fare discounting would erode sales and profits.
Costco
The membership-based wholesale retailer reports fourth-quarter results after the close.
Estimates : Wall Street expects a 14% increase in EPS to $2.02 on revenue of $41.739 billion, also up 14%, according to Zacks Investment Research. Core same-store sales excluding gas and forex are expected to rise 5.5%, according to Consensus Metrix. U.S. same-store sales are seen up 5.7%.
Stock : Shares ended 0.1% higher at 165.21 Wednesday. The stock has been trying to hold support at its 200-day line.
Costco's U.S. same-store sales topped expectations in July and August, BMO analyst Kelly Bania wrote in research notes over the summer, with strong e-commerce sales growth helping in August.
An e-commerce price study by BMO also found that Costco.com's prices, across the items examined, were 7% below Amazon's. But that difference might not necessarily be an advantage.
"Despite Costco's price gap to Amazon ... we believe near-term sentiment and fear of the long-term impact of Amazon on Costco's business (whether or not justified by near-term fundamentals) could continue to create an overhang on COST shares and limit valuation upside," Bania wrote in a report describing the findings last month.
IBD'S TAKE:Buying or holding a stock can be risky heading into an earnings report. Here's an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.
Constellation Brands
The alcoholic beverage company - whose brands include Corona, craft brewer Ballast Point and wine company Mark West - will report fiscal Q2 results before the market opens.
Estimates : EPS of $2.16, a 22% jump. Revenue is expected to rise 2% to $2.058 billion.
Stock : Shares rose 1.1% to 201.18, re-entering buy range after breaking out in August.
The earnings will come as craft beer remains popular and the craft spirits market is seen growing over the next several years. Constellation boosted its full-year earnings outlook based on the strength of its beer business.
Constellation has also grown through acquisitions. In August, the company announced that it had bought Florida craft brewer Funky Buddha Brewery, and in June it said it had bought Napa Valley winery Schrader Cellars.
Yum China
The Chinese spinoff of Yum Brands (YUM), the owner of KFC, Taco Bell and Pizza Hut, reports Q3 financials after the close.
Estimates : EPS of 55 cents on revenue of $1.995 billion.
Stock : Shares dipped 1% to 39.89, but is still near a 42.22 entry.
As with other quick-service restaurants, Yum China has focused more on mobile payments and delivery, although Pizza Hut's same-store sales were a weak spot for investors during the prior earnings season.
RELATED:
Here's Why Delta, JetBlue And Other Airlines Are Surging Today
Stocks To Watch With Earnings On Deck: Constellation Brands
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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[ibd-display-video id=2326939 width=50 float=left autostart=true] Earnings are due from Costco ( COST ), Constellation Brands ( STZ ) and Yum China ( YUMC ), while shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and Southwest Airlines (LUV) are forming bases after several weeks of turbulence. Delta closed up 0.6% at 51.56 on the stock market today , nearing a 55.85 entry, after jumping 6.6% Tuesday, when the carrier issued a Q3 unit-revenue outlook that, without Hurricane Irma's impact, was still seen by analysts as solid. Airline stocks sank this summer on fears that higher fuel costs and competitive fare discounting would erode sales and profits.
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[ibd-display-video id=2326939 width=50 float=left autostart=true] Earnings are due from Costco ( COST ), Constellation Brands ( STZ ) and Yum China ( YUMC ), while shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and Southwest Airlines (LUV) are forming bases after several weeks of turbulence. Costco's U.S. same-store sales topped expectations in July and August, BMO analyst Kelly Bania wrote in research notes over the summer, with strong e-commerce sales growth helping in August. Here's Why Delta, JetBlue And Other Airlines Are Surging Today Stocks To Watch With Earnings On Deck: Constellation Brands The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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[ibd-display-video id=2326939 width=50 float=left autostart=true] Earnings are due from Costco ( COST ), Constellation Brands ( STZ ) and Yum China ( YUMC ), while shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and Southwest Airlines (LUV) are forming bases after several weeks of turbulence. Costco's U.S. same-store sales topped expectations in July and August, BMO analyst Kelly Bania wrote in research notes over the summer, with strong e-commerce sales growth helping in August. Here's Why Delta, JetBlue And Other Airlines Are Surging Today Stocks To Watch With Earnings On Deck: Constellation Brands The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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[ibd-display-video id=2326939 width=50 float=left autostart=true] Earnings are due from Costco ( COST ), Constellation Brands ( STZ ) and Yum China ( YUMC ), while shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and Southwest Airlines (LUV) are forming bases after several weeks of turbulence. Costco's U.S. same-store sales topped expectations in July and August, BMO analyst Kelly Bania wrote in research notes over the summer, with strong e-commerce sales growth helping in August. Constellation Brands The alcoholic beverage company - whose brands include Corona, craft brewer Ballast Point and wine company Mark West - will report fiscal Q2 results before the market opens.
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55bf1637-5706-409c-a471-193b95ba1d6a
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7331.0
|
2017-10-03 00:00:00 UTC
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Here's Why Delta, JetBlue And Other Airlines Are Surging Today
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AAL
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https://www.nasdaq.com/articles/heres-why-delta-jetblue-and-other-airlines-are-surging-today-2017-10-03
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nan
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nan
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Delta Air Lines ( DAL ) jumped on Tuesday after the carrier forecast third-quarter unit revenue that, when factoring out Hurricane Irma, was better than feared.
[ibd-display-video id=2326102 width=50 float=left autostart=true] The forecast appeared to offer some relief to other airlines - including American Airline s ( AAL ), JetBlue ( JBLU ) and Spirit Airlines ( SAVE ) - that send a lot of planes to and from Florida and other areas in the storm's path.
"Excluding the hurricane, overall guidance is positive and likely speaks to stabilizing pricing trends for Delta," Cowen said in a research note.
Delta said it expects Q3 passenger unit revenue to rise roughly 2%. Technically, that's down from the forecast of a 2%-3% increase that the carrier gave early last month, but that prior guidance came before hurricanes Irma and Maria hit. When factoring out the effects from Irma, the Q3 forecast offered Tuesday would be for a 3% increase.
Raymond James analyst Savanthi Syth also noted that the would-be 3% increase also fell within Delta's original Q3 unit revenue forecast of a 2.5%-4.5% increase. She noted that international trends in the trans-Atlantic also continued to be better than expected.
Shares of Delta jumped 6.6% to a month-high of 51.25 in the stock market today , retaking their 50- and 200-day average. JetBlue leapt 7.1%, American added 5.8% and Spirit Airlines popped 7.1%. United Airlines ( UAL ) surged 6.1%, and Southwest (LUV) climbed 4.5%.
IBD'S TAKE:As investors fret over airlines' pricing and expansion plans, Elon Musk is looking way, way beyond. Here's a look at how SpaceX could upend companies like Boeing (BA) and the airlines.
Still, Delta said Irma resulted in 2,200 flight cancellations - in Florida, Georgia, the Caribbean and the company's hub in Atlanta - pushing up unit costs. Delta estimated that the storm cost it around $120 million in pretax income, and the carrier cut its Q3 operating margin forecast to 15.5%-16.5% from earlier expectations of 16.5%-17.5%.
For the month of September, traffic rose 0.3% as capacity grew 0.6%. Load factor fell 0.2 percentage points to 84.4%.
A combination of higher fuel prices, natural disasters and worries of a widening discounting black hole have hurt airline stocks and their financial forecasts this summer. Analysts and investors seem likely to focus on airfare pricing - and whether airlines can squeeze it back up - when the industry's earnings season rolls around this month.
While United and American have indicated that they won't take ultralow fares from the likes of Spirit lying down, Delta has suggested they might try to stay above the fray.
During a conference last month, the company said its ultimate goal was to be the world leader in connecting global air traffic and offering the most expansive flight coverage available.
"So if that means that we can't have a product that caters to a consumer that wants to (fly for) $39, that's OK," Delta management said.
RELATED:
Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake
United, American Both Wage Fare War, But Analyst Sours On One Airline
These Airlines Look Like The Biggest Losers In The Latest Price War
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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[ibd-display-video id=2326102 width=50 float=left autostart=true] The forecast appeared to offer some relief to other airlines - including American Airline s ( AAL ), JetBlue ( JBLU ) and Spirit Airlines ( SAVE ) - that send a lot of planes to and from Florida and other areas in the storm's path. Delta Air Lines ( DAL ) jumped on Tuesday after the carrier forecast third-quarter unit revenue that, when factoring out Hurricane Irma, was better than feared. A combination of higher fuel prices, natural disasters and worries of a widening discounting black hole have hurt airline stocks and their financial forecasts this summer.
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[ibd-display-video id=2326102 width=50 float=left autostart=true] The forecast appeared to offer some relief to other airlines - including American Airline s ( AAL ), JetBlue ( JBLU ) and Spirit Airlines ( SAVE ) - that send a lot of planes to and from Florida and other areas in the storm's path. Delta Air Lines ( DAL ) jumped on Tuesday after the carrier forecast third-quarter unit revenue that, when factoring out Hurricane Irma, was better than feared. Raymond James analyst Savanthi Syth also noted that the would-be 3% increase also fell within Delta's original Q3 unit revenue forecast of a 2.5%-4.5% increase.
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[ibd-display-video id=2326102 width=50 float=left autostart=true] The forecast appeared to offer some relief to other airlines - including American Airline s ( AAL ), JetBlue ( JBLU ) and Spirit Airlines ( SAVE ) - that send a lot of planes to and from Florida and other areas in the storm's path. Delta Air Lines ( DAL ) jumped on Tuesday after the carrier forecast third-quarter unit revenue that, when factoring out Hurricane Irma, was better than feared. Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake United, American Both Wage Fare War, But Analyst Sours On One Airline These Airlines Look Like The Biggest Losers In The Latest Price War The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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[ibd-display-video id=2326102 width=50 float=left autostart=true] The forecast appeared to offer some relief to other airlines - including American Airline s ( AAL ), JetBlue ( JBLU ) and Spirit Airlines ( SAVE ) - that send a lot of planes to and from Florida and other areas in the storm's path. Delta Air Lines ( DAL ) jumped on Tuesday after the carrier forecast third-quarter unit revenue that, when factoring out Hurricane Irma, was better than feared. JetBlue leapt 7.1%, American added 5.8% and Spirit Airlines popped 7.1%.
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2805f30a-ae28-46ec-a183-4bd2f1ad87fc
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7332.0
|
2017-10-03 00:00:00 UTC
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Warren Buffett Finds A Place To Invest Some Of Berkshire's $100 Billion
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AAL
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https://www.nasdaq.com/articles/warren-buffett-finds-place-invest-some-berkshires-100-billion-2017-10-03
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nan
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nan
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Warren Buffett's Berkshire Hathaway (BRKB) on Tuesday announced that it will take a minority stake in Pilot Flying J, a large truck-stop and travel-center chain, that will eventually grow to 80%, deploying some of the holding company's massive cash stockpile.
[ibd-display-video id=2326102 width=50 float=left autostart=true]Berkshire in August reported that it had accumulated roughly $100 billion in cash, raising questions about how the company would use it. But the company's recent acquisition attempts have been stymied.
Berkshire was outbid by Sempra Energy ( SRE ) for Oncor Electric Delivery, a large electric utility in Texas. And earlier in the year, Buffett-backed Kraft Heinz ( KHC ) dropped its plans to buy Unilever.
Under the terms of Tuesday's deal, Berkshire will take a 38.6% in Pilot Flying J. The Haslam family will continue to hold a 50.1% ownership in the company until 2023. FJ Management will keep an 11.3% stake until that time.
In 2023, Berkshire will snap up an extra 41.4% stake in Flying Pilot J, giving him 80% total. The Haslam family will keep 20% ownership. Other details of the deal were not disclosed.
"Jimmy Haslam and his team have created an industry leader and a key enabler of the nation's economy," Buffett said in a statement. Haslam is also the owner of the Cleveland Browns NFL team.
"The company has a smart growth strategy in place and we look forward to a partnership that supports the trucking industry for years to come," Buffett continued.
Berkshire's class-B shares dipped 0.2% to 185.41 on the stock market today . TravelCenters of America ( TA ), which also operates roadside stops for truckers and motorists, jumped 8.4% to 4.50.
IBD'S TAKE:Berkshire, a hot growth stock on the IBD 50 list , has racked strong profits and is showing favorable technical traits. Will recent hurricanes damage its performance?
Flying Pilot J, which has more than 750 locations in the U.S. and Canada and serves truckers and interstate travelers, would add to Buffett's transportation-related holdings, which include names like American Airlines ( AAL ) and General Motors ( GM ). Buffett also owns a large chunk of oil refining giant Philipps 66 (PSX).
RELATED:
Warren Buffett: Hurricane Harvey Was Worse Than Irma For Car Insurer Geico
This Berkshire Hathaway Executive May Replace Warren Buffett
Insurance Stocks Tumble As Hurricane Harvey Impact Mounts
Berkshire Hathaway Outbid By Sempra For Oncor Electric Delivery
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Flying Pilot J, which has more than 750 locations in the U.S. and Canada and serves truckers and interstate travelers, would add to Buffett's transportation-related holdings, which include names like American Airlines ( AAL ) and General Motors ( GM ). Warren Buffett's Berkshire Hathaway (BRKB) on Tuesday announced that it will take a minority stake in Pilot Flying J, a large truck-stop and travel-center chain, that will eventually grow to 80%, deploying some of the holding company's massive cash stockpile. Warren Buffett: Hurricane Harvey Was Worse Than Irma For Car Insurer Geico This Berkshire Hathaway Executive May Replace Warren Buffett Insurance Stocks Tumble As Hurricane Harvey Impact Mounts Berkshire Hathaway Outbid By Sempra For Oncor Electric Delivery The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Flying Pilot J, which has more than 750 locations in the U.S. and Canada and serves truckers and interstate travelers, would add to Buffett's transportation-related holdings, which include names like American Airlines ( AAL ) and General Motors ( GM ). Berkshire was outbid by Sempra Energy ( SRE ) for Oncor Electric Delivery, a large electric utility in Texas. Warren Buffett: Hurricane Harvey Was Worse Than Irma For Car Insurer Geico This Berkshire Hathaway Executive May Replace Warren Buffett Insurance Stocks Tumble As Hurricane Harvey Impact Mounts Berkshire Hathaway Outbid By Sempra For Oncor Electric Delivery The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Flying Pilot J, which has more than 750 locations in the U.S. and Canada and serves truckers and interstate travelers, would add to Buffett's transportation-related holdings, which include names like American Airlines ( AAL ) and General Motors ( GM ). Warren Buffett's Berkshire Hathaway (BRKB) on Tuesday announced that it will take a minority stake in Pilot Flying J, a large truck-stop and travel-center chain, that will eventually grow to 80%, deploying some of the holding company's massive cash stockpile. Warren Buffett: Hurricane Harvey Was Worse Than Irma For Car Insurer Geico This Berkshire Hathaway Executive May Replace Warren Buffett Insurance Stocks Tumble As Hurricane Harvey Impact Mounts Berkshire Hathaway Outbid By Sempra For Oncor Electric Delivery The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Flying Pilot J, which has more than 750 locations in the U.S. and Canada and serves truckers and interstate travelers, would add to Buffett's transportation-related holdings, which include names like American Airlines ( AAL ) and General Motors ( GM ). Under the terms of Tuesday's deal, Berkshire will take a 38.6% in Pilot Flying J. The Haslam family will continue to hold a 50.1% ownership in the company until 2023.
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5c200761-9aaf-46d5-92e6-8dd610a2a7b5
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7333.0
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2017-10-03 00:00:00 UTC
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Nasdaq 100 Movers: INCY, PAYX
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-incy-payx-2017-10-03
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nan
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nan
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In early trading on Tuesday, shares of Paychex ( PAYX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%. Year to date, Paychex registers a 2.0% gain.
And the worst performing Nasdaq 100 component thus far on the day is Incyte ( INCY ), trading down 1.8%. Incyte is showing a gain of 12.8% looking at the year to date performance.
Two other components making moves today are Tesla ( TSLA ), trading down 1.6%, and American Airlines Group ( AAL ), trading up 2.6% on the day.
VIDEO: Nasdaq 100 Movers: INCY, PAYX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Tesla ( TSLA ), trading down 1.6%, and American Airlines Group ( AAL ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Incyte ( INCY ), trading down 1.8%. Incyte is showing a gain of 12.8% looking at the year to date performance.
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Two other components making moves today are Tesla ( TSLA ), trading down 1.6%, and American Airlines Group ( AAL ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Incyte ( INCY ), trading down 1.8%. VIDEO: Nasdaq 100 Movers: INCY, PAYX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Tesla ( TSLA ), trading down 1.6%, and American Airlines Group ( AAL ), trading up 2.6% on the day. In early trading on Tuesday, shares of Paychex ( PAYX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%. And the worst performing Nasdaq 100 component thus far on the day is Incyte ( INCY ), trading down 1.8%.
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Two other components making moves today are Tesla ( TSLA ), trading down 1.6%, and American Airlines Group ( AAL ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Incyte ( INCY ), trading down 1.8%. Incyte is showing a gain of 12.8% looking at the year to date performance.
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68529c55-1147-4dab-8393-f14765ce71e2
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7334.0
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2017-10-03 00:00:00 UTC
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Why American Airlines Stock Jumped 6% Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-jumped-6-today-2017-10-03
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nan
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nan
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What happened
Shares of American Airlines Group (NASDAQ: AAL) stock closed up 5.8% on Tuesday after an article in the Dallas Business Journal reported on the company's CEO making some uber-bullish comments about American Airlines' prospects.
Reporting on an investor presentation that American Airlines CEO Doug Parker gave last week, the Journal related the story of an email exchange between Parker and an analyst at investment bank UBS, in which Parker supposedly bet the analyst "a bottle of wine" that American Airlines stock would hit $60 a share before Nov. 25, 2018.
So what
American Airlines stock closed today at $50.51 and with more than a year till its deadline -- so, to date, the bet has still neither been won nor lost.
Then why are investors getting excited right now? Perhaps because of the other thing Parker let slip at that investor meeting: that American Airlines isn't " ever going to lose money again " and that the airline industry as a whole is "going to be profitable in good times and bad."
Now what
Forget about the share price prediction. Those are some pretty bold claims American Airlines' CEO is making. After all, this is a company that filed for bankruptcy just six years ago and has lost money in two out of the past five years. Yet Parker is now promising investors that American Airlines will never lose money again -- let alone go bankrupt.
I don't know if time will prove the CEO right or wrong in his prediction. But just the fact that he feels confident in the near term to make the prediction is apparently enough to give confidence to investors as well.
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 September 5, 2017
Rich Smith 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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What happened Shares of American Airlines Group (NASDAQ: AAL) stock closed up 5.8% on Tuesday after an article in the Dallas Business Journal reported on the company's CEO making some uber-bullish comments about American Airlines' prospects. So what American Airlines stock closed today at $50.51 and with more than a year till its deadline -- so, to date, the bet has still neither been won nor lost. * 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!
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What happened Shares of American Airlines Group (NASDAQ: AAL) stock closed up 5.8% on Tuesday after an article in the Dallas Business Journal reported on the company's CEO making some uber-bullish comments about American Airlines' prospects. So what American Airlines stock closed today at $50.51 and with more than a year till its deadline -- so, to date, the bet has still neither been won nor lost. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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What happened Shares of American Airlines Group (NASDAQ: AAL) stock closed up 5.8% on Tuesday after an article in the Dallas Business Journal reported on the company's CEO making some uber-bullish comments about American Airlines' prospects. Reporting on an investor presentation that American Airlines CEO Doug Parker gave last week, the Journal related the story of an email exchange between Parker and an analyst at investment bank UBS, in which Parker supposedly bet the analyst "a bottle of wine" that American Airlines stock would hit $60 a share before Nov. 25, 2018. 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.
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What happened Shares of American Airlines Group (NASDAQ: AAL) stock closed up 5.8% on Tuesday after an article in the Dallas Business Journal reported on the company's CEO making some uber-bullish comments about American Airlines' prospects. 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!
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3d8cb1bf-f6d7-4597-9ac0-b7bc61be9e0d
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7335.0
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2017-10-03 00:00:00 UTC
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American Airlines CEO Promises Permanent Profitability for His Industry
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AAL
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https://www.nasdaq.com/articles/american-airlines-ceo-promises-permanent-profitability-his-industry-2017-10-03
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nan
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nan
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In this segment of the Motley Fool Money radio show, host Chris Hill, Million Dollar Portfolio 's Jason Moser and Matt Argersinger, and Aaron Bush of Supernova and Rule Breakers discuss the extremely bold assertion by the CEO of American Airlines Group (NASDAQ: AAL) that even in bad times, passenger carriers will henceforth be able to make a profit. Considering how many years that hasn't been the case, and just how many billions they've lost over the decades, how seriously can anyone take this statement?
A full transcript follows the video.
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 September 5, 2017
This video was recorded on Sept. 29, 2017.
Chris Hill: One of Warren Buffett's more colorful quotes about business is that airlines are so bad that if a capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down. Oh, how times have changed, gentlemen. This week, Doug Parker, the CEO of American Airlines, said, "I don't think we're ever going to lose money again. We have an industry that's going to be profitable in good times and bad." Boy, Matty, that is really leaving no wiggle room whatsoever. Are things that good, not just for American Airlines, but for the industry writ large?
Matt Argersinger: I don't know about never losing money again. I'm sure they will find ways to lose money again. But like railroads 15 years ago, when Buffett was getting into railroads, I do think there's been a shift. And it's a major shift. And I think, as investors, we look for places in the market that are cheap, neglected, undervalued. Airlines have been like that for decades. But with the consolidation in the industry, we have the four top airlines now controlling 80% of tickets -- you have the new ability to charge fees for luggage, seat preferences, food, entertainment, that really wasn't there before in pricing.
And the biggest story is, I think, the secular downtrend in oil prices . I think one of the reasons the CEO of American Airlines is making that statement is because he sees a future of much lower oil prices. Forever, that was the biggest operating cost for airlines, was fuel prices. If those are coming down, and airplanes themselves are more efficient, that does paint a more profitable future. Morningstar just came out with a recent report that I found interesting, and they kind of agree with the sentiment by American Airlines CEO by saying, even in a recession or the aftermath of a shock like a terrorist event, those things used to really cause terrible havoc for the airlines. Now, they think even in those environments, they're going to be profitable.
So there's agreement there. It's not just a boom-and-bust industry anymore. So I have to say, I think it's a time to look at airlines.
Jason Moser: I mean, never losing money, that's a very bold statement. I imagine at some point or another, they whip out the old non-GAAP card, or adjusted earnings or whatever, if they have a less-than-stellar quarter. But never losing money, that just seems to me a very bold statement for a historically tough, tough investment.
Hill: I don't know Doug Parker, and I'm not a shareholder of American Airlines, but I was just trying to think, any stock that I own, any company that I'm a part owner of, would I want that CEO to come out and say something like that? Howard Schultz, he's not running Starbucks anymore, but even if you're an Apple shareholder, do you want Tim Cook coming out and saying something like that?
Moser: I'm a bit more of an under-promise and over-deliver guy, Chris.
Chris Hill owns shares of Starbucks. Jason Moser owns shares of Apple and Starbucks. Matthew Argersinger owns shares of Apple and Starbucks. The Motley Fool owns shares of and recommends Apple and Starbucks. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this segment of the Motley Fool Money radio show, host Chris Hill, Million Dollar Portfolio 's Jason Moser and Matt Argersinger, and Aaron Bush of Supernova and Rule Breakers discuss the extremely bold assertion by the CEO of American Airlines Group (NASDAQ: AAL) that even in bad times, passenger carriers will henceforth be able to make a profit. Chris Hill: One of Warren Buffett's more colorful quotes about business is that airlines are so bad that if a capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down. But with the consolidation in the industry, we have the four top airlines now controlling 80% of tickets -- you have the new ability to charge fees for luggage, seat preferences, food, entertainment, that really wasn't there before in pricing.
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In this segment of the Motley Fool Money radio show, host Chris Hill, Million Dollar Portfolio 's Jason Moser and Matt Argersinger, and Aaron Bush of Supernova and Rule Breakers discuss the extremely bold assertion by the CEO of American Airlines Group (NASDAQ: AAL) that even in bad times, passenger carriers will henceforth be able to make a profit. Chris Hill owns shares of Starbucks. Jason Moser owns shares of Apple and Starbucks.
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In this segment of the Motley Fool Money radio show, host Chris Hill, Million Dollar Portfolio 's Jason Moser and Matt Argersinger, and Aaron Bush of Supernova and Rule Breakers discuss the extremely bold assertion by the CEO of American Airlines Group (NASDAQ: AAL) that even in bad times, passenger carriers will henceforth be able to make a profit. This week, Doug Parker, the CEO of American Airlines, said, "I don't think we're ever going to lose money again. Hill: I don't know Doug Parker, and I'm not a shareholder of American Airlines, but I was just trying to think, any stock that I own, any company that I'm a part owner of, would I want that CEO to come out and say something like that?
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In this segment of the Motley Fool Money radio show, host Chris Hill, Million Dollar Portfolio 's Jason Moser and Matt Argersinger, and Aaron Bush of Supernova and Rule Breakers discuss the extremely bold assertion by the CEO of American Airlines Group (NASDAQ: AAL) that even in bad times, passenger carriers will henceforth be able to make a profit. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market. This week, Doug Parker, the CEO of American Airlines, said, "I don't think we're ever going to lose money again.
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21967ef8-4754-4e9d-8576-282daffba889
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7336.0
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2017-10-03 00:00:00 UTC
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Dow Jones Leads As Stocks In This Group Keep Reaching Buy Points
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AAL
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https://www.nasdaq.com/articles/dow-jones-leads-stocks-group-keep-reaching-buy-points-2017-10-03
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nan
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nan
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Stocks held modest gains in afternoon trading Tuesday as the Nasdaq composite and S&P 500 reached record highs for the third day in a row.
[ibd-display-video id=2326213 width=50 float=left autostart=true]The Dow climbed 0.4% and also made a new high, while the Nasdaq was up 0.1% as fiber-optic, semiconductor and generic drug industry groups lagged. The S&P 500 also rose 0.1%.
But the Russell 2000 eased 0.3%. The small-cap benchmark may be due for a breather after a nearly 12% surge from its Aug. 18 low.
Volume was higher on the Nasdaq and lower on the NYSE compared with the same time Monday. Advancers and decliners were about even across the board.
Airlines were Tuesday's best-performing industry group after Delta Air Lines ( DAL ) forecast third-quarter unit revenue higher than expected when factoring out the impact of Hurricane Irma. Delta shares surged 6% as they climbed above the 50-day moving average.
Other airlines rose in sympathy. American Airlines ( AAL ) leapt more than 4% and solidified a move above the 50-day line. JetBlue ( JBLU ) climbed nearly 7%, Southwest Airlines ( LUV ) got a 4% lift and Spirit Airlines ( SAVE ) jumped 5%.
A few financials rose above buy points, but the breakouts were uninspiring and in limp volume.
S&P Global (SPGI) broke out past the 158.45 buy point of a flat base , but volume was half its normal pace. Houlihan Lokey (HLI) topped the 39.78 buy point in below-average trade. Ameriprise Financial (AMP) edged above its 150.08 buy point, but volume was less than half its average and the stock ducked back below its entry.
But homebuilders continued to make significant moves as the group holds on to a top-20 ranking among IBD's 197 industry groups.
Tri Pointe Group (TPH) poked above the 14.31 buy point of a cup without handle .
Lennar (LEN) is climbing toward a 55.85 buy point but topped an alternative entry at 54.96. Lennar beat expectations with quarterly earnings of $1.06 a share, up 5% vs. a year earlier. Revenue climbed about 15% to $3.26 billion. Deliveries rose 12% to 7,598 homes. Orders grew 8% to 7,610, or 14% in dollar value.
KB Home (KBH), D.R. Horton (DHI), LGI Homes (LGIH), Toll Bros. (TOL) and Meritage Homes (MTH) are other builders that have broken out in the past several days. The mass of breakouts shows a healthy rotation into this group of stocks.
RELATED:
When To Buy A Great Stock: Learn The Cup With Handle, A Bullish Chart Pattern
Here's Why Delta, JetBlue And Other Airlines Are Surging Today
Lennar Nears Buy Point On Earnings Surprise As Builders Break Out
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 ) leapt more than 4% and solidified a move above the 50-day line. Stocks held modest gains in afternoon trading Tuesday as the Nasdaq composite and S&P 500 reached record highs for the third day in a row. [ibd-display-video id=2326213 width=50 float=left autostart=true]The Dow climbed 0.4% and also made a new high, while the Nasdaq was up 0.1% as fiber-optic, semiconductor and generic drug industry groups lagged.
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American Airlines ( AAL ) leapt more than 4% and solidified a move above the 50-day line. Airlines were Tuesday's best-performing industry group after Delta Air Lines ( DAL ) forecast third-quarter unit revenue higher than expected when factoring out the impact of Hurricane Irma. When To Buy A Great Stock: Learn The Cup With Handle, A Bullish Chart Pattern Here's Why Delta, JetBlue And Other Airlines Are Surging Today Lennar Nears Buy Point On Earnings Surprise As Builders Break Out The views and 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 ) leapt more than 4% and solidified a move above the 50-day line. Airlines were Tuesday's best-performing industry group after Delta Air Lines ( DAL ) forecast third-quarter unit revenue higher than expected when factoring out the impact of Hurricane Irma. Tri Pointe Group (TPH) poked above the 14.31 buy point of a cup without handle .
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American Airlines ( AAL ) leapt more than 4% and solidified a move above the 50-day line. Delta shares surged 6% as they climbed above the 50-day moving average. Other airlines rose in sympathy.
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e106d818-c1a7-44ea-b83e-0b0f029c1561
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7337.0
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2017-10-03 00:00:00 UTC
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Noteworthy Tuesday Option Activity: AAL, FFIV, WHR
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-aal-ffiv-whr-2017-10-03
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,133 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.9% of AAL's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $50 strike call option expiring November 17, 2017 , with 3,255 contracts trading so far today, representing approximately 325,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange:
F5 Networks, Inc. (Symbol: FFIV) saw options trading volume of 3,536 contracts, representing approximately 353,600 underlying shares or approximately 48% of FFIV's average daily trading volume over the past month, of 736,110 shares. Especially high volume was seen for the $121 strike put option expiring October 06, 2017 , with 888 contracts trading so far today, representing approximately 88,800 underlying shares of FFIV. Below is a chart showing FFIV's trailing twelve month trading history, with the $121 strike highlighted in orange:
And Whirlpool Corp (Symbol: WHR) options are showing a volume of 3,380 contracts thus far today. That number of contracts represents approximately 338,000 underlying shares, working out to a sizeable 45.5% of WHR's average daily trading volume over the past month, of 742,070 shares. Especially high volume was seen for the $190 strike call option expiring October 06, 2017 , with 1,780 contracts trading so far today, representing approximately 178,000 underlying shares of WHR. Below is a chart showing WHR's trailing twelve month trading history, with the $190 strike highlighted in orange:
For the various different available expirations for AAL options , FFIV options , or WHR 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 November 17, 2017 , with 3,255 contracts trading so far today, representing approximately 325,500 underlying shares of AAL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,133 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.9% of AAL's average daily trading volume over the past month, of 6.6 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: F5 Networks, Inc. (Symbol: FFIV) saw options trading volume of 3,536 contracts, representing approximately 353,600 underlying shares or approximately 48% of FFIV's average daily trading volume over the past month, of 736,110 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 34,133 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.9% of AAL's average daily trading volume over the past month, of 6.6 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,133 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: F5 Networks, Inc. (Symbol: FFIV) saw options trading volume of 3,536 contracts, representing approximately 353,600 underlying shares or approximately 48% of FFIV's average daily trading volume over the past month, of 736,110 shares. That number works out to 51.9% of AAL's average daily trading volume over the past month, of 6.6 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,133 contracts has been traded thus far today, a contract volume which is representative of approximately 3.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: F5 Networks, Inc. (Symbol: FFIV) saw options trading volume of 3,536 contracts, representing approximately 353,600 underlying shares or approximately 48% of FFIV's average daily trading volume over the past month, of 736,110 shares. That number works out to 51.9% of AAL's average daily trading volume over the past month, of 6.6 million shares.
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7d204214-575a-4c12-815c-4fbbe747ffda
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7338.0
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2017-10-02 00:00:00 UTC
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New Strong Sell Stocks for October 2nd
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AAL
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-october-2nd-2017-10-02
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
American Airlines Group Inc.AAL is a network air carrier. The Zacks Consensus Estimate for its current year earnings has been revised 8.7% downward over the last 30 days.
Campbell Soup CompanyCPB is a manufacturer and marketer of food and beverage products. The Zacks Consensus Estimate for its current year earnings has been revised 0.7% downward over the last 30 days.
Lancaster Colony CorporationLANC is a manufacturer and marketer of specialty food products. The Zacks Consensus Estimate for its current year earnings has been revised 2.1% downward over the last 30 days.
MaxLinear, Inc.MXL is a provider of radio-frequency (RF) and mixed-signal circuits. The Zacks Consensus Estimate for its current year earnings has been revised 0.7% downward over the last 30 days.
NN, Inc.NNBR is a diversified industrial company. The Zacks Consensus Estimate for its current year earnings has been revised 1.9% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Campbell Soup Company (CPB): Free Stock Analysis Report
Lancaster Colony Corporation (LANC): Free Stock Analysis Report
NN, Inc. (NNBR): Free Stock Analysis Report
MaxLinear, Inc (MXL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc.AAL is a network air carrier. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Campbell Soup Company (CPB): Free Stock Analysis Report Lancaster Colony Corporation (LANC): Free Stock Analysis Report NN, Inc. (NNBR): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for its current year earnings has been revised 8.7% downward over the last 30 days.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Campbell Soup Company (CPB): Free Stock Analysis Report Lancaster Colony Corporation (LANC): Free Stock Analysis Report NN, Inc. (NNBR): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc.AAL is a network air carrier. The Zacks Consensus Estimate for its current year earnings has been revised 8.7% downward over the last 30 days.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Campbell Soup Company (CPB): Free Stock Analysis Report Lancaster Colony Corporation (LANC): Free Stock Analysis Report NN, Inc. (NNBR): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc.AAL is a network air carrier. The Zacks Consensus Estimate for its current year earnings has been revised 8.7% downward over the last 30 days.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: American Airlines Group Inc.AAL is a network air carrier. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Campbell Soup Company (CPB): Free Stock Analysis Report Lancaster Colony Corporation (LANC): Free Stock Analysis Report NN, Inc. (NNBR): Free Stock Analysis Report MaxLinear, Inc (MXL): Free Stock Analysis Report To read this article on Zacks.com click here. View the entire Zacks Rank #5 List .
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95e0e4e6-5aec-4935-898a-9e86c4f9df7b
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7339.0
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2017-09-28 00:00:00 UTC
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Southwest Airlines Cuts Revenue Guidance In Wake Of Hurricanes, Earthquake
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-cuts-revenue-guidance-wake-hurricanes-earthquake-2017-09-28
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nan
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nan
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Southwest Airlines ( LUV ) on Thursday cut its third-quarter unit revenue outlook in the wake of hurricanes that have sheared through Texas and Florida and left Puerto Rico without electricity and the earthquakes that have devastated large parts of Mexico.
[ibd-display-video id=2323629 width=50 float=left autostart=true]The forecast comes as the impact from the storms continues to add up for the airlines. United Airlines ( UAL ) () this month lowered its Q3 unit revenue outlook due to the impact of Hurricane Harvey. American Airlines ( AAL ) followed, cutting its unit revenue forecast after Hurricane Irma forced 40 airports to close in Florida and the Caribbean, including the carrier's Miami hub.
It also comes as airlines across the globe suffered from flight delays due to a "network issue" at a flight booking system run by Amadeus IT Group, according to Bloomberg.
Southwest on Thursday said it expects third-quarter operating unit revenue, or an airline's revenue in relation to its overall flight capacity, to be flat to down 1%, compared with a forecast of down 1% to "slightly up" given earlier this month. Before that, the carrier expected a 1% gain in the key metric.
The carrier said it had canceled roughly 5,000 flights through Sept. 27 due to the natural disasters. And it said it expects the disasters to cost around $100 million.
The company now sees third-quarter operating unit up, excluding fuel, oil and other items, to rise in the 3%-4% range.
Southwest also cited the "current industry revenue environment" in cutting its unit revenue guidance. Lower fares, combined with higher fuel costs, have prompted the industry to temper its outlook for unit revenue for the third quarter. United, in particular, has been engaged in an airfare battle with Spirit Airlines ( SAVE ) at some of United's largest hubs.
IBD'S TAKE:With airline earnings season set to begin next month, buying or holding a stock can be risky heading into an earnings report. Here's an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.
Investors may have already priced in the impact of recent natural disasters. Southwest rose 0.5% to 56.17 in the stock market today , while United advanced 0.4%. Delta Air Lines ( DAL ) climbed 1.2%, American Airlines 1.4% and Spirit 0.1%.
RELATED:
United, American Both Wage Fare War, But Analyst Sours On One Airline
United To Scale Back Basic Economy Amid Price War With Low-Cost Rivals
These Airlines Look Like The Biggest Losers In The Latest Price War
Delta Cuts Revenue, Margin Targets As Airline Competition Heats Up
Airline Industry News And Stocks To Watch
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 ) followed, cutting its unit revenue forecast after Hurricane Irma forced 40 airports to close in Florida and the Caribbean, including the carrier's Miami hub. Southwest Airlines ( LUV ) on Thursday cut its third-quarter unit revenue outlook in the wake of hurricanes that have sheared through Texas and Florida and left Puerto Rico without electricity and the earthquakes that have devastated large parts of Mexico. Lower fares, combined with higher fuel costs, have prompted the industry to temper its outlook for unit revenue for the third quarter.
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American Airlines ( AAL ) followed, cutting its unit revenue forecast after Hurricane Irma forced 40 airports to close in Florida and the Caribbean, including the carrier's Miami hub. United Airlines ( UAL ) () this month lowered its Q3 unit revenue outlook due to the impact of Hurricane Harvey. Southwest on Thursday said it expects third-quarter operating unit revenue, or an airline's revenue in relation to its overall flight capacity, to be flat to down 1%, compared with a forecast of down 1% to "slightly up" given earlier this month.
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American Airlines ( AAL ) followed, cutting its unit revenue forecast after Hurricane Irma forced 40 airports to close in Florida and the Caribbean, including the carrier's Miami hub. United Airlines ( UAL ) () this month lowered its Q3 unit revenue outlook due to the impact of Hurricane Harvey. Southwest on Thursday said it expects third-quarter operating unit revenue, or an airline's revenue in relation to its overall flight capacity, to be flat to down 1%, compared with a forecast of down 1% to "slightly up" given earlier this month.
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American Airlines ( AAL ) followed, cutting its unit revenue forecast after Hurricane Irma forced 40 airports to close in Florida and the Caribbean, including the carrier's Miami hub. United Airlines ( UAL ) () this month lowered its Q3 unit revenue outlook due to the impact of Hurricane Harvey. Southwest on Thursday said it expects third-quarter operating unit revenue, or an airline's revenue in relation to its overall flight capacity, to be flat to down 1%, compared with a forecast of down 1% to "slightly up" given earlier this month.
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caea01b1-100d-439b-884d-2cdae58120f1
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7340.0
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2017-09-28 00:00:00 UTC
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Nasdaq 100 Movers: QVCA, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-qvca-aal-2017-09-28
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nan
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nan
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.1%. Year to date, American Airlines Group registers a 2.4% gain.
And the worst performing Nasdaq 100 component thus far on the day is Liberty Interactive ( QVCA ), trading down 4.3%. Liberty Interactive is showing a gain of 15.8% looking at the year to date performance.
Two other components making moves today are JD.com ( JD ), trading down 2.8%, and Incyte ( INCY ), trading up 1.5% on the day.
VIDEO: Nasdaq 100 Movers: QVCA, AAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.1%. VIDEO: Nasdaq 100 Movers: QVCA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, American Airlines Group registers a 2.4% gain.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.1%. VIDEO: Nasdaq 100 Movers: QVCA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Liberty Interactive ( QVCA ), trading down 4.3%.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.1%. VIDEO: Nasdaq 100 Movers: QVCA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Liberty Interactive ( QVCA ), trading down 4.3%.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.1%. VIDEO: Nasdaq 100 Movers: QVCA, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Liberty Interactive ( QVCA ), trading down 4.3%.
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4080aecf-40ac-4a2f-ad60-f4a946e818ea
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7341.0
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2017-09-28 00:00:00 UTC
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Alaska Air Group Arms Start San Francisco-New Orleans Service
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AAL
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https://www.nasdaq.com/articles/alaska-air-group-arms-start-san-francisco-new-orleans-service-2017-09-28
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nan
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nan
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Alaska Air Group Inc. 's ALK subsidiaries Alaska Airlines and Virgin America have introduced a daily nonstop service between San Francisco International Airport and Louis Armstrong New Orleans International Airport, connecting the Bay Area.
The new route will be operated on Virgin America's Airbus A320 family of aircrafts, featuring power outlets across the cabin, food and beverages, inspired by local chefs, besides several other modern amenities.
With this service, the carrier intends to expand its Bay Area footprint with 18 new markets. By this year-end, Alaska Airlines and Virgin America hope to grow by covering 42 destinations from the major Bay Area airports.
The carrier, like its fellow airline operators, American Airlines AAL and JetBlue Airways JBLU has been constantly looking to expand its operations. To this end, it recently began daily, nonstop operations from San Jose, CA to Austin, TX and Tucson, AZ. Following these additional flights, the company widens base in California, offering nonstop services to 18 destinations from Mineta San Jose International Airport.
Moreover, it introduced flights to Mexico City from San Francisco and Los Angeles last month. It further aims to launch a service from San Diego to Mexico City ahead in November.
Another airline heavyweight Delta Air Lines DAL too has been following suit. Most recently, the carrier announced plans to offer customers with more continuous flights to Europe from its hubs at Los Angeles, New York-JFK, Atlanta and Detroit.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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
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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The carrier, like its fellow airline operators, American Airlines AAL and JetBlue Airways JBLU has been constantly looking to expand its operations. 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. The new route will be operated on Virgin America's Airbus A320 family of aircrafts, featuring power outlets across the cabin, food and beverages, inspired by local chefs, besides several other modern amenities.
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The carrier, like its fellow airline operators, American Airlines AAL and JetBlue Airways JBLU has been constantly looking to expand its operations. 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group Inc. 's ALK subsidiaries Alaska Airlines and Virgin America have introduced a daily nonstop service between San Francisco International Airport and Louis Armstrong New Orleans International Airport, connecting the Bay Area.
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier, like its fellow airline operators, American Airlines AAL and JetBlue Airways JBLU has been constantly looking to expand its operations. Alaska Air Group Inc. 's ALK subsidiaries Alaska Airlines and Virgin America have introduced a daily nonstop service between San Francisco International Airport and Louis Armstrong New Orleans International Airport, connecting the Bay Area.
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier, like its fellow airline operators, American Airlines AAL and JetBlue Airways JBLU has been constantly looking to expand its operations. Alaska Air Group Inc. 's ALK subsidiaries Alaska Airlines and Virgin America have introduced a daily nonstop service between San Francisco International Airport and Louis Armstrong New Orleans International Airport, connecting the Bay Area.
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d65f46ce-18d6-4480-a2f4-84e73671a831
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7342.0
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2017-09-28 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Bayerische Motoren Werke, Deutsche Lufthansa, Delta, American Airlines and Air France-KLM
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-bayerische-motoren-werke-deutsche-lufthansa-delta
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nan
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nan
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For Immediate Release
Chicago, IL - September 28, 2017 - 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 Bayerische Motoren Werke AG (OTCMKTS:BAMXF- Free Report ) , Deutsche Lufthansa (OTCMKTS:DLAKY- Free Report ) , Delta (NYSE: DAL- Free Report ), American Airlines (Nasdaq: AAL- Free Report ) and Air France-KLM SA (NYSE:AF- Free Report ) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
3 Foreign Stocks for Value and Growth Investors to Buy Now
For some investors, the search for undervalued stocks can be paramount. But on top of this, investors want stocks that have the potential to outperform the market in the near term.
To accomplish this, investors look at several key valuation metrics. For example, a low P/E ratio is one of the more common value-based metrics that investors tend to keep their eyes on. On top of that, other value-focused stats, such as the P/S ratio, must be taken into consideration.
Still, along with value, investors often want to buy companies that are set to grow at an impressive rate. And this is where pairing basic value and growth metrics with strong Zacks Rank stocks can come in handy.
Today, we'll look at three foreign companies, which are household names in many parts of the world, that are currently sporting a Zacks Rank #1 (Strong Buy), as well as value and growth metrics that might prove enticing for investors.
Bayerische Motoren Werke AG(OTCMKTS: BAMXF- Free Report )
This German automotive powerhouse is the parent company of three of the most recognizable and iconic auto brands: BMW, MINI, and Rolls-Royce. The firm boasts a "B" grade for Value and an "A" for Momentum in our Style Scores system, helping it earn an overall VGM grade of "A."
With a current P/E ratio of 7.44, which beats the "Automotive - Foreign" industry average of 8.15, BAMXF is trading far below the S&P 500 average. The company's P/S ratio of 0.57 and 1.15 P/B ratio are both strong. BAMXF's Cash Flow per share of 21.81 crushes the industry average of 6.13, while its Price/Cash Flow ratio of 4.61 also presents value compared to the industry's 5.43 ratio.
After seeing its stock price pop 21.89% over the last year, which outpaced the industry average of 13.37%, the company is set to keep growing. Based on our current consensus estimates, the company's sales are set to jump 12.41% for the year to hit $117.16 billion. Also, the auto giant's earnings are projected to pop 17.46% this year.
Deutsche Lufthansa(OTCMKTS: DLAKY- Free Report )
Deutsche Lufthansa is another German giant that helps people get from point A to B. The company operates within the Lufthansa Group and is the largest German airline. Its shares have soared 111.14% since the start of the year, which is far above "Transportation - Airline" industry average of 12%.
Lufthansa currently rocks "A" grades for Value, Growth, and Momentum. The company is currently trading at 6.17x earnings, which marks a discount to the S&P 500 average as well as the industry's 10.41 average P/E Ratio.
Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta (NYSE: DAL- Free Report ) and American Airlines (Nasdaq: AAL- Free Report ). On top of that, the German airline company's 6.27% EPS growth projection crushes the industry's 2.29% average, meaning that Lufthansa could be a better-than-average growth pick in the airline industry.
Air France-KLM SA(NYSE: AF- Free Report )
Closing out this roundup of value-driven foreign stocks with solid growth potential is French-Dutch airline power Air France-KLM. Since the beginning of the year, the company's shares have skyrocketed 187.13%. And growth seems poised to continue as Air France-KLM has received one positive earnings estimate revision for its current full-year and one for the following year, all within the last 60 days.
According to our current consensus estimates, the company's earnings are projected to climb 76.39% this year. Based on these same estimates, the airline giant's revenues are set to rise by 9.35% and top $29.90 billion.
Air France-KLM earned an "A" for Value, along with a "B" for Growth and an "A" for Momentum. With a P/S Ratio of 0.17, investors pay just $0.17 for every dollar of Air France-KLM sales, making it one of the best ratios in the industry. The airline conglomerate's 6.06 P/E Ratio also marks a discount to the industry.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on BAMXF - FREE
Get the full Report on DLAKY - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report
Astoria Financial Corporation (AF): 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 Bayerische Motoren Werke AG (OTCMKTS:BAMXF- Free Report ) , Deutsche Lufthansa (OTCMKTS:DLAKY- Free Report ) , Delta (NYSE: DAL- Free Report ), American Airlines (Nasdaq: AAL- Free Report ) and Air France-KLM SA (NYSE:AF- Free Report ) . Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta (NYSE: DAL- Free Report ) and American Airlines (Nasdaq: AAL- Free Report ). Get the full Report on BAMXF - FREE Get the full Report on DLAKY - FREE Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on AF - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Bayerische Motoren Werke AG (OTCMKTS:BAMXF- Free Report ) , Deutsche Lufthansa (OTCMKTS:DLAKY- Free Report ) , Delta (NYSE: DAL- Free Report ), American Airlines (Nasdaq: AAL- Free Report ) and Air France-KLM SA (NYSE:AF- Free Report ) . Get the full Report on BAMXF - FREE Get the full Report on DLAKY - FREE Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on AF - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report Astoria Financial Corporation (AF): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Bayerische Motoren Werke AG (OTCMKTS:BAMXF- Free Report ) , Deutsche Lufthansa (OTCMKTS:DLAKY- Free Report ) , Delta (NYSE: DAL- Free Report ), American Airlines (Nasdaq: AAL- Free Report ) and Air France-KLM SA (NYSE:AF- Free Report ) . Get the full Report on BAMXF - FREE Get the full Report on DLAKY - FREE Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on AF - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report Astoria Financial Corporation (AF): Free Stock Analysis Report To read this article on Zacks.com click here.
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Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta (NYSE: DAL- Free Report ) and American Airlines (Nasdaq: AAL- Free Report ). Stocks recently featured in the blog include Bayerische Motoren Werke AG (OTCMKTS:BAMXF- Free Report ) , Deutsche Lufthansa (OTCMKTS:DLAKY- Free Report ) , Delta (NYSE: DAL- Free Report ), American Airlines (Nasdaq: AAL- Free Report ) and Air France-KLM SA (NYSE:AF- Free Report ) . Get the full Report on BAMXF - FREE Get the full Report on DLAKY - FREE Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on AF - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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3e58790a-dfeb-4277-8960-85e57b46ba6b
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7343.0
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2017-09-27 00:00:00 UTC
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Delta Air Lines Offers Customers More Options to Europe
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-offers-customers-more-options-to-europe-2017-09-27
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nan
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nan
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Delta Air Lines, Inc.DAL has announced plans to expand between United States and Europe, starting next year. It will offer customers more nonstop services to Europe from its hubs at Los Angeles, New York-JFK, Atlanta and Detroit.
The carrier will start nonstop flights connecting Los Angeles with Paris and Amsterdam from Jun 16, 2018. Flights on the route will ply on the new Boeing 777-200LR aircraft.
Delta will further offer seasonal operations from the New York-JFK airport to Ponta Delgada-Azores hub in Portugal, beginning May 24 in the coming year. Additionally, it will also offer a year-round service to Lagos, Nigeria from Mar 24 onward. The carrier also intends to upgrade the existing route between New York-JFK and London-LHR with the advanced Airbus A330 aircraft.
From Atlanta, Delta will offer daily seasonal service to Lisbon from May 24 onward. Flights on this route will operate on a Boeing 767 aircraft and run through Sep 4, 2018.
Delta will also begin a third daily roundtrip connecting Detroit and Paris from May 16. This will be a build up on the existing service offered by the carrier along with partner Air France-KLM AFLYY .
The carrier will additionally initiate its previously announced year-round service between Orlando and Amsterdam, starting Mar 30, next year. It will also offer an additional flight between Indianapolis and Paris, come May 24 onward.
Delta, like its peers American Airlines AAL and JetBlue Airways JBLU , has been constantly looking to expand foothold in various places across the globe. To this end, the carrier recently announced intention to launch non-stop flights connecting Atlanta and Shanghai. The new service will be operational from July next year.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor's Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide 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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta, like its peers American Airlines AAL and JetBlue Airways JBLU , has been constantly looking to expand foothold in various places across the globe. 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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Delta will further offer seasonal operations from the New York-JFK airport to Ponta Delgada-Azores hub in Portugal, beginning May 24 in the coming year.
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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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Delta, like its peers American Airlines AAL and JetBlue Airways JBLU , has been constantly looking to expand foothold in various places across the globe. The carrier will start nonstop flights connecting Los Angeles with Paris and Amsterdam from Jun 16, 2018.
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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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Delta, like its peers American Airlines AAL and JetBlue Airways JBLU , has been constantly looking to expand foothold in various places across the globe. 4 Stocks to Watch after the Massive Equifax Hack Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans.
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Delta, like its peers American Airlines AAL and JetBlue Airways JBLU , has been constantly looking to expand foothold in various places across the globe. 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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier will additionally initiate its previously announced year-round service between Orlando and Amsterdam, starting Mar 30, next year.
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b5963067-231d-4fd3-a747-f6d56e23757d
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7344.0
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2017-09-27 00:00:00 UTC
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3 Foreign Stocks for Value & Growth Investors to Buy Now
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AAL
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https://www.nasdaq.com/articles/3-foreign-stocks-value-growth-investors-buy-now-2017-09-27
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nan
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nan
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For some investors, the search for undervalued stocks can be paramount. But on top of this, investors want stocks that have the potential to outperform the market in the near term.
To accomplish this, investors look at several key valuation metrics. For example, a low P/E ratio is one of the more common value-based metrics that investors tend to keep their eyes on. On top of that, other value-focused stats, such as the P/S ratio, must be taken into consideration.
Still, along with value, investors often want to buy companies that are set to grow at an impressive rate. And this is where pairing basic value and growth metrics with strong Zacks Rank stocks can come in handy.
Today, we'll look at three foreign companies, which are household names in many parts of the world, that are currently sporting a Zacks Rank #1 (Strong Buy), as well as value and growth metrics that might prove enticing for investors.
Bayerische Motoren Werke AG BAMXF
This German automotive powerhouse is the parent company of three of the most recognizable and iconic auto brands: BMW, MINI, and Rolls-Royce. The firm boasts a "B" grade for Value and an "A" for Momentum in our Style Scores system, helping it earn an overall VGM grade of "A."
With a current P/E ratio of 7.44, which beats the "Automotive - Foreign" industry average of 8.15, BAMXF is trading far below the S&P 500 average. The company's P/S ratio of 0.57 and 1.15 P/B ratio are both strong. BAMXF's Cash Flow per share of 21.81 crushes the industry average of 6.13, while its Price/Cash Flow ratio of 4.61 also presents value compared to the industry's 5.43 ratio.
After seeing its stock price pop 21.89% over the last year, which outpaced the industry average of 13.37%, the company is set to keep growing. Based on our current consensus estimates, the company's sales are set to jump 12.41% for the year to hit $117.16 billion. Also, the auto giant's earnings are projected to pop 17.46% this year.
Deutsche Lufthansa DLAKY
Deutsche Lufthansa is another German giant that helps people get from point A to B. The company operates within the Lufthansa Group and is the largest German airline. Its shares have soared 111.14% since the start of the year, which is far above "Transportation - Airline" industry average of 12%.
Lufthansa currently rocks "A" grades for Value, Growth, and Momentum. The company is currently trading at 6.17x earnings, which marks a discount to the S&P 500 average as well as the industry's 10.41 average P/E Ratio.
Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta DAL and American Airlines AAL . On top of that, the German airline company's 6.27% EPS growth projection crushes the industry's 2.29% average, meaning that Lufthansa could be a better-than-average growth pick in the airline industry.
Air France-KLM SA AF
Closing out this roundup of value-driven foreign stocks with solid growth potential is French-Dutch airline power Air France-KLM. Since the beginning of the year, the company's shares have skyrocketed 187.13%. And growth seems poised to continue as Air France-KLM has received one positive earnings estimate revision for its current full-year and one for the following year, all within the last 60 days.
According to our current consensus estimates, the company's earnings are projected to climb 76.39% this year. Based on these same estimates, the airline giant's revenues are set to rise by 9.35% and top $29.90 billion.
Air France-KLM earned an "A" for Value, along with a "B" for Growth and an "A" for Momentum. With a P/S Ratio of 0.17, investors pay just $0.17 for every dollar of Air France-KLM sales, making it one of the best ratios in the industry. The airline conglomerate's 6.06 P/E Ratio also marks a discount to the industry.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report
Astoria Financial Corporation (AF): 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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Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta DAL and American Airlines AAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report Astoria Financial Corporation (AF): Free Stock Analysis Report To read this article on Zacks.com click here. Today, we'll look at three foreign companies, which are household names in many parts of the world, that are currently sporting a Zacks Rank #1 (Strong Buy), as well as value and growth metrics that might prove enticing for investors.
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Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta DAL and American Airlines AAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report Astoria Financial Corporation (AF): Free Stock Analysis Report To read this article on Zacks.com click here. Bayerische Motoren Werke AG BAMXF This German automotive powerhouse is the parent company of three of the most recognizable and iconic auto brands: BMW, MINI, and Rolls-Royce.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report Astoria Financial Corporation (AF): Free Stock Analysis Report To read this article on Zacks.com click here. Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta DAL and American Airlines AAL . The company is currently trading at 6.17x earnings, which marks a discount to the S&P 500 average as well as the industry's 10.41 average P/E Ratio.
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Lufthansa's P/S Ratio of 0.35 is also far "better" than the airline industry average of 0.81 and below U.S. giants Delta DAL and American Airlines AAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report Astoria Financial Corporation (AF): Free Stock Analysis Report To read this article on Zacks.com click here. Today, we'll look at three foreign companies, which are household names in many parts of the world, that are currently sporting a Zacks Rank #1 (Strong Buy), as well as value and growth metrics that might prove enticing for investors.
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027e8eb1-abfd-4d95-ad52-e910bb9129a3
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7345.0
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2017-09-26 00:00:00 UTC
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Why Hold Strategy is Apt for American Airlines (AAL) Stock
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AAL
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https://www.nasdaq.com/articles/why-hold-strategy-is-apt-for-american-airlines-aal-stock-2017-09-26
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nan
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nan
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American Airlines Group, Inc. AAL has its share of positives despite the disastrous effects from back-to-back natural calamities.
On a positive note, shares of the company have been performing well of late. The stock has gained 6.1%, outperforming the industry 's gain of 3.2% in a month.
American Airlines' fleet modernization efforts are impressive. The company intends to spend approximately $4.1 billion this year toward fleet upgrade. It is on track to introduce 399 new planes by the year-end since the merger in December 2013.
The carrier's initiatives to reward shareholders through share buybacks and dividend payments are also encouraging. The carrier has returned more than $10.7 billion to stockholders via share repurchases and dividends since mid-2014.
The carrier's expansion initiatives also raise optimism. Toward this end, in March this year, American Airlines had purchased a minority stake in China Southern Airlines ZNH with an investment of approximately $200 million in the Hong Kong-listed shares of China Southern. The move to expand in China is prudent considering that the country is projected to become the largest aviation market by 2024.
The carrier's efforts to extend its European footprint are also encouraging. Last month, the company announced new flights to Europe, catering to high customer demands for Europe travel during summer. The airline will offer special summer services to Budapest and Prague from Philadelphia, plus an additional flight to Venice from Chicago, beginning May 4, 2018.
Keeping the above mentioned positives in view, we believe, investors should currently retain the American Airlines stock.
Zacks Rank & Key Picks
American Airlines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in airline space are Air France-KLM SA AFLYY and Deutsche Lufthansa AG DLAKY , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Shares of Air France-KLM and Deutsche Lufthansa have soared more than 100% in a year.
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China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): Free Stock Analysis Report
To read this article on Zacks.com click here.
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 has its share of positives despite the disastrous effects from back-to-back natural calamities. Click to get this free report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The airline will offer special summer services to Budapest and Prague from Philadelphia, plus an additional flight to Venice from Chicago, beginning May 4, 2018.
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Click to get this free report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group, Inc. AAL has its share of positives despite the disastrous effects from back-to-back natural calamities. Some better-ranked stocks in airline space are Air France-KLM SA AFLYY and Deutsche Lufthansa AG DLAKY , both sporting a Zacks Rank #1 (Strong Buy).
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Click to get this free report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group, Inc. AAL has its share of positives despite the disastrous effects from back-to-back natural calamities. Toward this end, in March this year, American Airlines had purchased a minority stake in China Southern Airlines ZNH with an investment of approximately $200 million in the Hong Kong-listed shares of China Southern.
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American Airlines Group, Inc. AAL has its share of positives despite the disastrous effects from back-to-back natural calamities. Click to get this free report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier's initiatives to reward shareholders through share buybacks and dividend payments are also encouraging.
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9eaa739e-0632-4da8-b52a-8bde842c9479
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7346.0
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2017-09-22 00:00:00 UTC
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American Airlines Group (AAL) Shares Cross Above 200 DMA
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-shares-cross-above-200-dma-2017-09-22
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nan
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nan
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $46.82, changing hands as high as $47.34 per share. American Airlines Group Inc shares are currently trading up about 1.6% 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 $34.86 per share, with $54.48 as the 52 week high point - that compares with a last trade of $47.03.
According to the ETF Finder at ETF Channel, AAL makes up 3.99% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading up by about 0.4% on the day Friday.
Click here to find out which 9 other stocks recently crossed above 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 Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $46.82, changing hands as high as $47.34 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 $34.86 per share, with $54.48 as the 52 week high point - that compares with a last trade of $47.03. According to the ETF Finder at ETF Channel, AAL makes up 3.99% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading up by about 0.4% on the day Friday.
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $46.82, changing hands as high as $47.34 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 $34.86 per share, with $54.48 as the 52 week high point - that compares with a last trade of $47.03. According to the ETF Finder at ETF Channel, AAL makes up 3.99% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading up by about 0.4% on the day Friday.
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $46.82, changing hands as high as $47.34 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 $34.86 per share, with $54.48 as the 52 week high point - that compares with a last trade of $47.03. According to the ETF Finder at ETF Channel, AAL makes up 3.99% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading up by about 0.4% on the day Friday.
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In trading on Friday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $46.82, changing hands as high as $47.34 per share. According to the ETF Finder at ETF Channel, AAL makes up 3.99% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading up by about 0.4% on the day Friday. 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 $34.86 per share, with $54.48 as the 52 week high point - that compares with a last trade of $47.03.
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bacfd86e-0302-420e-80ee-59cac12fdf99
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7347.0
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2017-09-21 00:00:00 UTC
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The Better Buy in Airlines
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AAL
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https://www.nasdaq.com/articles/better-buy-airlines-2017-09-21
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nan
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nan
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While the airline industry used to be decried as a death trap for investors, airlines have been gaining more and more attention recently as the industry seems to be turning around.
In this Industry Focus segment, analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg talk about which of the four biggest airlines in the U.S. are the best buys. Find out why Southwest (NYSE: LUV) is in a separate class from Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) ; why Southwest is and has been a solid buy for the last several decades; which of the other three is the best buy for long-term investors and why; and more.
A full transcript follows the video.
10 stocks we like better than Delta Air Lines
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 Delta Air Lines 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 September 5, 2017
This video was recorded on Sept. 14, 2017.
Sarah Priestley: Like a lot of people, I have to fly to go see friends and family. And from a leisure-consumer perspective, as we talked about, for me, there's not much difference between the carriers. But from an investment perspective, what do you think is the better buy for investors now?
Adam Levine-Weinberg: Historically, clearly Southwest Airlines has been the best of these four by a long shot for investors. It's the only one that hasn't gone bankrupt in its history.
Priestley: [laughs] That's a bonus.
Levine-Weinberg: Yeah. That sort of gives it the crown very easily. And I think that Southwest Airlines is still a pretty attractive company for investors to own. Its strategy of being different from everyone else in terms of trying to have friendly service, only flying one type of plane, all Boeing 737s, and having the no fees, relatively low fares. It's really worked. The company has consistently high profit margins. And it still has plenty of growth opportunities. The fact that it only flies one type of plane does limit what kind of routes it can fly, because the 737 doesn't have the range of the big, wide-body planes that are used for long-haul flights, but there's still a lot of room, especially with the next generation of planes that Boeing has just started to produce. They have more range just because they're more fuel efficient, so that will allow Southwest to go a little further and possibly add new routes. One thing that's been talked about a lot, for instance, is Hawaii. So Southwest is definitely a good combination of steady cash flow and significant growth opportunities.
Turning to the other three, Delta, American, and United all have very similar business models. They're all really focused on trying to win business traffic in their main hub markets. They run these hub-and-spoke networks where they fly to all kinds of little cities where other airlines don't want to compete because they're flying larger planes that don't really work there. So Delta, American, and United are trying to aggregate traffic from all these different little cities and from major cities around the U.S., and connect in their hubs to everywhere else in the country, and also to international destinations. So it's a much different business model than pretty much everyone else in the market.
Priestley: I read that Delta claims they invented the hub-and-spoke model around the '50s. Is that right?
Levine-Weinberg: I'm not sure about that. It seems plausible. Atlanta has been a big hub for Delta for a very long time, and it's still the biggest hub in the world for passenger traffic.
Priestley: And most people, if you're connecting, then you're experiencing the hub-and-spoke model as a consumer.
Levine-Weinberg: Yeah, exactly. But among those three, while they're very similar in terms of how they do business, they're quite different in terms of their financial profile. Delta Airlines is, by far, the most attractive one for investors, especially investors with a long-term outlook. They have what appears to be a much more sustainable business model. They have much higher profit margin, they benefit from the fact that they are less unionized than the other two carriers, which gives them a little more flexibility in terms of how they operate. And they also are much more disciplined about capital spending, so their free cash flow is much stronger than the other airlines. So just looking at last year's numbers -- Delta, American, and United are all about the same size, and they each have roughly $40 billion of annual revenue, give or take 10%. But while they're all the same size in terms of revenue, Delta produced $6.1 billion of adjusted pre-tax income last year, whereas American was $1 billion behind that, at $5.1 billion, and United was further back, with $4.5 billion of adjusted pre-tax income. Looking at cash flow, the difference is even greater. Delta produced free cash flow of $3.8 billion last year compared to less than $1 billion for American Airlines and $2.2 billion for United.
Priestley: So clearly they're ahead. I think a lot of that speaks to the general discipline and learning from past mistakes, especially CEO Richard Anderson, I feel like he really brought in a lot of long-term outlook, investing in minority stakes with overseas carriers, and those kinds of things, and arguably, buying vertical integration with the refinery, too. It's something that has been up for debate, whether or not that was a good idea. But it certainly shows long-term thinking, and risk taking, too.
Levine-Weinberg: Yeah. So Richard Anderson was the former CEO of Delta. He just moved on about a year ago and got replaced by his longtime No. 2, Ed Bastian, and they really did a great job navigating through the recession. A big merger between Delta and Northwest, which was a company where Richard Anderson had actually previously been CEO several years earlier. They basically put the two companies together, figured out how to wring out as many efficiencies as possible from the merger. It was really successful. They basically took two companies that weren't doing very well, were both in bankruptcy not that long before, and made it into one of the most profitable airlines in the world. As you said, they bought this refinery in Pennsylvania about five years ago; it's been a really interesting move to try to hedge against fluctuations in refining margins. A lot of airlines have historically hedged against oil-price changes, which you can very easily do with derivatives. You can buy futures on crude-oil contracts, and that basically protects you against changes in oil prices . But the problem is, that's only one part of what goes into the price of jet fuel. You also have the refining margin that goes on top of that. And that's varied pretty widely between -- it could be $5 a barrel, it could be $20 a barrel, depending on conditions. Right now, Delta is actually benefiting there, because Hurricane Harvey just last month knocked out a lot of the refineries towns in the Gulf Coast. Delta's refineries kept operating. So that's allowed them to not see the full price spike that has affected other airlines, which has caused a lot of airlines to reduce their margin forecasts in the last week or so.
Priestley: I think a lot of people were critical when he made that move, given the fact that, what's happened with the oil industry since then. But at the time, I do think it was a farsighted decision. And we don't know the projection for the oil market. So long-term for Delta, over the next 50 years, I think it's probably going to be a good idea for them.
Levine-Weinberg: Yeah, and they bought this refinery for about $150 million. The sellers just wanted to get out, basically for any price. So it's a very small investment relative to the amount of money Delta is dealing with on an annual basis.
Priestley: Yeah, it's about the same cost as a Boeing 787.
Levine-Weinberg: Right, and it's less than a month worth of profit for them. So if they have to close it because it doesn't eventually work out, they can do that, and it wasn't a big long-term risk, because they just weren't putting that much money into the project.
Adam Levine-Weinberg owns shares of Delta Air Lines. Sarah Priestley 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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Find out why Southwest (NYSE: LUV) is in a separate class from Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) ; why Southwest is and has been a solid buy for the last several decades; which of the other three is the best buy for long-term investors and why; and more. In this Industry Focus segment, analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg talk about which of the four biggest airlines in the U.S. are the best buys. Its strategy of being different from everyone else in terms of trying to have friendly service, only flying one type of plane, all Boeing 737s, and having the no fees, relatively low fares.
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Find out why Southwest (NYSE: LUV) is in a separate class from Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) ; why Southwest is and has been a solid buy for the last several decades; which of the other three is the best buy for long-term investors and why; and more. In this Industry Focus segment, analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg talk about which of the four biggest airlines in the U.S. are the best buys. But while they're all the same size in terms of revenue, Delta produced $6.1 billion of adjusted pre-tax income last year, whereas American was $1 billion behind that, at $5.1 billion, and United was further back, with $4.5 billion of adjusted pre-tax income.
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Find out why Southwest (NYSE: LUV) is in a separate class from Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) ; why Southwest is and has been a solid buy for the last several decades; which of the other three is the best buy for long-term investors and why; and more. But while they're all the same size in terms of revenue, Delta produced $6.1 billion of adjusted pre-tax income last year, whereas American was $1 billion behind that, at $5.1 billion, and United was further back, with $4.5 billion of adjusted pre-tax income. Delta produced free cash flow of $3.8 billion last year compared to less than $1 billion for American Airlines and $2.2 billion for United.
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Find out why Southwest (NYSE: LUV) is in a separate class from Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) ; why Southwest is and has been a solid buy for the last several decades; which of the other three is the best buy for long-term investors and why; and more. In this Industry Focus segment, analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg talk about which of the four biggest airlines in the U.S. are the best buys. And I think that Southwest Airlines is still a pretty attractive company for investors to own.
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78e25b80-e266-4c29-80f1-c5d664fb04fe
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7348.0
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2017-09-21 00:00:00 UTC
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Why Airlines Changed Their Pricing Structure
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AAL
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https://www.nasdaq.com/articles/why-airlines-changed-their-pricing-structure-2017-09-21
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nan
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nan
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Not too long ago, airlines tended to price all of their seats in the same range, but that's changing recently.
In this segment from Industry Focus , analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain how the airline industry decides what to charge for each seat on a plane, why so many companies are switching to a more a la carte model, and how it's affecting their bottom lines.
A full transcript follows the video.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of September 5, 2017
This video was recorded on Sept. 14, 2017.
Adam Levine-Weinberg: Going off of that, on the revenue side, one of the interesting developments in the past 10 years, and it's continuing to develop even today, is how airlines have gone from being all the same in terms of how they price their product to being quite different. So you see that with, on the one hand, you have Southwest (NYSE: LUV) Airlines, which is the biggest domestic carrier in the U.S. It has about $20 billion in revenue. And while that's about half of what Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) bring in, those three carriers have these massive international networks, as well. Southwest, if you look at them, they don't charge for bags. You can still check two bags for free. Carry-on bags, of course, are free, as well. They don't have any change fees, so if you want to change your itinerary even up to the day that you're traveling, you do have to pay any difference in the fare between what you purchased and the flight you changed to, but you can cancel or change with no penalty. And that's completely different from the other airlines, which typically will have $150-$200 change fees, they'll charge you $25-$35 per bag that you check, and they have a variety of other fees. So Southwest has really stood out by having this bundled product where there's no hidden fees. And they really promote that in their advertising.
Sarah Priestley: And I think they really appeal to the leisure traveler. I think there are two really distinct categories of travelers for airlines. Business travelers tend to be a lot more brand loyal, into the rewards program, they're a more lucrative traveler. And leisure, obviously much more price sensitive, and tend to be price loyal. But as you said, Southwest, without having any of the hidden charges, and also being priced competitively, too, makes an attractive proposition for people.
Levine-Weinberg: Yeah. And at American, Delta, and United, as I've said, they started adding these bag fees and high change fees. But what they also started to do more recently is, they're dropping a lot of their fares in the lowest fare classes. Airlines, as a very quick side note, have a very complicated pricing structure. Revenue management is a science that they really focus on. So they're trying to figure out, how can we squeeze the most money out of each flight that we can? And that's not necessarily by charging high fares across the board. They'll try to figure out basically on a customer-by-customer basis how much that person is willing to pay, and charge that fare. If you book really far in advance, you're probably a leisure traveler. Business travelers don't know their schedule four months ahead of time. So those fares tend to be low. And when you get very close to the date of travel, those fares can go up quite substantially. More recently, you've seen Delta, American, and United introduce these basic economy fares, where they've taken even more perks out of the fare structure. So for American Airlines and United Airlines, that goes as far as, you're not even allowed to bring a carry-on bag at all. And they do that so that people who are needing the carry-on bag, especially if you're a business traveler, you want to get off the plane quickly, you don't want to check your bag, you're going to have to buy the next fare class up. So that's a way of allowing these carriers to match a low-cost carrier's flight. So they can say, "We're offering fares as low as $49 in this flight." So if someone is really price sensitive, they'll snap up that fare. But a lot of people will buy up the higher fare classes, so they'll be able to maximize revenue while still offering low fares to the people who really want that. And most of the airlines seem to think that's necessary. They don't want to give up all that traffic to companies like Spirit Airlines and just only get the people who are willing to pay $150 or $200 one way.
Adam Levine-Weinberg owns shares of Delta Air Lines and SAVE. Sarah Priestley has no position in any of the stocks mentioned. The Motley Fool recommends SAVE. 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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And while that's about half of what Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) bring in, those three carriers have these massive international networks, as well. Not too long ago, airlines tended to price all of their seats in the same range, but that's changing recently. In this segment from Industry Focus , analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain how the airline industry decides what to charge for each seat on a plane, why so many companies are switching to a more a la carte model, and how it's affecting their bottom lines.
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And while that's about half of what Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) bring in, those three carriers have these massive international networks, as well. In this segment from Industry Focus , analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain how the airline industry decides what to charge for each seat on a plane, why so many companies are switching to a more a la carte model, and how it's affecting their bottom lines. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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And while that's about half of what Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) bring in, those three carriers have these massive international networks, as well. In this segment from Industry Focus , analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain how the airline industry decides what to charge for each seat on a plane, why so many companies are switching to a more a la carte model, and how it's affecting their bottom lines. They don't have any change fees, so if you want to change your itinerary even up to the day that you're traveling, you do have to pay any difference in the fare between what you purchased and the flight you changed to, but you can cancel or change with no penalty.
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And while that's about half of what Delta (NYSE: DAL) , American (NASDAQ: AAL) , and United (NYSE: UAL) bring in, those three carriers have these massive international networks, as well. Southwest, if you look at them, they don't charge for bags. Business travelers tend to be a lot more brand loyal, into the rewards program, they're a more lucrative traveler.
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86b2526f-5c51-4c5f-9f07-915f05abdd80
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7349.0
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2017-09-21 00:00:00 UTC
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Why Investors Should Give Airlines a Second Chance
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AAL
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https://www.nasdaq.com/articles/why-investors-should-give-airlines-second-chance-2017-09-21
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nan
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nan
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From the late 1970s into the late 2000s, the airline industry performed abysmally, and investors across the board tended to stay away from airline stocks. But recently, Warren Buffett -- who had famously called the airlines a "death trap" -- invested some $10 billion in the industry, and many investors are starting to take a second look at airlines.
In this segment from Industry Focus , analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain the history of the airline industry, how it looks today, how it went from a "death trap" to what looks to be a new turnaround period, and what investors need to know about the industry.
A full transcript follows the video.
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This video was recorded on Sept. 14, 2017.
Sarah Priestley: Today, we're going to be talking about the U.S. airline industry, as we primed for last week. The industry has had a pretty bad reputation and has been avoided for decades by investors. Looking through the numbers, it's clear to see why. The sector suffered combined losses of $52 billion between 1977 and 2009. Warren Buffett even went so far as to call the industry a death trap in 2013, famously, or now infamously, after his change of tune. However, we argue that the industry today is not what it once was, and may, in fact, deserve a second look by a lot of investors. This is a huge topic, and I briefly want to offer some background. I believe the history of the airline industry is pretty fascinating.
Adam Levine-Weinberg: It certainly is.
Priestley: It looks a lot different now than it has in the last 30 years. A lot of M&A, some successful, some not so successful, a lot of deregulation in the 1970s really ushered in a new era of competition and cheap transatlantic travel offered by British airlines, pressured the U.S. companies to lower prices. So, you had a lot of new carriers entering the market, opening new routes, and dropping fares. Unsurprisingly, this forced a lot of carriers to fold, or succumb to takeovers, which is why you have the environment that you do, that was created. At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . The top four have gone from a combined market share of 68% in 1990 to around 85% now. So, Adam, traditionally, as we've said, the airline industry has not been interesting to a lot of investors. So if someone wanted to take a fresh look at airline stocks, what industry basics should they be aware of?
Levine-Weinberg: As you just mentioned, the top four airlines now, American, Delta, United (NYSE: UAL) , and Southwest combined, have about 85% of the U.S. market. And that figure varies depending on how you measure it. But the point is, they are much bigger than the rest of the competition. Behind them, you have Alaska Airlines and JetBlue , which each have about 5% of the market, and then the rest is pretty small carriers. You have some interesting ones like Spirit Airlines and Frontier Airlines that are these really deep discounters, everything is a la carte, you pay for a seat in the plane and if you want extra legroom, you pay for that. If you want to drink, you pay for that. If you want to bring a bag, even just a carry-on bag, that costs more, as well. You have a bunch of different business models, but the four top airlines in the country really do dominate the market right now. So that has made it a little bit easier for them to earn money. Of the four, historically, Southwest Airlines has been consistently profitable, and the other three, which are the larger carriers, big international networks, and they also are the ones which serve smaller communities in the United States, as well. They have historically been death traps for investors, as Warren Buffett said. But the interesting thing is, Warren Buffett, through Berkshire Hathaway , now owns nearly 10% of all four of those top airlines.
Priestley: Yeah, he invested $10 billion, right?
Levine-Weinberg: He put a lot of money into the industry. We'll take a look today about why it is that he did that. In terms of the investment highlights, on the cost side, the two things to be aware of are labor costs and fuel costs, which represent the bulk of airlines' cost structures. If we were doing the show four years ago, I would say that fuel costs are, by far, the most important, but with the way that oil prices have come down in the last several years, especially since 2014, that's changed. It used to be that most Airlines were spending between 30%-40% of their revenue on fuel.
Priestley: That's a huge amount.
Levine-Weinberg: Yeah. Now it's generally in the 15%-20% range for most of these carriers. So it's definitely an important cost factor. But when fuel costs go up by 10%, it's no longer the sort of thing that takes an airline from being profitable to losing billions of dollars.
Priestley: Yeah. I think we should also comment that labor costs have been increasing. I think it was 7% year over year last year, and they've been able to absorb that cost because of the oil price fluctuations.
Levine-Weinberg: Yeah. That's true. Some of the savings in fuel costs has been offset in increases in labor costs, and you see that particularly on the pilot side. For a lot of these airlines, the pilots alone could be 15% of the labor force, maybe 20% at most, but they're making 40% of the payroll, or close to that.
Priestley: Which I'm OK with.
Levine-Weinberg: Yeah, you want your pilots to be making enough money that they're happy and well rested and content and going to fly the plane well. But it does mean that they have a lot of bargaining power, so you've seen pretty substantial wage increases for pilots, to the point where the wage rates for the captains with experience flying overseas routes, the wage rate is over $300 an hour at most of these carriers today, which is a lot higher than it was just five years ago.
Priestley: It sounds incredibly high. When you consider the fact that there's not that many people available, that's the reason that the talent is constricted. And also, it's not the pleasant job that I think a lot of people think it is. It's a lot of traveling, it's a lot of being away from your family. So yes, that's playing a huge role.
Adam Levine-Weinberg owns shares of ALK, Delta Air Lines, JBLU, and SAVE and has the following options: long January 2019 $10 calls on JBLU. Sarah Priestley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends JBLU and SAVE. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . Levine-Weinberg: As you just mentioned, the top four airlines now, American, Delta, United (NYSE: UAL) , and Southwest combined, have about 85% of the U.S. market. Of the four, historically, Southwest Airlines has been consistently profitable, and the other three, which are the larger carriers, big international networks, and they also are the ones which serve smaller communities in the United States, as well.
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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . But recently, Warren Buffett -- who had famously called the airlines a "death trap" -- invested some $10 billion in the industry, and many investors are starting to take a second look at airlines. Adam Levine-Weinberg owns shares of ALK, Delta Air Lines, JBLU, and SAVE and has the following options: long January 2019 $10 calls on JBLU.
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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . But recently, Warren Buffett -- who had famously called the airlines a "death trap" -- invested some $10 billion in the industry, and many investors are starting to take a second look at airlines. In this segment from Industry Focus , analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain the history of the airline industry, how it looks today, how it went from a "death trap" to what looks to be a new turnaround period, and what investors need to know about the industry.
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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . In this segment from Industry Focus , analyst Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain the history of the airline industry, how it looks today, how it went from a "death trap" to what looks to be a new turnaround period, and what investors need to know about the industry. Priestley: It looks a lot different now than it has in the last 30 years.
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ca82a5dc-94ab-4e24-b8c5-d65275dc619f
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7350.0
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2017-09-21 00:00:00 UTC
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First Week of May 2018 Options Trading For American Airlines Group
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AAL
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https://www.nasdaq.com/articles/first-week-may-2018-options-trading-american-airlines-group-2017-09-21
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the May 2018 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 239 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new May 2018 contracts and identified one put and one call contract of particular interest.
The put contract at the $45.00 strike price has a current bid of $4.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $45.00, but will also collect the premium, putting the cost basis of the shares at $40.60 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $45.56/share today.
Because the $45.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. 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 9.78% return on the cash commitment, or 14.93% 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 $45.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $46.00 strike price has a current bid of $4.65. If an investor was to purchase shares of AAL stock at the current price level of $45.56/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $46.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.17% if the stock gets called away at the May 2018 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 $46.00 strike highlighted in red:
Considering the fact that the $46.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 46%. 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 10.21% boost of extra return to the investor, or 15.59% annualized, which we refer to as the YieldBoost .
The implied volatility in the put contract example is 33%, while the implied volatility in the call contract example is 34%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $45.56) to be 29%. 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 $46.00 strike highlighted in red: Considering the fact that the $46.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the May 2018 expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $46.00 strike highlighted in red: Considering the fact that the $46.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the May 2018 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new May 2018 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 $46.00 strike highlighted in red: Considering the fact that the $46.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the May 2018 expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new May 2018 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 May 2018 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 $46.00 strike highlighted in red: Considering the fact that the $46.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the May 2018 expiration.
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3aafb93b-b71c-46eb-8436-ae7c76496ad7
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7351.0
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2017-09-20 00:00:00 UTC
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Morning Movers: General Mills Slumps, Johnson & Johnson Slips, American Airlines Gains
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AAL
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https://www.nasdaq.com/articles/morning-movers-general-mills-slumps-johnson-johnson-slips-american-airlines-gains-2017-09
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nan
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nan
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Stocks look set to open relatively unchanged this morning ahead of today's Fed announcement, which could mark the beginning of the end of quantitative easing.
Getty Images
S&P 500 futures are little changed, while Dow Jones Industrial Average futures have dipped 7 points. Nasdaq Composite futures are little changed.
American Airlines Group (AAL) rose 1.4% to $44.98 after getting upgraded to Outperform from Market Perform at Raymond James.
Adobe Systems (ADBE) has dropped 2.9% to $152 despite beating earnings forecasts.
Allergan (AGN) has declined 1.4% to $212 after getting cut to Equal Weight from Overweight at Morgan Stanley.
Bed Bath & Beyond (BBBY) has plunged 15% to $22.92 after missing forecasts and cutting its full-year guidance.
FedEx (FDX) has fallen 1.7% to $212.44 after missing earnings forecasts and lowering its 2018 guidance.
General Mills (GIS) has tumbled 5.6% to $52.29 after its earnings fell short of analyst forecasts.
Johnson & Johnson (JNJ) has slipped 1.5% to $133.20 after getting cut to Sell from Neutral at Goldman Sachs.
L Brands (LB) has declined 1.1% to $38.80 after getting cut to Market Perform from Outperform at Cowen.
3M (MMM) is off 1.2% at $211.03 after getting downgraded to Underweight from Neutral at JPMorgan.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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) rose 1.4% to $44.98 after getting upgraded to Outperform from Market Perform at Raymond James. Stocks look set to open relatively unchanged this morning ahead of today's Fed announcement, which could mark the beginning of the end of quantitative easing. Allergan (AGN) has declined 1.4% to $212 after getting cut to Equal Weight from Overweight at Morgan Stanley.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group (AAL) rose 1.4% to $44.98 after getting upgraded to Outperform from Market Perform at Raymond James. L Brands (LB) has declined 1.1% to $38.80 after getting cut to Market Perform from Outperform at Cowen.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group (AAL) rose 1.4% to $44.98 after getting upgraded to Outperform from Market Perform at Raymond James. Bed Bath & Beyond (BBBY) has plunged 15% to $22.92 after missing forecasts and cutting its full-year guidance.
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American Airlines Group (AAL) rose 1.4% to $44.98 after getting upgraded to Outperform from Market Perform at Raymond James. Stocks look set to open relatively unchanged this morning ahead of today's Fed announcement, which could mark the beginning of the end of quantitative easing. FedEx (FDX) has fallen 1.7% to $212.44 after missing earnings forecasts and lowering its 2018 guidance.
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9db9f81f-f2f6-4024-8d0f-67a712958181
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7352.0
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2017-09-20 00:00:00 UTC
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Delta Air Lines Using Hurricanes for Competitive Advantage
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-using-hurricanes-for-competitive-advantage-2017-09-20
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Hurricanes Harvey, Irma and future storms have put the airline industry through a period of turmoil, but one relative winner during these storms has been Delta Air Lines, Inc. (NYSE: DAL ).
Airlines hubs such as Houston, Miami, Tampa, and Orlando faced disruptions recently. And customers in and out of the hurricane zones faced delays and cancellations. But with its market positioning and a strengthening financial outlook, DAL stock is in a fortuitous position to build a Delta competitive advantage that benefits customers and investors alike.
Delta Air Lines, along with its oldest competitors United Continental Holdings, Inc. (NYSE: UAL ) and American Airlines Group (NYSE: AAL ), has faced numerous challenges. Increased competition from Southwest Airlines Co. (NYSE: LUV ) and numerous upstart competitors forced price and service cutbacks. Customer service complaints and a bankruptcy filing in 2005 have also served to weaken Delta's image.
But while the bankruptcy is long behind them, customer service issues plagued the carrier as late as this year. In April, the airline removed a family from a Delta flight after refusing to give up a toddler seat. In July, political commentator Ann Coulter scathed Delta over a seat assignment.
Despite complaints, the hurricanes have served as an opportunity to rebuild the airline's image. Delta gained some positive notoriety as one of its planes flew in, and out of the airport in San Juan. This occurred as the outer rings of Hurricane Irma were bearing down on Puerto Rico. Delta's other competitors were unable to land in the area.
Delta Air Lines also capped fares out of the hurricane zone at $399 as some competitors faced allegations of price gouging. The airline also waived change fees and offered partial refunds for flights affected by Irma.It has kept the policies in place for flights affected by hurricanes Jose and Maria.
Finally, Delta avoided some financial issues simply by the good fortune of having hubs outside of the hurricane zone. United saw its hub in Houston shut down for days at an estimated cost of $265 million . American had to temporarily shutter operations at its Miami hub. Conversely, Irma affected Delta's Atlanta hub minimally. Hence, the storms have only affected relatively few Delta flights.
Delta Stock is Flying High
Moreover, DAL stock remains inexpensive from a valuation perspective. In an industry where the average price to earnings (PE) ratio is approximately 10, Delta Air Lines trades at about 9.5 times earnings. While close to the average, Delta still compares favorably to Southwest's approximate 17 PE ratio. This PE is also favorable considering DAL experienced a large increase from 2013-2016. The stock rose from a low of $8.42 in September 2012 to the high $40s today.
Additionally, having fallen about 12% from its 52-week high, this reduction in value creates a buying opportunity. The case for DAL is also helped by its dividends, both in yield and growth. Delta's dividend yield is about 2.5%. The dividend rose every year since its 2013 inception and today stands at $1.22 per share, up from 66 cents per share in 2016.
The reaction of Delta Air Lines to a challenging hurricane season and improving financial metrics has served to make DAL a compelling investment. Its friendly treatment of customers affected by Harvey, Irma, and now Maria have countered negative publicity in the customer service arena. Also, having its hubs outside of the hurricane zones served to minimize cancellations and disruption of services compared with its competitors. Despite these locational advantages and a large increase in the stock's price since 2013, DAL remains attractively valued.
With its improving image, strong price appreciation, dividend growth, and favorable valuation, airline industry investors should consider DAL.
As of this writing, Will Healy did not own a position in any of the stocks mentioned here.
The post Delta Air Lines Using Hurricanes for Competitive Advantage 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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Delta Air Lines, along with its oldest competitors United Continental Holdings, Inc. (NYSE: UAL ) and American Airlines Group (NYSE: AAL ), has faced numerous challenges. Increased competition from Southwest Airlines Co. (NYSE: LUV ) and numerous upstart competitors forced price and service cutbacks. The reaction of Delta Air Lines to a challenging hurricane season and improving financial metrics has served to make DAL a compelling investment.
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Delta Air Lines, along with its oldest competitors United Continental Holdings, Inc. (NYSE: UAL ) and American Airlines Group (NYSE: AAL ), has faced numerous challenges. In an industry where the average price to earnings (PE) ratio is approximately 10, Delta Air Lines trades at about 9.5 times earnings. While close to the average, Delta still compares favorably to Southwest's approximate 17 PE ratio.
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Delta Air Lines, along with its oldest competitors United Continental Holdings, Inc. (NYSE: UAL ) and American Airlines Group (NYSE: AAL ), has faced numerous challenges. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Hurricanes Harvey, Irma and future storms have put the airline industry through a period of turmoil, but one relative winner during these storms has been Delta Air Lines, Inc. (NYSE: DAL ). But with its market positioning and a strengthening financial outlook, DAL stock is in a fortuitous position to build a Delta competitive advantage that benefits customers and investors alike.
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Delta Air Lines, along with its oldest competitors United Continental Holdings, Inc. (NYSE: UAL ) and American Airlines Group (NYSE: AAL ), has faced numerous challenges. Airlines hubs such as Houston, Miami, Tampa, and Orlando faced disruptions recently. Also, having its hubs outside of the hurricane zones served to minimize cancellations and disruption of services compared with its competitors.
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0f072b8e-9a51-4396-8aac-b62250ba4ef6
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7353.0
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2017-09-15 00:00:00 UTC
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Morning Movers: Carnival Drops, Southwest Airlines Gains, United Continental Falls
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AAL
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https://www.nasdaq.com/articles/morning-movers-carnival-drops-southwest-airlines-gains-united-continental-falls-2017-09-15
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Stocks look set for a slightly lower open this morning after North Korea launched a missile and a bomb went off in the London underground.
Chung Sung-Jun/Getty Images
S&P 500 futures have fallen 0.1%, while Dow Jones Industrial Average futures are unchanged. Nasdaq Composite futures have declined 0.1%.
American Airlines Group (AAL) has fallen 1.5% to $45.50 after getting cut to Neutral from Overweight at JPMorgan.
Carniva l (CCL) has dropped 2.7% to $66.90 after getting cut to Neutral from Outperform at Credit Suisse.
Oracle (ORCL) has slumped 3.4% to $51.02 after beating earnings forecasts but offering downbeat second-quarter guidance.
Southwest Airlines (LUV) has risen 2% to $55.42 after getting upgraded to Overweight from Neutral at JPMorgan.
Spirit Airlines (SAVE) has declined 1.2% to $34.41 after getting cut to Neutral from Overweight at JPMorgan.
United Continental Holdings (UAL) has slipped 1.3% to $60.46 after getting downgraded to Neutral from Overweight at JPMorgan.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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) has fallen 1.5% to $45.50 after getting cut to Neutral from Overweight at JPMorgan. Stocks look set for a slightly lower open this morning after North Korea launched a missile and a bomb went off in the London underground. Oracle (ORCL) has slumped 3.4% to $51.02 after beating earnings forecasts but offering downbeat second-quarter guidance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group (AAL) has fallen 1.5% to $45.50 after getting cut to Neutral from Overweight at JPMorgan. Spirit Airlines (SAVE) has declined 1.2% to $34.41 after getting cut to Neutral from Overweight at JPMorgan.
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American Airlines Group (AAL) has fallen 1.5% to $45.50 after getting cut to Neutral from Overweight at JPMorgan. Spirit Airlines (SAVE) has declined 1.2% to $34.41 after getting cut to Neutral from Overweight at JPMorgan. The views and 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) has fallen 1.5% to $45.50 after getting cut to Neutral from Overweight at JPMorgan. Stocks look set for a slightly lower open this morning after North Korea launched a missile and a bomb went off in the London underground. Nasdaq Composite futures have declined 0.1%.
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53bbee0d-7d5a-4995-862c-b14870eb1111
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7354.0
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2017-09-15 00:00:00 UTC
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Stock Exchange: Do Your Trades Fit Your Style?
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AAL
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https://www.nasdaq.com/articles/stock-exchange-do-your-trades-fit-your-style-2017-09-15
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nan
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By Jeff Miller :
The Stock Exchange is all about trading. Each week we do the following:
Discuss an important issue for traders;
highlight several technical trading methods, including current ideas;
feature advice from top traders and writers; and
provide a few (minority) reactions from fundamental analysts.
We also have some fun. We welcome comments, links, and ideas to help us improve this resource for traders. If you have some ideas, please join in!
Review
Our previous Stock Exchange considered the pitfalls of trying to win every trade. If you missed it, a glance at your news will show that the key points remain relevant.
This Week - Do Your Trades Fit Your Style?
Like moths to a flame, traders often try to copycat whoever has the hottest hand. Unfortunately, this often ends badly because the trades don't necessarily fit each individual's style. For example, when developing our trading systems, our early models were often viewed as "suggestions" by the traders using them. However, we quickly learned that providing a momentum model to a "buy the rips, sell the dips" trader simply does not work.
According to Michael Martin , the author of "The Inner Voice of Trading," traders should "befriend [their] emotions and make them allies not antagonists." One reason for this "Stock Exchange" series is to illustrate different approaches and styles via our different models.
When implementing our models in practice, we don't force trades when there are none. Similarly, we rarely skip trades - and only when there is some exceptional news that the model would not recognize. For example, when there is a buyout offer for a company, we do not buy the target and we take it out of our universe. We know that the risk-reward is poor, but the model would not.
Expert Picks From The Models
This week's Stock Exchange is being edited by our frequent guest: Blue Harbinger (also known as Mark D. Hines). Blue Harbinger is a source for independent investment ideas focused on value and income opportunities.
Holmes : This week I bought American Airlines ( AAL ). This stock's dip over the last month is the sort of set up I like to see. From the chart below, you can see it is below its 50-day and 200-day moving averages. However, it has attractive upside over the next six weeks.
RR : I appreciate your efforts to dig into the company's franchise value, however, that's more of a long-term thing, and I don't suspect it'll materially impact the price over the next four weeks. However, I do suspect it will rise back up to the top of the channel, but it'll only hold that position for so long. How about you Athena and Felix, what do you like this week?
Athena : I don't have any trades this week, and I'm not going to force anything.
Felix : Same here. No trades stood out for me this week, and I'm not going to force anything either. However, for your reference, here is a look at my rankings this week.
BH
Oscar : I have an interesting one for you guys. This week I like the Online Retailer ETF ( IBUY ).
BH : That is interesting considering the "death of retail" narrative that has been reverberating across the market. Some investors believe all "brick and mortar" retail stores are going to get "Amazonned."
I looked through this ETF's holdings, and it's diversified across a lot of the online retail names that you'd expect (like Amazon ( AMZN )) as well as a few interesting surprises.
Oscar : I like IBUY because it has a lot of momentum (as shown in the chart below). My typical holding period is also about six weeks, my exit strategy is to rotate into a new sector, and I control my risk with stops.
BH
Oscar : I'm comfortable with both of those. That expense ratio is reasonable for my purposes, and $97 million in assets for IBUY is sufficient. Plus, I'll be in and out of this trade within six weeks.
Conclusion
One of the common reasons why many traders like model-driven investing is because it's supposed to take the irrational emotions out of trading. However, if the person managing the model has the ability to override it, then emotion becomes an ongoing challenge.
One way to prevent emotions from antagonizing your trades is to select a trading approach that fits your emotions. Our models all have different personalities, and we've learned the importance of using a model that fits the personality of the person running it. By selecting a trading approach that fits your emotional style, your chances of error are reduced, and your chances for success go up.
Stock Exchange Character Guide
Background on the Stock Exchange
Each week, Felix and Oscar host a poker game for some of their friends. Since they are all traders, they love to discuss their best current ideas before the game starts. They like to call this their "Stock Exchange." (Check it out Background on the Stock Exchange for more background). Their methods are excellent, as you know if you have been following the series. Since the time frames and risk profiles differ, so do the stock ideas. You get to be a fly on the wall from my report. I am usually the only human present and the only one using any fundamental analysis.
The result? Several expert ideas each week from traders, and a brief comment on the fundamentals from the human investor. The models are named to make it easy to remember their trading personalities.
Getting Updates
We have a (free) service for subscribers of our Felix/Oscar update list. You can suggest three favorite stocks and sectors. Sign up with email to "etf at newarc dot com." We keep a running list of all securities our readers recommend. The "favorite fifteen" are top ranking positions according to each respective model. Within that list, green is a "buy," yellow a "hold," and red a "sell." Suggestions and comments are welcome. Please remember that these are responses to reader requests, not necessarily stocks and sectors that we own. Sign up now to vote your favorite stock or sector onto the list!
See also JetBlue: Assessing My Long Position Post-Irma on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Holmes : This week I bought American Airlines ( AAL ). Expert Picks From The Models This week's Stock Exchange is being edited by our frequent guest: Blue Harbinger (also known as Mark D. Hines). RR : I appreciate your efforts to dig into the company's franchise value, however, that's more of a long-term thing, and I don't suspect it'll materially impact the price over the next four weeks.
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Holmes : This week I bought American Airlines ( AAL ). By selecting a trading approach that fits your emotional style, your chances of error are reduced, and your chances for success go up. Stock Exchange Character Guide Background on the Stock Exchange Each week, Felix and Oscar host a poker game for some of their friends.
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Holmes : This week I bought American Airlines ( AAL ). Each week we do the following: Discuss an important issue for traders; highlight several technical trading methods, including current ideas; feature advice from top traders and writers; and provide a few (minority) reactions from fundamental analysts. Expert Picks From The Models This week's Stock Exchange is being edited by our frequent guest: Blue Harbinger (also known as Mark D. Hines).
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Holmes : This week I bought American Airlines ( AAL ). One reason for this "Stock Exchange" series is to illustrate different approaches and styles via our different models. Plus, I'll be in and out of this trade within six weeks.
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b13c492d-7454-4348-be58-3b7953d224f6
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7355.0
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2017-09-15 00:00:00 UTC
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Is There a First-Class Airline Stock?
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AAL
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https://www.nasdaq.com/articles/there-first-class-airline-stock-2017-09-15
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nan
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nan
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The airline industry has been long ignored, if not outright bullied, by the investment community for decades. But that's starting to change -- even famous airline bear Warren Buffett put $10 billion behind the industry not too long ago.
In this week's episode of Industry Focus: Energy , host Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain why the industry has seen such a turnaround in the last few years, and go over the most important things that investors need to know about airlines today. Find out which companies are completely dominating the industry, and which of them shine the brightest from an investing perspective, how different airlines are changing their strategies to appeal to more potential customers, and more.
A full transcript follows the video.
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This video was recorded on Sept. 14, 2017.
Sarah Priestley: Welcome to Industry Focus , the show that dives into a different sector of the stock market every day. Today, we're talking energy and industrials. It's Thursday, 14th of September, and as promised, we're going to be discussing the airline industry. Joining me in the studio is Motley Fool contributor Adam Levine-Weinberg. Adam, thank you for stopping by, especially when you're just about to go on your epic European tour/U.S. adventure.
Adam Levine-Weinberg: Yeah, thanks for having me in! I'm glad to be here one last time.
Priestley: Well, you'll be joining us on Skype, I hope, from the West Coast.
Levine-Weinberg: I hope so. But it's not quite the same.
Priestley: No, it's not quite the same, and it'll be a lot earlier for you.
Levine-Weinberg: Yeah, it will be.
Priestley: Today, we're going to be talking about the U.S. airline industry, as we primed for last week. The industry has had a pretty bad reputation and has been avoided for decades by investors. Looking through the numbers, it's clear to see why. The sector suffered combined losses of $52 billion between 1977 and 2009. Warren Buffett even went so far as to call the industry a death trap in 2013, famously, or now infamously, after his change of tune. However, we argue that the industry today is not what it once was, and may, in fact, deserve a second look by a lot of investors. This is a huge topic, and I briefly want to offer some background. I believe the history of the airline industry is pretty fascinating.
Levine-Weinberg: It certainly is.
Priestley: It looks a lot different now than it has in the last 30 years. A lot of M&A, some successful, some not so successful, a lot of deregulation in the 1970s really ushered in a new era of competition and cheap transatlantic travel offered by British airlines, pressured the U.S. companies to lower prices. So, you had a lot of new carriers entering the market, opening new routes, and dropping fares. Unsurprisingly, this forced a lot of carriers to fold, or succumb to takeovers, which is why you have the environment that you do, that was created. At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . The top four have gone from a combined market share of 68% in 1990 to around 85% now. So, Adam, traditionally, as we've said, the airline industry has not been interesting to a lot of investors. So if someone wanted to take a fresh look at airline stocks, what industry basics should they be aware of?
Levine-Weinberg: As you just mentioned, the top four airlines now, American, Delta, United, and Southwest combined, have about 85% of the U.S. market. And that figure varies depending on how you measure it. But the point is, they are much bigger than the rest of the competition. Behind them, you have Alaska Airlines and JetBlue , which each have about 5% of the market, and then the rest is pretty small carriers. You have some interesting ones like Spirit Airlines and Frontier Airlines that are these really deep discounters, everything is a la carte, you pay for a seat in the plane and if you want extra legroom, you pay for that. If you want to drink, you pay for that. If you want to bring a bag, even just a carry-on bag, that costs more, as well. You have a bunch of different business models, but the four top airlines in the country really do dominate the market right now. So that has made it a little bit easier for them to earn money. Of the four, historically, Southwest Airlines has been consistently profitable, and the other three, which are the larger carriers, big international networks, and they also are the ones which serve smaller communities in the United States, as well. They have historically been death traps for investors, as Warren Buffett said. But the interesting thing is, Warren Buffett, through Berkshire Hathaway , now owns nearly 10% of all four of those top airlines.
Priestley: Yeah, he invested $10 billion, right?
Levine-Weinberg: He put a lot of money into the industry. We'll take a look today about why it is that he did that. In terms of the investment highlights, on the cost side, the two things to be aware of are labor costs and fuel costs, which represent the bulk of airlines' cost structures. If we were doing the show four years ago, I would say that fuel costs are, by far, the most important, but with the way that oil prices have come down in the last several years, especially since 2014, that's changed. It used to be that most Airlines were spending between 30%-40% of their revenue on fuel.
Priestley: That's a huge amount.
Levine-Weinberg: Yeah. Now it's generally in the 15%-20% range for most of these carriers. So it's definitely an important cost factor. But when fuel costs go up by 10%, it's no longer the sort of thing that takes an airline from being profitable to losing billions of dollars.
Priestley: Yeah. I think we should also comment that labor costs have been increasing. I think it was 7% year over year last year, and they've been able to absorb that cost because of the oil price fluctuations.
Levine-Weinberg: Yeah. That's true. Some of the savings in fuel costs has been offset in increases in labor costs, and you see that particularly on the pilot side. For a lot of these airlines, the pilots alone could be 15% of the labor force, maybe 20% at most, but they're making 40% of the payroll, or close to that.
Priestley: Which I'm OK with.
Levine-Weinberg: Yeah, you want your pilots to be making enough money that they're happy and well rested and content and going to fly the plane well. But it does mean that they have a lot of bargaining power, so you've seen pretty substantial wage increases for pilots, to the point where the wage rates for the captains with experience flying overseas routes, the wage rate is over $300 an hour at most of these carriers today, which is a lot higher than it was just five years ago.
Priestley: It sounds incredibly high. When you consider the fact that there's not that many people available, that's the reason that the talent is constricted. And also, it's not the pleasant job that I think a lot of people think it is. It's a lot of traveling, it's a lot of being away from your family. So yes, that's playing a huge role. And you mentioned earlier low-cost competitors such as Spirit. Sprint, sorry.
Levine-Weinberg: Spirit. You got it right the first time.
Priestley: Sorry, I got the telecoms on the brain. I think the unbundling of services is something we're definitely going to start to see on the higher-tier carriers, too.
Levine-Weinberg: Going off of that, on the revenue side, one of the interesting developments in the past 10 years, and it's continuing to develop even today, is how airlines have gone from being all the same in terms of how they price their product to being quite different. So you see that with, on the one hand, you have Southwest Airlines, which is the biggest domestic carrier in the U.S. It has about $20 billion in revenue. And while that's about half of what Delta, American, and United bring in, those three carriers have these massive international networks, as well. Southwest, if you look at them, they don't charge for bags. You can still check two bags for free. Carry-on bags, of course, are free, as well. They don't have any change fees, so if you want to change your itinerary even up to the day that you're traveling, you do have to pay any difference in the fare between what you purchased and the flight you changed to, but you can cancel or change with no penalty. And that's completely different from the other airlines, which typically will have $150-$200 change fees, they'll charge you $25-$35 per bag that you check, and they have a variety of other fees. So Southwest has really stood out by having this bundled product where there's no hidden fees. And they really promote that in their advertising.
Priestley: And I think they really appeal to the leisure traveler. I think there are two really distinct categories of travelers for airlines. Business travelers tend to be a lot more brand loyal, into the rewards program, they're a more lucrative traveler. And leisure, obviously much more price sensitive, and tend to be price loyal. But as you said, Southwest, without having any of the hidden charges, and also being priced competitively, too, makes an attractive proposition for people.
Levine-Weinberg: Yeah. And at American, Delta, and United, as I've said, they started adding these bag fees and high change fees. But what they also started to do more recently is, they're dropping a lot of their fares in the lowest fare classes. Airlines, as a very quick side note, have a very complicated pricing structure. Revenue management is a science that they really focus on. So they're trying to figure out, how can we squeeze the most money out of each flight that we can? And that's not necessarily by charging high fares across the board. They'll try to figure out basically on a customer-by-customer basis how much that person is willing to pay, and charge that fare. If you book really far in advance, you're probably a leisure traveler. Business travelers don't know their schedule four months ahead of time. So those fares tend to be low. And when you get very close to the date of travel, those fares can go up quite substantially. More recently, you've seen Delta, American, and United introduce these basic economy fares, where they've taken even more perks out of the fare structure. So for American Airlines and United Airlines, that goes as far as, you're not even allowed to bring a carry-on bag at all. And they do that so that people who are needing the carry-on bag, especially if you're a business traveler, you want to get off the plane quickly, you don't want to check your bag, you're going to have to buy the next fare class up. So that's a way of allowing these carriers to match a low-cost carrier's flight. So they can say, "We're offering fares as low as $49 in this flight." So if someone is really price sensitive, they'll snap up that fare. But a lot of people will buy up the higher fare classes, so they'll be able to maximize revenue while still offering low fares to the people who really want that. And most of the airlines seem to think that's necessary. They don't want to give up all that traffic to companies like Spirit Airlines and just only get the people who are willing to pay $150 or $200 one way.
Priestley: Yeah, absolutely. I think it's also worth mentioning, first-class travelers are obviously the most lucrative, and they generally make up about two-thirds of the revenue per flight. Is that right?
Levine-Weinberg: It depends on the route. There are some that are very leisure heavy, there are others that are very business heavy. In a route like New York to London, you're going to get business travelers paying for the business class cabins because they want the lie-flat seat. In that case, you do have a lot of the revenue coming from a pretty small portion of the passengers.
Priestley: Yeah, and a lot of the big Boeing airlines, they're very first-class heavy.
Levine-Weinberg: Yeah, for overseas flights, definitely.
Priestley: Like a lot of people, I have to fly to go see friends and family. And from a leisure-consumer perspective, as we talked about, for me, there's not much difference between the carriers. But from an investment perspective, what do you think is the better buy for investors now?
Levine-Weinberg: Historically, clearly Southwest Airlines has been the best of these four by a long shot for investors. It's the only one that hasn't gone bankrupt in its history.
Priestley: [laughs] That's a bonus.
Levine-Weinberg: Yeah. That sort of gives it the crown very easily. And I think that Southwest Airlines is still a pretty attractive company for investors to own. Its strategy of being different from everyone else in terms of trying to have friendly service, only flying one type of plane, all Boeing 737s, and having the no fees, relatively low fares. It's really worked. The company has consistently high profit margins. And it still has plenty of growth opportunities. The fact that it only flies one type of plane does limit what kind of routes it can fly, because the 737 doesn't have the range of the big, wide-body planes that are used for long-haul flights, but there's still a lot of room, especially with the next generation of planes that Boeing has just started to produce. They have more range just because they're more fuel efficient, so that will allow Southwest to go a little further and possibly add new routes. One thing that's been talked about a lot, for instance, is Hawaii. So Southwest is definitely a good combination of steady cash flow and significant growth opportunities.
Turning to the other three, Delta, American, and United all have very similar business models. They're all really focused on trying to win business traffic in their main hub markets. They run these hub-and-spoke networks where they fly to all kinds of little cities where other airlines don't want to compete because they're flying larger planes that don't really work there. So Delta, American, and United are trying to aggregate traffic from all these different little cities and from major cities around the U.S., and connect in their hubs to everywhere else in the country, and also to international destinations. So it's a much different business model than pretty much everyone else in the market.
Priestley: I read that Delta claims they invented the hub-and-spoke model around the '50s. Is that right?
Levine-Weinberg: I'm not sure about that. It seems plausible. Atlanta has been a big hub for Delta for a very long time, and it's still the biggest hub in the world for passenger traffic.
Priestley: And most people, if you're connecting, then you're experiencing the hub-and-spoke model as a consumer.
Levine-Weinberg: Yeah, exactly. But among those three, while they're very similar in terms of how they do business, they're quite different in terms of their financial profile. Delta Airlines is, by far, the most attractive one for investors, especially investors with a long-term outlook. They have what appears to be a much more sustainable business model. They have much higher profit margin, they benefit from the fact that they are less unionized than the other two carriers, which gives them a little more flexibility in terms of how they operate. And they also are much more disciplined about capital spending, so their free cash flow is much stronger than the other airlines. So just looking at last year's numbers -- Delta, American, and United are all about the same size, and they each have roughly $40 billion of annual revenue, give or take 10%. But while they're all the same size in terms of revenue, Delta produced $6.1 billion of adjusted pre-tax income last year, whereas American was $1 billion behind that, at $5.1 billion, and United was further back, with $4.5 billion of adjusted pre-tax income. Looking at cash flow, the difference is even greater. Delta produced free cash flow of $3.8 billion last year compared to less than $1 billion for American Airlines and $2.2 billion for United.
Priestley: So clearly they're ahead. I think a lot of that speaks to the general discipline and learning from past mistakes, especially CEO Richard Anderson, I feel like he really brought in a lot of long-term outlook, investing in minority stakes with overseas carriers, and those kinds of things, and arguably, buying vertical integration with the refinery, too. It's something that has been up for debate, whether or not that was a good idea. But it certainly shows long-term thinking, and risk taking, too.
Levine-Weinberg: Yeah. So Richard Anderson was the former CEO of Delta. He just moved on about a year ago and got replaced by his longtime No. 2, Ed Bastian, and they really did a great job navigating through the recession. A big merger between Delta and Northwest, which was a company where Richard Anderson had actually previously been CEO several years earlier. They basically put the two companies together, figured out how to wring out as many efficiencies as possible from the merger. It was really successful. They basically took two companies that weren't doing very well, were both in bankruptcy not that long before, and made it into one of the most profitable airlines in the world. As you said, they bought this refinery in Pennsylvania about five years ago; it's been a really interesting move to try to hedge against fluctuations in refining margins. A lot of airlines have historically hedged against oil-price changes, which you can very easily do with derivatives. You can buy futures on crude-oil contracts, and that basically protects you against changes in oil prices. But the problem is, that's only one part of what goes into the price of jet fuel. You also have the refining margin that goes on top of that. And that's varied pretty widely between -- it could be $5 a barrel, it could be $20 a barrel, depending on conditions. Right now, Delta is actually benefiting there, because Hurricane Harvey just last month knocked out a lot of the refineries towns in the Gulf Coast. Delta's refineries kept operating. So that's allowed them to not see the full price spike that has affected other airlines, which has caused a lot of airlines to reduce their margin forecasts in the last week or so.
Priestley: I think a lot of people were critical when he made that move, given the fact that, what's happened with the oil industry since then. But at the time, I do think it was a farsighted decision. And we don't know the projection for the oil market. So long-term for Delta, over the next 50 years, I think it's probably going to be a good idea for them.
Levine-Weinberg: Yeah, and they bought this refinery for about $150 million. The sellers just wanted to get out, basically for any price. So it's a very small investment relative to the amount of money Delta is dealing with on an annual basis.
Priestley: Yeah, it's about the same cost as a Boeing 787.
Levine-Weinberg: Right, and it's less than a month worth of profit for them. So if they have to close it because it doesn't eventually work out, they can do that, and it wasn't a big long-term risk, because they just weren't putting that much money into the project.
Priestley: Yeah. You touched on the employees being less unionized than a lot of their competitors. I think I like the way that they run their business with regards to their employees. They have a profit-sharing program -- they hand out the profit-sharing checks on Valentine's Day, which I think is great. And obviously, that shows benefit in their bottom line, the fact that they don't have to deal with a lot of these unions that have traditionally caused labor prices to go up, as we talked about with the pilot union. Do you think this is something that makes them stand out from the other two that we've discussed?
Levine-Weinberg: Just to dig in a little bit there, Delta's pilots are unionized. As I mentioned, pilots do represent a pretty high proportion of the overall cost. So they do have that cost pressure there. And they've also been giving quite generous raises to the rest of their employees, as well, because they want them to keep up with the rest of the industry, frankly because they know that if they're giving inferior pay to their employees, then they will be unionized soon enough. So it's not that they're getting huge cost savings from bullying their employees who aren't unionized, but it gives them a lot of flexibility. With a union contract, there's lots of rules and procedures and things that are meant to protect the employees, and when something unusual happens, it makes it harder to react. You have to go, renegotiate the contract, say that facts have changed and we need to change the process, and it can sometimes take years to do that. It may have to wait until the next round bargaining is scheduled for a new contract. So for Delta, just being able to change the work rules in a more streamlined way has definitely been good for them. If you look at, for instance, their maintenance personnel, most people who follow the industry would agree that Delta has the best maintenance -- tech ops team is what they call it -- in the industry. For years, Delta has had the oldest fleet of any major airline in the country, and yet it also tends to have the lowest maintenance costs on an available-seat-mile basis.
Priestley: That's incredible.
Levine-Weinberg: So it basically shows that they know what to do. They also have the best reliability of the three top carriers. So they've figured out ways to basically innovate and make sure they can provide a reliable product without having to spend a lot of money on updating their fleets. And this is a big reason why American and United are so far behind in terms of free cash flow. Part of it is the lower earnings, but part of it is because they're putting tons of money into fleet updating projects, especially since they've started to become profitable in the last few years. But the result is, they're putting basically all their money into these fleet projects. A narrow-bodied plane could cost you $40 million. A wide-bodied plane is going to cost you maybe $150 million. When you look at the capital spending, American Airlines has been spending about $6 billion a year, which is 15% of its revenue, just on fleet and other technology and capital spending of that sort.
Priestley: And Delta is starting to invest a little bit more in their fleet. Is that right?
Levine-Weinberg: Yeah. Delta has started to accelerate some of the retirement of its older aircraft types. It has a lot of McDonnell Douglas MD-88s, which were built in the late '80s and early '90s. So those planes are now, on average, a little over 25 years old, and that's generally considered the beginning of the end for planes in the airline industry. You can keep them running longer, but the maintenance costs tend to go up. It becomes less efficient. They're also, in terms of fuel efficiency, the technology is 1980s technology, so there's definitely much better technology available today. So they've started to retire those planes, and they also have some other, older models that are coming out of the fleet over the next five years or so.
Priestley: But they're doing that from a much better basis than the other two, right? A much better solid platform.
Levine-Weinberg: They're starting with better cash flow. Instead of trying to get the newest, most fuel-efficient, best-ever planes, they've been trying to, not bottom fish, but they're looking for deals -- what planes are manufacturers trying to sell? Bombardier , which is a struggling Canadian plane maker, they're coming out with a new plane that just became available within the last year, the CSeries, and they were really struggling to find a flagship customer. So this is considered one of the most revolutionary planes to come out in the last decades, but Delta got a really good price, to the point where Boeing actually filed a complaint with the government, saying that Bombardier was dumping these planes in the U.S., selling them for too low a price. So Delta got this 75 plane order at a really good deal, which will be very useful for their routes with lower traffic. Then they've been buying a bunch of planes from Boeing and Airbus , their largest narrow-bodied models, the 737-900ER and the A321, which have very good unit costs, but they're outgoing models. It's basically like buying last year's model at the auto dealer. You get a big discount because they're looking to get rid of them before they bring the new models in.
Priestley: Yeah. And I think a lot of airlines have the flexibility to do that. Newer airlines and newer airline engines are getting more fuel efficient, and I think there was a huge push in the aerospace industry to get the most fuel-efficient jet engines possible when oil prices were high. Oil prices have obviously come down since 2014, and now they have the luxury of running older models for longer because the fuel price is OK if it's less efficient. And also, as you said, not getting the most efficient model, which was really the main reason why people would be buying this year's version.
Levine-Weinberg: Yeah, and you have to balance the additional capital cost of buying a newer model, it might cost you $10 [million]-$15 million extra up front because there's massive wait times for these newer planes, whereas you can get the older ones on a much shorter lead time at a big discount. So you have to weigh that cost savings against the longer-term fuel-cost savings. And right now, it seems like, for many airlines, the older models look like a better long-term deal because you're not saving enough money on fuel to justify upgrading and getting the 12% or 14% fuel-efficiency gain from getting the latest technology.
Priestley: OK, awesome. S, bottom line on Delta, you think it's worth a second look by investors based on the fact, solid balance sheet, great long-term leadership. I think Ed Bastian taking over was a great move for a continuation of what had already been happening. Any other points you want to make to anyone of the investors out there?
Levine-Weinberg: I think free cash flow is the main thing to keep an eye on with Delta. They're obviously going to be ramping up their capital spending a little bit in the next year or two, but they're going to get some significant long-term benefits, and the capital spending should moderate after 2021, or thereabouts, as they go back to a more normalized pace of fleet replacement. So as long as that happens, I think Delta Airlines looks like a really compelling investment opportunity right now.
Priestley: Awesome. I would 100% second that. Thank you very, very much for coming in and sharing all of your airlines knowledge with everybody. Thank you very much, Adam!
Levine-Weinberg: You're very welcome!
Priestley: Well, that's it from us today. If you would like to get in touch, please feel free to email us at industryfocus@fool.com , or tweet us on Twitter @MFIndustryFocus. As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against stocks mentioned, so don't buy or sell anything based solely on what you hear. For Adam, I'm Sarah Priestley. Thanks for listening and Fool on!
Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, JetBlue Airways, and Spirit Airlines and has the following options: long January 2019 $10 calls on JetBlue Airways. Sarah Priestley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Twitter. The Motley Fool recommends JetBlue Airways and 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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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . Find out which companies are completely dominating the industry, and which of them shine the brightest from an investing perspective, how different airlines are changing their strategies to appeal to more potential customers, and more. Of the four, historically, Southwest Airlines has been consistently profitable, and the other three, which are the larger carriers, big international networks, and they also are the ones which serve smaller communities in the United States, as well.
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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . But while they're all the same size in terms of revenue, Delta produced $6.1 billion of adjusted pre-tax income last year, whereas American was $1 billion behind that, at $5.1 billion, and United was further back, with $4.5 billion of adjusted pre-tax income. Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, JetBlue Airways, and Spirit Airlines and has the following options: long January 2019 $10 calls on JetBlue Airways.
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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . In this week's episode of Industry Focus: Energy , host Sarah Priestley and Motley Fool contributor Adam Levine-Weinberg explain why the industry has seen such a turnaround in the last few years, and go over the most important things that investors need to know about airlines today. Delta produced free cash flow of $3.8 billion last year compared to less than $1 billion for American Airlines and $2.2 billion for United.
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At the end of this, and after the recent U.S. Airlines and American (NASDAQ: AAL) merger, the top four major U.S. airlines left standing are American, Delta (NYSE: DAL) , U.S. and Southwest (NYSE: LUV) . Priestley: It looks a lot different now than it has in the last 30 years. Levine-Weinberg: As you just mentioned, the top four airlines now, American, Delta, United, and Southwest combined, have about 85% of the U.S. market.
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1164c43a-73cb-4c0c-a7e0-86e6def79af6
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7356.0
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2017-09-13 00:00:00 UTC
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Stock Market News For Sep 13, 2017
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-13-2017-2017-09-13
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nan
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nan
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Market closed higher on Tuesday with the three main benchmarks notching up records during the same trading session for the first time in six weeks. Investors regained their appetite for risk following weaker than expected impact of Hurricane Irma and a nuclear missile from North Korea anticipated over the weekend failed to materialize. Financials continued its streak of gains for the second straight day following an increase in yield of the 10-year Treasury note. Speaking at an investment conference, U.S. Treasury of Secretary stated that the Trump administration expects tax reforms to materialize by the year end.
The Dow Jones Industrial Average (DJIA) closed at 22,118.86, gaining 0.3%. The S&P 500 Index (INX) increased 0.3% to close at 2,496.48. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,454.28, declining 0.3%. A total of 5.91 billion shares were traded on Tuesday, higher than the last 20-session average of 5.79 billion shares. Advancing issues outnumbered decliners on the NYSE by 1.71-to-1 ratio. On the Nasdaq, advancers outnumbered decliners by a 1.70-to-1 ratio. The CBOE VIX increased 1.4% to close at 92.39.
Benchmarks Close at Record High after Six Weeks
The Dow surged 61.49 points to end the session above the psychological 22,000 milestone. This marks the blue-chip index's 36th record close for 2017. Such gains were made possible by a rally in shares of Goldman Sachs GS and DowDuPont (DWDP) which increased 2.2% and 2.5% respectively. However, gains for the Dow were pared by a decline in the shares of McDonald's MCD . Shares of McDonald's declined 3.2% following lackluster reports regarding the food-chain operator's sales growth.
The S&P 500 gained 8.37 points and posted its second straight day of gains, notching up the 32nd record for 2017. Of the 11 major sectors of the S&P 500, nine finished in positive territory with financials leading the advancers. The Financial Select Sector SPDR Fund (XLF) ended the session up 1.1%, posting its second consecutive day of gains. Such gains were achieved following increase in the yield on 10-year Treasury note which hit 2.17%. This led to gains for Goldman Sachs and JP Morgan JPM which increased 1.2%. Meanwhile, Nasdaq ended the session up 22.02 points and registered its 47th record for the year. Both the companies possess a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economists are of the view that markets gained traction primarily because the effect of Hurricane Irma was weaker than expected and also North Korea's decision to test another missile over the weekend. Though priced in, this also led to trade volumes slowly coming back to normal.
Retroactive Tax Reforms to Be in Place by December
U.S. Secretary of Treasury Steve Mnuchin announced on Tuesday that the Trump administration expects tax reforms to materialize by the year end. He also commented that the administration was planning to backdate the reforms to Jan 1, 2017. "Backdating is still something we are considering and it would be a big boon for the economy," said Mnuchin at a conference organized by CNBC.
Though the legislation for such reforms has not been prepared by the Congress, members of the GOP are confident tax reforms will reach fruition after the debt ceiling extension measure was passed last week. Moreover, in an address to lawmakers, President Trump urged that work on tax legislation be pushed forward rather than waiting till the end of September.
Job Openings Hit a Record High
In a report, the United States Labor Department said that job openings in the United States increased to 6.17 million in July, , for the first time since 2000. Analysts noted that such a performance has come after Trump's decision to end the Deferred Action Childhood Arrivals program (DACA).
Meanwhile, education and health together added 1.1 million jobs to the economy, the most across all the industries in the United States. This was followed by retail, manufacturing, finance, insurance and construction, which added 625,000, 400,000, 270,000 and 232,000 jobs respectively to the economy.
Stocks That Made Headlines
Gap Starts the Holiday Bash Early, Seasonal Hiring On
Gap Inc. GPS has started off early to make most of the holiday season, the busiest part of the year. ( Read More )
American Airlines August Traffic Rises, Q3 View Bearish
American Airlines Group Inc. AAL has reported traffic figures for August, registering a rise, measured in revenue passenger miles (RPMs), to 21.19 billion from 20.44 billion, reported a year ago. ( Read More )
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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
J P Morgan Chase & Co (JPM): Free Stock Analysis Report
Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report
Gap, Inc. (The) (GPS): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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( Read More ) American Airlines August Traffic Rises, Q3 View Bearish American Airlines Group Inc. AAL has reported traffic figures for August, registering a rise, measured in revenue passenger miles (RPMs), to 21.19 billion from 20.44 billion, reported a year ago. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Gap, Inc. (The) (GPS): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. Investors regained their appetite for risk following weaker than expected impact of Hurricane Irma and a nuclear missile from North Korea anticipated over the weekend failed to materialize.
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( Read More ) American Airlines August Traffic Rises, Q3 View Bearish American Airlines Group Inc. AAL has reported traffic figures for August, registering a rise, measured in revenue passenger miles (RPMs), to 21.19 billion from 20.44 billion, reported a year ago. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Gap, Inc. (The) (GPS): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. Speaking at an investment conference, U.S. Treasury of Secretary stated that the Trump administration expects tax reforms to materialize by the year end.
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( Read More ) American Airlines August Traffic Rises, Q3 View Bearish American Airlines Group Inc. AAL has reported traffic figures for August, registering a rise, measured in revenue passenger miles (RPMs), to 21.19 billion from 20.44 billion, reported a year ago. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Gap, Inc. (The) (GPS): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. Retroactive Tax Reforms to Be in Place by December U.S. Secretary of Treasury Steve Mnuchin announced on Tuesday that the Trump administration expects tax reforms to materialize by the year end.
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( Read More ) American Airlines August Traffic Rises, Q3 View Bearish American Airlines Group Inc. AAL has reported traffic figures for August, registering a rise, measured in revenue passenger miles (RPMs), to 21.19 billion from 20.44 billion, reported a year ago. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report Gap, Inc. (The) (GPS): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. Speaking at an investment conference, U.S. Treasury of Secretary stated that the Trump administration expects tax reforms to materialize by the year end.
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2ad80a69-750e-4792-82e3-8a7e5090abb4
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7357.0
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2017-09-12 00:00:00 UTC
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Airline Stocks Regain Strength as Irma Loses Intensity
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AAL
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https://www.nasdaq.com/articles/airline-stocks-regain-strength-as-irma-loses-intensity-2017-09-12
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nan
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nan
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Stocks in the airline space have been struggling lately due to multiple headwinds like higher fuel costs and the havoc created by Harvey. However, major sector participants breathed a sigh of relief as the impact of Irma was not as severe as forecasted in Florida. In fact, Irma has been downgraded to a tropical depression.
Carriers Fly High Led by American Airlines
Buoyed by the weaker-than-expected impact, most airline stocks flew high on Sept. 11 after being grounded lately. Major gainers included the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , Southwest Airlines Co. LUV , JetBlue Airways Corp. JBLU and Alaska Air Group ALK .
With a high proportion of sector participants trading in the green, it was of little surprise that the NYSE ARCA Airline Index had a field day. The sector tracker ended the trading session at $107.69, up 2% from the closing price on Sep 8.
In fact, the rally was not limited to airline stocks as major indices gained handsomely. The S&P 500 gained 1.1% to close the trading session at a record 2,488.11 with American Airlines leading the show. The Dow Jones Industrial average treaded past the 22,000 mark for the first time since mid-August . The Nasdaq Composite Index also closed at 6,432, gaining 1.1%.
The surge was mainly owing to the change in course of Irma. Consequently, Miami and Orlando escaped the projected extreme devastation as the storm moved westward.
Markedly, American Airlines, which has significant exposure to Florida and operates multiple flights from Charlotte and Miami on a daily basis, was naturally a big benefactor. The stock gained 5.2%, ending the trading session at $45.86.
Delta and American Airlines Bullish on Q4
In September 2017, many airline stocks including the likes of United Continental and Southwest Airlines had trimmed their respective unit revenue projections for the current quarter with the Harvey-induced revenue loss being the main culprit. The rise in fuel costs, which again may be Harvey-induced, also has not helped matters.
However, airline heavyweights - Delta and American Airlines - sounded bullish regarding their prospects in the final quarter of the year.
Last week, at the Cowen Global Transportation Conference, American Airlines had declared that it expects to perform better with respect to total revenue per available seat miles (TRASM: a key measure of unit revenue) in the fourth quarter compared with the current quarter.
Moreover, the carrier forecasted lower year-over-year growth with respect to another key metric - cost per available seat miles - excluding fuel and other special items. The metric is expected to grow at approximately only 3% in the final quarter compared with the 5% growth projected in the current quarter.
Delta also appeared to be optimistic about a rebound in the fourth quarter at the same investor conference, on the back of healthy demand for leisure travel. The bullish commentary of two of the biggest airline players in the United States bodes well for the sector, indicating that all is not lost with a rebound possible from the recent struggles.
Both Delta and American Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks Industry Rank Holds Out Hope
The Zacks Industry Rank of 87 (out of 250 plus groups) carried by the Zacks Airline industry further highlights the fact that despite the recent struggles, the sector remains an attractive investment option. Notably, the favorable rank places the companies in the top 34% 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
Valuation Signals More Upside
The impressive Zacks Industry Rank is well supported by the segment's attractive valuation. 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 doesn't look expensive at this point.
The industry currently has a trailing 12-month EV/EBITDA ratio of 7.6, which is better than what the industry saw in the last five years. The ratio is almost near the low end of 5.1 during the period.
Additionally, the reading compares favorably with the market at large, as the current EV/EBITDA for the S&P 500 is at 10.9 and the median level is 9.4. The industry's favorable positioning compared to the overall market certainly signals more upside as well.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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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Major gainers included the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , Southwest Airlines Co. LUV , JetBlue Airways Corp. JBLU and Alaska Air Group ALK . 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. Stocks in the airline space have been struggling lately due to multiple headwinds like higher fuel costs and the havoc created by Harvey.
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Major gainers included the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , Southwest Airlines Co. LUV , JetBlue Airways Corp. JBLU and Alaska Air Group ALK . 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. Delta and American Airlines Bullish on Q4 In September 2017, many airline stocks including the likes of United Continental and Southwest Airlines had trimmed their respective unit revenue projections for the current quarter with the Harvey-induced revenue loss being the main culprit.
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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. Major gainers included the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , Southwest Airlines Co. LUV , JetBlue Airways Corp. JBLU and Alaska Air Group ALK . Delta and American Airlines Bullish on Q4 In September 2017, many airline stocks including the likes of United Continental and Southwest Airlines had trimmed their respective unit revenue projections for the current quarter with the Harvey-induced revenue loss being the main culprit.
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Major gainers included the likes of American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , Southwest Airlines Co. LUV , JetBlue Airways Corp. JBLU and Alaska Air Group ALK . 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. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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e14a88f1-db83-426e-8c34-8dd7267d9140
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7358.0
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2017-09-11 00:00:00 UTC
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Why Hold Strategy is Apt for American Airlines (AAL) Now
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AAL
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https://www.nasdaq.com/articles/why-hold-strategy-is-apt-for-american-airlines-aal-now-2017-09-11
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nan
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nan
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We issued an updated research report on key airline player, American Airlines Group Inc.AAL , on Sep 7.
Notably, the company's efforts to expand are encouraging. To this end, American Airlines purchased a minority stake in China Southern Airlines Company Limited ZNH . Also, the carrier has invested approximately $200 million in the Hong Kong-listed shares of China Southern. We believe, this particular move to expand in China is a prudent one as the country is projected to become the largest aviation market by 2024.
American Airlines' also made efforts to expand its European footprint. Last month, the company announced new flights to Europe in a bid to meet the surge in demand for Europe travel during summer. In addition, the carrier is likely to offer special summer services to Budapest and Prague from Philadelphia along with an additional one to Venice from Chicago, beginning May 4, 2018.
We are impressed by American Airlines' efforts to modernize its fleet as well. The company intends to spend approximately $4.1 billion this year toward upgrading its fleet.
Moreover, the carrier is making efforts to reward shareholders through share buybacks and dividend payments, which is a positive. Evidently, it has already returned more than $10.7 billion to stockholders through share repurchases and dividends since mid-2014.
High labor costs, however, remain a major headwind for the stock that is expected to continue in the third quarter as well. Consolidated cost per available seat miles (excluding special items and fuel) is projected to increase 5% in the same period.
With labor deals in vogue in the airline space, high labor costs are not unique to American Airlines. Other players in the same space like Hawaiian Holdings HA and Allegiant Travel Company ALGT too have inked deals with various labor groups over the last few months.
American Airlines' high debt levels and July traffic report also raise concerns. Load factor (percentage of seats filled by passengers) also declined in the month as capacity expansion outweighed traffic growth.
Furthermore, weather-related factors have been hurting the carrier's overall performance. Harvey impacted operations of the company leading to multiple flight cancellations. Irma is also expected to dent its operations severely.
American Airlines expects total revenue per available seat miles (TRASM: a key measure of unit revenue) to grow at a slower pace in the third quarter due to difficult year-over-year comparisons.
Price Performance
Due to the above-mentioned headwinds, shares of American Airlines have struggled so far this year. The stock has been down 6.6% year to date, as against the industry 's rally of 7.8% in the same period.
Stock to Consider
Investors interested in the airline space may consider SkyWest Inc. SKYW sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
SkyWest witnessed the Zacks Consensus Estimate for current-year earnings being revised 1.9% upward over the last 60 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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
China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report
SkyWest, Inc. (SKYW): 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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We issued an updated research report on key airline player, American Airlines Group Inc.AAL , on Sep 7. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report SkyWest, Inc. (SKYW): 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 players in the same space like Hawaiian Holdings HA and Allegiant Travel Company ALGT too have inked deals with various labor groups over the last few months.
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We issued an updated research report on key airline player, American Airlines Group Inc.AAL , on Sep 7. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report SkyWest, Inc. (SKYW): 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 players in the same space like Hawaiian Holdings HA and Allegiant Travel Company ALGT too have inked deals with various labor groups over the last few months.
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Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report SkyWest, Inc. (SKYW): 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. We issued an updated research report on key airline player, American Airlines Group Inc.AAL , on Sep 7. To this end, American Airlines purchased a minority stake in China Southern Airlines Company Limited ZNH .
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We issued an updated research report on key airline player, American Airlines Group Inc.AAL , on Sep 7. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report SkyWest, Inc. (SKYW): 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. With labor deals in vogue in the airline space, high labor costs are not unique to American Airlines.
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19dedf24-4877-4256-ade9-f3132341d0ec
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7359.0
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2017-09-11 00:00:00 UTC
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Notable Monday Option Activity: S, AAL, BURL
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AAL
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https://www.nasdaq.com/articles/notable-monday-option-activity-s-aal-burl-2017-09-11
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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 Sprint Corp (Symbol: S), where a total volume of 46,178 contracts has been traded thus far today, a contract volume which is representative of approximately 4.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 61.6% of S's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $9 strike call option expiring November 17, 2017 , with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of S. Below is a chart showing S's trailing twelve month trading history, with the $9 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 35,629 contracts, representing approximately 3.6 million underlying shares or approximately 59% of AAL's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $45.50 strike call option expiring September 15, 2017 , with 4,931 contracts trading so far today, representing approximately 493,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $45.50 strike highlighted in orange:
And Burlington Stores Inc (Symbol: BURL) saw options trading volume of 9,278 contracts, representing approximately 927,800 underlying shares or approximately 56.5% of BURL's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $85 strike call option expiring September 15, 2017 , with 3,757 contracts trading so far today, representing approximately 375,700 underlying shares of BURL. Below is a chart showing BURL's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for S options , AAL options , or BURL 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 $45.50 strike call option expiring September 15, 2017 , with 4,931 contracts trading so far today, representing approximately 493,100 underlying shares of AAL. Particularly high volume was seen for the $9 strike call option expiring November 17, 2017 , with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of S. Below is a chart showing S's trailing twelve month trading history, with the $9 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 35,629 contracts, representing approximately 3.6 million underlying shares or approximately 59% 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 $45.50 strike highlighted in orange: And Burlington Stores Inc (Symbol: BURL) saw options trading volume of 9,278 contracts, representing approximately 927,800 underlying shares or approximately 56.5% of BURL's average daily trading volume over the past month, of 1.6 million shares.
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Particularly high volume was seen for the $9 strike call option expiring November 17, 2017 , with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of S. Below is a chart showing S's trailing twelve month trading history, with the $9 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 35,629 contracts, representing approximately 3.6 million underlying shares or approximately 59% of AAL's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $45.50 strike call option expiring September 15, 2017 , with 4,931 contracts trading so far today, representing approximately 493,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $45.50 strike highlighted in orange: And Burlington Stores Inc (Symbol: BURL) saw options trading volume of 9,278 contracts, representing approximately 927,800 underlying shares or approximately 56.5% of BURL's average daily trading volume over the past month, of 1.6 million shares.
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Particularly high volume was seen for the $9 strike call option expiring November 17, 2017 , with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of S. Below is a chart showing S's trailing twelve month trading history, with the $9 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 35,629 contracts, representing approximately 3.6 million underlying shares or approximately 59% 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 $45.50 strike highlighted in orange: And Burlington Stores Inc (Symbol: BURL) saw options trading volume of 9,278 contracts, representing approximately 927,800 underlying shares or approximately 56.5% of BURL's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $45.50 strike call option expiring September 15, 2017 , with 4,931 contracts trading so far today, representing approximately 493,100 underlying shares of AAL.
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Particularly high volume was seen for the $9 strike call option expiring November 17, 2017 , with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of S. Below is a chart showing S's trailing twelve month trading history, with the $9 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 35,629 contracts, representing approximately 3.6 million underlying shares or approximately 59% 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 $45.50 strike highlighted in orange: And Burlington Stores Inc (Symbol: BURL) saw options trading volume of 9,278 contracts, representing approximately 927,800 underlying shares or approximately 56.5% of BURL's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $45.50 strike call option expiring September 15, 2017 , with 4,931 contracts trading so far today, representing approximately 493,100 underlying shares of AAL.
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458d6527-68d3-41e7-a860-a3359ce69edf
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7360.0
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2017-09-08 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Comcast, Thermo Fisher, China Life Insurance, Deere and American Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-comcast-thermo-fisher-china-life-insurance-deere-and
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nan
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nan
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For Immediate Release
Chicago, IL - September 8, 2017 - 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 Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Top Research Reports for Comcast, Thermo Fisher and China Life
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ) and China Life Insurance (NYSE: LFC - Free Report ). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Comcast's shares have gained +11.8% over the last six months, outperforming the Zacks Cable Television industry which has gained +10.7% over the same period. Comcast completed the nationwide rollout of its wireless services under the Xfinity Mobile brand and is venturing into residential solar programs with a 40-month deal with Sunrun.
Further, the company is working towards 5G network deployment and continues to roll out its DOCSIS 3.1-based internet services to Comcast Business customers. Comcast has also forayed into the over-the-top video delivery market with the launch of its Internet TV service - Stream. Through these initiatives, Comcast aims to check customer churn and provide viewers with more streaming options.
However, tough competition, consolidation-related woes, mounting programming costs and loss of customer base act as near-term risks for Comcast. Competitive threat from online streaming service providers remains a concern.
(You can read the full research report on Comcast here >>> ) .
Shares of Buy-rated Thermo Fisher have outperformed the Zacks Medical sector (up more than +26.2% over the last one year vs +5.3%). The Zacks analyst is upbeat about the company gaining entry into the CDMO market through the recent acquistion of Patheon for $7.2 billion. A series of product launches along with major progress in precision medicine initiatives is also encouraging.
Thermo Fisher's acquisition of FEI Company has already started to boost its analytical instruments portfolio. The company also opened Center of Excellence for electron microscopy in Saudi Arabia. The raised 2017 guidance is all the more encouraging indicating the fact that this overall bullish trend will continue through the year.
(You can read the full research report on Thermo Fisher here >>> ) .
China Life Insurance 's shares have outperformed the Zacks Life Insurance industry year to date, gaining +21.8% vs. +15.8%. The Zacks analyst likes the company's robust market position and organic growth initiatives. Its operational efficiency is also reflected by its product upgrades and premium growth over the last many quarters. China Life's solid investment management also continues to impress.
The company has the most extensive distribution and service network among all insurance companies operating in China. However, it suffers from rising expenses that have been pushing the bottom line down over last few quarters. Its severe exposure to market risk is another concern. (You can read the full research report on China Life Insurance here >>> ) .
Other noteworthy reports we are featuring today include Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ).
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on CMCSA - FREE
Get the full Report on TMO - FREE
Get the full Report on LFC - FREE
Get the full Report on DE - FREE
Get the full Report on AAL - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report
China Life Insurance Company Limited (LFC): Free Stock Analysis Report
Deere & Company (DE): 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 Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Other noteworthy reports we are featuring today include Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Get the full Report on CMCSA - FREE Get the full Report on TMO - FREE Get the full Report on LFC - FREE Get the full Report on DE - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report China Life Insurance Company Limited (LFC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ).
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Stocks recently featured in the blog include Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Get the full Report on CMCSA - FREE Get the full Report on TMO - FREE Get the full Report on LFC - FREE Get the full Report on DE - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report China Life Insurance Company Limited (LFC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Comcast (Nasdaq: CMCSA - Free Report ), Thermo Fisher (NYSE: TMO - Free Report ), China Life Insurance (NYSE: LFC - Free Report ), Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Other noteworthy reports we are featuring today include Deere (NYSE: DE - Free Report ) and American Airlines (Nasdaq: AAL - Free Report ). Get the full Report on CMCSA - FREE Get the full Report on TMO - FREE Get the full Report on LFC - FREE Get the full Report on DE - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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9d75fadb-9b2d-4210-adbf-0f9251c05107
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7361.0
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2017-09-06 00:00:00 UTC
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Hurricane Irma: ETF Winners & Losers
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AAL
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https://www.nasdaq.com/articles/hurricane-irma-etf-winners-losers-2017-09-06
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nan
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nan
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Even before the country could heave a sigh of relief post Hurricane Harvey, another storm started brewing in the open Atlantic Ocean. The new threat called Hurricane Irma has been accredited the Category 5 status (the highest degree) and is feared to be more disastrous than Harvey. It is expected to ravage the Caribbean islands and Florida this week. Florida announced a state of emergency .
Below we highlight a few potential ETF and stock winners and losers from Irma.
Losers
Insurance
Severe destruction is likely in Florida. Insured losses could be as high as $125 billion to $130 billion, as per an analyst at Barclays, quoted on Bloomberg . Property and casualty insurance companies may be hit hard as these are likely to shell out handsomely on claims in such catastrophic storms.
Insurance stocks normally fall over 1% in the month, following the disaster caused by a Category 3 storm . So, the impact of Hurricane Irma on insurance stocks is anybody's guess. Already, shares of property and casualty homeowners insurance companies like Universal Insurance Holdings Inc.UVE , Heritage Insurance Holdings Inc.HRTG and HCI Group Inc.HCI plunged about 14.6%, 17% and 20% on Sep 5. ReinsurersXL Group LtdXL and Everest Re Group Ltd.RE too lost about 5.8% and 6.9%, respectively.
Insurance companies like Chubb LimitedCB , Allstate CorporationALL , Prudential Financial Inc.PRU and Progressive Corp.PGR are also likely to be hit hard. Naturally, the insurance ETFs iShares Dow Jones US Insurance Fund IAK and SPDR S&P Insurance ETF KIE will feel the brunt (see all Financials ETFs here).
Transportation
As per an article published on CNBC , a severe impact from Irma could roil rail and container activity, and crush infrastructure for transportation. Airlines started considering Florida airports for their Hurricane Irma change-fee waivers . American AAL , JetBlue JBLU , Spirit SAVE , and Southwest LUV are some of the airlines doing this.
As per the policy, "they permitted customers to make one change to their itineraries without paying change fees that can cost $200 or more per passenger." Naturally, transportation ETFs like SPDR S&P Transportation ETF XTN and U.S. Global Jets ETF JETS may feel the pressure ahead.
Cruise Lines
Since Caribbean islands are famed for cruise trips, cruise stocks and ETFs deserve a special mention in this case. Operators are abandoning trips that haven't left por t.
Carnival Corp.CCL , Royal Caribbean Cruises Ltd.RCL and Norwegian Cruise Line Holdings Ltd . (NCLH) lost about 3.1%, 4.2% and 3.2%, respectively, on Sep 5. With this, PowerShares Dynamic Leisure and Entertainment PEJ and iShares Edge MSCI Multifactor Consumer Discretionary ETF (CNDF) could feel a slight adverse impact as these funds have certain exposure to cruise lines (read: What Lies Ahead of Leisure & Travel ETFs in 2H? ).
Restaurants
Analysts are apprehensive that restaurants may see considerable sales reduction and destruction due to Irma. A Canaccord analyst said that some restaurants have considerable exposure to Florida. Among these, Fiesta Restaurant Group Inc.FRGI (37% exposure), Ruth's Hospitality Group Inc. (RUTH) (21% exposure), Bloomin' Brands (BLMN) (19% focus), BJ's RestaurantsBJRI (12%), Darden Restaurants Inc. (DRI) (11%), Ruby Tuesday Inc. (RT) (10%) and Brinker International Inc. (EAT) (10%) have a double-digit focus. These stocks lost in the range of 0.4% to 5% on Sep 5. USCF Restaurant Leaders FundMENU would thus be on high alert.
Gainers
Agriculture
Three agricultural commodities, namely orange juices, cotton and lumber, saw price rises in recent trading. Key cotton-producing areas around the Gulf Coast have already suffered from flooded fields caused by Hurricane Harvey. Crops in parts of Georgia and South Carolina will also be at risk of yield losses from Irma , as per MDA and quoted on Bloomberg. As a result, cotton prices rallied. iPath Pure Beta Cotton ETNCTNN jumped about 7.3% on Sep 5.
Lumber prices surged on apprehensions of damage. This should act as a tailwind for iShares Global Timber & Forestry ETFWOOD while orange prices skyrocketed as Florida is key growing region of oranges.
Home Retailers
The condition of houses in an area ravaged by a massive storm with 180 mile-per-hour winds can well be imagined. So, home improvement retailers like Home Depot Inc.HD (up 1.43% on Sep 5) and Lowe's Companies Inc. (LOW) (up 1.4%) are in a bright spot. ETFs like Consumer Discretionary Select Sector SPDR Fund (XLY) and PowerShares Dynamic Building & ConstructionPKB should also benefit (read: Home Retailer ETFs Set to Gain After Harvey ).
Infrastructure
First Harvey, and now Irma should shower gains on infrastructure stocks as re-building will push up their demand. So, companies dealing in building materials should see a surge. The Materials Select Sector SPDR FundXLB and SPDR S&P Homebuilders ETF (XHB) have high chances of outperforming.
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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
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Home Depot, Inc. (The) (HD): Free Stock Analysis Report
PWRSH-DYN BLDG (PKB): ETF Research Reports
SPDR-MATLS SELS (XLB): ETF Research Reports
SPDR-SP TRANSPT (XTN): ETF Research Reports
ISHARS-US INSUR (IAK): ETF Research Reports
PACIFIC (EX: JA (PEJ): ETF Research Reports
ISHARS-GL TF (WOOD): ETF Research Reports
USCF-RSTRNT LDR (MENU): ETF Research Reports
US GLOBAL JETS (JETS): ETF Research Reports
SPDR-KBW INSUR (KIE): ETF Research Reports
Prudential Financial, Inc. (PRU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American AAL , JetBlue JBLU , Spirit SAVE , and Southwest LUV are some of the airlines doing this. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report PWRSH-DYN BLDG (PKB): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-SP TRANSPT (XTN): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports PACIFIC (EX: JA (PEJ): ETF Research Reports ISHARS-GL TF (WOOD): ETF Research Reports USCF-RSTRNT LDR (MENU): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports SPDR-KBW INSUR (KIE): ETF Research Reports Prudential Financial, Inc. (PRU): Free Stock Analysis Report To read this article on Zacks.com click here. Even before the country could heave a sigh of relief post Hurricane Harvey, another storm started brewing in the open Atlantic Ocean.
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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 Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report PWRSH-DYN BLDG (PKB): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-SP TRANSPT (XTN): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports PACIFIC (EX: JA (PEJ): ETF Research Reports ISHARS-GL TF (WOOD): ETF Research Reports USCF-RSTRNT LDR (MENU): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports SPDR-KBW INSUR (KIE): ETF Research Reports Prudential Financial, Inc. (PRU): Free Stock Analysis Report To read this article on Zacks.com click here. American AAL , JetBlue JBLU , Spirit SAVE , and Southwest LUV are some of the airlines doing this. With this, PowerShares Dynamic Leisure and Entertainment PEJ and iShares Edge MSCI Multifactor Consumer Discretionary ETF (CNDF) could feel a slight adverse impact as these funds have certain exposure to cruise lines (read: What Lies Ahead of Leisure & Travel ETFs in 2H?
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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 Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report PWRSH-DYN BLDG (PKB): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-SP TRANSPT (XTN): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports PACIFIC (EX: JA (PEJ): ETF Research Reports ISHARS-GL TF (WOOD): ETF Research Reports USCF-RSTRNT LDR (MENU): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports SPDR-KBW INSUR (KIE): ETF Research Reports Prudential Financial, Inc. (PRU): Free Stock Analysis Report To read this article on Zacks.com click here. American AAL , JetBlue JBLU , Spirit SAVE , and Southwest LUV are some of the airlines doing this. Already, shares of property and casualty homeowners insurance companies like Universal Insurance Holdings Inc.UVE , Heritage Insurance Holdings Inc.HRTG and HCI Group Inc.HCI plunged about 14.6%, 17% and 20% on Sep 5.
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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 Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Home Depot, Inc. (The) (HD): Free Stock Analysis Report PWRSH-DYN BLDG (PKB): ETF Research Reports SPDR-MATLS SELS (XLB): ETF Research Reports SPDR-SP TRANSPT (XTN): ETF Research Reports ISHARS-US INSUR (IAK): ETF Research Reports PACIFIC (EX: JA (PEJ): ETF Research Reports ISHARS-GL TF (WOOD): ETF Research Reports USCF-RSTRNT LDR (MENU): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports SPDR-KBW INSUR (KIE): ETF Research Reports Prudential Financial, Inc. (PRU): Free Stock Analysis Report To read this article on Zacks.com click here. American AAL , JetBlue JBLU , Spirit SAVE , and Southwest LUV are some of the airlines doing this. So, the impact of Hurricane Irma on insurance stocks is anybody's guess.
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199e5a63-6163-40ce-9037-b43bcd99d9bf
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7362.0
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2017-09-06 00:00:00 UTC
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United Continental: And Here Comes the Downgrade
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AAL
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https://www.nasdaq.com/articles/united-continental-and-here-comes-downgrade-2017-09-06
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nan
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nan
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United Continental (UAL) has taken some unusual steps of late, including its decision to go head-to-head with ultra-low-cost carrierSpirit Airlines (SAVE), when investors apparently want it to focus on closing its margin gap with Delta Air Lines (DAL) and American Airlines (AAL). So it should be no surprise that shares of United Continental are dropping today after it announced that its revenue-per-available-seat mile, an industry metric, would drop 3% to 5% during the third quarter, down from its previous projection of a 1% drop to a 1% gain.
Getty Images
And with that, CFRA Research's Jim Corridore cut United Continental Holdings to Buy from Strong Buy:
Shares of United Continental have dropped 4.1% to $58.62 at 10:45 a.m. today, while Delta Air Lines has risen 0.4% to $46.01, American Airlines has advanced 0.4% to $44.05, and Spirit Airlines has fallen 1.4% to $32.05.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Continental (UAL) has taken some unusual steps of late, including its decision to go head-to-head with ultra-low-cost carrierSpirit Airlines (SAVE), when investors apparently want it to focus on closing its margin gap with Delta Air Lines (DAL) and American Airlines (AAL). So it should be no surprise that shares of United Continental are dropping today after it announced that its revenue-per-available-seat mile, an industry metric, would drop 3% to 5% during the third quarter, down from its previous projection of a 1% drop to a 1% gain. Getty Images And with that, CFRA Research's Jim Corridore cut United Continental Holdings to Buy from Strong Buy: Shares of United Continental have dropped 4.1% to $58.62 at 10:45 a.m. today, while Delta Air Lines has risen 0.4% to $46.01, American Airlines has advanced 0.4% to $44.05, and Spirit Airlines has fallen 1.4% to $32.05.
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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. United Continental (UAL) has taken some unusual steps of late, including its decision to go head-to-head with ultra-low-cost carrierSpirit Airlines (SAVE), when investors apparently want it to focus on closing its margin gap with Delta Air Lines (DAL) and American Airlines (AAL). Getty Images And with that, CFRA Research's Jim Corridore cut United Continental Holdings to Buy from Strong Buy: Shares of United Continental have dropped 4.1% to $58.62 at 10:45 a.m. today, while Delta Air Lines has risen 0.4% to $46.01, American Airlines has advanced 0.4% to $44.05, and Spirit Airlines has fallen 1.4% to $32.05.
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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. United Continental (UAL) has taken some unusual steps of late, including its decision to go head-to-head with ultra-low-cost carrierSpirit Airlines (SAVE), when investors apparently want it to focus on closing its margin gap with Delta Air Lines (DAL) and American Airlines (AAL). Getty Images And with that, CFRA Research's Jim Corridore cut United Continental Holdings to Buy from Strong Buy: Shares of United Continental have dropped 4.1% to $58.62 at 10:45 a.m. today, while Delta Air Lines has risen 0.4% to $46.01, American Airlines has advanced 0.4% to $44.05, and Spirit Airlines has fallen 1.4% to $32.05.
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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. United Continental (UAL) has taken some unusual steps of late, including its decision to go head-to-head with ultra-low-cost carrierSpirit Airlines (SAVE), when investors apparently want it to focus on closing its margin gap with Delta Air Lines (DAL) and American Airlines (AAL). Getty Images And with that, CFRA Research's Jim Corridore cut United Continental Holdings to Buy from Strong Buy: Shares of United Continental have dropped 4.1% to $58.62 at 10:45 a.m. today, while Delta Air Lines has risen 0.4% to $46.01, American Airlines has advanced 0.4% to $44.05, and Spirit Airlines has fallen 1.4% to $32.05.
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82374d46-9f29-4da7-9e5c-e299ba0bf73d
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7363.0
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2017-09-05 00:00:00 UTC
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Delta Air Lines Slashes Its Third-Quarter Guidance
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-slashes-its-third-quarter-guidance-2017-09-05
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nan
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nan
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In recent years, Delta Air Lines (NYSE: DAL) has routinely posted stronger earnings results than its top rivals, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . Entering the third quarter, Delta expected to continue its run of strong profitability.
However, fuel prices have started to rise again, and airfares aren't increasing fast enough to keep pace. A recent price war sparked by United Continental is probably contributing to the ongoing weakness in domestic fares. As a result, Delta Air Lines just significantly reduced its third-quarter margin forecast.
Delta's guidance comes down
Back in mid-July, Delta projected that it would earn a strong 18% to 20% operating margin (excluding special items) during the third quarter. That would have been roughly in line with its margin performance in the year-earlier period. Delta expected to offset its cost increases with a solid 2.5% to 4.5% uptick in passenger revenue per available seat mile (PRASM).
Delta now acknowledges that this guidance was too aggressive. First, fuel prices have been creeping up in the past couple of months. The carrier now expects to pay an average of $1.68/gallon to $1.73/gallon for jet fuel in the third quarter, compared to an original estimate of $1.55/gallon to $1.60/gallon.
Second, fares for last-minute domestic bookings haven't recovered as much as management had hoped. Thus, Delta Air Lines now expects to report a more modest 2% to 3% PRASM gain this quarter. The net result is that Delta has reduced the midpoint of its third-quarter margin guidance by 2 percentage points. Its new operating margin forecast for the quarter is 16.5% to 17.5%.
Will American and United feel the pain?
Delta's guidance cut doesn't bode well for American Airlines and United Continental. All three carriers are highly exposed to changes in the domestic fare environment (although United has a somewhat greater international footprint than its rivals). Furthermore, unlike Delta , American and United will bear the full cost of rising refining margins in the wake of Hurricane Harvey.
As of July, American and United both had lower third-quarter margin forecasts than Delta. American Airlines called for a 10% to 12% pre-tax margin, while United expected to report a 12.5% to 14.5% pre-tax margin for the quarter.
It's extremely likely that American and United will have to reduce their third-quarter margin forecasts at least as much as Delta. (United in particular will sustain a massive earnings hit due to the impact of Hurricane Harvey on its Houston hub.) Given that they were starting from lower projected levels of profitability, the proportional impact on their earnings will be even greater.
How will airlines react?
Jet fuel prices will likely recede to some extent this fall, after refineries fix the damage from Hurricane Harvey and return to full capacity. This might encourage airlines to stay the course, figuring that profitability will rebound soon enough.
On the other hand, fare weakness has been a recurring problem for airlines lately. Unit revenue finally seemed to be moving in the right direction earlier this year, but that has abruptly changed since United Continental became more aggressive about matching other carriers' fares.
All three legacy carriers posted steep margin declines in the first half of 2017. They are now set to report another quarter of weak margin performance -- especially American and United. Perhaps this will convince executives at those two companies to adopt a more refined competitive strategy. If not, airline profits may remain under pressure for the foreseeable future. The silver lining for Delta Air Lines is that as the most profitable legacy carrier, it is likely to weather an industry fare war better than either of its rivals.
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*Stock Advisor returns as of September 5, 2017
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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In recent years, Delta Air Lines (NYSE: DAL) has routinely posted stronger earnings results than its top rivals, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . Delta expected to offset its cost increases with a solid 2.5% to 4.5% uptick in passenger revenue per available seat mile (PRASM). Furthermore, unlike Delta , American and United will bear the full cost of rising refining margins in the wake of Hurricane Harvey.
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In recent years, Delta Air Lines (NYSE: DAL) has routinely posted stronger earnings results than its top rivals, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . As a result, Delta Air Lines just significantly reduced its third-quarter margin forecast. Furthermore, unlike Delta , American and United will bear the full cost of rising refining margins in the wake of Hurricane Harvey.
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In recent years, Delta Air Lines (NYSE: DAL) has routinely posted stronger earnings results than its top rivals, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . Delta's guidance comes down Back in mid-July, Delta projected that it would earn a strong 18% to 20% operating margin (excluding special items) during the third quarter. American Airlines called for a 10% to 12% pre-tax margin, while United expected to report a 12.5% to 14.5% pre-tax margin for the quarter.
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In recent years, Delta Air Lines (NYSE: DAL) has routinely posted stronger earnings results than its top rivals, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . Thus, Delta Air Lines now expects to report a more modest 2% to 3% PRASM gain this quarter. Delta's guidance cut doesn't bode well for American Airlines and United Continental.
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3aeafcff-9c20-48db-80ba-c0e703d52f66
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7364.0
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2017-08-30 00:00:00 UTC
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Why Is American Airlines (AAL) Down 12.9% Since the Last Earnings Report?
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AAL
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https://www.nasdaq.com/articles/why-is-american-airlines-aal-down-12.9-since-the-last-earnings-report-2017-08-30
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nan
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nan
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It has been about a month since the last earnings report for American Airlines Group, Inc . AAL . Shares have lost about 12.9% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Second Quarter Earnings
American Airlines' second-quarter 2017 earnings (adjusted) of $1.92 per share surpassed the Zacks Consensus Estimate by $0.05. Moreover, quarterly earnings improved 8.47% on a year-over-year basis. Results were aided by higher revenues.
Revenues of $11,105 million also improved 7.16% from the year-ago figure. Quarterly revenues edged past the Zacks Consensus Estimate of $11,086.7 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 5.7% in the reported quarter.
Consolidated yield improved 4.3% . Passenger revenue per available seat miles improved 5% . While traffic (measured by revenue passenger miles) was up 2.1%, capacity (measured by average seat miles) was up 1.4%. In fact, consolidated load factor (percentage of seats filled by passengers) improved as traffic growth outpaced capacity expansion. Load factor improved to 83% compared with 82.5% a year ago.
Total operating expenses climbed 11.1% year over year to $9.6 billion primarily backed by rise in fuel costs. Expenses pertaining to salaries and benefits were up 12.5%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 6.8%. Furthermore, the carrier declared a dividend of $0.10 per share that will be paid on Aug 28 to shareholders of record as of Aug 14.
Meanwhile, it 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 took delivery of 16 new mainline aircraft and four regional ones during the second quarter of 2017. Also, the company invested $1.1 billion toward a new aircraft during the reported quarter. Going forward, it aims to shell out $4.1 billion in 2017 for the same purpose.
Outlook
TRASM is expected to increase in the band of 0.5% to 2.5% for the third quarter of 2017 on a year-over-year basis. Pre-tax margin, excluding special items, is projected in the range of 10% to 12%. Consolidated CASM (excluding special items and fuel) is expected to increase 5%. The metric is also anticipated to increase approximately 5% in 2017. Capacity (system) in 2017 is projected to increase 1.5%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three revisions lower for the current quarter. In the past month, the consensus estimate has shifted by lower by 6.1% due to these changes.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
VGM Scores
At this time, American Airlines' stock has a nice Growth Score of B, though it lags a bit on the momentum front with a C. The stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value investors than those looking for growth and momentum.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL . Consolidated operating costs per available seat miles (CASM: excluding special items) increased 6.8%.
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AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Second Quarter Earnings American Airlines' second-quarter 2017 earnings (adjusted) of $1.92 per share surpassed the Zacks Consensus Estimate by $0.05.
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AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Also, the company invested $1.1 billion toward a new aircraft during the reported quarter.
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4adf5b6f-285d-4d2b-9037-5b4c5057b85d
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7365.0
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2017-08-28 00:00:00 UTC
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VIXH's Holdings Could Mean 10% Gain Potential
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AAL
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https://www.nasdaq.com/articles/vixhs-holdings-could-mean-10-gain-potential-2017-08-28
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Dorsey Wright People's Portfolio ETF (Symbol: VIXH), we found that the implied analyst target price for the ETF based upon its underlying holdings is $28.63 per unit.
With VIXH trading at a recent price near $26.06 per unit, that means that analysts see 9.87% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VIXH's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Palo Alto Networks, Inc (Symbol: PANW), and Southwest Airlines Co (Symbol: LUV). Although AAL has traded at a recent price of $45.25/share, the average analyst target is 26.76% higher at $57.36/share. Similarly, PANW has 25.53% upside from the recent share price of $128.63 if the average analyst target price of $161.47/share is reached, and analysts on average are expecting LUV to reach a target price of $65.75/share, which is 24.81% above the recent price of $52.68. Below is a twelve month price history chart comparing the stock performance of AAL, PANW, and LUV:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although AAL has traded at a recent price of $45.25/share, the average analyst target is 26.76% higher at $57.36/share. Below is a twelve month price history chart comparing the stock performance of AAL, PANW, and LUV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VIXH's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Palo Alto Networks, Inc (Symbol: PANW), and Southwest Airlines Co (Symbol: LUV).
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Three of VIXH's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Palo Alto Networks, Inc (Symbol: PANW), and Southwest Airlines Co (Symbol: LUV). Although AAL has traded at a recent price of $45.25/share, the average analyst target is 26.76% higher at $57.36/share. Below is a twelve month price history chart comparing the stock performance of AAL, PANW, and LUV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Below is a twelve month price history chart comparing the stock performance of AAL, PANW, and LUV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VIXH's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Palo Alto Networks, Inc (Symbol: PANW), and Southwest Airlines Co (Symbol: LUV). Although AAL has traded at a recent price of $45.25/share, the average analyst target is 26.76% higher at $57.36/share.
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Below is a twelve month price history chart comparing the stock performance of AAL, PANW, and LUV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VIXH's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Palo Alto Networks, Inc (Symbol: PANW), and Southwest Airlines Co (Symbol: LUV). Although AAL has traded at a recent price of $45.25/share, the average analyst target is 26.76% higher at $57.36/share.
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de47cdd1-6e78-4ef0-b433-06cb59f9c62b
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7366.0
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2017-08-28 00:00:00 UTC
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American Airlines (AAL) in Focus: Stock Moves 5.4% Higher
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-in-focus%3A-stock-moves-5.4-higher-2017-08-28
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nan
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American Airlines Group Inc.AAL was a big mover last session, as the company saw its shares rise over 5% on the day. The move came on solid volume too with far more shares changing hands than in a normal session.
This reverses the recent trend for the company-as the stock is now down 11.3% in the past one-month time frame.
The company has seen one negative estimate revision in the past few weeks, while its Zacks Consensus Estimate for the current quarter has also moved lower over the past few weeks, suggesting there may be trouble down the road. So make sure to keep an eye on this stock going forward, to see if this recent move higher can last.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
American Airlines currently has a Zacks Rank #3 (Hold) while its Earnings ESP is negative.
A better-ranked stock in the Insurance - Property and Casualty is Atlas Financial Holdings, Inc. AFH , which currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Is AAL going up? Or down? Predict to see what others think: Up or Down
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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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
Atlas Financial Holdings, Inc. (AFH): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc.AAL was a big mover last session, as the company saw its shares rise over 5% on the day. Is AAL going up? Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Atlas Financial Holdings, Inc. (AFH): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Atlas Financial Holdings, Inc. (AFH): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL was a big mover last session, as the company saw its shares rise over 5% on the day. Is AAL going up?
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Atlas Financial Holdings, Inc. (AFH): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL was a big mover last session, as the company saw its shares rise over 5% on the day. Is AAL going up?
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American Airlines Group Inc.AAL was a big mover last session, as the company saw its shares rise over 5% on the day. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Atlas Financial Holdings, Inc. (AFH): Free Stock Analysis Report To read this article on Zacks.com click here. Is AAL going up?
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88709b90-a3d8-4b18-91b3-68ad12e3e8e5
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7367.0
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2017-08-27 00:00:00 UTC
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WOW Air Expands in the U.S.: Another Thorn in the Side for American, Delta, and United
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AAL
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https://www.nasdaq.com/articles/wow-air-expands-us-another-thorn-side-american-delta-and-united-2017-08-27
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nan
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nan
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Traditionally, the transatlantic market has been a key profit center for the U.S. legacy carriers. Together with their European joint venture partners, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) have dominated the market. Not surprisingly, this oligopoly situation is good for profit margins.
However, a growing crop of budget carriers -- including no-frills ultra-low cost carriers like WOW Air -- are moving into the transatlantic market . They are already creating visible pricing pressure. Furthermore, budget carriers' transatlantic growth is just getting started. Just last week, WOW Air announced that it will add four new U.S. destinations next spring.
Getting to know the new players
Since 2015, Norwegian and WOW Air have been the two fastest-growing transatlantic budget carriers. Their business models are somewhat different. For example, Norwegian primarily flies widebodies on its transatlantic routes, with point-to-point flights between major cities. Meanwhile, WOW Air primarily uses narrowbodies and routes all flights through its hub in Reykjavik.
However, there are also some key similarities. First, customers must pay extra for amenities that the legacy carriers still offer for free on overseas flights, such as checked bags, meals, and advance seat selection. Second, both carriers use denser seating configurations than rivals like American Airlines, Delta Air Lines, and United Continental.
As a result, Norwegian and WOW Air are able to offer extremely low base fares. This has led to widespread fare declines for U.S.-Europe flights -- at least for economy passengers.
Transatlantic unit revenue challenges
Sure enough, the U.S. legacy carriers faced acute unit revenue pressure on transatlantic routes last year. Transatlantic passenger revenue per available seat mile (PRASM) fell 7.2% in 2016 at American Airlines. Delta fared somewhat better, with a 6.8% transatlantic PRASM decline last year, while United posted an even steeper 8.4% PRASM drop.
So far, 2017 has been a mixed bag . United Continental has bounced back from its poor 2016 performance, posting PRASM growth in the transatlantic market during the first two quarters. American and Delta continued to face unit revenue pressure, though. Furthermore, even United expects transatlantic PRASM to be flattish this quarter.
WOW Air is growing again
Last week, WOW Air announced plans to expand to four new U.S. destinations next year, all in the Midwest: Detroit, St. Louis, Cleveland, and Cincinnati. While Detroit is a major hub for Delta, the other three cities have little or no transatlantic service today.
WOW Air is offering introductory pricing as low as $99.99 one-way to Iceland, or $149.99 one-way for connecting itineraries to Europe. Obviously, that's dramatically below the prices that legacy carriers would charge.
In many ways, WOW Air is a perfect fit for midsize cities in the eastern half of the U.S. Since most of these cities have few (if any) flights to Europe, travelers have to fly through some hub no matter what. In many cases, flying through Reykjavik is more direct than flying through a U.S. hub. Furthermore, Iceland's strategic location between the U.S. and Europe allows WOW Air to fly lower-cost narrowbodies on these routes, while the legacy carriers mainly use widebodies for their transatlantic flights.
New technology is going to make the problem worse
American, Delta, United, and their European partners have maintained their transatlantic oligopoly for many years for two main reasons. First, most low-cost carriers have avoided operating widebody aircraft. (Norwegian is breaking that precedent in a big way.)
U.S. legacy carriers and their European partners dominate transatlantic flying. Image source: Pixabay.
Second, most narrowbody planes haven't had the range to fly nonstop between the U.S. and Europe -- until now. WOW Air has been able to get around this problem because it is based in Iceland, which is much closer to the U.S. than the rest of Europe.
However, the next-generation narrowbodies from Boeing and Airbus have significantly more range than their older products. (The one exception is the Boeing 757, but that uses outdated 1980s-era technology.) This will allow budget airlines to comfortably fly nonstop between the Northeast U.S. and Western Europe without introducing new aircraft types.
As a result, investors can probably expect the competition to become even more intense in the transatlantic market going forward. As they induct new-technology planes into their fleets, a slew of low-cost carriers could start to chip away at the legacy carriers' dominance on routes between the U.S. and Europe.
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 August 1, 2017
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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Together with their European joint venture partners, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) have dominated the market. First, customers must pay extra for amenities that the legacy carriers still offer for free on overseas flights, such as checked bags, meals, and advance seat selection. Furthermore, Iceland's strategic location between the U.S. and Europe allows WOW Air to fly lower-cost narrowbodies on these routes, while the legacy carriers mainly use widebodies for their transatlantic flights.
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Together with their European joint venture partners, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) have dominated the market. Second, both carriers use denser seating configurations than rivals like American Airlines, Delta Air Lines, and United Continental. Transatlantic unit revenue challenges Sure enough, the U.S. legacy carriers faced acute unit revenue pressure on transatlantic routes last year.
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Together with their European joint venture partners, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) have dominated the market. However, a growing crop of budget carriers -- including no-frills ultra-low cost carriers like WOW Air -- are moving into the transatlantic market . Transatlantic unit revenue challenges Sure enough, the U.S. legacy carriers faced acute unit revenue pressure on transatlantic routes last year.
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Together with their European joint venture partners, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) have dominated the market. Traditionally, the transatlantic market has been a key profit center for the U.S. legacy carriers. Furthermore, Iceland's strategic location between the U.S. and Europe allows WOW Air to fly lower-cost narrowbodies on these routes, while the legacy carriers mainly use widebodies for their transatlantic flights.
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5ccb4b6a-c466-4f7c-b509-dc277ad2d94d
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7368.0
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2017-08-25 00:00:00 UTC
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Buy Alibaba Group Holding Ltd (BABA) Stock as It Heads to $250
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AAL
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https://www.nasdaq.com/articles/buy-alibaba-group-holding-ltd-baba-stock-as-it-heads-to-%24250-2017-08-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Alibaba Group Holding Ltd (NYSE: BABA ) is seriously a cut above the rest in the retail sector. U.S. retailers struggle this year due to economic uncertainty surrounding President Donald Trump's ability to advance his economic agenda. But Alibaba has flourished in a red-hot Chinese e-commerce market, making BABA stock a clear choice for your portfolio.
Source: Shutterstock
For proof, you need look no further than Alibaba's recent quarterly earnings report . The company said that fiscal first quarter profits rose 94% to $2.2 billion on e-commerce sales that jumped 56% year over year.
What's more, Alibaba has seen net income climb nearly 40% year-over-year, on average, since 2013. Additionally, gross revenue has surged nearly 69%, on average, in that time.
As bullish as they are on BABA stock, however, Wall Street analysts aren't bullish enough. This past week, MKM Partners lifted its price target on BABA stock to $220 on the belief that the brokerage community isn't pricing in 2018 growth accurately.
That's a more-than-fair statement. For one, the Chinese e-commerce market is expected to grow roughly 50% through fiscal 2018, from $1 trillion in sales this year to $1.5 trillion in sales in 2018. Alibaba is the current market leader in e-commerce sales in China, and with Alibaba-backed Ele.me acquiring Waimai - Baidu Inc (ADR)'s (NASDAQ: BIDU ) food delivery unit - this week, its position is sure to solidify.
And those are just Alibaba's opportunities in China.
5 of the Best Low-Risk Retirement Stocks on the Market
The company is continually wending its way into the U.S. market to exploit Chinese consumers' desires for American products. Alibaba's small business and entrepreneur symposium in Detroit back in March was just a peak at how the company is slowly, but surely, gaining access to the world's largest economy.
Click to Enlarge Once it does, Alibaba's 90% gain so far this year could be just the tip of the rally. In fact, even MKM Partners' $220 target could be conservative. As I recently noted over at Banyan Hill, shares will hit $250 next year.
After coming off such a sudden growth spurt, however, BABA stock is sure to see some consolidation in the next couple of weeks. Bulls who got in ahead of earnings - like those that saw returns of up to $108% from last month's Aug $150/$155 bull call spread - are now taking profits.
What's more, Alibaba stock is trading deep in overbought territory as it deals with resistance in the $175-$180 region. This situation is sure to create some short-term drag on BABA, potentially sending the shares down for a test of support in the $165-$170 region in the next month.
Traders have two ways to take advantage of this situation.
2 Trades for BABA Stock
Put Sell: For those traders looking to own Alibaba, and take advantage of a potential 40% run-up in the shares next year, selling put options can provide you with an excellent entry point for this red-hot stock.
As I've noted before, selling put options can be used for more than just collecting premium on stagnant stocks. They also can be used to essentially name your own price for the underlying shares - and get paid to do so.
Costco Wholesale Corporation (COST) Stock Is on Sale. Buy in Bulk!
Right now, a pullback to or below $170 would represent a buying opportunity. Setting $170 as your target buy price, you could sell a Sep $170 put for $2.25, or $225 per contract and wait for the shares to pull back.
If BABA stock doesn't trade below $1700 by the time September options expire, you keep the premium and roll your target out to the next contract month and try again. The downside is that it's possible that Alibaba will never trade below $170, leaving you sans the shares, but still banking the premium for selling the options.
Put Spread: If you're more interested in capitalizing on the pullback instead of owning the shares, a Sep $170/$175 bear put spread has the potential to do just that.
At last check, this spread was offered at $1.75, or $175 per pair contracts. Breakeven lies at $173.25, while a maximum profit of $3.25, or $325 per pair of contracts - an 85% return - is possible if BABA stock closes at or below $170 when September options expire.
As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.
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The post Buy Alibaba Group Holding Ltd (BABA) Stock as It Heads to $250 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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More From InvestorPlace Trade of the Day: Amazon.com, Inc. (AMZN) Stock Isn't in the Clear Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) 10 Stocks That Every 20-Year-Old Should Buy The post Buy Alibaba Group Holding Ltd (BABA) Stock as It Heads to $250 appeared first on InvestorPlace . Alibaba is the current market leader in e-commerce sales in China, and with Alibaba-backed Ele.me acquiring Waimai - Baidu Inc (ADR)'s (NASDAQ: BIDU ) food delivery unit - this week, its position is sure to solidify. Alibaba's small business and entrepreneur symposium in Detroit back in March was just a peak at how the company is slowly, but surely, gaining access to the world's largest economy.
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More From InvestorPlace Trade of the Day: Amazon.com, Inc. (AMZN) Stock Isn't in the Clear Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) 10 Stocks That Every 20-Year-Old Should Buy The post Buy Alibaba Group Holding Ltd (BABA) Stock as It Heads to $250 appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alibaba Group Holding Ltd (NYSE: BABA ) is seriously a cut above the rest in the retail sector. 2 Trades for BABA Stock Put Sell: For those traders looking to own Alibaba, and take advantage of a potential 40% run-up in the shares next year, selling put options can provide you with an excellent entry point for this red-hot stock.
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More From InvestorPlace Trade of the Day: Amazon.com, Inc. (AMZN) Stock Isn't in the Clear Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) 10 Stocks That Every 20-Year-Old Should Buy The post Buy Alibaba Group Holding Ltd (BABA) Stock as It Heads to $250 appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alibaba Group Holding Ltd (NYSE: BABA ) is seriously a cut above the rest in the retail sector. 2 Trades for BABA Stock Put Sell: For those traders looking to own Alibaba, and take advantage of a potential 40% run-up in the shares next year, selling put options can provide you with an excellent entry point for this red-hot stock.
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More From InvestorPlace Trade of the Day: Amazon.com, Inc. (AMZN) Stock Isn't in the Clear Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) 10 Stocks That Every 20-Year-Old Should Buy The post Buy Alibaba Group Holding Ltd (BABA) Stock as It Heads to $250 appeared first on InvestorPlace . This past week, MKM Partners lifted its price target on BABA stock to $220 on the belief that the brokerage community isn't pricing in 2018 growth accurately. For one, the Chinese e-commerce market is expected to grow roughly 50% through fiscal 2018, from $1 trillion in sales this year to $1.5 trillion in sales in 2018.
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69a8e831-2795-45d8-862b-3bc6c3cebbb4
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7369.0
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2017-08-25 00:00:00 UTC
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Costco Wholesale Corporation (COST) Stock Is on Sale. Buy in Bulk!
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AAL
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https://www.nasdaq.com/articles/costco-wholesale-corporation-cost-stock-is-on-sale.-buy-in-bulk-2017-08-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amazon.com Inc (NASDAQ: AMZN ) announced on Thursday that its acquisition of Whole Foods Market, Inc. (NASDAQ: WFM ) would close Monday, and that it would roll out new perks such as cheaper goods and making brands like 365 Everyday Value available on Amazon Prime. This caused a crash in grocery-connected companies such as Wal-Mart Stores Inc (NYSE: WMT ) and Costco Wholesale Corporation (NASDAQ: COST ). The losses were deep, too, with WMT and COST stock dropping about 5% on the news.
Source: Shutterstock
Panic selling on Wall Street opens the door for opportunities. More often than not, the selling gets overdone quickly. And we can create free income by betting against those unlikely scenarios.
Today, I want to look at Costco stock.
Yes, Amazon's ownership of Whole Foods is an undeniable threat to grocery companies. But I believe Wall Street is overreacting. Companies of the caliber of Costco or Walmart likely won't be decimated like the department stores were. These two are masters of running thin-margin operations, so they're better prepared to fight Amazon than, say, Macy's Inc (NYSE: M ).
5 Top Stocks for an Activist-Investor Attack
Fundamentally, Costco stock is not cheap. It trades at 26 times trailing earnings and, as mentioned, boasts relatively thin margins. But it has earned a premium thanks to operational consistency. Management doesn't give traders many specific reasons to sell. In a bullish macro environment, COST is guaranteed to deliver results.
Click to Enlarge From a technical standpoint, Costco shares were, before Thursday, setting higher lows and knocking against a breakout opportunity. Unfortunately for the bulls, Thursday's headline sparked a deluge of selling that caused a 5% dip within minutes. For the short-term, bulls of COST stock must defend $150 per share. Otherwise, shares will retest the $142 zone.
Amazon's ownership of Whole Foods will become effective next week. However, the financial impact on Costco, if any, won't materialize for months. Traders tend to price all the bad news at once, and they often overreact.
How to Trade COST Stock
The bet: Sell the Nov $135 put for $1.50. This opens my risk, but I have an 85% theoretical odds that price will stay above my strike. If not, I would become a buyer at $135, and I could accrue losses below $133.50.
Selling puts when markets are near all-time highs is daunting to some traders. So they can sell spreads instead of naked puts and limit the risk at hand. Their maximum loss would be limited by the width of the spread.
The safer bet: Sell the Nov $135/$130 credit put spread, which offers roughly the same chances of success. If I win, the spread would deliver 11% in yield.
Trade of the Day: Amazon.com, Inc. (AMZN) Stock Isn't in the Clear
In either of my setups, we're not betting that Costco stock will rebound or rally. All we're betting on is that COST shares will stay above our risk levels, which will allow us to retain maximum gains.
Since I'm using options, my trade has 10% room for error. This is much better than buying shares outright and risking $150 right here, without any buffer.
Investing in the stock market never comes with guarantees. Never bet more than you can afford to lose.
Learn how to generate income from options 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 on Twitter at @racernic and stocktwits at @racernic .
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The post Costco Wholesale Corporation (COST) Stock Is on Sale. Buy in Bulk! 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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More From InvestorPlace Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) The Rally in Snap Inc (SNAP) Stock Is About to Disappear The 3 Best Sector Mutual Funds for the Rest of 2017 The post Costco Wholesale Corporation (COST) Stock Is on Sale. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon.com Inc (NASDAQ: AMZN ) announced on Thursday that its acquisition of Whole Foods Market, Inc. (NASDAQ: WFM ) would close Monday, and that it would roll out new perks such as cheaper goods and making brands like 365 Everyday Value available on Amazon Prime. This caused a crash in grocery-connected companies such as Wal-Mart Stores Inc (NYSE: WMT ) and Costco Wholesale Corporation (NASDAQ: COST ).
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More From InvestorPlace Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) The Rally in Snap Inc (SNAP) Stock Is About to Disappear The 3 Best Sector Mutual Funds for the Rest of 2017 The post Costco Wholesale Corporation (COST) Stock Is on Sale. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon.com Inc (NASDAQ: AMZN ) announced on Thursday that its acquisition of Whole Foods Market, Inc. (NASDAQ: WFM ) would close Monday, and that it would roll out new perks such as cheaper goods and making brands like 365 Everyday Value available on Amazon Prime. This caused a crash in grocery-connected companies such as Wal-Mart Stores Inc (NYSE: WMT ) and Costco Wholesale Corporation (NASDAQ: COST ).
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More From InvestorPlace Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) The Rally in Snap Inc (SNAP) Stock Is About to Disappear The 3 Best Sector Mutual Funds for the Rest of 2017 The post Costco Wholesale Corporation (COST) Stock Is on Sale. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amazon.com Inc (NASDAQ: AMZN ) announced on Thursday that its acquisition of Whole Foods Market, Inc. (NASDAQ: WFM ) would close Monday, and that it would roll out new perks such as cheaper goods and making brands like 365 Everyday Value available on Amazon Prime. How to Trade COST Stock The bet: Sell the Nov $135 put for $1.50.
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More From InvestorPlace Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) The Rally in Snap Inc (SNAP) Stock Is About to Disappear The 3 Best Sector Mutual Funds for the Rest of 2017 The post Costco Wholesale Corporation (COST) Stock Is on Sale. How to Trade COST Stock The bet: Sell the Nov $135 put for $1.50. Trade of the Day: Amazon.com, Inc. (AMZN) Stock Isn't in the Clear In either of my setups, we're not betting that Costco stock will rebound or rally.
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b5782c52-1cfb-4289-88dd-7bf023f3b13b
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7370.0
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2017-08-25 00:00:00 UTC
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Friday’s Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN)
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AAL
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https://www.nasdaq.com/articles/fridays-vital-data%3A-facebook-inc-fb-american-airlines-group-inc-aal-and-amazon.com-inc.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. stock futures are in rally mode this morning as Wall Street prepares for a string of financial heavyweights to speak later today at the Federal Reserve's symposium in Jackson Hole, Wyoming. Fed Chairwoman Janet Yellen will give the keynote speech, and traders will be looking for any hints on U.S. monetary policy. Before Yellen takes the stage, however, European Central Bank President Mario Draghi will speak. All will be listening to see how Draghi will deal with quantitative easing in the eurozone.
Dow Jones Industrial Average futures have added 0.17% this morning, Nasdaq-100 futures are up 0.28% and S&P 500 futures have gained 0.22%.
Options volume remained weak on Thursday, with about 11.9 million calls and 11.4 million puts crossing the tape. On the CBOE, the single-session equity put/call volume ratio rose to 0.68, while the 10-day moving average extended its decline to hit a two-week low of 0.68.
Turning to Thursday's options activity, Amazon.com, Inc. (NASDAQ: AMZN ) saw a boost in call activity after announcing it will slash prices on many products at Whole Foods Market, Inc. (NASDAQ: WFM ) come Monday. Elsewhere, American Airlines Group Inc. (NASDAQ: AAL ) was flooded with call options despite a sharp decline in airlines amid a competitor's encroachment. Finally, Facebook Inc (NASDAQ: FB ) received a bullish bump after Jefferies panned Twitter Inc (NYSE: TWTR ).
American Airlines Group (AAL)
There is new competition for airlines in the Midwest U.S. WOW Air, an Iceland-based low-fare airline , is moving into the region, putting a crimp on already tight margins in the area.
5 Top Stocks for an Activist-Investor Attack
"Our unique opportunity is to use Iceland as a hub. We can then distribute to our main destinations in Europe, be it London, Paris, Amsterdam, Frankfurt, Berlin, Copenhagen, etc.," said CEO Skuli Mogensen.
American Airlines wasn't the most affected stock on the day, but AAL shares did see the biggest spike in options volume. Total activity came in at 89,000 contracts - more than tripling the stock's daily average.
Furthermore, calls made up 89% of the overall take. Optimism isn't a new thing for American Airlines, as it's September put/call OI ratio currently rests at 0.41, with calls more than doubling puts among front-month options. However, this ratio could dive even further if this attention to calls gains traction, which could mark a shift for AAL stock, which has declined sharply since mid-June.
Facebook Inc (FB)
FB stock received an indirectly bullish note yesterday, when Jefferies downgraded social media competitor Twitter. According to Jefferies , "TWTR's global platform has broad user engagement, but monetization is slipping … In social we see a clear winner in Facebook."
Still, the "clear winner's" shares slipped half a percent on Thursday, as FB continues to struggle with overhead resistance in the $170 region.
Options traders took heart in the comment, as calls snapped up 63% of the more than 166,000 contracts traded on FB yesterday. That said, volume arrived about half of FB's daily average, so participation in the bullish activity was limited.
The Rally in Snap Inc (SNAP) Stock Is About to Disappear
Furthermore, more calls added to the front-month September series could send sentiment to near-term highs, as the put/call OI ratio currently rests at 0.50, indicating that calls already double puts for the month.
Amazon.com, Inc. (AMZN)
Amazon announced yesterday that it is slashing prices on a slew of popular products at Whole Foods come Monday, escalating fears of a war for market share in the grocery sector. In fact, grocers declined across the board, sending the S&P 500 Food Retail index down nearly 5% and wiping roughly $10 billion in market value from the U.S.'s top food retailers. Kroger Co (NYSE: KR ) was the biggest loser, dropping more than 8% on the news.
Options traders ate it up. Volume jumped to well above AMZN's daily average, with more than 189,000 contracts crossing the tape. Action was a bit tepid, even for Amazon, as calls cobbled together about 55% of the day's take. But call activity has picked up the pace this week, with Amazon's September put/call open interest ratio falling from 1.16 on Tuesday to today's perch at 1.10.
That said, with AMZN stock struggling to overcome short-term weakness, this added bullish sentiment is not necessarily a positive development .
As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.
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The post Friday's Vital Data: Facebook Inc (FB), American Airlines Group Inc (AAL) and Amazon.com, Inc. (AMZN) 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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Elsewhere, American Airlines Group Inc. (NASDAQ: AAL ) was flooded with call options despite a sharp decline in airlines amid a competitor's encroachment. American Airlines Group (AAL) There is new competition for airlines in the Midwest U.S. WOW Air, an Iceland-based low-fare airline , is moving into the region, putting a crimp on already tight margins in the area. American Airlines wasn't the most affected stock on the day, but AAL shares did see the biggest spike in options volume.
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Elsewhere, American Airlines Group Inc. (NASDAQ: AAL ) was flooded with call options despite a sharp decline in airlines amid a competitor's encroachment. American Airlines Group (AAL) There is new competition for airlines in the Midwest U.S. WOW Air, an Iceland-based low-fare airline , is moving into the region, putting a crimp on already tight margins in the area. American Airlines wasn't the most affected stock on the day, but AAL shares did see the biggest spike in options volume.
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Elsewhere, American Airlines Group Inc. (NASDAQ: AAL ) was flooded with call options despite a sharp decline in airlines amid a competitor's encroachment. American Airlines Group (AAL) There is new competition for airlines in the Midwest U.S. WOW Air, an Iceland-based low-fare airline , is moving into the region, putting a crimp on already tight margins in the area. American Airlines wasn't the most affected stock on the day, but AAL shares did see the biggest spike in options volume.
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Elsewhere, American Airlines Group Inc. (NASDAQ: AAL ) was flooded with call options despite a sharp decline in airlines amid a competitor's encroachment. American Airlines Group (AAL) There is new competition for airlines in the Midwest U.S. WOW Air, an Iceland-based low-fare airline , is moving into the region, putting a crimp on already tight margins in the area. American Airlines wasn't the most affected stock on the day, but AAL shares did see the biggest spike in options volume.
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8505c7dd-7ca7-413e-802e-522cee1ba90f
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7371.0
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2017-08-25 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 6,265.64 down -5.69 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-626564-down-569-points-2017-08-25
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nan
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nan
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Friday's session closes with the NASDAQ Composite Index at 6,265.64. The total shares traded for the NASDAQ was over 1.43 billion.
Advancers stocks led declining by 1.51 to 1 ratio. There were 1758 advancers and 1167 decliners for the day. On the NASDAQ Stock Exchange 53 stocks reached a 52 week high and 16 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -.2% for the day; a total of -11.91 points. The current value is 5,822.53. Ulta Beauty, Inc. ( ULTA ) had the largest percent change down (-9.14%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.43%.
The Dow Jones index closed up .14% for the day; a total of 30.27 points. The current value is 21,813.67. Boeing Company (The) ( BA ) had the largest percent change down (-1.19%) while Home Depot, Inc. (The) ( HD ) had the largest percent change gain rising .94%.
NASDAQ Market Wrap
As of 8/25/2017 4:44:01 PM
BILLIONS OF 1.43 NASDAQ SHARES TRADED TODAY 53 STOCKS REACHED A 52 WEEK HIGH 16 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.43 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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Ulta Beauty, Inc. ( ULTA ) had the largest percent change down (-9.14%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.43%. NASDAQ Market Wrap As of 8/25/2017 4:44:01 PM BILLIONS OF 1.43 NASDAQ SHARES TRADED TODAY 53 STOCKS REACHED A 52 WEEK HIGH 16 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.43 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Dow Jones index closed up .14% for the day; a total of 30.27 points.
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Ulta Beauty, Inc. ( ULTA ) had the largest percent change down (-9.14%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.43%. NASDAQ Market Wrap As of 8/25/2017 4:44:01 PM BILLIONS OF 1.43 NASDAQ SHARES TRADED TODAY 53 STOCKS REACHED A 52 WEEK HIGH 16 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.43 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. On the NASDAQ Stock Exchange 53 stocks reached a 52 week high and 16 those reaching lows totaled.
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Ulta Beauty, Inc. ( ULTA ) had the largest percent change down (-9.14%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.43%. NASDAQ Market Wrap As of 8/25/2017 4:44:01 PM BILLIONS OF 1.43 NASDAQ SHARES TRADED TODAY 53 STOCKS REACHED A 52 WEEK HIGH 16 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.43 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. On the NASDAQ Stock Exchange 53 stocks reached a 52 week high and 16 those reaching lows totaled.
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NASDAQ Market Wrap As of 8/25/2017 4:44:01 PM BILLIONS OF 1.43 NASDAQ SHARES TRADED TODAY 53 STOCKS REACHED A 52 WEEK HIGH 16 THOSE REACHING LOWS TOTALEDAmerican Airlines Group, Inc. [AAL]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 5.43 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Ulta Beauty, Inc. ( ULTA ) had the largest percent change down (-9.14%) while American Airlines Group, Inc. ( AAL ) had the largest percent change gain rising 5.43%. There were 1758 advancers and 1167 decliners for the day.
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73209cee-d32a-4621-b789-c9b31c2c0dee
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7372.0
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2017-08-24 00:00:00 UTC
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Notable Thursday Option Activity: AAL, CRM, COST
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AAL
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https://www.nasdaq.com/articles/notable-thursday-option-activity-aal-crm-cost-2017-08-24
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 59,320 contracts have traded so far, representing approximately 5.9 million underlying shares. That amounts to about 109.7% of AAL's average daily trading volume over the past month of 5.4 million shares. Particularly high volume was seen for the $55 strike call option expiring January 19, 2018 , with 17,694 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange:
Salesforce.com Inc (Symbol: CRM) options are showing a volume of 26,667 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 67.4% of CRM's average daily trading volume over the past month, of 4.0 million shares. Particularly high volume was seen for the $95 strike call option expiring August 25, 2017 , with 1,880 contracts trading so far today, representing approximately 188,000 underlying shares of CRM. Below is a chart showing CRM's trailing twelve month trading history, with the $95 strike highlighted in orange:
And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 20,262 contracts, representing approximately 2.0 million underlying shares or approximately 64.5% of COST's average daily trading volume over the past month, of 3.1 million shares. Especially high volume was seen for the $155 strike put option expiring August 25, 2017 , with 1,806 contracts trading so far today, representing approximately 180,600 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $155 strike highlighted in orange:
For the various different available expirations for AAL options , CRM options , or COST 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 January 19, 2018 , with 17,694 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 59,320 contracts have traded so far, representing approximately 5.9 million underlying shares. That amounts to about 109.7% of AAL's average daily trading volume over the past month of 5.4 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: Salesforce.com Inc (Symbol: CRM) options are showing a volume of 26,667 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 59,320 contracts have traded so far, representing approximately 5.9 million underlying shares. That amounts to about 109.7% of AAL's average daily trading volume over the past month of 5.4 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 59,320 contracts have traded so far, representing approximately 5.9 million underlying shares. Particularly high volume was seen for the $55 strike call option expiring January 19, 2018 , with 17,694 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. That amounts to about 109.7% of AAL's average daily trading volume over the past month of 5.4 million shares.
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Particularly high volume was seen for the $55 strike call option expiring January 19, 2018 , with 17,694 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 59,320 contracts have traded so far, representing approximately 5.9 million underlying shares. That amounts to about 109.7% of AAL's average daily trading volume over the past month of 5.4 million shares.
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8cc359db-e2e6-41a7-9c84-d7df7636b1a5
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7373.0
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2017-08-23 00:00:00 UTC
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Airline Stocks Sink as WOW Air Expands into the Midwest
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AAL
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https://www.nasdaq.com/articles/airline-stocks-sink-wow-air-expands-midwest-2017-08-23
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nan
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WOW Air, an Iceland-based low-cost airline, announced on Wednesday that it will expand into four Midwest cities, causing major airline stocks to tumble.
The Icelandic company known for its cheap tickets to Europe is adding service to St. Louis, Cleveland, Cincinnati, and Detroit. This will bring the company to a total of 12 U.S. destinations.
One-way tickets to Iceland will start at $99.99 from all four cities. Connecting flights to WOW's other European locations will begin at $149.99.
When asked if there was enough demand in the Midwest for the new non-stop flights to Iceland, WOW Air founder and CEO Skuli Mogensen said yes. "With those kind of prices, we have seen in other markets that we enter that we have stimulated the market significantly."
"Our unique opportunity is to use Iceland as a hub. We can then distribute to our main destinations in Europe, be it London, Paris, Amsterdam, Frankfurt, Berlin, Copenhagen, etc.," Mogensen said. "That's really the key. Instead of having a single point-to-point flight, we actually give you a very affordable flight to multiple destinations."
In reaction to this news, major airline stocks fell. Delta Air Lines DAL stock closed 2.06% lower at $46.18. American Airlines Group AAL stock tumbled 3.17% to $43.97. Meanwhile, shares of United Continental UAL tumbled 2.89% to $62.83, and Southwest Airlines LUV stock went down 3.22% to $51.72.
WOW's new routes will launch in the spring, with tickets going on sale Wednesday.
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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.
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 stock tumbled 3.17% to $43.97. 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 Icelandic company known for its cheap tickets to Europe is adding service to St. Louis, Cleveland, Cincinnati, and Detroit.
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American Airlines Group AAL stock tumbled 3.17% to $43.97. 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. Meanwhile, shares of United Continental UAL tumbled 2.89% to $62.83, and Southwest Airlines LUV stock went down 3.22% to $51.72.
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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. American Airlines Group AAL stock tumbled 3.17% to $43.97. WOW Air, an Iceland-based low-cost airline, announced on Wednesday that it will expand into four Midwest cities, causing major airline stocks to tumble.
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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. American Airlines Group AAL stock tumbled 3.17% to $43.97. WOW Air, an Iceland-based low-cost airline, announced on Wednesday that it will expand into four Midwest cities, causing major airline stocks to tumble.
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bfe7d89f-3db4-4303-8aea-71d84980f632
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7374.0
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2017-08-17 00:00:00 UTC
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U S Global Investors Inc Buys American Airlines Group Inc, Southwest Airlines Co, United ...
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AAL
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https://www.nasdaq.com/articles/u-s-global-investors-inc-buys-american-airlines-group-inc-southwest-airlines-co-united
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nan
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nan
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U S Global Investors Inc
New Purchases: WPM , EBAY , CBOE , ABBV, SUPN, SCSS, KLAC, SEE, NLS, IDCC,
Added Positions:AAL, LUV, UAL, DAL, ALGT, RIC, ALK, KLDX, JBLU, TXT,
Reduced Positions:PVG, ABX, KRA, LII, NTAP, PFE, QCOM, SAND, SEDG, SSRM,
Sold Out:KMB, MO, SJT, RGR, PTR, PSX, PSA, WHR, POOL, PHM,
For the details of U S Global Investors Inc's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=U+S+Global+Investors+Inc
These are the top 5 holdings of U S Global Investors Inc
Klondex Mines Ltd ( KLDX ) - 11,100,000 shares, 12.11% of the total portfolio. Shares added by 5.64%
Exxon Mobil Corp ( XOM ) - 2,010 shares, 5.59% of the total portfolio.
American Airlines Group Inc ( AAL ) - 297,231 shares, 5.16% of the total portfolio. Shares added by 55.51%
SPDR Gold Trust ( GLD ) - 1,200 shares, 4.88% of the total portfolio.
Southwest Airlines Co ( LUV ) - 245,443 shares, 4.72% of the total portfolio. Shares added by 63.67%
New Purchase: Wheaton Precious Metals Corp (WPM)
U S Global Investors Inc initiated holdings in Wheaton Precious Metals Corp. The purchase prices were between $18.93 and $22, with an estimated average price of $20.47. The stock is now traded at around $18.85. The impact to the portfolio due to this purchase was 0.77%. The holdings were 111,716 shares as of 2017-06-30.
New Purchase: eBay Inc (EBAY)
U S Global Investors Inc initiated holdings in eBay Inc. The purchase prices were between $32.05 and $36.14, with an estimated average price of $34.2. The stock is now traded at around $35.38. The impact to the portfolio due to this purchase was 0.73%. The holdings were 60,907 shares as of 2017-06-30.
New Purchase: CBOE Holdings Inc (CBOE)
U S Global Investors Inc initiated holdings in CBOE Holdings Inc. The purchase prices were between $80.32 and $91, with an estimated average price of $85.2. The stock is now traded at around $97.68. The impact to the portfolio due to this purchase was 0.7%. The holdings were 22,239 shares as of 2017-06-30.
New Purchase: AbbVie Inc (ABBV)
U S Global Investors Inc initiated holdings in AbbVie Inc. The purchase prices were between $63.45 and $73.18, with an estimated average price of $67.13. The stock is now traded at around $70.38. The impact to the portfolio due to this purchase was 0.69%. The holdings were 27,663 shares as of 2017-06-30.
New Purchase: Supernus Pharmaceuticals Inc (SUPN)
U S Global Investors Inc initiated holdings in Supernus Pharmaceuticals Inc. The purchase prices were between $30.15 and $44.15, with an estimated average price of $35.4. The stock is now traded at around $45.75. The impact to the portfolio due to this purchase was 0.66%. The holdings were 44,409 shares as of 2017-06-30.
New Purchase: Select Comfort Corp (SCSS)
U S Global Investors Inc initiated holdings in Select Comfort Corp. The purchase prices were between $24.49 and $35.6, with an estimated average price of $29.74. The stock is now traded at around $32.30. The impact to the portfolio due to this purchase was 0.59%. The holdings were 48,633 shares as of 2017-06-30.
Added: Southwest Airlines Co ( LUV )
U S Global Investors Inc added to the holdings in Southwest Airlines Co by 63.67%. The purchase prices were between $53.07 and $62.14, with an estimated average price of $58.1. The stock is now traded at around $55.10. The impact to the portfolio due to this purchase was 1.84%. The holdings were 245,443 shares as of 2017-06-30.
Added: American Airlines Group Inc ( AAL )
U S Global Investors Inc added to the holdings in American Airlines Group Inc by 55.51%. The purchase prices were between $40.9 and $51.43, with an estimated average price of $46.36. The stock is now traded at around $48.30. The impact to the portfolio due to this purchase was 1.84%. The holdings were 297,231 shares as of 2017-06-30.
Added: United Continental Holdings Inc (UAL)
U S Global Investors Inc added to the holdings in United Continental Holdings Inc by 65.17%. The purchase prices were between $67.75 and $82.03, with an estimated average price of $75.42. The stock is now traded at around $66.78. The impact to the portfolio due to this purchase was 1.74%. The holdings were 189,637 shares as of 2017-06-30.
Added: Delta Air Lines Inc (DAL)
U S Global Investors Inc added to the holdings in Delta Air Lines Inc by 51.46%. The purchase prices were between $44.03 and $53.87, with an estimated average price of $48.91. The stock is now traded at around $50.10. The impact to the portfolio due to this purchase was 1.57%. The holdings were 272,673 shares as of 2017-06-30.
Added: Allegiant Travel Co (ALGT)
U S Global Investors Inc added to the holdings in Allegiant Travel Co by 100.01%. The purchase prices were between $136.1 and $165.05, with an estimated average price of $146.92. The stock is now traded at around $122.75. The impact to the portfolio due to this purchase was 0.95%. The holdings were 42,095 shares as of 2017-06-30.
Added: Richmont Mines Inc (RIC)
U S Global Investors Inc added to the holdings in Richmont Mines Inc by 100.00%. The purchase prices were between $6.65 and $8.45, with an estimated average price of $7.46. The stock is now traded at around $7.80. The impact to the portfolio due to this purchase was 0.81%. The holdings were 600,000 shares as of 2017-06-30.
Sold Out: Altria Group Inc (MO)
U S Global Investors Inc sold out the holdings in Altria Group Inc. The sale prices were between $70.22 and $77.71, with an estimated average price of $73.13.
Sold Out: Kimberly-Clark Corp (KMB)
U S Global Investors Inc sold out the holdings in Kimberly-Clark Corp. The sale prices were between $126.72 and $133.91, with an estimated average price of $130.15.
Sold Out: Phillips 66 (PSX)
U S Global Investors Inc sold out the holdings in Phillips 66. The sale prices were between $75.33 and $81.87, with an estimated average price of $78.45.
Sold Out: Phibro Animal Health Corp (PAHC)
U S Global Investors Inc sold out the holdings in Phibro Animal Health Corp. The sale prices were between $26.75 and $38.1, with an estimated average price of $32.5.
Sold Out: BP Prudhoe Bay Royalty Trust (BPT)
U S Global Investors Inc sold out the holdings in BP Prudhoe Bay Royalty Trust. The sale prices were between $18.7 and $23.95, with an estimated average price of $20.26.
Sold Out: Whirlpool Corp (WHR)
U S Global Investors Inc sold out the holdings in Whirlpool Corp. The sale prices were between $165.6 and $196.87, with an estimated average price of $182.61.
Reduced: Pretium Resources Inc (PVG)
U S Global Investors Inc reduced to the holdings in Pretium Resources Inc by 78.26%. The sale prices were between $8.67 and $11.22, with an estimated average price of $9.63. The stock is now traded at around $8.67. The impact to the portfolio due to this sale was -3.87%. U S Global Investors Inc still held 100,000 shares as of 2017-06-30.
Reduced: The Travelers Companies Inc (TRV)
U S Global Investors Inc reduced to the holdings in The Travelers Companies Inc by 29.83%. The sale prices were between $118.88 and $129.44, with an estimated average price of $122.99. The stock is now traded at around $129.37. The impact to the portfolio due to this sale was less than 0.01%. U S Global Investors Inc still held 4,140 shares as of 2017-06-30.
Reduced: W.W. Grainger Inc (GWW)
U S Global Investors Inc reduced to the holdings in W.W. Grainger Inc by 32.51%. The sale prices were between $169.51 and $232.76, with an estimated average price of $189.55. The stock is now traded at around $165.99. The impact to the portfolio due to this sale was less than 0.01%. U S Global Investors Inc still held 1,451 shares as of 2017-06-30.
Reduced: Pfizer Inc (PFE)
U S Global Investors Inc reduced to the holdings in Pfizer Inc by 47.37%. The sale prices were between $31.75 and $34.34, with an estimated average price of $33.25. The stock is now traded at around $33.37. The impact to the portfolio due to this sale was less than 0.01%. U S Global Investors Inc still held 10,000 shares as of 2017-06-30.
Reduced: Ciner Resources LP (CINR)
U S Global Investors Inc reduced to the holdings in Ciner Resources LP by 48.94%. The sale prices were between $27 and $29.3, with an estimated average price of $28.29. The stock is now traded at around $23.88. The impact to the portfolio due to this sale was less than 0.01%. U S Global Investors Inc still held 23,592 shares as of 2017-06-30.
Reduced: NetApp Inc (NTAP)
U S Global Investors Inc reduced to the holdings in NetApp Inc by 40.17%. The sale prices were between $37.97 and $41.85, with an estimated average price of $39.89. The stock is now traded at around $40.58. The impact to the portfolio due to this sale was less than 0.01%. U S Global Investors Inc still held 7,897 shares as of 2017-06-30.
LUV 15-Year Financial Data
The intrinsic value of LUV
Peter Lynch Chart of LUV
Premium Members
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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U S Global Investors Inc New Purchases: WPM , EBAY , CBOE , ABBV, SUPN, SCSS, KLAC, SEE, NLS, IDCC, Added Positions:AAL, LUV, UAL, DAL, ALGT, RIC, ALK, KLDX, JBLU, TXT, Reduced Positions:PVG, ABX, KRA, LII, NTAP, PFE, QCOM, SAND, SEDG, SSRM, Sold Out:KMB, MO, SJT, RGR, PTR, PSX, PSA, WHR, POOL, PHM, For the details of U S Global Investors Inc's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=U+S+Global+Investors+Inc These are the top 5 holdings of U S Global Investors Inc Klondex Mines Ltd ( KLDX ) - 11,100,000 shares, 12.11% of the total portfolio. American Airlines Group Inc ( AAL ) - 297,231 shares, 5.16% of the total portfolio. Added: American Airlines Group Inc ( AAL ) U S Global Investors Inc added to the holdings in American Airlines Group Inc by 55.51%.
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U S Global Investors Inc New Purchases: WPM , EBAY , CBOE , ABBV, SUPN, SCSS, KLAC, SEE, NLS, IDCC, Added Positions:AAL, LUV, UAL, DAL, ALGT, RIC, ALK, KLDX, JBLU, TXT, Reduced Positions:PVG, ABX, KRA, LII, NTAP, PFE, QCOM, SAND, SEDG, SSRM, Sold Out:KMB, MO, SJT, RGR, PTR, PSX, PSA, WHR, POOL, PHM, For the details of U S Global Investors Inc's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=U+S+Global+Investors+Inc These are the top 5 holdings of U S Global Investors Inc Klondex Mines Ltd ( KLDX ) - 11,100,000 shares, 12.11% of the total portfolio. American Airlines Group Inc ( AAL ) - 297,231 shares, 5.16% of the total portfolio. Added: American Airlines Group Inc ( AAL ) U S Global Investors Inc added to the holdings in American Airlines Group Inc by 55.51%.
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U S Global Investors Inc New Purchases: WPM , EBAY , CBOE , ABBV, SUPN, SCSS, KLAC, SEE, NLS, IDCC, Added Positions:AAL, LUV, UAL, DAL, ALGT, RIC, ALK, KLDX, JBLU, TXT, Reduced Positions:PVG, ABX, KRA, LII, NTAP, PFE, QCOM, SAND, SEDG, SSRM, Sold Out:KMB, MO, SJT, RGR, PTR, PSX, PSA, WHR, POOL, PHM, For the details of U S Global Investors Inc's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=U+S+Global+Investors+Inc These are the top 5 holdings of U S Global Investors Inc Klondex Mines Ltd ( KLDX ) - 11,100,000 shares, 12.11% of the total portfolio. American Airlines Group Inc ( AAL ) - 297,231 shares, 5.16% of the total portfolio. Added: American Airlines Group Inc ( AAL ) U S Global Investors Inc added to the holdings in American Airlines Group Inc by 55.51%.
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U S Global Investors Inc New Purchases: WPM , EBAY , CBOE , ABBV, SUPN, SCSS, KLAC, SEE, NLS, IDCC, Added Positions:AAL, LUV, UAL, DAL, ALGT, RIC, ALK, KLDX, JBLU, TXT, Reduced Positions:PVG, ABX, KRA, LII, NTAP, PFE, QCOM, SAND, SEDG, SSRM, Sold Out:KMB, MO, SJT, RGR, PTR, PSX, PSA, WHR, POOL, PHM, For the details of U S Global Investors Inc's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=U+S+Global+Investors+Inc These are the top 5 holdings of U S Global Investors Inc Klondex Mines Ltd ( KLDX ) - 11,100,000 shares, 12.11% of the total portfolio. American Airlines Group Inc ( AAL ) - 297,231 shares, 5.16% of the total portfolio. Added: American Airlines Group Inc ( AAL ) U S Global Investors Inc added to the holdings in American Airlines Group Inc by 55.51%.
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c8794c1b-7fc9-4255-a13b-52ce48a254c1
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7375.0
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2017-08-17 00:00:00 UTC
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American Airlines Summer Service to Expand European Base
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AAL
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https://www.nasdaq.com/articles/american-airlines-summer-service-to-expand-european-base-2017-08-17
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nan
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nan
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American Airlines Group Inc.AAL has announced new flights to Europe, catering to high customer demands for Europe travel during summer. The carrier will offer special summer services to Budapest and Prague from Philadelphia, plus an additional one to Venice from Chicago, beginning May 4, 2018.
Budapest and Prague will be extra destinations on the airlines' travel route. The carrier currently offers flights connecting Venice from Philadelphia. Earlier in summer this year, the carrier started services to Amsterdam and Rome from Dallas/Fort Worth and to Barcelona from Chicago, thus expanding its European presence. At present, American Airlines along with its joint business partners conducts nonstop flights to 23 European destinations from the United States.
This Zacks Rank #3 (Hold) company has been making constant efforts to extend its global reach. To this end, the airline announced plans to purchase a minority stake in China Southern Airlines ZNH in March this year. The carrier has invested approximately $200 million in the Hong Kong-listed shares of China Southern.
With this move, the airline seems to follow the likes of Delta Air Lines, Inc. DAL , which had similarly purchased a 3.55% stake in China Eastern Airlines CEA in 2015. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Notably, focus of the U.S. carriers like American Airlines on the Chinese market is pretty logical, given the projection that China will be the largest aviation market by 2024, thereby overtaking the United States.
Price Performance
American Airlines stock has been performing well of late, on the back of strong second-quarter results. The stock has outperformed its industry in the last three months. Shares of the company have gained 8.42% compared with the industry's increase of 4.08%.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc.AAL has announced new flights to Europe, catering to high customer demands for Europe travel during summer. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier will offer special summer services to Budapest and Prague from Philadelphia, plus an additional one to Venice from Chicago, beginning May 4, 2018.
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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 To read this article on Zacks.com click here. American Airlines Group Inc.AAL has announced new flights to Europe, catering to high customer demands for Europe travel during summer. With this move, the airline seems to follow the likes of Delta Air Lines, Inc. DAL , which had similarly purchased a 3.55% stake in China Eastern Airlines CEA in 2015.
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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 To read this article on Zacks.com click here. American Airlines Group Inc.AAL has announced new flights to Europe, catering to high customer demands for Europe travel during summer. To this end, the airline announced plans to purchase a minority stake in China Southern Airlines ZNH in March this year.
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American Airlines Group Inc.AAL has announced new flights to Europe, catering to high customer demands for Europe travel during summer. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier will offer special summer services to Budapest and Prague from Philadelphia, plus an additional one to Venice from Chicago, beginning May 4, 2018.
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408a1993-a003-48a0-9868-bd33477faa1c
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7376.0
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2017-08-17 00:00:00 UTC
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Notable Two Hundred Day Moving Average Cross - AAL
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AAL
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https://www.nasdaq.com/articles/notable-two-hundred-day-moving-average-cross-aal-2017-08-17
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nan
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nan
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $46.59, changing hands as low as $45.80 per share. American Airlines Group Inc shares are currently trading down about 4.9% 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 $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03.
According to the ETF Finder at ETF Channel, AAL makes up 8.12% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading lower by about 0.3% on the day Thursday.
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 Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $46.59, changing hands as low as $45.80 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 $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03. According to the ETF Finder at ETF Channel, AAL makes up 8.12% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading lower by about 0.3% on the day Thursday.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $46.59, changing hands as low as $45.80 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 $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03. According to the ETF Finder at ETF Channel, AAL makes up 8.12% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading lower by about 0.3% on the day Thursday.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $46.59, changing hands as low as $45.80 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 $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03. According to the ETF Finder at ETF Channel, AAL makes up 8.12% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading lower by about 0.3% on the day Thursday.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $46.59, changing hands as low as $45.80 per share. According to the ETF Finder at ETF Channel, AAL makes up 8.12% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading lower by about 0.3% on the day Thursday. 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 $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03.
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0b806e07-719f-4bc3-b7e9-5cbd32cff30d
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7377.0
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2017-08-17 00:00:00 UTC
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American Airlines Group Enters Oversold Territory (AAL)
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-enters-oversold-territory-aal-2017-08-17
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $45.795 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 42.6. A bullish investor could look at AAL's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares:
Looking at the chart above, AAL's low point in its 52 week range is $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03.
According to the ETF Finder at ETF Channel, AAL makes up 8.12% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading relatively unchanged on the day Thursday.
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 Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $45.795 per share. A bullish investor could look at AAL's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03.
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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 $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03. In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $45.795 per share. A bullish investor could look at AAL's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $45.795 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 $33.90 per share, with $54.48 as the 52 week high point - that compares with a last trade of $46.03. A bullish investor could look at AAL's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $45.795 per share. According to the ETF Finder at ETF Channel, AAL makes up 8.12% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) which is trading relatively unchanged on the day Thursday. A bullish investor could look at AAL's 28.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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918c5c18-7a73-41a1-a68a-4aae88790ffb
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7378.0
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2017-08-16 00:00:00 UTC
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The Zacks Analyst Blog Highlights: United Continental, Delta Air Lines, American Airlines, Southwest and SkyWest
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-united-continental-delta-air-lines-american-airlines
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nan
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nan
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For Immediate Release
Chicago, IL - August 16, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include United Continental (NYSE: UAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), American Airlines' (NASDAQ: AAL - Free Report ), Southwest (NYSE: LUV - Free Report ) and SkyWest (NASDAQ: SKYW - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
3 Best Airline Stocks to Buy Right Now
When video emerged online showing a passenger being dragged off a United Continental (NYSE: UAL - Free Report ) flight earlier this year, consumers, analysts, and investors alike reacted in horror. Shares of the Chicago-based carrier took a huge hit as a result of the incident, and the legacy airline's market cap lost upwards of $950 million.
In a statement, United said four crew members needed to get to a flight departing from Louisville otherwise it would be canceled, and passengers were asked to voluntarily give up their seats. However, no one volunteered, and four passengers were then selected at random, including David Dao, the man who was forcibly removed.
What happened onboard in April was not United's last PR mess that surfaced. Soon after, the airline barred two teenage girls from boarding a flight after a gate agent decided the leggings they were wearing were inappropriate. The incident was first reported by a fellow passenger on Twitter, and subsequently went viral.
But the girls were apparently "pass travelers," a company benefit that allows United employees and their dependents to travel for free on a standby basis; leggings violated this specific dress code, since pass travelers are "representing" the airline.
Incidents like these began popping up all over the Internet and traditional news sites, detailing the poor customer service experienced on flights across the industry. From an American Airlines' (NASDAQ: AAL - Free Report ) crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop.
Industry Outlook
Despite one public relations disaster after another, the airline industry kept chugging along, and right now, Transportation-Airline sits in the top 8% of all 265 industries ranked on the Zacks Industry Rank; the sector has also returned over 10.5% year-to-date, which is on par with the S&P 500, and 36% over the past 12 months.
Historically, airline stocks were-and they still are-a turbulent investment, closely tied to fluctuating oil prices . But during periods of low oil prices and steady economic growth, like the type of environment we're in now, airlines see their profits rise. Since 2014, U.S. airline stocks as a group have gained almost 90%.
The International Air Transport Association (IATA) expects the global airline industry to bring in $30 billion in profits this year, with 4 billion projected travelers. The earnings represent a 4.1% net profit margin on top of total revenue of $736 billion.
Even Berkshire Hathaway CEO Warren Buffett, who publicly denounced airline investments in the past, sees promise in the industry. Last year, the famous investor bought stakes in all four major U.S. carriers: United, American, Delta Air Lines (NYSE: DAL - Free Report ) and Southwest (NYSE: LUV - Free Report ).
Given this overall bullish sentiment, let's take a look at three airline stocks investors should consider for their portfolio.
SkyWest (NASDAQ: SKYW - Free Report ) operates one of the larger regional airlines in the U.S., and provides passenger and air freight services. The carrier sits at a #2 (Buy) on the Zacks Rank, and boasts a VGM score of 'A,' with individual Style Scores of 'A' in Value and Growth.
SkyWest expects year-over-year earnings growth of 18.59% for the current year, and three analysts have revised their estimates upwards in the last 30 days compared to none lower. The company has an average earnings surprise of nearly 13%, while SkyWest has also beaten expectations in the past four consecutive quarters. In the past one year, SKYW has given its investors a solid return of over 30%.
Delta is one of the country's fastest growing international carriers, and has added more international capacity than all other U.S. airlines combined. Sitting at a #1 (Strong Buy) on the Zacks Rank, Delta also has a Value Style Score of 'A,' with an overall VGM score of 'B.'
The Atlanta-based airline anticipates year-over-year earnings growth of about 3.6% for the current year, with three positive estimate revisions in the last 30 days compared to only one negative revision in the same time frame. Delta has beaten expectations in three of the past four consecutive quarters, and has an average earnings surprise of almost 2%. Shares of DAL have surged over the past year, gaining over 35%.
Despite its many PR setbacks, United is actually looking to be a pretty promising pick. The airline is one of the largest in the world, and is the holding company for United Airlines and Continental Airlines. United is currently a #2 (Buy) on the Zacks Rank, and has a VGM score of 'A,' with Value and Growth Style Scores of 'A' and 'B,' respectively.
While United expects earnings loss of about 9% for the current year, the airline's earnings do appear to bounce back next year, with United projecting year-over-year growth of over 12.5%. This, however, does not come as a surprise, as the airline was hit hard financially earlier this year. Historically, United has beaten earnings in the past four consecutive quarters, and has an average earnings surprise of 5.4%. Over the past 12 months, UAL has gained almost 39%.
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
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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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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
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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From an American Airlines' (NASDAQ: AAL - Free Report ) crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop. Stocks recently featured in the blog include United Continental (NYSE: UAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), American Airlines' (NASDAQ: AAL - Free Report ), Southwest (NYSE: LUV - Free Report ) and SkyWest (NASDAQ: SKYW - Free Report ). Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on LUV - FREE Get the full Report on SKYW - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include United Continental (NYSE: UAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), American Airlines' (NASDAQ: AAL - Free Report ), Southwest (NYSE: LUV - Free Report ) and SkyWest (NASDAQ: SKYW - Free Report ). 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 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. From an American Airlines' (NASDAQ: AAL - Free Report ) crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop.
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Stocks recently featured in the blog include United Continental (NYSE: UAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), American Airlines' (NASDAQ: AAL - Free Report ), Southwest (NYSE: LUV - Free Report ) and SkyWest (NASDAQ: SKYW - Free Report ). Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on LUV - FREE Get the full Report on SKYW - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. 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 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.
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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 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. Stocks recently featured in the blog include United Continental (NYSE: UAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), American Airlines' (NASDAQ: AAL - Free Report ), Southwest (NYSE: LUV - Free Report ) and SkyWest (NASDAQ: SKYW - Free Report ). From an American Airlines' (NASDAQ: AAL - Free Report ) crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop.
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aeb0b56a-48d0-42e9-bbb1-7399c7a941d3
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7379.0
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2017-08-15 00:00:00 UTC
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United Continental (UAL) to Add Flights from Paine Field
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AAL
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https://www.nasdaq.com/articles/united-continental-ual-to-add-flights-from-paine-field-2017-08-15
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nan
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nan
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In a bid to expand further, United Continental HoldingsUAL announced that it intends to launch flights from Everett's Paine Field airport starting from the fall of next year. Through this customer friendly move, the Chicago- based carrier aims to operate six daily flights from the airport to its Denver and San Francisco hubs.
The carrier aims to connect more than 120 destinations to these two cities through the new service. The new flights, on resumption, are expected to be warmly welcomed by the concerned passengers as it broadens their travel option. In fact, these flights will be in addition to the 36 it already operates connecting the Seattle-Tacoma International airport and its hubs in the country.
Moreover, the increased traffic as a result of the new service should augment the top line of the company. In fact, we note that United Continental's decision to launch flights from Paine Field marks a return of the carrier to the Snohomish County airport as it had operated the first commercial flight from the airport in 1939.
In fact, United Continental is not the only U.S.-based carrier to eye the Snohomish County airport. In May this year, the Seattle, WA- based Alaska Air Group ALK had announced that it intends to start commercial operations to Paine Field next year.
Apart from these expansion initiatives, United Continental was also in the news when it reported its July traffic numbers. Load factor (percentage of seats filled by passengers) declined as traffic growth was outpaced by capacity expansion in the month.
Notably, United Continental is not the only carrier whose load factor fell in July. This key metric also declined in the month for other airline players like American Airlines Group AAL and JetBlue Airways Corporation JBLU .
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
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
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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This key metric also declined in the month for other airline players like American Airlines Group AAL and JetBlue Airways Corporation JBLU . Click to get this free report JetBlue Airways Corporation (JBLU): 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 a bid to expand further, United Continental HoldingsUAL announced that it intends to launch flights from Everett's Paine Field airport starting from the fall of next year.
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This key metric also declined in the month for other airline players like American Airlines Group AAL and JetBlue Airways Corporation JBLU . Click to get this free report JetBlue Airways Corporation (JBLU): 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 May this year, the Seattle, WA- based Alaska Air Group ALK had announced that it intends to start commercial operations to Paine Field next year.
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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 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. This key metric also declined in the month for other airline players like American Airlines Group AAL and JetBlue Airways Corporation JBLU . In fact, we note that United Continental's decision to launch flights from Paine Field marks a return of the carrier to the Snohomish County airport as it had operated the first commercial flight from the airport in 1939.
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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 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. This key metric also declined in the month for other airline players like American Airlines Group AAL and JetBlue Airways Corporation JBLU . In fact, we note that United Continental's decision to launch flights from Paine Field marks a return of the carrier to the Snohomish County airport as it had operated the first commercial flight from the airport in 1939.
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a36de68b-7ddd-4ec4-ae64-144bc55346e9
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7380.0
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2017-08-15 00:00:00 UTC
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Cyrus Capital Partners, Lp Buys American Airlines Group Inc, Globalstar Inc, Hewlett Packard ...
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AAL
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https://www.nasdaq.com/articles/cyrus-capital-partners-lp-buys-american-airlines-group-inc-globalstar-inc-hewlett-packard
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nan
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nan
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Cyrus Capital Partners, Lp
New Purchases: AAL , GSAT , HPE , APLP,
Added Positions:SHLD,
Reduced Positions:UAL, DAL, ALLY, SUPV, I, CYH, CRC,
Sold Out:TWX,
For the details of CYRUS CAPITAL PARTNERS, LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CYRUS+CAPITAL+PARTNERS%2C+LP
These are the top 5 holdings of CYRUS CAPITAL PARTNERS, LP
Ally Financial Inc ( ALLY ) - 9,102,545 shares, 23.54% of the total portfolio. Shares reduced by 6.87%
United Continental Holdings Inc ( UAL ) - 2,421,517 shares, 22.55% of the total portfolio. Shares reduced by 28.17%
Delta Air Lines Inc ( DAL ) - 3,215,205 shares, 21.38% of the total portfolio. Shares reduced by 27.84%
International Seaways Inc ( INSW ) - 4,003,576 shares, 10.73% of the total portfolio.
American Airlines Group Inc ( AAL ) - 1,500,000 shares, 9.34% of the total portfolio. New Position
New Purchase: American Airlines Group Inc ( AAL )
Cyrus Capital Partners, Lp initiated holdings in American Airlines Group Inc. The purchase prices were between $40.9 and $51.43, with an estimated average price of $46.36. The stock is now traded at around $48.52. The impact to the portfolio due to this purchase was 9.34%. The holdings were 1,500,000 shares as of 2017-06-30.
New Purchase: Globalstar Inc (GSAT)
Cyrus Capital Partners, Lp initiated holdings in Globalstar Inc. The purchase prices were between $1.6 and $2.44, with an estimated average price of $2. The stock is now traded at around $2.00. The impact to the portfolio due to this purchase was 0.22%. The holdings were 839,402 shares as of 2017-06-30.
New Purchase: Hewlett Packard Enterprise Co (HPE)
Cyrus Capital Partners, Lp initiated holdings in Hewlett Packard Enterprise Co. The purchase prices were between $16.49 and $19.11, with an estimated average price of $17.96. The stock is now traded at around $17.75. The impact to the portfolio due to this purchase was 0.21%. The holdings were 100,000 shares as of 2017-06-30.
New Purchase: Archrock Partners LP (APLP)
Cyrus Capital Partners, Lp initiated holdings in Archrock Partners LP. The purchase prices were between $13.05 and $17.16, with an estimated average price of $15.69. The stock is now traded at around $13.60. The impact to the portfolio due to this purchase was 0.12%. The holdings were 65,468 shares as of 2017-06-30.
Added: Sears Holdings Corp (SHLD)
Cyrus Capital Partners, Lp added to the holdings in Sears Holdings Corp by 283.33%. The purchase prices were between $6.37 and $13.99, with an estimated average price of $9.39. The stock is now traded at around $8.63. The impact to the portfolio due to this purchase was 0.1%. The holdings were 115,000 shares as of 2017-06-30.
Sold Out: Time Warner Inc (TWX)
Cyrus Capital Partners, Lp sold out the holdings in Time Warner Inc. The sale prices were between $96.75 and $100.41, with an estimated average price of $99.
Reduced: United Continental Holdings Inc ( UAL )
Cyrus Capital Partners, Lp reduced to the holdings in United Continental Holdings Inc by 28.17%. The sale prices were between $67.75 and $82.03, with an estimated average price of $75.42. The stock is now traded at around $66.96. The impact to the portfolio due to this sale was -7.34%. Cyrus Capital Partners, Lp still held 2,421,517 shares as of 2017-06-30.
Reduced: Delta Air Lines Inc ( DAL )
Cyrus Capital Partners, Lp reduced to the holdings in Delta Air Lines Inc by 27.84%. The sale prices were between $44.03 and $53.87, with an estimated average price of $48.91. The stock is now traded at around $49.92. The impact to the portfolio due to this sale was -6.24%. Cyrus Capital Partners, Lp still held 3,215,205 shares as of 2017-06-30.
Reduced: Grupo Supervielle SA (SUPV)
Cyrus Capital Partners, Lp reduced to the holdings in Grupo Supervielle SA by 85.21%. The sale prices were between $16.36 and $18.31, with an estimated average price of $17.15. The stock is now traded at around $19.15. The impact to the portfolio due to this sale was -0.39%. Cyrus Capital Partners, Lp still held 36,258 shares as of 2017-06-30.
Reduced: Intelsat SA (I)
Cyrus Capital Partners, Lp reduced to the holdings in Intelsat SA by 43.63%. The sale prices were between $2.81 and $4.35, with an estimated average price of $3.35. The stock is now traded at around $3.82. The impact to the portfolio due to this sale was -0.26%. Cyrus Capital Partners, Lp still held 738,682 shares as of 2017-06-30.
Warning! GuruFocus has detected 6 Warning Signs with SHLD. Click here to check it out.
SHLD 15-Year Financial Data
The intrinsic value of SHLD
Peter Lynch Chart of SHLD
Premium Members
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cyrus Capital Partners, Lp New Purchases: AAL , GSAT , HPE , APLP, Added Positions:SHLD, Reduced Positions:UAL, DAL, ALLY, SUPV, I, CYH, CRC, Sold Out:TWX, For the details of CYRUS CAPITAL PARTNERS, LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CYRUS+CAPITAL+PARTNERS%2C+LP These are the top 5 holdings of CYRUS CAPITAL PARTNERS, LP Ally Financial Inc ( ALLY ) - 9,102,545 shares, 23.54% of the total portfolio. American Airlines Group Inc ( AAL ) - 1,500,000 shares, 9.34% of the total portfolio. New Position New Purchase: American Airlines Group Inc ( AAL ) Cyrus Capital Partners, Lp initiated holdings in American Airlines Group Inc.
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Cyrus Capital Partners, Lp New Purchases: AAL , GSAT , HPE , APLP, Added Positions:SHLD, Reduced Positions:UAL, DAL, ALLY, SUPV, I, CYH, CRC, Sold Out:TWX, For the details of CYRUS CAPITAL PARTNERS, LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CYRUS+CAPITAL+PARTNERS%2C+LP These are the top 5 holdings of CYRUS CAPITAL PARTNERS, LP Ally Financial Inc ( ALLY ) - 9,102,545 shares, 23.54% of the total portfolio. New Position New Purchase: American Airlines Group Inc ( AAL ) Cyrus Capital Partners, Lp initiated holdings in American Airlines Group Inc. American Airlines Group Inc ( AAL ) - 1,500,000 shares, 9.34% of the total portfolio.
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Cyrus Capital Partners, Lp New Purchases: AAL , GSAT , HPE , APLP, Added Positions:SHLD, Reduced Positions:UAL, DAL, ALLY, SUPV, I, CYH, CRC, Sold Out:TWX, For the details of CYRUS CAPITAL PARTNERS, LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CYRUS+CAPITAL+PARTNERS%2C+LP These are the top 5 holdings of CYRUS CAPITAL PARTNERS, LP Ally Financial Inc ( ALLY ) - 9,102,545 shares, 23.54% of the total portfolio. American Airlines Group Inc ( AAL ) - 1,500,000 shares, 9.34% of the total portfolio. New Position New Purchase: American Airlines Group Inc ( AAL ) Cyrus Capital Partners, Lp initiated holdings in American Airlines Group Inc.
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Cyrus Capital Partners, Lp New Purchases: AAL , GSAT , HPE , APLP, Added Positions:SHLD, Reduced Positions:UAL, DAL, ALLY, SUPV, I, CYH, CRC, Sold Out:TWX, For the details of CYRUS CAPITAL PARTNERS, LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CYRUS+CAPITAL+PARTNERS%2C+LP These are the top 5 holdings of CYRUS CAPITAL PARTNERS, LP Ally Financial Inc ( ALLY ) - 9,102,545 shares, 23.54% of the total portfolio. American Airlines Group Inc ( AAL ) - 1,500,000 shares, 9.34% of the total portfolio. New Position New Purchase: American Airlines Group Inc ( AAL ) Cyrus Capital Partners, Lp initiated holdings in American Airlines Group Inc.
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d8cb676e-d0d7-44e6-8e79-c625f7e8b6c7
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7381.0
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2017-08-15 00:00:00 UTC
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3 Best Airline Stocks to Buy Right Now
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AAL
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https://www.nasdaq.com/articles/3-best-airline-stocks-buy-right-now-2017-08-15
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nan
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nan
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When video emerged online showing a passenger being dragged off a United Continental UAL flight earlier this year, consumers, analysts, and investors alike reacted in horror. Shares of the Chicago-based carrier took a huge hit as a result of the incident, and the legacy airline's market cap lost upwards of $950 million.
In a statement, United said four crew members needed to get to a flight departing from Louisville otherwise it would be canceled, and passengers were asked to voluntarily give up their seats. However, no one volunteered, and four passengers were then selected at random, including David Dao, the man who was forcibly removed.
What happened onboard in April was not United's last PR mess that surfaced. Soon after, the airline barred two teenage girls from boarding a flight after a gate agent decided the leggings they were wearing were inappropriate. The incident was first reported by a fellow passenger on Twitter TWTR , and subsequently went viral.
But the girls were apparently "pass travelers," a company benefit that allows United employees and their dependents to travel for free on a standby basis; leggings violated this specific dress code, since pass travelers are "representing" the airline.
Incidents like these began popping up all over the Internet and traditional news sites, detailing the poor customer service experienced on flights across the industry. From an American Airlines' AAL crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop.
Industry Outlook
Despite one public relations disaster after another, the airline industry kept chugging along, and right now, Transportation-Airline sits in the top 8% of all 265 industries ranked on the Zacks Industry Rank; the sector has also returned over 10.5% year-to-date, which is on par with the S&P 500, and 36% over the past 12 months.
Historically, airline stocks were-and they still are-a turbulent investment, closely tied to fluctuating oil prices . But during periods of low oil prices and steady economic growth, like the type of environment we're in now, airlines see their profits rise. Since 2014, U.S. airline stocks as a group have gained almost 90%.
The International Air Transport Association (IATA) expects the global airline industry to bring in $30 billion in profits this year, with 4 billion projected travelers. The earnings represent a 4.1% net profit margin on top of total revenue of $736 billion.
Even Berkshire Hathaway BRK.A CEO Warren Buffet, who publicly denounced airline investments in the past, sees promise in the industry. Last year, the famous investor bought stakes in all four major U.S. carriers: United, American, Delta Air Lines DAL , and Southwest LUV .
Given this overall bullish sentiment, let's take a look at three airline stocks investors should consider for their portfolio.
SkyWestSKYW operates one of the larger regional airlines in the U.S., and provides passenger and air freight services. The carrier sits at a #2 (Buy) on the Zacks Rank, and boasts a VGM score of 'A,' with individual Style Scores of 'A' in Value and Growth.
SkyWest expects year-over-year earnings growth of 18.59% for the current year, and three analysts have revised their estimates upwards in the last 30 days compared to none lower. The company has an average earnings surprise of nearly 13%, while SkyWest has also beaten expectations in the past four consecutive quarters. In the past one year, SKYW has given its investors a solid return of over 30%.
Delta is one of the country's fastest growing international carriers, and has added more international capacity than all other U.S. airlines combined. Sitting at a #1 (Strong Buy) on the Zacks Rank, Delta also has a Value Style Score of 'A,' with an overall VGM score of 'B.'
The Atlanta-based airline anticipates year-over-year earnings growth of about 3.6% for the current year, with three positive estimate revisions in the last 30 days compared to only one negative revision in the same time frame. Delta has beaten expectations in three of the past four consecutive quarters, and has an average earnings surprise of almost 2%. Shares of DAL have surged over the past year, gaining over 35%.
Despite its many PR setbacks, United is actually looking to be a pretty promising pick. The airline is one of the largest in the world, and is the holding company for United Airlines and Continental Airlines. United is currently a #2 (Buy) on the Zacks Rank, and has a VGM score of 'A,' with Value and Growth Style Scores of 'A' and 'B,' respectively.
While United expects earnings loss of about 9% for the current year, the airline's earnings do appear to bounce back next year, with United projecting year-over-year growth of over 12.5%. This, however, does not come as a surprise, as the airline was hit hard financially earlier this year. Historically, United has beaten earnings in the past four consecutive quarters, and has an average earnings surprise of 5.4%. Over the past 12 months, UAL has gained almost 39%.
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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
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Twitter, Inc. (TWTR): 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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From an American Airlines' AAL crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop. 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 SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report To read this article on Zacks.com click here. When video emerged online showing a passenger being dragged off a United Continental UAL flight earlier this year, consumers, analysts, and investors alike reacted in horror.
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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 SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report To read this article on Zacks.com click here. From an American Airlines' AAL crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop. Last year, the famous investor bought stakes in all four major U.S. carriers: United, American, Delta Air Lines DAL , and Southwest LUV .
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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 SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report To read this article on Zacks.com click here. From an American Airlines' AAL crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop. The airline is one of the largest in the world, and is the holding company for United Airlines and Continental Airlines.
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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 SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Twitter, Inc. (TWTR): Free Stock Analysis Report To read this article on Zacks.com click here. From an American Airlines' AAL crew member yanking away a mother's stroller and almost hitting her child to the death of a giant rabbit named Simon on a United flight, viral stories about flying nightmares were nonstop. Industry Outlook Despite one public relations disaster after another, the airline industry kept chugging along, and right now, Transportation-Airline sits in the top 8% of all 265 industries ranked on the Zacks Industry Rank; the sector has also returned over 10.5% year-to-date, which is on par with the S&P 500, and 36% over the past 12 months.
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59a988ec-fb14-484e-b285-c8470b825515
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7382.0
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2017-08-14 00:00:00 UTC
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Spirit Airlines' July Traffic Increases, Load Factor Slips
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-july-traffic-increases-load-factor-slips-2017-08-14
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Spirit AirlinesSAVE posted a significant rise in air traffic for the month of July. Traffic - measured in revenue passenger miles (RPMs) - came in at 2.35 billion, up 17.8% on a year-over-year basis. Consolidated capacity (or available seat miles/ASMs) also expanded 22.7% to 2.72 billion.
However, load factor or percentage of seats filled by passengers decreased to 86.3% from 89.8% recorded last July. Load factor fell as traffic growth was outpaced by capacity expansion for the month.
In fact, this Miramar, FL-based low-cost carrier registered a completion factor (system wide) of 97.2% for the month with 73.5% flights on schedule.
Notably, for the first seven months of 2017, Spirit Airlines registered a 12.4% increase in RPMs to 14.18 billion and a 15.5% rise in ASMs to 16.9 billion, both on a year-over-year basis. But load factor fell 240 basis points to 83.9% in the period.
Price Performance
Shares of Spirit Airlines have underperformed its industry in the last three months mainly due to the dispute with its pilots. The stock was down 31% compared with the industry's decline of 2.4% during the same period.
In fact, the dispute with pilots was largely responsible for Spirit Airlines issuing a below-par forecast with respect to total revenue per available seat miles (TRASM: a key measure of unit revenue) for the third quarter. The metric is expected to decline in the band of 2% to 4% on a year-over-year basis, as well. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
We note that passenger related issues have also hurt other U.S. carriers like American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL so far this year.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We note that passenger related issues have also hurt other U.S. carriers like American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL so far this year. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 5 Trades Could Profit "Big-League" from Trump Policies If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
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We note that passenger related issues have also hurt other U.S. carriers like American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL so far this year. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that passenger related issues have also hurt other U.S. carriers like American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL so far this year. Notably, for the first seven months of 2017, Spirit Airlines registered a 12.4% increase in RPMs to 14.18 billion and a 15.5% rise in ASMs to 16.9 billion, both on a year-over-year basis.
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We note that passenger related issues have also hurt other U.S. carriers like American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL so far this year. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, for the first seven months of 2017, Spirit Airlines registered a 12.4% increase in RPMs to 14.18 billion and a 15.5% rise in ASMs to 16.9 billion, both on a year-over-year basis.
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9618a996-36a7-4ffc-98e1-b233f879c39f
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7383.0
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2017-08-14 00:00:00 UTC
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Alaska Air Group's (ALK) July Traffic Rises, Capacity Up
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AAL
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https://www.nasdaq.com/articles/alaska-air-groups-alk-july-traffic-rises-capacity-up-2017-08-14
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Alaska Air Group Inc.ALK posted a substantial rise in traffic figures for July. Traffic, measured in revenue passenger miles (RPMs), increased 6.6% to 4.86 billion from 4.56 billion, recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 6.4% to 5.59 billion. Also, the load factor or percentage of seats filled by passengers inched up to 87% from 86.8%, recorded in July 2016, as traffic growth exceeded capacity expansion.
At the end of the first seven months of 2017, Alaska Air Group generated RPMs of 30.13 billion (up 6.5% year over year) and ASMs of 35.60 billion (up 5.6% year over year). Load factor stood at 84.7% compared with 83.9% in the first seven months last year.
Alaska Air Group, Inc. Price
Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote
This Zacks Rank 3 (Hold) company recently reported second-quarter 2017 earnings numbers. The carrier performed well in the quarter, beating on both earnings and revenues. Earnings of $2.51 per share beat the Zacks Consensus Estimate by a penny. Also, the bottom line expanded 18.4% on a year-over-year basis. Results were aided by higher revenues, which came in at $2,102 million, ahead of the Zacks Consensus Estimate of $2,096.3 million. The top line grew 41% on a year-over-year basis. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Spirit Airlines SAVE have also recently reported second-quarter financial numbers. While Southwest Airlines and American Airlines reported better-than-expected results in the quarter, Spirit Airlines posted better-than-expected earnings but lower-than-expected revenues.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations 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
Southwest Airlines Company (LUV): 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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Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Spirit Airlines SAVE have also recently reported second-quarter financial numbers. Click to get this free report Southwest Airlines Company (LUV): 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. Also, the load factor or percentage of seats filled by passengers inched up to 87% from 86.8%, recorded in July 2016, as traffic growth exceeded capacity expansion.
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Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Spirit Airlines SAVE have also recently reported second-quarter financial numbers. Click to get this free report Southwest Airlines Company (LUV): 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. Alaska Air Group, Inc. Price Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote This Zacks Rank 3 (Hold) company recently reported second-quarter 2017 earnings numbers.
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Click to get this free report Southwest Airlines Company (LUV): 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. Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Spirit Airlines SAVE have also recently reported second-quarter financial numbers. At the end of the first seven months of 2017, Alaska Air Group generated RPMs of 30.13 billion (up 6.5% year over year) and ASMs of 35.60 billion (up 5.6% year over year).
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Click to get this free report Southwest Airlines Company (LUV): 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. Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Spirit Airlines SAVE have also recently reported second-quarter financial numbers. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 6.4% to 5.59 billion.
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d4506025-90da-4fb1-a909-58300e77cc53
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7384.0
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2017-08-11 00:00:00 UTC
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S&P 500 Movers: NVDA, TRIP
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-nvda-trip-2017-08-11
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In early trading on Friday, shares of Tripadvisor ( TRIP ) topped the list of the day's best performing components of the S&P 500 index, trading up 2.9%. Year to date, Tripadvisor has lost about 11.9% of its value.
And the worst performing S&P 500 component thus far on the day is NVIDIA ( NVDA ), trading down 5.7%. NVIDIA is showing a gain of 45.5% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and KLA-Tencor ( KLAC ), trading up 2.8% on the day.
VIDEO: S&P 500 Movers: NVDA, TRIP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and KLA-Tencor ( KLAC ), trading up 2.8% on the day. And the worst performing S&P 500 component thus far on the day is NVIDIA ( NVDA ), trading down 5.7%. NVIDIA is showing a gain of 45.5% looking at the year to date performance.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and KLA-Tencor ( KLAC ), trading up 2.8% on the day. And the worst performing S&P 500 component thus far on the day is NVIDIA ( NVDA ), trading down 5.7%. VIDEO: S&P 500 Movers: NVDA, TRIP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and KLA-Tencor ( KLAC ), trading up 2.8% on the day. In early trading on Friday, shares of Tripadvisor ( TRIP ) topped the list of the day's best performing components of the S&P 500 index, trading up 2.9%. VIDEO: S&P 500 Movers: NVDA, TRIP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and KLA-Tencor ( KLAC ), trading up 2.8% on the day. In early trading on Friday, shares of Tripadvisor ( TRIP ) topped the list of the day's best performing components of the S&P 500 index, trading up 2.9%. And the worst performing S&P 500 component thus far on the day is NVIDIA ( NVDA ), trading down 5.7%.
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a6152405-6436-46b1-a43f-a7562f5ad548
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7385.0
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2017-08-11 00:00:00 UTC
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JetBlue Airways' (JBLU) July Load Factor Falls, Stock Down
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AAL
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https://www.nasdaq.com/articles/jetblue-airways-jblu-july-load-factor-falls-stock-down-2017-08-11
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Long Island City, NY-based JetBlue Airways CorporationJBLU posted a significant rise in air traffic for July. Traffic - measured in revenue passenger miles (RPMs) - improved 5.1% year over year to 4.48 billion. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) expanded 5.9% to 5.14 billion.
Load factor or percentage of seats filled by passengers decreased 70 basis points (bps) to 87.1% in the month as capacity expansion outpaced traffic growth. This decline in load factor seems to have disappointed investors. Consequently, the stock declined 1.78% to $21.46 at the close of business on Aug 10.
The low-cost carrier registered a completion factor (system wide) of 97.5% in the month with 63.5% flights on schedule.
On a year-to-date basis, the carrier posted a 4.6% rise in RPMs while ASMs rose 4.7%, both on a year-over-year basis. Load factor fell 10 bps year over year to 85%.
JetBlue Airways Corporation Price
JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote
JetBlue maintains its projection for revenue per available seat mile (RASM) in the third quarter of 2017 at the range of a decline of 0.5% to a rise of 2.5%.
This Zacks Rank #3 (Hold) company recently reported second-quarter 2017 earnings numbers. The carrier's earnings (excluding special items) of 64 cents per share beat the Zacks Consensus Estimate by 8 cents. Operating revenues came in at $1,842 million, ahead of the Zacks Consensus Estimate of $1,822.1 million. Both earnings and revenues improved year over year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also reported their financial numbers over the past few weeks, each posting better-than-expected results.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
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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
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
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also reported their financial numbers over the past few weeks, each posting better-than-expected results. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis 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 To read this article on Zacks.com click here. Long Island City, NY-based JetBlue Airways CorporationJBLU posted a significant rise in air traffic for July.
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Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also reported their financial numbers over the past few weeks, each posting better-than-expected results. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis 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 To read this article on Zacks.com click here. JetBlue Airways Corporation Price JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote JetBlue maintains its projection for revenue per available seat mile (RASM) in the third quarter of 2017 at the range of a decline of 0.5% to a rise of 2.5%.
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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 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. Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also reported their financial numbers over the past few weeks, each posting better-than-expected results. Traffic - measured in revenue passenger miles (RPMs) - improved 5.1% year over year to 4.48 billion.
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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 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. Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also reported their financial numbers over the past few weeks, each posting better-than-expected results. Load factor or percentage of seats filled by passengers decreased 70 basis points (bps) to 87.1% in the month as capacity expansion outpaced traffic growth.
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212b567c-3ca8-44a3-9794-5575d3516dd4
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7386.0
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2017-08-10 00:00:00 UTC
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Stock Market News For August 10, 2017
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-august-10-2017-2017-08-10
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Rising tensions between the US and North Korea weighed on the markets on Wednesday. The blue-chip index briefly slipped from the 22,000 milestone but pared losses to finish above the psychological level. Decline in the Dow was primarily due to losses made by shares of Disney after the media behemoth announced plans to end its distribution deal with Netflix. Escalating geopolitical uncertainties pushed the defense stocks up but weighed on the S&P 500 and Nasdaq.
The Dow Jones Industrial Average (DJIA) closed at 22,048.70, declining by 0.2% or 36.64 points. The S&P 500 Index (INX) declined less than 0.1%, decreasing 0.9 point to close at 2,474.02. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,352.33, slipping 18.13 points or 0.3%. A total of around 6.48 billion shares were traded on Monday, above the last 20-session average of 6.16 billion shares. Declining issues outnumbered advancers on the NYSE by 2.29-to-1 ratio. On the Nasdaq, decliners outnumbered advancers by a 2.47-to-1 ratio.
Disney Slide Fells Dow
Geopolitical uncertainty between US and North Korea heightened, weighing heavily on the broader markets. The blue-chip index was dragged down primarily by a plunge in shares of The Walt Disney Co. DIS . These losses occurred after the media giant announced its plans to discontinue its distribution deal with Netflix NFLX and launch its in-house Disney and ESPN steaming services.
However, Disney posted better-than-expected earnings for the third straight quarter, as it reported third-quarter fiscal 2017 results. (Read More: Disney (DIS) Q3 Earnings Top, Unveils Streaming Services )
Market Wobbles Due To Geopolitical Tensions
The rising tension between Washington and Pyongyang, after the latter announced plans to attack the Guam Naval base, spiked the defense stocks. Shares of Lockheed Martin LMT , Raytheon RTN , General Dynamics GD and Northrop Grumman NOC all increased by 1.7%, 2.6%, 1.1% and 1.2% respectively. The Dow Jones U.S. defense index soared 1.6%.
Despite S&P 500's declined over the trading day, seven of the index's eleven primary sectors ended in positive territory, with utilities leading the decliners and followed by consumer-discretionary, telecom and financial sectors. According to experts, the index has been surprisingly calm with small intraday moves. The S&P 500 has gained or lost 0.3% for close to 15 sessions now. On Wednesday, the index overcame a point 13 point deficit incurred earlier in the session. The Nasdaq also ended in the red but was able to pare a 61 point decline suffered earlier in the session.
Volatility Rises, But Remains at Record Lows
The CBOE Volatility Index (VIX) hit a one month high despite trading near all time lows. The best gauge of fear in the market- VIX, was up less than a point by 5.8% to 11.60. By all accounts, this has been the quietest stretch of trading since 1965. One estimate puts the current level of volatility at the lowest in 52 years. Since Jul 19, the S&P 500 has not gained or lost 0.5% over a single session.
Stocks That Made Headlines
Qualcomm Patent Violation by Apple to be Investigated by ITC
The United States International Trade Commission (ITC) has decided to investigate a complaint filed by chipset manufacturer, Qualcomm Inc. QCOM against tech giant Apple Inc. AAPL for infringing six of its patents covering various aspects of mobile phone technology, this July. ( Read More )
Unlimited Data Plans Heat Up U.S. Prepaid Wireless Industry
The U.S. wireless industry is saturated, where spectrum crunch has become a major issue in the domestic telecom industry . ( Read More )
Liberty Interactive (QVCA) Q2 Earnings In Line, Revenues Lag
Liberty Interactive Corp. QVCA reported mixed financial results in the second quarter of 2017. ( Read More )
American Airlines' July Load Factor Falls, Stock Declines
Premier passenger carrier, American Airlines Group Inc. AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. ( Read More )
One Simple Trading Idea
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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
Walt Disney Company (The) (DIS): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Liberty Interactive Corporation (QVCA): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Raytheon Company (RTN): 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 ) American Airlines' July Load Factor Falls, Stock Declines Premier passenger carrier, American Airlines Group Inc. AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Walt Disney Company (The) (DIS): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Liberty Interactive Corporation (QVCA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report To read this article on Zacks.com click here. Decline in the Dow was primarily due to losses made by shares of Disney after the media behemoth announced plans to end its distribution deal with Netflix.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Walt Disney Company (The) (DIS): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Liberty Interactive Corporation (QVCA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report To read this article on Zacks.com click here. ( Read More ) American Airlines' July Load Factor Falls, Stock Declines Premier passenger carrier, American Airlines Group Inc. AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. Decline in the Dow was primarily due to losses made by shares of Disney after the media behemoth announced plans to end its distribution deal with Netflix.
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( Read More ) American Airlines' July Load Factor Falls, Stock Declines Premier passenger carrier, American Airlines Group Inc. AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Walt Disney Company (The) (DIS): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Liberty Interactive Corporation (QVCA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report To read this article on Zacks.com click here. Despite S&P 500's declined over the trading day, seven of the index's eleven primary sectors ended in positive territory, with utilities leading the decliners and followed by consumer-discretionary, telecom and financial sectors.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Walt Disney Company (The) (DIS): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Liberty Interactive Corporation (QVCA): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report To read this article on Zacks.com click here. ( Read More ) American Airlines' July Load Factor Falls, Stock Declines Premier passenger carrier, American Airlines Group Inc. AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. The Dow Jones Industrial Average (DJIA) closed at 22,048.70, declining by 0.2% or 36.64 points.
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d0f72c84-838b-4c42-bc48-c52c097ef873
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7387.0
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2017-08-10 00:00:00 UTC
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Southwest Airlines (LUV) July Traffic Rises, View Intact
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv-july-traffic-rises-view-intact-2017-08-10
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nan
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nan
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Low-cost carrier Southwest Airlines Co.LUV posted a 6% rise in traffic (measured in Revenue Passenger Miles or RPMs) to around 12.4 billion in July from 11.7 billion a year ago. Also, Available Seat Miles (ASMs) increased 5.5% to 14.2 billion from 13.4 billion in the same month last year. Load factor (the percentage of seats filled by passengers) too improved 40 basis points (bps) to 87.3% in July as traffic growth outpaced capacity expansion.
On a year-to-date basis, Southwest Airlines witnessed a 4.5% rise in RPMs to 76.1 billion. Also, ASMs rose 4.7% to 91.0 billion. Hence, the load factor decreased 10 bps to 83.6%. Additionally, passenger count in the first seven months of 2017 rose 4.5% to 91.7 billion from 87.7 billion during the same period in 2016.
The company continues to expect third-quarter 2017 operating revenue per ASM (RASM) growth of around 1%.
Southwest Airlines Company Price
Southwest Airlines Company Price | Southwest Airlines Company Quote
This Zacks Rank #3 (Hold) recently reported second-quarter 2017 financial numbers. The company reported better-than-expected earnings and revenues in the said quarter. The carrier's earnings per share (on an adjusted basis) of $1.24 beat the Zacks Consensus Estimate of $1.20. Earnings also improved 4.20% on a year-over-year basis. Operating revenues of $5,744 million were marginally above the Zacks Consensus Estimate of $5733.2 million. Revenues too rose 6.69% year over year.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Other airline heavyweights like American Airlines Group AAL , Spirit Airlines SAVE and Alaska Air Group ALK have also recently reported second-quarter 2017 earnings numbers. Both American Airlines and Alaska Air Group surpassed estimates in their results. However, Spirit Airlines reported better-than-expected earnings but lower-than-expected revenues in the quarter.
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Southwest Airlines Company (LUV): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 airline heavyweights like American Airlines Group AAL , Spirit Airlines SAVE and Alaska Air Group ALK have also recently reported second-quarter 2017 earnings numbers. Click to get this free report Southwest Airlines Company (LUV): 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. Load factor (the percentage of seats filled by passengers) too improved 40 basis points (bps) to 87.3% in July as traffic growth outpaced capacity expansion.
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Other airline heavyweights like American Airlines Group AAL , Spirit Airlines SAVE and Alaska Air Group ALK have also recently reported second-quarter 2017 earnings numbers. Click to get this free report Southwest Airlines Company (LUV): 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. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote This Zacks Rank #3 (Hold) recently reported second-quarter 2017 financial numbers.
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Other airline heavyweights like American Airlines Group AAL , Spirit Airlines SAVE and Alaska Air Group ALK have also recently reported second-quarter 2017 earnings numbers. Click to get this free report Southwest Airlines Company (LUV): 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. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote This Zacks Rank #3 (Hold) recently reported second-quarter 2017 financial numbers.
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Click to get this free report Southwest Airlines Company (LUV): 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. Other airline heavyweights like American Airlines Group AAL , Spirit Airlines SAVE and Alaska Air Group ALK have also recently reported second-quarter 2017 earnings numbers. Low-cost carrier Southwest Airlines Co.LUV posted a 6% rise in traffic (measured in Revenue Passenger Miles or RPMs) to around 12.4 billion in July from 11.7 billion a year ago.
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750906fd-c5c1-4bad-9f48-8596fd0aea87
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7388.0
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2017-08-10 00:00:00 UTC
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American Airlines' July Load Factor Falls, Stock Declines
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AAL
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https://www.nasdaq.com/articles/american-airlines-july-load-factor-falls-stock-declines-2017-08-10
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nan
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nan
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Premier passenger carrier, American Airlines Group Inc.AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 1.9% to 26.0 billion. However, the load factor or percentage of seats filled by passengers decreased to 84.3% from 85.2% in Jul 2016 as capacity expansion outpaced traffic growth. This decline in load factor seems to have disappointed investors. Consequently, the stock fell 1.20% to $49.40 at the close of business on Aug 9.
On a year-to-date basis, the carrier registered a 0.5% year-over-year rise in RPMs to 132.4 billion. ASMs rose by the same clip to 162.0 billion. Hence, load factor remained flat at 81.7%. Also, passenger count (PAX) reduced 1.5% and 0.8% respectively, in July and during the first seven months of 2017.
The company maintains its projection for the third quarter of 2017. The company expects total revenue per available seat mile (TRASM) growth in the band 0.5-2.5% year over year. Additionally, Pre-tax margin (excluding special items) in the third quarter is estimated in the range of 10-12%.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
This Zacks Rank #3 (Hold) company recently reported second-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and revenues. The carrier's adjusted earnings of $1.92 per share surpassed the Zacks Consensus Estimate by 5 cents. Results were also aided by higher revenues. Revenues of $11,105 million edged past the Zacks Consensus Estimate of $11,086.7 million. Strong demand for air travel coupled with improving yields drove the top line in the quarter. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Airline heavyweights like Southwest Airlines LUV , Spirit Airlines SAVE and Alaska Air Group ALK have also reported their financial numbers over the past few weeks.
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Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
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
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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Premier passenger carrier, American Airlines Group Inc.AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. Click to get this free report Southwest Airlines Company (LUV): 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. However, the load factor or percentage of seats filled by passengers decreased to 84.3% from 85.2% in Jul 2016 as capacity expansion outpaced traffic growth.
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Premier passenger carrier, American Airlines Group Inc.AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. Click to get this free report Southwest Airlines Company (LUV): 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. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote This Zacks Rank #3 (Hold) company recently reported second-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and revenues.
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Premier passenger carrier, American Airlines Group Inc.AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. Click to get this free report Southwest Airlines Company (LUV): 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. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote This Zacks Rank #3 (Hold) company recently reported second-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and revenues.
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Premier passenger carrier, American Airlines Group Inc.AAL witnessed a 0.8% rise in traffic, measured in revenue passenger miles (RPMs), to 21.9 billion from 21.7 billion reported a year ago. Click to get this free report Southwest Airlines Company (LUV): 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. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote This Zacks Rank #3 (Hold) company recently reported second-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and revenues.
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b4e9574a-25fa-40f2-b4f2-2f289be35ef3
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7389.0
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2017-08-09 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for August 10, 2017
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-august-10-2017-2017-08-09
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nan
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 10, 2017. A cash dividend payment of $0.1 per share is scheduled to be paid on August 28, 2017. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 13th quarter that AAL has paid the same dividend. At the current stock price of $50, the dividend yield is .8%.
The previous trading day's last sale of AAL was $50, representing a -8.22% decrease from the 52 week high of $54.48 and a 48.19% increase over the 52 week low of $33.74.
AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). AAL's current earnings per share, an indicator of a company's profitability, is $4.05. Zacks Investment Research reports AAL's forecasted earnings growth in 2017 as -10.16%, compared to an industry average of .6%.
For more information on the declaration, record and payment dates, visit the AAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAL as a top-10 holding:
PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ )
iShares Transportation AverageETF ( IYT )
SPDR S&P Transportation ETF ( XTN )
First Trust Industrials AlphaDEX ( FXR )
First Trust NASDAQ-100 Ex-Technology Sector Index Fund ( QQXT ).
The top-performing ETF of this group is QQXT with an increase of 5.14% over the last 100 days. PEJ has the highest percent weighting of AAL at 5.55%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 2017 as -10.16%, compared to an industry average of .6%. The following ETF(s) have AAL as a top-10 holding: PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ ) iShares Transportation AverageETF ( IYT ) SPDR S&P Transportation ETF ( XTN ) First Trust Industrials AlphaDEX ( FXR ) First Trust NASDAQ-100 Ex-Technology Sector Index Fund ( QQXT ).
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The following ETF(s) have AAL as a top-10 holding: PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ ) iShares Transportation AverageETF ( IYT ) SPDR S&P Transportation ETF ( XTN ) First Trust Industrials AlphaDEX ( FXR ) First Trust NASDAQ-100 Ex-Technology Sector Index Fund ( QQXT ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 10, 2017.
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAL Dividend History page. The following ETF(s) have AAL as a top-10 holding: PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ ) iShares Transportation AverageETF ( IYT ) SPDR S&P Transportation ETF ( XTN ) First Trust Industrials AlphaDEX ( FXR ) First Trust NASDAQ-100 Ex-Technology Sector Index Fund ( QQXT ).
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The following ETF(s) have AAL as a top-10 holding: PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ ) iShares Transportation AverageETF ( IYT ) SPDR S&P Transportation ETF ( XTN ) First Trust Industrials AlphaDEX ( FXR ) First Trust NASDAQ-100 Ex-Technology Sector Index Fund ( QQXT ). American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 10, 2017. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment.
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abaaa1bb-1b48-4a55-9f3d-888196a5342d
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7390.0
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2017-08-08 00:00:00 UTC
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Hawaiian Holdings' Arm Sees Rise in Traffic Figures for July
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AAL
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https://www.nasdaq.com/articles/hawaiian-holdings-arm-sees-rise-in-traffic-figures-for-july-2017-08-08
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nan
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nan
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Hawaiian Holdings ' HA wholly owned subsidiary Hawaiian Airlines reported a 1.9% rise in traffic, measured in revenue passenger miles (RPMs) for the month of July. The figure increased to 1.48 billion from 1.45 billion a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.5% to 1.69 billion. Also, the load factor or percentage of seats filled by passengers rose to 87.3% from 86.2% recorded in Jul 2016, as traffic growth outpaced capacity expansion.
On a year-to-date basis, the carrier has registered a 6.1% rise in RPMs to 9.37 billion, while ASMs nudged up 3.3% to 10.95 billion, both on a year-over-year basis. Also, load factor increased by 220 basis points year over year to 85.6%. Plus, passenger count (PAX) for Jul 2017 and the first seven months of the year grew 2.5% and 3.3%, respectively.
This Zacks Rank #3 (Hold) company was also in news recently when it reported second-quarter 2017 earnings numbers. The company's adjusted earnings of $1.58 per share for the reported quarter beat the Zacks Consensus Estimate of $1.53. However, revenues of $675 million for the same period, fell short of the Zacks Consensus Estimate of $677 million by a narrow margin. Both earnings and revenues increased on a year-over-year basis. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also revealed their second-quarter 2017 results of late. Each company has reported better-than-expected results, beating on both earnings and revenues.
Hawaiian Holdings, Inc. Price
Hawaiian Holdings, Inc. Price | Hawaiian Holdings, Inc. Quote
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Southwest Airlines Company (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also revealed their second-quarter 2017 results of late. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Also, the load factor or percentage of seats filled by passengers rose to 87.3% from 86.2% recorded in Jul 2016, as traffic growth outpaced capacity expansion.
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Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also revealed their second-quarter 2017 results of late. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Hawaiian Holdings, Inc. Price Hawaiian Holdings, Inc. Price | Hawaiian Holdings, Inc. Quote Looking for Stocks with Skyrocketing Upside?
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also revealed their second-quarter 2017 results of late. Hawaiian Holdings ' HA wholly owned subsidiary Hawaiian Airlines reported a 1.9% rise in traffic, measured in revenue passenger miles (RPMs) for the month of July.
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Airline heavyweights like Southwest Airlines LUV , American Airlines Group AAL and Alaska Air Group ALK have also revealed their second-quarter 2017 results of late. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Hawaiian Holdings ' HA wholly owned subsidiary Hawaiian Airlines reported a 1.9% rise in traffic, measured in revenue passenger miles (RPMs) for the month of July.
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800740fa-30ba-47ef-94ed-6278e318a153
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7391.0
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2017-08-08 00:00:00 UTC
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1 Airline That Should Buy Back More Stock -- and 1 That Should Buy Back Less
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AAL
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https://www.nasdaq.com/articles/1-airline-should-buy-back-more-stock-and-1-should-buy-back-less-2017-08-08
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nan
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nan
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In the past few years, U.S. airlines' profits have surged due to a combination of moderate oil prices and strong demand. Many airlines have taken advantage of their rising cash flow to buy back lots of stock. This was a particularly attractive option because most airline stocks have been quite cheap in recent years.
American Airlines (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) are two of the U.S. airline operators that have implemented share repurchase programs in recent years.
With its earnings at record levels and a very modest debt burden, Hawaiian Holdings should strongly consider accelerating its buybacks. By contrast, American Airlines' profitability is declining and the company has a huge debt load. As a result, American may need to suspend its share repurchases for a while.
Hawaiian Holdings has been timid
Between 2012 and 2014, as other airlines ramped up their share repurchase programs, Hawaiian Holdings didn't buy back any stock. During that period, the company was investing heavily in new aircraft , leaving it with no excess cash to return to shareholders.
However, Hawaiian Holdings has generated a substantial amount of free cash flow since 2015, as its profitability has soared and capital spending has moderated. It has used some cash for share buybacks, repurchasing $40 million of stock in 2015 and another $14 million of stock in 2016. The vast majority of its cash flow has gone to debt reduction, though.
Today, that's no longer necessary. Hawaiian Holdings ended last quarter with leverage in the lower half of its target range. Yet it continued to buy back very little stock. The company replenished its share repurchase authorization to $100 million in April, but it spent only $4.3 million on buybacks in the second quarter.
As a result, Hawaiian Holdings' cash balance has ballooned, reaching $844 million (including short-term investments) at the end of June. That's well above its target of $500 million.
To be fair, capex is set to rise in the second half of 2017. Hawaiian Holdings is also scheduled to make payments totaling roughly $120 million to reduce its post-retirement liabilities. Even so, the company clearly has excess cash that it could use for share buybacks. With Hawaiian Holdings stock trading for less than eight times earnings, there's no reason to delay.
American Airlines has a debt problem
The situation is very different at American Airlines. Like Hawaiian Holdings, American has spent a fortune on new aircraft since 2011. However, it has financed most of these purchases with debt, freeing up cash for an aggressive share buyback program.
Since mid-2014, American Airlines has spent $10 billion to buy back 250 million shares of stock at an average price of $39.84. This program has dramatically boosted earnings per share. And given that American Airlines stock currently trades for more than $50, these buybacks appear to have increased shareholder value.
American Airlines has already started to reduce its buyback activity. After repurchasing more than $4 billion of stock last year, the company spent just under $1 billion on buybacks in the first half of 2017. However, it may be time to quit cold turkey.
First, profitability has started to sink. In the first half of the year, adjusted pre-tax profit slipped to $2 billion from $2.8 billion a year earlier. Additionally, American Airlines expects to post an adjusted pre-tax margin of 10%-12% this quarter, down from 14% a year earlier .
Second, American Airlines has huge debt payments coming up. From 2018-2021, it has an average of more than $3 billion in scheduled debt repayments annually. This will represent a significant use of cash going forward.
Two extremes; time to meet in the middle?
Hawaiian Holdings and American Airlines represent extremes on the spectrum of capital allocation policies. In recent years, Hawaiian Holdings has paid cash for several of its aircraft deliveries while simultaneously prepaying some of its debt. Meanwhile, American Airlines has financed nearly all of its aircraft purchases and run up a huge debt burden, in order to take advantage of low interest rates.
Hawaiian's policy is too conservative. The company's massive cash balance represents a big drag on its return on invested capital. Given that its stock is cheap and it doesn't have much debt left, Hawaiian Holdings should be buying back more stock.
By contrast, American Airlines has been too aggressive in repurchasing stock. At this point, the company should be paying cash for its new aircraft, in order to gradually whittle down its debt load. Otherwise, the largest U.S. airline could find itself on the ropes if the economy goes into recession just as its debt maturities start ramping up.
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Adam Levine-Weinberg owns shares of Hawaiian Holdings and is long August 2017 $46 calls on Hawaiian Holdings and short October 2017 $50 puts on 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) and Hawaiian Holdings (NASDAQ: HA) are two of the U.S. airline operators that have implemented share repurchase programs in recent years. However, Hawaiian Holdings has generated a substantial amount of free cash flow since 2015, as its profitability has soared and capital spending has moderated. As a result, Hawaiian Holdings' cash balance has ballooned, reaching $844 million (including short-term investments) at the end of June.
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American Airlines (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) are two of the U.S. airline operators that have implemented share repurchase programs in recent years. Hawaiian Holdings has been timid Between 2012 and 2014, as other airlines ramped up their share repurchase programs, Hawaiian Holdings didn't buy back any stock. Since mid-2014, American Airlines has spent $10 billion to buy back 250 million shares of stock at an average price of $39.84.
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American Airlines (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) are two of the U.S. airline operators that have implemented share repurchase programs in recent years. Hawaiian Holdings has been timid Between 2012 and 2014, as other airlines ramped up their share repurchase programs, Hawaiian Holdings didn't buy back any stock. *Stock Advisor returns as of August 1, 2017 Adam Levine-Weinberg owns shares of Hawaiian Holdings and is long August 2017 $46 calls on Hawaiian Holdings and short October 2017 $50 puts on Hawaiian Holdings.
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American Airlines (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) are two of the U.S. airline operators that have implemented share repurchase programs in recent years. Hawaiian Holdings has been timid Between 2012 and 2014, as other airlines ramped up their share repurchase programs, Hawaiian Holdings didn't buy back any stock. Since mid-2014, American Airlines has spent $10 billion to buy back 250 million shares of stock at an average price of $39.84.
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e557bf93-1c76-4ed4-8e40-e9ced49c927c
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7392.0
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2017-08-03 00:00:00 UTC
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Are Options Traders Betting on a Big Move in American Airlines Group (AAL) Stock?
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AAL
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-american-airlines-group-aal-stock-2017-08-03
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nan
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nan
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. That is because the August 4 th , 2017 $42.50 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for American Airlines Group shares, but what is the fundamental picture for the company? Currently, American Airlines Group is a Zacks Rank #2 (Buy) in the Transportation - Airline industry that ranks in the Top 3% of our Zacks Industry Rank. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while one has dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.58 per share to $1.66 in that period.
Given the way analysts feel about American Airlines Group right now, this huge implied volatility could mean there's a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLX earnings report completely free. See it here: Bartosiak: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while one has dropped their estimates.
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2e056e9a-3556-413e-ab3d-5add52364d43
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7393.0
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2017-08-02 00:00:00 UTC
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American Airlines (AAL) Falls after Qatar Reverses Decision to Buy Stake
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-falls-after-qatar-reverses-decision-buy-stake-2017-08-02
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nan
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nan
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Qatar Airways has announced that it will no longer invest in American Airlines AAL , reversing its decision in June to buy as much as a 10% stake. In reaction to this news, American Airlines stock closed the day at $50.45 per share, down 1.19%.
"Further review of the proposed financial investment, taking into account the latest public disclosure of American Airlines, has demonstrated that the investment no longer meets our objectives," Qatar said in a statement.
A spokeswoman for American said there would be no elaboration on what Qatar was referring to when they said, "the latest public disclosure of American Airlines."
Many were shocked in June when Qatar announced its interest in American Airlines. American, along with U.S. competitors Delta Air Lines DAL and United Airlines UAL , have lobbied the government to limit Qatar's growth in the U.S. The U.S. carriers have argued that Qatar, along with Persian Gulf airlines Etihad and Emirates, receive unfair subsidies.
American CEO Doug Park has also maintained his criticism of Qatar despite their investment interest. "We aren't particularly excited about Qatar's outreach, and we find it puzzling given our extremely public stance the illegal subsidies that Qatar… receives," he said after news broke about Qatar's interest. "We remain committed to that effort, and we will remain so even with this potential investment."
Qatar said it will "continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives" to develop "the best possible travel experience for its customers."
AAL remains a Zacks Rank #2 (Buy), with a VGM score of 'A.' Last week, it reported second quarter fiscal 2017 earnings of $1.92 per share, beating our estimate of $1.87.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United 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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Qatar Airways has announced that it will no longer invest in American Airlines AAL , reversing its decision in June to buy as much as a 10% stake. AAL remains a Zacks Rank #2 (Buy), with a VGM score of 'A.' 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. Qatar Airways has announced that it will no longer invest in American Airlines AAL , reversing its decision in June to buy as much as a 10% stake. AAL remains a Zacks Rank #2 (Buy), with a VGM score of 'A.'
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Qatar Airways has announced that it will no longer invest in American Airlines AAL , reversing its decision in June to buy as much as a 10% stake. 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. AAL remains a Zacks Rank #2 (Buy), with a VGM score of 'A.'
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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. Qatar Airways has announced that it will no longer invest in American Airlines AAL , reversing its decision in June to buy as much as a 10% stake. AAL remains a Zacks Rank #2 (Buy), with a VGM score of 'A.'
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7f399cf1-572a-444e-a213-f39905473603
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7394.0
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2017-08-01 00:00:00 UTC
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Nasdaq 100 Movers: IDXX, NCLH
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-idxx-nclh-2017-08-01
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nan
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nan
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In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, Norwegian Cruise Line Holdings registers a 32.8% gain.
And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories ( IDXX ), trading down 4.6%. Idexx Laboratories is showing a gain of 35.5% looking at the year to date performance.
Two other components making moves today are Incyte Corporation ( INCY ), trading down 2.9%, and American Airlines Group ( AAL ), trading up 2.1% on the day.
VIDEO: Nasdaq 100 Movers: IDXX, NCLH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Incyte Corporation ( INCY ), trading down 2.9%, and American Airlines Group ( AAL ), trading up 2.1% on the day. Year to date, Norwegian Cruise Line Holdings registers a 32.8% gain. And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories ( IDXX ), trading down 4.6%.
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Two other components making moves today are Incyte Corporation ( INCY ), trading down 2.9%, and American Airlines Group ( AAL ), trading up 2.1% on the day. In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, Norwegian Cruise Line Holdings registers a 32.8% gain.
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Two other components making moves today are Incyte Corporation ( INCY ), trading down 2.9%, and American Airlines Group ( AAL ), trading up 2.1% on the day. In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories ( IDXX ), trading down 4.6%.
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Two other components making moves today are Incyte Corporation ( INCY ), trading down 2.9%, and American Airlines Group ( AAL ), trading up 2.1% on the day. In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories ( IDXX ), trading down 4.6%.
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93a8f816-ff1c-438f-a0bf-b984e03e4658
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7395.0
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2017-08-01 00:00:00 UTC
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Earnings Pressure Worsens at American Airlines: Rising Competition or a Blip on the Radar?
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AAL
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https://www.nasdaq.com/articles/earnings-pressure-worsens-american-airlines-rising-competition-or-blip-radar-2017-08-01
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nan
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nan
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On Friday, American Airlines (NASDAQ: AAL) reported solid earnings results for the second quarter. By contrast, the company's third-quarter outlook was fairly dismal, although management claimed that it was not indicative of American's longer-term business trends.
It's possible that American Airlines' results will improve soon -- or that management was very conservative with its third-quarter outlook. However, it's also possible that United Continental 's (NYSE: UAL) more aggressive posture is starting to weigh on results at its most direct rival.
American Airlines' second quarter in brief
Last quarter, American Airlines posted strong unit revenue results again. Back in April, the company projected that revenue per available seat mile (RASM) would increase 3%-5% in the quarter. However, it boosted its unit revenue guidance twice in the next three months. Ultimately, American Airlines reported that RASM rose 5.7% year over year, driven by strength in the domestic market and throughout most of Latin America.
On the flip side, cost inflation remained severe. Adjusted non-fuel unit costs increased 6.8% year over year. Fuel costs also rose, such that total unit costs (excluding special items) jumped 8.1%.
The net result was that American's adjusted pre-tax margin slipped to 13.5% from 15.4% a year earlier and net income fell to $944 million from $1.0 billion. Nevertheless, adjusted EPS rose to $1.92 from $1.77, because of a big reduction in American's share count -- most of which occurred during 2016. This beat the average analyst estimate of $1.87.
The third-quarter outlook doesn't look good at all
American Airlines' management expects unit revenue growth to slow dramatically in the third quarter. The company's initial Q3 unit revenue forecast calls for RASM growth of 0.5% to 2.5%.
Unit cost growth is also slowing, but not by as much. American Airlines expects non-fuel unit costs to rise about 4.5% year over year next quarter, while fuel costs are on track to be up by a slightly greater amount.
With costs rising significantly faster than revenue, margin contraction may accelerate this quarter. American Airlines currently projects that its adjusted pre-tax margin will fall to 10%-12% from 14% in Q3 2016. Furthermore, the company will get a smaller benefit from share buybacks. Based on American's current guidance, Q3 EPS is likely to wind up between $1.40 and $1.70, down from $1.76 in the prior-year quarter.
Is this cause for concern?
American Airlines CEO Doug Parker claims that investors shouldn't worry about the company's weak third-quarter forecast. Despite some volatility from quarter to quarter, he sees the industry as being fundamentally healthy, enabling American to earn a pre-tax profit of about $5 billion in a typical year.
Furthermore, the sharp drop-off in unit revenue growth from Q2 to Q3 is being driven by tougher comparisons. Looking back to 2016, RASM plunged 6.1% in the second quarter but fell just 2.2% in the third quarter. It's also worth noting that American's management has provided fairly conservative forecasts on average in recent quarters, so there may be some upside to its guidance.
That said, even a 12% pre-tax margin this quarter wouldn't be a good showing for American Airlines. To hit its $5 billion pre-tax profit target, American needs 12% pre-tax margins on average . Q3 is a seasonally strong period, fuel prices remain quite low, and the global economy is performing well. This is a time to be generating much higher profits.
Thus, it's reasonable to wonder whether competition is taking a toll on American Airlines. United Continental has made a big point recently of trying to regain its "fair share" of the domestic market. It has increased its domestic growth rate and added dozens of new routes. United Continental has also become quite aggressive in matching or even undercutting rivals' prices.
United's new strategy has probably had its biggest impact in Chicago, where both United and American have hubs. But the two carriers also have competing hubs in New York, Washington, D.C., and Los Angeles.
It's too early to be sure that United Continental's new posture is hurting American's profitability. Moreover, even if this vicious competition is hurting American Airlines right now, it could still bounce back in the future. Even so, investors should probably steer clear of American Airlines for now, in favor of airlines that are on more solid ground, such as Delta Air Lines .
10 stocks we like better than American Airlines Group
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*Stock Advisor returns as of July 6, 2017
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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On Friday, American Airlines (NASDAQ: AAL) reported solid earnings results for the second quarter. By contrast, the company's third-quarter outlook was fairly dismal, although management claimed that it was not indicative of American's longer-term business trends. The third-quarter outlook doesn't look good at all American Airlines' management expects unit revenue growth to slow dramatically in the third quarter.
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On Friday, American Airlines (NASDAQ: AAL) reported solid earnings results for the second quarter. American Airlines' second quarter in brief Last quarter, American Airlines posted strong unit revenue results again. The third-quarter outlook doesn't look good at all American Airlines' management expects unit revenue growth to slow dramatically in the third quarter.
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On Friday, American Airlines (NASDAQ: AAL) reported solid earnings results for the second quarter. American Airlines' second quarter in brief Last quarter, American Airlines posted strong unit revenue results again. The third-quarter outlook doesn't look good at all American Airlines' management expects unit revenue growth to slow dramatically in the third quarter.
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On Friday, American Airlines (NASDAQ: AAL) reported solid earnings results for the second quarter. American Airlines' second quarter in brief Last quarter, American Airlines posted strong unit revenue results again. Adjusted non-fuel unit costs increased 6.8% year over year.
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c86ca6d6-5221-451c-bb41-6c8f7510bafa
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7396.0
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2017-07-28 00:00:00 UTC
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Q2 GDP In Focus
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AAL
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https://www.nasdaq.com/articles/q2-gdp-in-focus-2017-07-28
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nan
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nan
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The first look at Q2 Gross Domestic Product (GDP) growth - perhaps the main signifier of a growing economy - ratcheted up to 2.6%, putting the U.S. economy in 2017 pretty much exactly where we expected it: 2% growth (averaged in with the Q1 number). Consumer spending rose 2.8%, and business spending went up 5.2%. Part of this was in equipment sales, which grew 8.2%.
The Q2 employment cost index fell from 0.8% to 0.5%. Housing was down but government was up, with inventory positive. Also, revisions to 2015 showed that year up higher than originally reported, whereas 2016 was lower than first thought.
Basically, what can be gleaned at a quick glance is that, m while expectations are in-line with expectations, what this means is that small business confidence based on the election of President Trump last November has held up. Markets haven't moved much since this latest GDP announcement: the S&P 500 has gone from -6.5 to -6, the Dow from -31 to -32 and the Nasdaq from -45.5 to -38.
Q2 Earnings Wrap-Up
Pharmaceuticals maker Merck MRK posted better-than-expected Q2 earnings, reporting $1.01 per share as opposed to the 87 cents anticipated by the Zacks consensus estimate. Revenues also topped expectations at $9.93 billion, aheads of the $9.79 billion we had been looking for. Its high-growth melanoma treatment Keytruda outperformed estimates in the quarter. This marks 51% growth sequentially and 180% year over year for the Zacks Rank #2 (Buy) company.
American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. This is currently a Zacks Rank #1 (Strong Buy) stock, and revenues also beat the Zacks consensus, bringing in $11.1 billion, representing 7.2% growth year over year. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL.
Exxon Mobil XOM missed expectations in its Q2 earnings, reporting 78 cents per share as opposed to the 83 cents expected. Revenues beat the Zacks consensus, however, reporting $62.88 billion as opposed to the $61.16 billion there Zacks consensus was calling for. Overall production was in-line with year-ago figures, and natural gas production was up 2% for the Zacks Rank #4 (Sell) company.
Tesla Model 3 on the Way
Finally, the first deliveries of Tesla's TSLA Model 3 cars - the company's first "affordable" electric-only automobile - occur today, satisfying roughly 350K individuals who had put down $1000 each to reserve their place in line for one of the first Model 3s. Regarding the author sales business of the widely spreading energy conscious company, the Model 3 looks to bring the Tesla brands to a garage in every neighborhood in America (and elsewhere).
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
Merck & Company, Inc. (MRK): Free Stock Analysis Report
Tesla Inc. (TSLA): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): 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 $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL. American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL.
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American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here.
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618a0cf5-7ad2-4930-8888-0358dafd1e88
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7397.0
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2017-07-28 00:00:00 UTC
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Q2 GDP Lands at 2.6%, 1st Read
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AAL
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https://www.nasdaq.com/articles/q2-gdp-lands-26-1st-read-2017-07-28
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nan
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nan
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Friday, July 28th, 2017
The first look at Q2 Gross Domestic Product (GDP) growth - perhaps the main signifier of a growing economy - ratcheted up to 2.6%, putting the U.S. economy in 2017 pretty much exactly where we expected it: 2% growth (averaged in with the Q1 number). Consumer spending rose 2.8%, and business spending went up 5.2%. Part of this was in equipment sales, which grew 8.2%.
The Q2 employment cost index fell from 0.8% to 0.5%. Housing was down but government was up, with inventory positive. Also, revisions to 2015 showed that year up higher than originally reported, whereas 2016 was lower than first thought.
Basically, what can be gleaned at a quick glance is that, m while expectations are in-line with expectations, what this means is that small business confidence based on the election of President Trump last November has held up. Markets haven't moved much since this latest GDP announcement: the S&P 500 has gone from -6.5 to -6, the Dow from -31 to -32 and the Nasdaq from -45.5 to -38.
Q2 Earnings Wrap-Up
Pharmaceuticals maker Merck MRK posted better-than-expected Q2 earnings, reporting $1.01 per share as opposed to the 87 cents anticipated by the Zacks consensus estimate. Revenues also topped expectations at $9.93 billion, aheads of the $9.79 billion we had been looking for. Its high-growth melanoma treatment Keytruda outperformed estimates in the quarter. This marks 51% growth sequentially and 180% year over year for the Zacks Rank #2 (Buy) company.
American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. This is currently a Zacks Rank #1 (Strong Buy) stock, and revenues also beat the Zacks consensus, bringing in $11.1 billion, representing 7.2% growth year over year. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL.
Exxon Mobil XOM missed expectations in its Q2 earnings, reporting 78 cents per share as opposed to the 83 cents expected. Revenues beat the Zacks consensus, however, reporting $62.88 billion as opposed to the $61.16 billion there Zacks consensus was calling for. Overall production was in-line with year-ago figures, and natural gas production was up 2% for the Zacks Rank #4 (Sell) company.
Tesla Model 3 on the Way
Finally, the first deliveries of Tesla's TSLA Model 3 cars - the company's first "affordable" electric-only automobile - occur today, satisfying roughly 350K individuals who had put down $1000 each to reserve their place in line for one of the first Model 3s. Regarding the author sales business of the widely spreading energy conscious company, the Model 3 looks to bring the Tesla brands to a garage in every neighborhood in America (and elsewhere).
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Merck & Company, Inc. (MRK): Free Stock Analysis Report
Tesla Inc. (TSLA): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): 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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A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL. American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL.
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American Airlines AAL also topped expectations on its bottom line, reporting g $1.92 per share compared with the $1.87 expected. A $500 million share buyback and 10 cent dividend increase helped put the cap on a successful Q2 for AAL. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Merck & Company, Inc. (MRK): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report To read this article on Zacks.com click here.
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504af537-c559-43d7-8ef9-1637cf92b557
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7398.0
|
2017-07-28 00:00:00 UTC
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Analysts Predict 11% Upside For IYT
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AAL
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https://www.nasdaq.com/articles/analysts-predict-11-upside-iyt-2017-07-28
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Transportation Average ETF (Symbol: IYT), we found that the implied analyst target price for the ETF based upon its underlying holdings is $182.83 per unit.
With IYT trading at a recent price near $165.41 per unit, that means that analysts see 10.53% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IYT's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), American Airlines Group Inc (Symbol: AAL), and CSX Corp (Symbol: CSX). Although LUV has traded at a recent price of $56.57/share, the average analyst target is 16.96% higher at $66.17/share. Similarly, AAL has 13.14% upside from the recent share price of $50.00 if the average analyst target price of $56.57/share is reached, and analysts on average are expecting CSX to reach a target price of $56.07/share, which is 12.13% above the recent price of $50.00. Below is a twelve month price history chart comparing the stock performance of LUV, AAL, and CSX:
Combined, LUV, AAL, and CSX represent 11.29% of the iShares Transportation Average ETF. Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of LUV, AAL, and CSX: Combined, LUV, AAL, and CSX represent 11.29% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), American Airlines Group Inc (Symbol: AAL), and CSX Corp (Symbol: CSX). Similarly, AAL has 13.14% upside from the recent share price of $50.00 if the average analyst target price of $56.57/share is reached, and analysts on average are expecting CSX to reach a target price of $56.07/share, which is 12.13% above the recent price of $50.00.
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Three of IYT's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), American Airlines Group Inc (Symbol: AAL), and CSX Corp (Symbol: CSX). Similarly, AAL has 13.14% upside from the recent share price of $50.00 if the average analyst target price of $56.57/share is reached, and analysts on average are expecting CSX to reach a target price of $56.07/share, which is 12.13% above the recent price of $50.00. Below is a twelve month price history chart comparing the stock performance of LUV, AAL, and CSX: Combined, LUV, AAL, and CSX represent 11.29% of the iShares Transportation Average ETF.
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Similarly, AAL has 13.14% upside from the recent share price of $50.00 if the average analyst target price of $56.57/share is reached, and analysts on average are expecting CSX to reach a target price of $56.07/share, which is 12.13% above the recent price of $50.00. Three of IYT's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), American Airlines Group Inc (Symbol: AAL), and CSX Corp (Symbol: CSX). Below is a twelve month price history chart comparing the stock performance of LUV, AAL, and CSX: Combined, LUV, AAL, and CSX represent 11.29% of the iShares Transportation Average ETF.
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Below is a twelve month price history chart comparing the stock performance of LUV, AAL, and CSX: Combined, LUV, AAL, and CSX represent 11.29% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are Southwest Airlines Co (Symbol: LUV), American Airlines Group Inc (Symbol: AAL), and CSX Corp (Symbol: CSX). Similarly, AAL has 13.14% upside from the recent share price of $50.00 if the average analyst target price of $56.57/share is reached, and analysts on average are expecting CSX to reach a target price of $56.07/share, which is 12.13% above the recent price of $50.00.
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5e6d6825-8209-4fba-9a0d-f9d6a17ef9a1
|
7399.0
|
2017-07-28 00:00:00 UTC
|
American Airlines (AAL) Tops Q2 Earnings, Revenue Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-tops-q2-earnings-revenue-estimates-2017-07-28
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nan
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nan
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American Airlines Group Inc. 's AAL second-quarter 2017 earnings (adjusted) of $1.92 per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, quarterly earnings improved 8.47% on a year-over-year basis. Results were aided by higher revenues.
Revenues of $11,105 million also improved 7.16% from the year-ago figure. Quarterly revenues edged past the Zacks Consensus Estimate of $11,086.7 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 5.7% to 15.48 cents in the reported quarter. In fact, this quarter marked the third successive one in which the metric grew on a year-over-year basis, since the fourth quarter of 2014.
Consolidated yield improved 4.3% to 16.1 cents. Passenger revenue per available seat miles improved 5% to 13.36 cents. While traffic (measured by revenue passenger miles) was up 2.1%, capacity (measured by average seat miles) was up 1.4%. In fact, consolidated load factor (percentage of seats filled by passengers) improved as traffic growth outpaced capacity expansion. Load factor improved to 83% compared with 82.5% a year ago.
Total operating expenses climbed 11.1% year over year to $9.6 billion primarily backed by rise in fuel costs. Expenses pertaining to salaries and benefits were up 12.5%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 6.8%.
During the quarter, this Zacks Rank #1 (Strong Buy) company returned $500 million billion to its shareholders through the payment of $50 million in dividends and buyback of shares worth $450 million. Furthermore, the carrier declared a dividend of 10 cents per share that will be paid on Aug 28 to shareholders of record as of Aug 14.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
Notably, the carrier has returned more than $10.7 billion to stockholders through share repurchases and dividends since mid-2014. Additionally, the company's efforts to reward shareholders through stock repurchase and dividend payments are impressive.
Meanwhile, it 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 took delivery of 16 new mainline aircraft and four regional ones during the second quarter of 2017. Also, the company invested $1.1 billion toward a new aircraft during the reported quarter. Going forward, it aims to shell out $4.1 billion in 2017 for the same purpose.
American Airlines Group, Inc. Price, Consensus and EPS Surprise
American Airlines Group, Inc. Price, Consensus and EPS Surprise | American Airlines Group, Inc. Quote
Outlook
Total revenue per available seat miles (TRASM) is expected to increase in the band of 0.5% to 2.5% for the third quarter of 2017 on a year-over-year basis. Pre-tax margin, excluding special items, is projected in the range of 10% to 12%. Consolidated CASM (excluding special items and fuel) is expected to increase 5%. The metric is also anticipated to increase approximately 5% in 2017. Capacity (system) in 2017 is projected to increase 1.5%.
Upcoming Releases
Investors interested in the broader Transportation space are keenly waiting for second-quarter earnings reports from key players like GOL Linhas GOL , Copa Holdings, S.A. CPA and Air Lease Corp. AL . While GOL Linhas and Copa Holdings will report second-quarter results on Aug 9, Air Lease will report the same on Aug 3.
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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
Air Lease Corporation (AL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. 's AAL second-quarter 2017 earnings (adjusted) of $1.92 per share surpassed the Zacks Consensus Estimate by 5 cents. 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 Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, consolidated load factor (percentage of seats filled by passengers) improved as traffic growth outpaced capacity expansion.
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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 Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. 's AAL second-quarter 2017 earnings (adjusted) of $1.92 per share surpassed the Zacks Consensus Estimate by 5 cents. American Airlines Group, Inc. Price, Consensus and EPS Surprise American Airlines Group, Inc. Price, Consensus and EPS Surprise | American Airlines Group, Inc. Quote Outlook Total revenue per available seat miles (TRASM) is expected to increase in the band of 0.5% to 2.5% for the third quarter of 2017 on a year-over-year basis.
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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 Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. 's AAL second-quarter 2017 earnings (adjusted) of $1.92 per share surpassed the Zacks Consensus Estimate by 5 cents. Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 5.7% to 15.48 cents in the reported quarter.
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American Airlines Group Inc. 's AAL second-quarter 2017 earnings (adjusted) of $1.92 per share surpassed the Zacks Consensus Estimate by 5 cents. 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 Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 5.7% to 15.48 cents in the reported quarter.
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af8a2d12-35ba-4d0f-97cd-148500df0520
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