Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
| uuid
stringlengths 36
36
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
7500.0
|
2017-06-09 00:00:00 UTC
|
Saba Capital Management, L.P. Buys Clough Global Opportunities Fund, General American ...
|
AAL
|
https://www.nasdaq.com/articles/saba-capital-management-lp-buys-clough-global-opportunities-fund-general-american-2017-1
|
nan
|
nan
|
Saba Capital Management, L.P.
New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE,
Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV,
Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO,
Sold Out:PPT, TSLA, BGX, DSL, EVG,
For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P.
These are the top 5 holdings of Saba Capital Management, L.P.
Wells Fargo Multi-Sector Income Fund ( ERC ) - 6,150,514 shares, 9.33% of the total portfolio.
First Trust High Income Long/Short Fund ( FSD ) - 4,608,568 shares, 8.73% of the total portfolio.
American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio.
Clough Global Opportunities Fund ( GLO ) - 5,454,549 shares, 6.39% of the total portfolio. Shares added by 186.35%
Alpine Total Dynamic Dividend Fund ( AOD ) - 5,567,362 shares, 5.23% of the total portfolio. Shares added by 52.25%
New Purchase: JC Penney Co Inc (JCP)
Saba Capital Management, L.P. initiated holdings in JC Penney Co Inc. The purchase prices were between $5.5 and $8.47, with an estimated average price of $6.61. The stock is now traded at around $4.85. The impact to the portfolio due to this purchase was 0.99%. The holdings were 1,409,000 shares as of 2017-03-31.
New Purchase: American Airlines Group Inc ( AAL )
Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc. The purchase prices were between $40.35 and $49.59, with an estimated average price of $45.24. The stock is now traded at around $50.47. The impact to the portfolio due to this purchase was 0.97%. The holdings were 201,408 shares as of 2017-03-31.
New Purchase: Energy XXI Gulf Coast Inc (EXXI)
Saba Capital Management, L.P. initiated holdings in Energy XXI Gulf Coast Inc. The purchase prices were between $24 and $32.5, with an estimated average price of $29.44. The stock is now traded at around $22.75. The impact to the portfolio due to this purchase was 0.89%. The holdings were 260,601 shares as of 2017-03-31.
New Purchase: Consol Energy Inc (CNX)
Saba Capital Management, L.P. initiated holdings in Consol Energy Inc. The purchase prices were between $14.92 and $19.54, with an estimated average price of $16.96. The stock is now traded at around $14.93. The impact to the portfolio due to this purchase was 0.41%. The holdings were 215,164 shares as of 2017-03-31.
New Purchase: SUPERVALU Inc (SVU)
Saba Capital Management, L.P. initiated holdings in SUPERVALU Inc. The purchase prices were between $3.26 and $4.91, with an estimated average price of $3.9. The stock is now traded at around $3.99. The impact to the portfolio due to this purchase was 0.37%. The holdings were 848,860 shares as of 2017-03-31.
New Purchase: Avon Products Inc (AVP)
Saba Capital Management, L.P. initiated holdings in Avon Products Inc. The purchase prices were between $4.21 and $5.93, with an estimated average price of $4.99. The stock is now traded at around $3.53. The impact to the portfolio due to this purchase was 0.35%. The holdings were 694,224 shares as of 2017-03-31.
Added: Clough Global Opportunities Fund ( GLO )
Saba Capital Management, L.P. added to the holdings in Clough Global Opportunities Fund by 186.35%. The purchase prices were between $8.89 and $10.29, with an estimated average price of $9.76. The stock is now traded at around $10.57. The impact to the portfolio due to this purchase was 4.16%. The holdings were 5,454,549 shares as of 2017-03-31.
Added: General American Investors Inc. (GAM)
Saba Capital Management, L.P. added to the holdings in General American Investors Inc. by 358.52%. The purchase prices were between $31.12 and $33.85, with an estimated average price of $32.83. The stock is now traded at around $33.98. The impact to the portfolio due to this purchase was 3.52%. The holdings were 1,180,791 shares as of 2017-03-31.
Added: Alpine Total Dynamic Dividend Fund ( AOD )
Saba Capital Management, L.P. added to the holdings in Alpine Total Dynamic Dividend Fund by 52.25%. The purchase prices were between $7.58 and $8.32, with an estimated average price of $8.07. The stock is now traded at around $8.76. The impact to the portfolio due to this purchase was 1.79%. The holdings were 5,567,362 shares as of 2017-03-31.
Added: Valeant Pharmaceuticals International Inc (VRX)
Saba Capital Management, L.P. added to the holdings in Valeant Pharmaceuticals International Inc by 132.38%. The purchase prices were between $10.64 and $16.86, with an estimated average price of $13.76. The stock is now traded at around $12.50. The impact to the portfolio due to this purchase was 1.66%. The holdings were 2,315,900 shares as of 2017-03-31.
Added: Hertz Global Holdings Inc (HTZ)
Saba Capital Management, L.P. added to the holdings in Hertz Global Holdings Inc by 446.79%. The purchase prices were between $17.25 and $23.63, with an estimated average price of $20.88. The stock is now traded at around $8.88. The impact to the portfolio due to this purchase was 0.82%. The holdings were 501,433 shares as of 2017-03-31.
Added: Clough Global Equity Fund (GLQ)
Saba Capital Management, L.P. added to the holdings in Clough Global Equity Fund by 26.18%. The purchase prices were between $11.15 and $12.64, with an estimated average price of $11.88. The stock is now traded at around $12.86. The impact to the portfolio due to this purchase was 0.74%. The holdings were 2,473,734 shares as of 2017-03-31.
Sold Out: Putnam Premier Income Trust (PPT)
Saba Capital Management, L.P. sold out the holdings in Putnam Premier Income Trust. The sale prices were between $4.93 and $5.36, with an estimated average price of $5.21.
Sold Out: Tesla Inc (TSLA)
Saba Capital Management, L.P. sold out the holdings in Tesla Inc. The sale prices were between $216.99 and $280.98, with an estimated average price of $253.78.
Sold Out: Blackstone GSO Long Short Credit Income Fund (BGX)
Saba Capital Management, L.P. sold out the holdings in Blackstone GSO Long Short Credit Income Fund. The sale prices were between $15.69 and $16.44, with an estimated average price of $16.15.
Sold Out: DoubleLine Income Solutions Fund (DSL)
Saba Capital Management, L.P. sold out the holdings in DoubleLine Income Solutions Fund. The sale prices were between $19 and $20.42, with an estimated average price of $19.78.
Sold Out: Eaton Vance Short Diversified Income Fund Duration (EVG)
Saba Capital Management, L.P. sold out the holdings in Eaton Vance Short Diversified Income Fund Duration. The sale prices were between $13.76 and $14.15, with an estimated average price of $13.94.
Reduced: Allergan PLC (AGN)
Saba Capital Management, L.P. reduced to the holdings in Allergan PLC by 87.01%. The sale prices were between $210.8 and $249.32, with an estimated average price of $232.88. The stock is now traded at around $231.97. The impact to the portfolio due to this sale was -3.91%. Saba Capital Management, L.P. still held 20,203 shares as of 2017-03-31.
Reduced: Franklin Templeton Ltd Duration Inc Tr (FTF)
Saba Capital Management, L.P. reduced to the holdings in Franklin Templeton Ltd Duration Inc Tr by 57.47%. The sale prices were between $11.88 and $12.27, with an estimated average price of $12.09. The stock is now traded at around $11.99. The impact to the portfolio due to this sale was -3.84%. Saba Capital Management, L.P. still held 1,715,080 shares as of 2017-03-31.
Reduced: MFS Charter Income Trust (MCR)
Saba Capital Management, L.P. reduced to the holdings in MFS Charter Income Trust by 52.5%. The sale prices were between $8.31 and $8.74, with an estimated average price of $8.57. The stock is now traded at around $8.74. The impact to the portfolio due to this sale was -0.87%. Saba Capital Management, L.P. still held 673,976 shares as of 2017-03-31.
Reduced: Morgan Stanley Emerging Markets Domestic Debt Fund (EDD)
Saba Capital Management, L.P. reduced to the holdings in Morgan Stanley Emerging Markets Domestic Debt Fund by 67.02%. The sale prices were between $7.15 and $7.81, with an estimated average price of $7.57. The stock is now traded at around $8.20. The impact to the portfolio due to this sale was -0.73%. Saba Capital Management, L.P. still held 363,485 shares as of 2017-03-31.
Reduced: MFS Multimarket Income Trust (MMT)
Saba Capital Management, L.P. reduced to the holdings in MFS Multimarket Income Trust by 58.07%. The sale prices were between $5.93 and $6.23, with an estimated average price of $6.1. The stock is now traded at around $6.25. The impact to the portfolio due to this sale was -0.6%. Saba Capital Management, L.P. still held 516,508 shares as of 2017-03-31.
Reduced: MFS Intermediate High Income Fund (CIF)
Saba Capital Management, L.P. reduced to the holdings in MFS Intermediate High Income Fund by 92.56%. The sale prices were between $2.54 and $2.66, with an estimated average price of $2.6. The stock is now traded at around $2.71. The impact to the portfolio due to this sale was -0.39%. Saba Capital Management, L.P. still held 88,302 shares as of 2017-03-31.
Warning! GuruFocus has detected 2 Warning Signs with GLO. Click here to check it out.
High Yield Dividend Stocks in Gurus' Portfolio
Top dividend stocks of Warren Buffett
Top dividend stocks of George Soros
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.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
55e6d6a7-de07-4431-9f84-a55c32689edf
|
7501.0
|
2017-06-08 00:00:00 UTC
|
United Continental Holdings Inc (UAL) Stock Won’t Land Anytime Soon
|
AAL
|
https://www.nasdaq.com/articles/united-continental-holdings-inc-ual-stock-wont-land-anytime-soon
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Call it the "Buffett effect," but the quick recovery in shares of United Continental Holdings Inc (NYSE: UAL ) following its recent crash will serve as an important lesson of how profits can often weigh more than temporary bad press. And with estimates still showing healthy gains, UAL stock is showing no signs of weakness , especially after shares are now back above their their 200-day average.
Reasons to Like UAL Stock
Footage of the company forcefully dragging a man off a plane to seat its own employees spread like wildfire. And United fanned the flames by completely mismanaging the public relations aspect of the incident. Critics quickly boasted about how Warren Buffett may be regretting his decision to aggressively build big stakes in airline stocks.
But the Berkshire Hathaway Inc. (NYSE: BRK.A , NYSE: BRK.B ) chairman and CEO is the doing having the last laugh.
After the bloodied passenger video sent UAL stock plummeting by nearly $1 billion to under $70 per share, United has risen 7% and 9% over the respective one month and three months. And given that the UAL stock is still priced attractively at 10 times earnings, which is inline with airline peers American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ), UAL can still fly higher.
And the biggest winner will be Buffett, who became the company's largest shareholder last year after amassing 28.95 million of shares to bring his total stake to 9.2% percent of the company.
10 Best Cheap Stocks to Buy Now Under $10
That bold move, which was partly influenced by reduced competition in the industry following a series of mega-mergers, is still paying off. The market is realizing what Buffett figured out more than a year ago: Millions of passengers will remain dependent on the airline. And thanks to recent consolidation, passengers have fewer airline choices to pick from. This explains why Buffett, who's known for valuing monopolies, also became one of the largest investors in American, Delta and Southwest Airlines Co (NYSE: LUV ).
United has been one of the biggest beneficiaries of the recent consolidation. In the most recent quarter, the company posted fully diluted net income of $96 million, 31 cents per share, on revenues of $8.4 billion. Revenue was up 2.7% year over year. And adjusted EPS topped Wall Street's estimates by 3 cents. As with its peers, UAL is benefiting from fewer unsold seats and an ability to charge for checked bags and other amenities that were once free.
Notably, immediately after the passenger scandal emerged, United issued a second-quarter forecast that calls for up to 3% revenue growth, which immediately told investors that the company doesn't expect the scandal impact its performance. Furthermore, United guided for pre-tax operating margins of 10% to 12%, which at the midpoint, was above Street estimates. Not to mention, it's a confident guide, especially after the company took a 5% charge in costs excluding fuel and profit sharing.
Bottom Line for United
With almost $4.4 billion in cash and short-term securities and another $6 billion in operating cash flow, which is superior to several peers, UAL stock has all of the qualities investors should look for in a turnaround candidate. And it doesn't hurt to have an endorsement from Warren Buffett keeping a floor on the shares.
And although the entry point is not as attractive as it was immediately after the scandal broke, United could reach $95 to $100 in the next 12 to 18 months, delivering 17% returns.
As of this writing, Richard Saintvilus did not hold a position in any of the aforementioned securities.
More From InvestorPlace
7 Dividend Stocks to Buy That Make the Grade
10 Boring Stocks to Buy for Red-Hot Returns
Why Twitter Inc (TWTR) Stock Will Gain 20%-Plus
The post United Continental Holdings Inc (UAL) Stock Won't Land Anytime Soon 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.
|
And given that the UAL stock is still priced attractively at 10 times earnings, which is inline with airline peers American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ), UAL can still fly higher. Reasons to Like UAL Stock Footage of the company forcefully dragging a man off a plane to seat its own employees spread like wildfire. Critics quickly boasted about how Warren Buffett may be regretting his decision to aggressively build big stakes in airline stocks.
|
And given that the UAL stock is still priced attractively at 10 times earnings, which is inline with airline peers American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ), UAL can still fly higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Call it the "Buffett effect," but the quick recovery in shares of United Continental Holdings Inc (NYSE: UAL ) following its recent crash will serve as an important lesson of how profits can often weigh more than temporary bad press. More From InvestorPlace 7 Dividend Stocks to Buy That Make the Grade 10 Boring Stocks to Buy for Red-Hot Returns Why Twitter Inc (TWTR) Stock Will Gain 20%-Plus The post United Continental Holdings Inc (UAL) Stock Won't Land Anytime Soon appeared first on InvestorPlace .
|
And given that the UAL stock is still priced attractively at 10 times earnings, which is inline with airline peers American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ), UAL can still fly higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Call it the "Buffett effect," but the quick recovery in shares of United Continental Holdings Inc (NYSE: UAL ) following its recent crash will serve as an important lesson of how profits can often weigh more than temporary bad press. More From InvestorPlace 7 Dividend Stocks to Buy That Make the Grade 10 Boring Stocks to Buy for Red-Hot Returns Why Twitter Inc (TWTR) Stock Will Gain 20%-Plus The post United Continental Holdings Inc (UAL) Stock Won't Land Anytime Soon appeared first on InvestorPlace .
|
And given that the UAL stock is still priced attractively at 10 times earnings, which is inline with airline peers American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ), UAL can still fly higher. And the biggest winner will be Buffett, who became the company's largest shareholder last year after amassing 28.95 million of shares to bring his total stake to 9.2% percent of the company. And thanks to recent consolidation, passengers have fewer airline choices to pick from.
|
e9ea6a01-dfda-4d8d-b7a9-5591910a16ca
|
7502.0
|
2017-06-06 00:00:00 UTC
|
Why American Airlines Group, Inc. Stock Jumped 13.6% in May
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-group-inc-stock-jumped-136-may-2017-06-06
|
nan
|
nan
|
What happened
After a lackluster start to the year, American Airlines (NASDAQ: AAL) shares got back on track in May, buoyed by improving sentiment among airline investors.
Airline industry unit revenue trends are starting to move in the right direction again, while fuel cost increases have subsided. As a result, American Airlines stock rose 13.6% last month, according to data from S&P Global Market Intelligence .
American Airlines Stock May Performance. Data by YCharts .
So what
American Airlines stock plunged in late April after the company voluntarily raised wage rates for its pilots and flight attendants to match competitors' increases. This move was probably necessary to keep employees happy, but it stirred up fears that unit cost growth would continue to outpace unit revenue growth.
However, American Airlines dispelled some of those fears last month, as it raised its second-quarter unit revenue and profit margin guidance.
Initially, American had forecast that revenue per available seat mile (RASM) would rise 3%-5% this quarter and that its pre-tax margin would be 11%-13%. However, the carrier now expects RASM to increase 3.5%-5.5% and its pre-tax margin to reach 12%-14%. Aside from the strengthening fare environment, American Airlines expects to benefit from a recent decline in oil prices .
Now what
Notwithstanding its improved second-quarter guidance, American Airlines is still on pace to report another year-over-year earnings-per-share decline this quarter. Furthermore, year-over-year unit revenue comparisons will be much tougher in the second half of the year.
As a result, American Airlines will probably struggle to maintain its advantage over peers in terms of unit revenue growth later this year. If unit revenue growth slows down, the carrier's cost creep and heavy debt burden may come back into focus. That could pull American Airlines stock back down again.
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 June 5, 2017
Adam Levine-Weinberg has no position in any 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.
|
What happened After a lackluster start to the year, American Airlines (NASDAQ: AAL) shares got back on track in May, buoyed by improving sentiment among airline investors. So what American Airlines stock plunged in late April after the company voluntarily raised wage rates for its pilots and flight attendants to match competitors' increases. However, American Airlines dispelled some of those fears last month, as it raised its second-quarter unit revenue and profit margin guidance.
|
What happened After a lackluster start to the year, American Airlines (NASDAQ: AAL) shares got back on track in May, buoyed by improving sentiment among airline investors. However, American Airlines dispelled some of those fears last month, as it raised its second-quarter unit revenue and profit margin guidance. Now what Notwithstanding its improved second-quarter guidance, American Airlines is still on pace to report another year-over-year earnings-per-share decline this quarter.
|
What happened After a lackluster start to the year, American Airlines (NASDAQ: AAL) shares got back on track in May, buoyed by improving sentiment among airline investors. As a result, American Airlines stock rose 13.6% last month, according to data from S&P Global Market Intelligence . 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.
|
What happened After a lackluster start to the year, American Airlines (NASDAQ: AAL) shares got back on track in May, buoyed by improving sentiment among airline investors. This move was probably necessary to keep employees happy, but it stirred up fears that unit cost growth would continue to outpace unit revenue growth. If unit revenue growth slows down, the carrier's cost creep and heavy debt burden may come back into focus.
|
84c6a6f8-9476-42bb-91e4-b2a9f94a624e
|
7503.0
|
2017-06-02 00:00:00 UTC
|
Nasdaq 100 Movers: ADP, AVGO
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-adp-avgo-2017-06-02
|
nan
|
nan
|
In early trading on Friday, shares of Broadcom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.8%. Year to date, Broadcom registers a 40.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is Automatic Data Processing, trading down 3.3%. Automatic Data Processing is lower by about 2.7% looking at the year to date performance.
Two other components making moves today are Tractor Supply, trading down 1.9%, and American Airlines Group, trading up 2.6% on the day.
VIDEO: Nasdaq 100 Movers: ADP, AVGO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 Automatic Data Processing, trading down 3.3%. Automatic Data Processing is lower by about 2.7% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ADP, AVGO 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 Automatic Data Processing, trading down 3.3%. VIDEO: Nasdaq 100 Movers: ADP, AVGO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In early trading on Friday, shares of Broadcom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.8%. And the worst performing Nasdaq 100 component thus far on the day is Automatic Data Processing, trading down 3.3%. VIDEO: Nasdaq 100 Movers: ADP, AVGO 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 Automatic Data Processing, trading down 3.3%. Automatic Data Processing is lower by about 2.7% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ADP, AVGO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
e0a5d309-f39e-448c-a53a-0f0d2c447ed0
|
7504.0
|
2017-06-02 00:00:00 UTC
|
Noteworthy Friday Option Activity: SWKS, AAL, UAL
|
AAL
|
https://www.nasdaq.com/articles/noteworthy-friday-option-activity-swks-aal-ual-2017-06-02
|
nan
|
nan
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Skyworks Solutions, Inc. (Symbol: SWKS), where a total volume of 9,729 contracts has been traded thus far today, a contract volume which is representative of approximately 972,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 75.6% of SWKS's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $107 strike call option expiring June 09, 2017 , with 985 contracts trading so far today, representing approximately 98,500 underlying shares of SWKS. Below is a chart showing SWKS's trailing twelve month trading history, with the $107 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 36,268 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 64.7% of AAL's average daily trading volume over the past month, of 5.6 million shares. Particularly high volume was seen for the $50 strike call option expiring June 02, 2017 , with 2,310 contracts trading so far today, representing approximately 231,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange:
And United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 18,040 contracts, representing approximately 1.8 million underlying shares or approximately 57.2% of UAL's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $82 strike call option expiring June 09, 2017 , with 1,983 contracts trading so far today, representing approximately 198,300 underlying shares of UAL. Below is a chart showing UAL's trailing twelve month trading history, with the $82 strike highlighted in orange:
For the various different available expirations for SWKS options , AAL options , or UAL options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $50 strike call option expiring June 02, 2017 , with 2,310 contracts trading so far today, representing approximately 231,000 underlying shares of AAL. Below is a chart showing SWKS's trailing twelve month trading history, with the $107 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 36,268 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 64.7% of AAL's average daily trading volume over the past month, of 5.6 million shares.
|
Particularly high volume was seen for the $50 strike call option expiring June 02, 2017 , with 2,310 contracts trading so far today, representing approximately 231,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 18,040 contracts, representing approximately 1.8 million underlying shares or approximately 57.2% of UAL's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing SWKS's trailing twelve month trading history, with the $107 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 36,268 contracts thus far today.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 18,040 contracts, representing approximately 1.8 million underlying shares or approximately 57.2% of UAL's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing SWKS's trailing twelve month trading history, with the $107 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 36,268 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 64.7% of AAL's average daily trading volume over the past month, of 5.6 million shares.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 18,040 contracts, representing approximately 1.8 million underlying shares or approximately 57.2% of UAL's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing SWKS's trailing twelve month trading history, with the $107 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 36,268 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 64.7% of AAL's average daily trading volume over the past month, of 5.6 million shares.
|
2b666019-7aaa-4dbb-a23d-71421d03e497
|
7505.0
|
2017-06-01 00:00:00 UTC
|
The Zacks Analyst Blog Highlights: Eli Lilly, HSBC, Marriott, American Airlines and Humana
|
AAL
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-eli-lilly-hsbc-marriott-american-airlines-and-humana
|
nan
|
nan
|
For Immediate Release
Chicago, IL - June 01, 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 Eli Lilly ( LLY - Free Report ), HSBC ( HSBC - Free Report ), Marriott ( MAR - Free Report ), American Airlines ( AAL - Free Report ) and Humana ( HUM - 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:
Top Stock Reports for Today: LLY, HSBC, MAR & More
Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly ( LLY - Free Report ), HSBC ( HSBC - Free Report ) and Marriott ( MAR - Free Report ). You can see all oftoday's research reports here >>>
Pharmaceutical stocks have been under pressure since last year on pricing and regulatory concerns and Eli Lilly shares have been no different. That said, the stock has done modestly better than the peer group; it is up +5.7% over the last 12 months vs. +1.7% gain for the Zacks Pharma industry and -0.7% decline for the Zacks Medical sector as a whole. Lilly's recent high-profile pipeline setbacks are a concern for investors. But the Zacks analyst is encouraged by the fact that Lilly expects to launch 20 new products in a 10 year time-frame ranging from 2014 to 2023 and could launch at least 2 new indications/line extensions on average every year. Moreover, Lilly returned to annual dividend hikes in Dec 2016 and plans to return excess cash through share buybacks. (You can read the full research report on Eli Lily here >>> .
Shares of Buy rated HSBC outperformed the Zacks Foreign Banks industry over the last three months, gaining +7.3% vs -1.7%. The Zacks analyst likes its extensive global network, strong capital position and a solid asset growth. Moreover, continued disposal of unprofitable/non-core operations has enhanced its efficiency, as operating costs remain manageable. Further, the company remains on track to achieve its 2017 cost savings target. However, operating uncertainty in the post-Brexit Europe remains a major cloud on the bank as are recent muted trends in loan demand. (You can read the full research report on HSBC here >>> .
Marriott 's shares have outperformed the Zacks Hotels industry in the year-to-date period (the stock is up +28.9% vs. +3.9% gain for the industry). With the purchase of Starwood, Buy-rated Marriott became the world's largest hotel company that provides it with increased scale and a robust development pipeline. The Zacks analyst likes Marriott's rising North American business and large international exposure and thinks they should continue to drive growth. Further, investments in technology for hotel bookings are likely to improve guest experience and thus boost occupancy. Yet, political uncertainties in key international markets and currency headwinds remain causes of concern. (You can read the full research report on Marriott here >>> .
Other noteworthy reports we are featuring today include American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ).
Now See All Our Private Trades
While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks 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 LLY - FREE
Get the full Report on HSBC - FREE
Get the full Report on MAR - FREE
Get the full Report on AAL - FREE
Get the full Report on HUM - 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
Eli Lilly and Company (LLY): Free Stock Analysis Report
HSBC Holdings PLC (HSBC): Free Stock Analysis Report
Marriott International (MAR): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Humana Inc. (HUM): 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.
|
Stocks recently featured in the blog include Eli Lilly ( LLY - Free Report ), HSBC ( HSBC - Free Report ), Marriott ( MAR - Free Report ), American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ). Other noteworthy reports we are featuring today include American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ). See these high-potential stocks free >> Get the full Report on LLY - FREE Get the full Report on HSBC - FREE Get the full Report on MAR - FREE Get the full Report on AAL - FREE Get the full Report on HUM - 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.
|
Stocks recently featured in the blog include Eli Lilly ( LLY - Free Report ), HSBC ( HSBC - Free Report ), Marriott ( MAR - Free Report ), American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ). Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report HSBC Holdings PLC (HSBC): Free Stock Analysis Report Marriott International (MAR): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ).
|
See these high-potential stocks free >> Get the full Report on LLY - FREE Get the full Report on HSBC - FREE Get the full Report on MAR - FREE Get the full Report on AAL - FREE Get the full Report on HUM - 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 Eli Lilly and Company (LLY): Free Stock Analysis Report HSBC Holdings PLC (HSBC): Free Stock Analysis Report Marriott International (MAR): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Eli Lilly ( LLY - Free Report ), HSBC ( HSBC - Free Report ), Marriott ( MAR - Free Report ), American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ).
|
Stocks recently featured in the blog include Eli Lilly ( LLY - Free Report ), HSBC ( HSBC - Free Report ), Marriott ( MAR - Free Report ), American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ). Other noteworthy reports we are featuring today include American Airlines ( AAL - Free Report ) and Humana ( HUM - Free Report ). See these high-potential stocks free >> Get the full Report on LLY - FREE Get the full Report on HSBC - FREE Get the full Report on MAR - FREE Get the full Report on AAL - FREE Get the full Report on HUM - 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.
|
987cf771-aa14-4cc7-8b74-a66b9fc5e4b5
|
7506.0
|
2017-06-01 00:00:00 UTC
|
American Airlines TRASM Improves Even as Costs Woes Stay
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-trasm-improves-even-as-costs-woes-stay-2017-06-01
|
nan
|
nan
|
Shares of the Fort Worth, TX-based American Airlines GroupAAL have rallied 10.3% in the last one month comfortably outperforming the Zacks categorized Transportation-Airline industry's gain of 1.4%.
Let's Delve Deeper
The stock has been boosted by the improving trends with respect to unit revenues. American Airlines expects to perform well on the unit revenue front for the rest of 2017. While announcing its April traffic report last month, the carrier raised its views on total revenue per available seat mile (TRASM: a key measure of unit revenues) and pre-tax margin (excluding special items) for the second quarter of 2017. TRASM is projected to increase in the band of 3.5% to 5.5% on a year-over-year basis in the second quarter (old guidance had hinted at growth in 3% to 5% range) .
Notably, the company had performed well in the first quarter as well with respect to TRASM. In fact, the metric had improved 3.1% in the quarter. In fact, this was the second successive quarter in which the metric grew on a year-over-year basis, since the fourth quarter of 2014. Pre-tax margin (excluding special items) is now expected in the range of 12% to14% (old guidance: 11% to 13%).
Also, the company's efforts to expand are quite impressive. To this end, American Airlines purchased a minority stake in China Southern Airlines ZNH earlier this year. We believe the move to expand in China is a prudent one, as this country is anticipated to become the largest aviation market by 2024. Additionally, American Airlines' efforts to reward shareholders raise optimism in the stock. Attempts to modernize its fleet are encouraging as well.
Evidently, these bullish factors have contributed to the Zacks Consensus Estimate climbing 4.4% in the last month to $1.66 per share.
However, escalated costs are expected to limit bottom-line growth in the second quarter of 2017 similar to the previous quarter. The recent labor deals inked by the company have resulted in a surge in labor costs. Also, the wage hike announcement for pilots and flight attendants in Apr 2017 is likely to pressurize the bottom line further. In a bid to match the industry leading levels in this respect, the carrier offered its pilots and flights attendants a pay rise to the tune of approximately 8% and 5%, respectively. Apart from escalating labor costs, the increase in fuel expenses is also expected to dampen bottom-line growth.
Consolidated CASM (excluding special items and fuel) for the second quarter is anticipated to increase 7%. CASM (mainline) is expected to grow in the band of 6% to 8%. On the regional front, it is projected to grow in the 3% to 5% range. Furthermore, American Airlines' high debt levels raise concerns.
In view of the above challenges, we would advise investors to wait for a better entry point before accumulating shares of this Zacks Rank #3 (Hold) company.
Stocks to Consider
Better-ranked stocks in the airline space include United Continental Holdings UAL and Ryanair Holdings RYAAY sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
We note that shares of Ryanair and United Continental have gained 28.2% and 9.3%, respectively, on a year-to-date basis.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
China Southern Airlines Company Limited (ZNH): 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.
|
Shares of the Fort Worth, TX-based American Airlines GroupAAL have rallied 10.3% in the last one month comfortably outperforming the Zacks categorized Transportation-Airline industry's gain of 1.4%. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In view of the above challenges, we would advise investors to wait for a better entry point before accumulating shares of this Zacks Rank #3 (Hold) company.
|
Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of the Fort Worth, TX-based American Airlines GroupAAL have rallied 10.3% in the last one month comfortably outperforming the Zacks categorized Transportation-Airline industry's gain of 1.4%. Stocks to Consider Better-ranked stocks in the airline space include United Continental Holdings UAL and Ryanair Holdings RYAAY sporting a Zacks Rank #1 (Strong Buy).
|
Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of the Fort Worth, TX-based American Airlines GroupAAL have rallied 10.3% in the last one month comfortably outperforming the Zacks categorized Transportation-Airline industry's gain of 1.4%. While announcing its April traffic report last month, the carrier raised its views on total revenue per available seat mile (TRASM: a key measure of unit revenues) and pre-tax margin (excluding special items) for the second quarter of 2017.
|
Shares of the Fort Worth, TX-based American Airlines GroupAAL have rallied 10.3% in the last one month comfortably outperforming the Zacks categorized Transportation-Airline industry's gain of 1.4%. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines expects to perform well on the unit revenue front for the rest of 2017.
|
f585d47c-fb58-4cdb-a889-b04a119cc6ae
|
7507.0
|
2017-05-31 00:00:00 UTC
|
100 Actions to Take on The Dip
|
AAL
|
https://www.nasdaq.com/articles/100-actions-take-dip-2017-05-31
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
During these busy times, it pays to stay on top of the latest profit opportunities, and today's blog post should be a great place to start.
After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 100 big blue chips.
Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
This Week's Ratings Changes:
To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. You may get started here .
More From InvestorPlace
The 7 Best "Comeback" Stocks to Buy for a Huge Second Half
The 10 Best Stocks to Buy for the Next Decade
Criminally Underrated Tech Stocks to Buy Now
The post 100 Actions to Take on The Dip appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips During these busy times, it pays to stay on top of the latest profit opportunities, and today's blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 100 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
|
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips During these busy times, it pays to stay on top of the latest profit opportunities, and today's blog post should be a great place to start. This Week's Ratings Changes: To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader , my proprietary stock screening tool. More From InvestorPlace The 7 Best "Comeback" Stocks to Buy for a Huge Second Half The 10 Best Stocks to Buy for the Next Decade Criminally Underrated Tech Stocks to Buy Now The post 100 Actions to Take on The Dip appeared first on InvestorPlace .
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips During these busy times, it pays to stay on top of the latest profit opportunities, and today's blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company's fundamental health, I decided to revise my Portfolio Grader recommendations for 100 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
|
5423e18b-9508-4ab8-9ba0-849d22703852
|
7508.0
|
2017-05-31 00:00:00 UTC
|
Is American Airlines Group (AAL) Stock a Solid Choice Right Now?
|
AAL
|
https://www.nasdaq.com/articles/is-american-airlines-group-aal-stock-a-solid-choice-right-now-2017-05-31
|
nan
|
nan
|
One stock that might be an intriguing choice for investors right now is American Airlines Group, Inc.AAL . This is because this security in the Transportation - Airline space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Transportation - Airline space as it currently has a Zacks Industry Rank of 33 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, American Airlines Group is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
In fact, over the past month, current quarter estimates have risen from $1.59 per share to $1.66 per share, while current year estimates have risen from $4.58 per share to $4.69 per share. The company currently carries a Zacks Rank #3 (Hold), which is also a favorable signal. You cansee the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
So, if you are looking for a decent pick in a strong industry, consider American Airlines Group. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
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.
|
One stock that might be an intriguing choice for investors right now is American Airlines Group, Inc.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. This is because this security in the Transportation - Airline space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
|
One stock that might be an intriguing choice for investors right now is American Airlines Group, Inc.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. This is because this security in the Transportation - Airline space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
|
One stock that might be an intriguing choice for investors right now is American Airlines Group, Inc.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. This is because this security in the Transportation - Airline space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. One stock that might be an intriguing choice for investors right now is American Airlines Group, Inc.AAL . This is because this security in the Transportation - Airline space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
|
39c83e4e-1876-4788-94b1-123dcfcf46e0
|
7509.0
|
2017-05-31 00:00:00 UTC
|
Why Is American Airlines (AAL) Up 10.8% Since the Last Earnings Report?
|
AAL
|
https://www.nasdaq.com/articles/why-is-american-airlines-aal-up-10.8-since-the-last-earnings-report-2017-05-31
|
nan
|
nan
|
It has been about a month since the last earnings report for American Airlines Group, Inc.AAL . Shares have added about 10.8% in that time frame, outperforming the market .
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
American Airlines Q1 Earnings Top Estimates, Down Y/Y
American Airlines Group's first-quarter 2017 earnings (adjusted) of $0.61 per share beat the Zacks Consensus Estimate by $0.04. Quarterly earnings decreased significantly year over year due to higher costs.
Revenues of $9,624 million were 2% above the year-ago figure. Quarterly revenues edged past the Zacks Consensus Estimate of $9,621.3 million. Total revenue per available seat miles (TRASM) improved 3.1% in the reported quarter.
Consolidated yield improved 2.4% . Passenger revenue per available seat miles improved 2%. Traffic was down 1.5%, whereas capacity was down 1.1%. This resulted in relatively empty planes. Total operating expenses climbed 11.4% year over year to $9 billion primarily due to the rise in fuel costs. Expenses pertaining to salaries and benefits were up 6.5%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 7.6%. Average fuel price (including taxes) increased 40.4% to $1.7 per gallon.
During the quarter, the company returned $563 million billion to its shareholders through the payment of $51 million in dividends and buyback of shares worth $512 million. Furthermore, the carrier also declared a dividend of $0.10 per share.The dividend will be paid on May 30, to the shareholders on May 16.
Additionally, 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 17 new mainline aircraft and five regional ones during the first quarter of 2017.
Also, the company invested $1.2 billion toward a new aircraft during the quarter. Moving ahead, it aims to shell out $4.1 billion in 2017 for the same purpose.
Outlook
Total revenue per available seat miles (TRASM) is expected to increase in the band of 3% to 5% in the second quarter of 2017 on a year-over-year basis. Pre-tax margin excluding special items is projected in the range of 11% to 13%. Consolidated CASM (excluding special itemsand fuel) for the second quarter is projected to increase 7%. The metric is expected to increase approximately 5% in 2017. Capacity (system) in 2017 is projected to increase 1.5% in 2017.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
VGM Scores
At this time, the stock has a nice Growth Score of 'B', though it is lagging on the momentum front with a 'D'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregste 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 primarily suitable for value investors while also being suitable for those looking for growth.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It has been about a month since the last earnings report for American Airlines Group, Inc.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 as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
|
It has been about a month since the last earnings report for American Airlines Group, Inc.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. American Airlines Q1 Earnings Top Estimates, Down Y/Y American Airlines Group's first-quarter 2017 earnings (adjusted) of $0.61 per share beat the Zacks Consensus Estimate by $0.04.
|
It has been about a month since the last earnings report for American Airlines Group, Inc.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. American Airlines Q1 Earnings Top Estimates, Down Y/Y American Airlines Group's first-quarter 2017 earnings (adjusted) of $0.61 per share beat the Zacks Consensus Estimate by $0.04.
|
It has been about a month since the last earnings report for American Airlines Group, Inc.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. Quarterly revenues edged past the Zacks Consensus Estimate of $9,621.3 million.
|
bfc54664-5d38-4dde-abaf-77bb6162424d
|
7510.0
|
2017-05-30 00:00:00 UTC
|
Nasdaq 100 Movers: AAL, SYMC
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-aal-symc-2017-05-30
|
nan
|
nan
|
In early trading on Tuesday, shares of Symantec Corp ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.7%. Year to date, Symantec Corp registers a 27.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. American Airlines Group is showing a gain of 3.2% looking at the year to date performance.
Two other components making moves today are NetEase ( NTES ), trading down 1.1%, and Micron Technology ( MU ), trading up 2.6% on the day.
VIDEO: Nasdaq 100 Movers: AAL, SYMC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is showing a gain of 3.2% looking at the year to date performance.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, SYMC 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 Symantec Corp ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.7%.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 1.2%. VIDEO: Nasdaq 100 Movers: AAL, SYMC 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 Symantec Corp ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.7%.
|
3974eb49-da74-48c5-b7bd-4c656322dcc5
|
7511.0
|
2017-05-27 00:00:00 UTC
|
United Airlines' Route Network Strategy Makes No Sense
|
AAL
|
https://www.nasdaq.com/articles/united-airlines-route-network-strategy-makes-no-sense-2017-05-27
|
nan
|
nan
|
In the past year, United Continental (NYSE: UAL) CEO Oscar Munoz has made big changes to his executive team. Most notably, he poached Scott Kirby from key rival American Airlines (NASDAQ: AAL) to fill the No. 2 job at United. He also hired Allegiant Travel veteran Andrew Levy as the new permanent CFO. More recently, Kirby brought his colleague Andrew Nocella over from American Airlines to serve as chief revenue officer.
Under this new management group, United has drastically changed its network strategy. The ultimate goal is to catch up with industry leader Delta Air Lines (NYSE: DAL) in terms of margin performance. Yet United's recent moves don't add up to a coherent plan.
More routes in the biggest hubs
One aspect of United's new route strategy is that it is aggressively adding new routes and increasing service on existing routes at some of its biggest hubs. From its San Francisco hub, the carrier is either launching new service or increasing capacity in more than two dozen markets this summer.
Meanwhile, United Airlines will add service from Chicago to six small cities this summer. Several of these cities currently have no United service whatsoever.
All of these moves are part of a broader plan to improve connectivity across United's route network. Offering the most convenient connecting opportunities is critical for capturing highly profitable traffic to and from small cities, according to company president Scott Kirby.
Nevertheless, United Continental's network growth stands in sharp contrast to its previous commitment to capacity discipline. United's management has indicated that it just wants to get its fair share of domestic traffic -- but there's no reason to believe that American Airlines and Delta Air Lines will surrender their "unfair" share of the market without a fight.
Standing pat in D.C. -- and growing in Los Angeles?
It's not clear whether United Continental's growth in cities like Chicago and San Francisco will pay off. United is increasing capacity faster than GDP growth, which could put pressure on unit revenue. Moreover, there is a real risk that these moves will ignite market share battles -- further undermining unit revenue and profitability -- as analysts at Imperial Capital recently noted .
However, at least there is a plausible strategy behind United's decision to add capacity in these markets. The same can't be said for United's recent moves in Washington, D.C., and Los Angeles. If maximizing connectivity is the key to success, then axing these undersized hubs should be a no-brainer.
Instead, United doubled down on its commitment to Washington, D.C., last fall, extending its lease at Dulles Airport through 2024. It did so despite facing a clear structural disadvantage relative to American Airlines' hub at Reagan Airport, as the latter is 25 miles closer to the city center.
In Los Angeles, United Continental seems determined to grow. Kirby has said several times that United wants to get more gates there . Just last week, the company signed a $70 million deal for naming rights to the Los Angeles Memorial Coliseum, highlighting its seriousness about regaining lost ground in L.A.
Each of the top six U.S. airlines considers Los Angeles a hub or focus city, which means that United will face vicious competition there. The airport is also far too congested for any airline to offer good connectivity, especially compared to United's nearby San Francisco hub. Lastly, American and Delta are highly dependent on Los Angeles from a strategic perspective and will react accordingly if United tries to grow there.
Is there a real plan?
One of the main reasons why the airline industry has historically been so unprofitable is the tendency of airline executives to engage in empire building rather than profit maximization. It's reasonable to wonder whether United's new management team is succumbing to this age-old pitfall.
Building up United's schedule at its biggest hubs to maximize connecting opportunities runs the risk of competitive pushback, but at least it's a plausible strategy. By contrast, hanging on -- or even growing -- in Washington, D.C., and Los Angeles doesn't make sense, unless the goal is growth for growth's sake.
Investors appear to be very confident in United Continental's growth strategy, having sent the stock to a new all-time high this week. They may find themselves bitterly disappointed in a few years.
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 May 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.
|
Most notably, he poached Scott Kirby from key rival American Airlines (NASDAQ: AAL) to fill the No. In the past year, United Continental (NYSE: UAL) CEO Oscar Munoz has made big changes to his executive team. Offering the most convenient connecting opportunities is critical for capturing highly profitable traffic to and from small cities, according to company president Scott Kirby.
|
Most notably, he poached Scott Kirby from key rival American Airlines (NASDAQ: AAL) to fill the No. Meanwhile, United Airlines will add service from Chicago to six small cities this summer. It's not clear whether United Continental's growth in cities like Chicago and San Francisco will pay off.
|
Most notably, he poached Scott Kirby from key rival American Airlines (NASDAQ: AAL) to fill the No. More routes in the biggest hubs One aspect of United's new route strategy is that it is aggressively adding new routes and increasing service on existing routes at some of its biggest hubs. United is increasing capacity faster than GDP growth, which could put pressure on unit revenue.
|
Most notably, he poached Scott Kirby from key rival American Airlines (NASDAQ: AAL) to fill the No. It's not clear whether United Continental's growth in cities like Chicago and San Francisco will pay off. The same can't be said for United's recent moves in Washington, D.C., and Los Angeles.
|
e9fa083f-92f0-4fc0-abea-deb597e2741c
|
7512.0
|
2017-05-26 00:00:00 UTC
|
Noteworthy Friday Option Activity: RRC, D, AAL
|
AAL
|
https://www.nasdaq.com/articles/noteworthy-friday-option-activity-rrc-d-aal-2017-05-26
|
nan
|
nan
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Range Resources Corp (Symbol: RRC), where a total volume of 27,314 contracts has been traded thus far today, a contract volume which is representative of approximately 2.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 52.9% of RRC's average daily trading volume over the past month, of 5.2 million shares. Especially high volume was seen for the $36 strike call option expiring January 19, 2018 , with 10,697 contracts trading so far today, representing approximately 1.1 million underlying shares of RRC. Below is a chart showing RRC's trailing twelve month trading history, with the $36 strike highlighted in orange:
Dominion Energy Inc (Symbol: D) options are showing a volume of 10,521 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 50.8% of D's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $82.50 strike call option expiring July 21, 2017 , with 5,010 contracts trading so far today, representing approximately 501,000 underlying shares of D. Below is a chart showing D's trailing twelve month trading history, with the $82.50 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 29,371 contracts, representing approximately 2.9 million underlying shares or approximately 45.8% of AAL's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $40 strike put option expiring August 18, 2017 , with 2,031 contracts trading so far today, representing approximately 203,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for RRC options , D 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.
|
Particularly high volume was seen for the $40 strike put option expiring August 18, 2017 , with 2,031 contracts trading so far today, representing approximately 203,100 underlying shares of AAL. Especially high volume was seen for the $82.50 strike call option expiring July 21, 2017 , with 5,010 contracts trading so far today, representing approximately 501,000 underlying shares of D. Below is a chart showing D's trailing twelve month trading history, with the $82.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 29,371 contracts, representing approximately 2.9 million underlying shares or approximately 45.8% of AAL's average daily trading volume over the past month, of 6.4 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for RRC options , D options , or AAL options , visit StockOptionsChannel.com.
|
Especially high volume was seen for the $82.50 strike call option expiring July 21, 2017 , with 5,010 contracts trading so far today, representing approximately 501,000 underlying shares of D. Below is a chart showing D's trailing twelve month trading history, with the $82.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 29,371 contracts, representing approximately 2.9 million underlying shares or approximately 45.8% of AAL's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $40 strike put option expiring August 18, 2017 , with 2,031 contracts trading so far today, representing approximately 203,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for RRC options , D options , or AAL options , visit StockOptionsChannel.com.
|
Especially high volume was seen for the $82.50 strike call option expiring July 21, 2017 , with 5,010 contracts trading so far today, representing approximately 501,000 underlying shares of D. Below is a chart showing D's trailing twelve month trading history, with the $82.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 29,371 contracts, representing approximately 2.9 million underlying shares or approximately 45.8% of AAL's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $40 strike put option expiring August 18, 2017 , with 2,031 contracts trading so far today, representing approximately 203,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for RRC options , D options , or AAL options , visit StockOptionsChannel.com.
|
Especially high volume was seen for the $82.50 strike call option expiring July 21, 2017 , with 5,010 contracts trading so far today, representing approximately 501,000 underlying shares of D. Below is a chart showing D's trailing twelve month trading history, with the $82.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 29,371 contracts, representing approximately 2.9 million underlying shares or approximately 45.8% of AAL's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $40 strike put option expiring August 18, 2017 , with 2,031 contracts trading so far today, representing approximately 203,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for RRC options , D options , or AAL options , visit StockOptionsChannel.com.
|
a4e970cc-be12-450f-a1be-bb05ff4c42b5
|
7513.0
|
2017-05-24 00:00:00 UTC
|
Miss Out on Visa's 200% 3-Year Return? This Stock Could Be Even Better
|
AAL
|
https://www.nasdaq.com/articles/miss-out-visas-200-3-year-return-stock-could-be-even-better-2017-05-24
|
nan
|
nan
|
Visa 's stock has been on a tear since 2012, up over 200%. Unsurprising, given our increasingly cashless world.
We weren't all so lucky as to have owned shares of Visa from the beginning. For investors that were left behind, there's still time to get in on the shift toward electronic payments by considering First Data (NYSE: FDC) . The company, though not as well known as Visa, serves as a global electronic payments processor for over six million merchants in 118 countries.
First Data is quickly building up a niche for itself in the global payments industry and is simultaneously becoming becoming a fantastic stock pick for savvy investors in the process. While Visa essentially acts as a middle man between merchants, consumers, and banks, First Data acts more as a partner to over 6 million merchants in approximately 118 countries globally, not only handling payment processing but equipping merchants with the physical devices used to accept credit cards. Under the leadership of current CEO Frank Bisignano, the company is now positioned to take advantage of increasing usage of electronic payments through payment apps, and advanced cloud-based payment systems -- the timing of which couldn't be better, as a full 24% of American consumers never use cash , according to a recent study by the Pew Research Center.
Financial results
Despite its ubiquitousness, First Data has struggled to grow in recent years. First quarter 2017 revenue came in at $1.88 billion, up just 0.5% from the same period a year ago. Net income came in at $36 million, an obvious improvement over a GAAP loss for the first quarter of 2016 of $56 million in Q1 of 2016. However, it should be noted that the difference in net income between the two quarters was largely due to decreased interest costs and Selling, General, and Administrative Expenses (SG&A) expenses. While these results may lend themselves to the idea that First Data's best days are behind it, the company truly shines on its cash flow statement. Cash from operations in Q1 2017 came in at just $421 million, while capital expenditures registered at just $58 million -- netting investors over $360 million in free cash flow (FCF). This is the true power of First Data's business, and compares nicely with last year's Q1 FCF of $333 million.
All in all, the first quarter of 2017 was more or less a continuation of First Data's recent history of decent (but not spectacular) income statement results and exceptional free cash flow generation:
Source: S&P Global Market Intelligence .
As one can see from First Data's last three years of results , First Data is bonafide cash cow -- which is exactly why there were taken private by private equity group Kohlberg, Kravis, and Roberts (KKR) in 2007. This is the true reason for the company's lackluster growth.
Operators such as KKR look for companies capable of generating free cash flow to pay down the massive amounts of debt that they use to buy the company in the first place -- caring little for things like employees, GAAP profits, etc...The kicker is that groups like KKR always have an exit strategy in mind after a few years of paying down said debt -- either selling to another private owner or to the public once again. The process isn't particularly inspiring, but it works and KKR's investors have often been showered with rich gains.
First Data continues to generate plentiful amounts of free cash flow, reaching $1.8 billion in 2016 alone. While transaction volumes and payment-type mixes may be causing profit strains for First Data, overseas expansion and technological investments will more than make up for it in the years ahead.
First Data is just beginning to work its way through the debt-fueled hangover of this buyout. Typically, whenever a private equity group such as KKR buys a business, they saddle that business with the debt used for the vast majority of the purchase. Unfortunately, this debt often lingers for years. Which is why First Data, in order to also help KKR along with its desired "exit strategy," issued $2.5 billion worth of shares to the public in 2015. Since then, thanks to First Data's fantastic cash-generating capability, the company has continued to decrease its debt load (and more importantly interest expenses) at a blistering pace:
Source: S&P Global Market Intelligence .
If you noticed the sharp increase in liabilities in 2016, coupled with the perplexing decrease in interest expenses, you've honed in on an important point: Management has not only been paying down the highest interest legacy debt from its 2007 leveraged buyout but has also, finally, begun investing in growth. Which brings us to the true bull case for shareholders looking to get in on this Visa-alternative to get in on the trend toward a cashless world.
Gearing up for growth
Visa's own international growth opportunities point toward a long runway of future growth for First Data and First Data's management is ready to take advantage of the opportunity for growth. For example, the company's recent foray into Latin America yielded a 52% increase in Q1 revenues from its Latin American segment. As CEO Frank Bisignano said in the company's Q1 Earnings Conference Call: "Now we are not doing anything at the expense of growth or the expense of investment in technology, but we continue to work on how to improve how we do our work and drive expenses out."
The company has barely scratched the surface of its foreign expansion efforts. For example, it has achieved 2% market share in Brazil after diving in just two years ago. Wall Street analysts are even beginning to take note of the company's increasingly rosy future, ratcheting up forward earnings estimates well into the early 2020s.
With shares trading at just over $16, First Data might just be one of the best bets out there for investors unwilling to pay up for Visa's lofty valuation.
Foolish takeaway
First Data Corporation is just getting started. As interest expense continues to fall thanks to debt repayments and the company's growth plans accelerate, the profit growth projected above will become a reality. Investors may not have been on the Visa bandwagon as it rose 3x over the last 5 years, but they now have an opportunity to invest in a e-payments company that's likely about to hit a major growth spurt. All the better, First Data trades for just 14 times free cash flow (compared with Visa at 86x trailing FCF) and exhibiting an enviable runway of growth in years ahead as the world continues to use e-payments more and more.
10 stocks we like better than First Data
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 First Data 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 May 1, 2017
Sean O'Reilly has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Visa. 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.
|
All in all, the first quarter of 2017 was more or less a continuation of First Data's recent history of decent (but not spectacular) income statement results and exceptional free cash flow generation: Source: S&P Global Market Intelligence . Since then, thanks to First Data's fantastic cash-generating capability, the company has continued to decrease its debt load (and more importantly interest expenses) at a blistering pace: Source: S&P Global Market Intelligence . All the better, First Data trades for just 14 times free cash flow (compared with Visa at 86x trailing FCF) and exhibiting an enviable runway of growth in years ahead as the world continues to use e-payments more and more.
|
Cash from operations in Q1 2017 came in at just $421 million, while capital expenditures registered at just $58 million -- netting investors over $360 million in free cash flow (FCF). All in all, the first quarter of 2017 was more or less a continuation of First Data's recent history of decent (but not spectacular) income statement results and exceptional free cash flow generation: Source: S&P Global Market Intelligence . Gearing up for growth Visa's own international growth opportunities point toward a long runway of future growth for First Data and First Data's management is ready to take advantage of the opportunity for growth.
|
Operators such as KKR look for companies capable of generating free cash flow to pay down the massive amounts of debt that they use to buy the company in the first place -- caring little for things like employees, GAAP profits, etc...The kicker is that groups like KKR always have an exit strategy in mind after a few years of paying down said debt -- either selling to another private owner or to the public once again. Gearing up for growth Visa's own international growth opportunities point toward a long runway of future growth for First Data and First Data's management is ready to take advantage of the opportunity for growth. All the better, First Data trades for just 14 times free cash flow (compared with Visa at 86x trailing FCF) and exhibiting an enviable runway of growth in years ahead as the world continues to use e-payments more and more.
|
First Data is quickly building up a niche for itself in the global payments industry and is simultaneously becoming becoming a fantastic stock pick for savvy investors in the process. Operators such as KKR look for companies capable of generating free cash flow to pay down the massive amounts of debt that they use to buy the company in the first place -- caring little for things like employees, GAAP profits, etc...The kicker is that groups like KKR always have an exit strategy in mind after a few years of paying down said debt -- either selling to another private owner or to the public once again. All the better, First Data trades for just 14 times free cash flow (compared with Visa at 86x trailing FCF) and exhibiting an enviable runway of growth in years ahead as the world continues to use e-payments more and more.
|
764fc970-d5e4-48c1-8699-ff001771d92e
|
7514.0
|
2017-05-24 00:00:00 UTC
|
JetBlue Airways (JBLU) Gains on Bullish Q2 RASM Outlook
|
AAL
|
https://www.nasdaq.com/articles/jetblue-airways-jblu-gains-on-bullish-q2-rasm-outlook-2017-05-24
|
nan
|
nan
|
Shares of Long Island City, NY-based JetBlue Airways CorporationJBLU rallied on May 23, following a guidance revision for a key unit revenue metric. The stock closed the last trading session at $22.08, up 2.36% from the previous day's closing value.
What Prompted the Stock Price Surge?
While presenting at the10th Annual Wolfe Research Global Transportation Conference this low-cost carrier said that it expects revenue per available seat mile (RASM: a key measure of unit revenue) for the second quarter of 2017 to grow in the band of 4-6% (the previous guidance hinted at year-over-year growth in the band of 3-6% for the same period).
We note that the bullish update pertaining to this closely watched unit revenue metric for the current quarter came on the back of strong performances anticipated in the months of May and June. In fact, RASM is projected to be in the positive territory in those months. Moreover, the timing of Fourth of July is expected to aid this metric in the quarter.
The good news does not end here because this Zacks Rank #3 (Hold) carrier added that the outlook on RASM for the third quarter has substantially improved since the first-quarter conference call in April. Naturally, the bullish expectations found favour with investors.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
JetBlue, which expects capacity to grow in the band of 4% to 6% in the second quarter, is focussed on strengthening its presence in key cities like Boston as well as expanding its premium service (Mint). Cost per available seat miles (CASM: excluding fuel) is anticipated to grow in the band of 4.5% to 6.5% in the quarter.
Price Performance
Shares of JetBlue have performed well over the last three months, outperforming the Zacks categorized Transportation- Airline industry in the period. The stock appreciated 10.6%, while the industry gained only 0.1%.
Unit Revenues Views Improving
It is no secret that woes related to unit revenues had hurt airline stocks in the last couple of years. However, scenario regarding the metric - a measure of sales relative to capacity for a carrier - has been improving recently.
In fact, JetBlue is not the only carrier to unveil a bullish view on unit revenues. American Airlines Group AAL , which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM) for the current quarter.
The Fort Worth, TX- based carrier now expects TRASM for the quarter to grow in the band of 3.5-5.5% (old guidance had hinted at a growth in 3-5% range). Delta Air Lines DAL is also bullish on the metric and expects to return to positive passenger unit revenues, shortly. United Continental Holdings UAL projects the metric to increase in the band of 1-3% in the second quarter.
The improving unit revenue scenario is well reflected by the bullish Zacks Industry Rank of 48 carried by the 25-member Zacks categorized Transportation-Airline industry. It should be noted that the favorable rank places the industry in the top 19% of the 250+ groups enlisted.
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
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
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.
|
American Airlines Group AAL , which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM) for the current quarter. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that the bullish update pertaining to this closely watched unit revenue metric for the current quarter came on the back of strong performances anticipated in the months of May and June.
|
American Airlines Group AAL , which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM) for the current quarter. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. While presenting at the10th Annual Wolfe Research Global Transportation Conference this low-cost carrier said that it expects revenue per available seat mile (RASM: a key measure of unit revenue) for the second quarter of 2017 to grow in the band of 4-6% (the previous guidance hinted at year-over-year growth in the band of 3-6% for the same period).
|
American Airlines Group AAL , which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM) for the current quarter. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. While presenting at the10th Annual Wolfe Research Global Transportation Conference this low-cost carrier said that it expects revenue per available seat mile (RASM: a key measure of unit revenue) for the second quarter of 2017 to grow in the band of 4-6% (the previous guidance hinted at year-over-year growth in the band of 3-6% for the same period).
|
American Airlines Group AAL , which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM) for the current quarter. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. While presenting at the10th Annual Wolfe Research Global Transportation Conference this low-cost carrier said that it expects revenue per available seat mile (RASM: a key measure of unit revenue) for the second quarter of 2017 to grow in the band of 4-6% (the previous guidance hinted at year-over-year growth in the band of 3-6% for the same period).
|
fc107a40-26e3-4921-a284-4a4dad4d77ab
|
7515.0
|
2017-05-22 00:00:00 UTC
|
Add Up The Pieces: SPHB Could Be Worth $42
|
AAL
|
https://www.nasdaq.com/articles/add-pieces-sphb-could-be-worth-42-2017-05-22
|
nan
|
nan
|
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 PowerShares S&P 500 High Beta Portfolio ETF (Symbol: SPHB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $41.61 per unit.
With SPHB trading at a recent price near $36.79 per unit, that means that analysts see 13.10% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPHB's underlying holdings with notable upside to their analyst target prices are Leucadia National Corp. (Symbol: LUK), American Airlines Group Inc (Symbol: AAL), and Huntington Bancshares Inc (Symbol: HBAN). Although LUK has traded at a recent price of $24.64/share, the average analyst target is 21.75% higher at $30.00/share. Similarly, AAL has 18.49% upside from the recent share price of $45.22 if the average analyst target price of $53.58/share is reached, and analysts on average are expecting HBAN to reach a target price of $14.61/share, which is 16.21% above the recent price of $12.57. Below is a twelve month price history chart comparing the stock performance of LUK, AAL, and HBAN:
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.
|
Below is a twelve month price history chart comparing the stock performance of LUK, AAL, and HBAN: 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 SPHB's underlying holdings with notable upside to their analyst target prices are Leucadia National Corp. (Symbol: LUK), American Airlines Group Inc (Symbol: AAL), and Huntington Bancshares Inc (Symbol: HBAN). Similarly, AAL has 18.49% upside from the recent share price of $45.22 if the average analyst target price of $53.58/share is reached, and analysts on average are expecting HBAN to reach a target price of $14.61/share, which is 16.21% above the recent price of $12.57.
|
Three of SPHB's underlying holdings with notable upside to their analyst target prices are Leucadia National Corp. (Symbol: LUK), American Airlines Group Inc (Symbol: AAL), and Huntington Bancshares Inc (Symbol: HBAN). Similarly, AAL has 18.49% upside from the recent share price of $45.22 if the average analyst target price of $53.58/share is reached, and analysts on average are expecting HBAN to reach a target price of $14.61/share, which is 16.21% above the recent price of $12.57. Below is a twelve month price history chart comparing the stock performance of LUK, AAL, and HBAN: 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?
|
Similarly, AAL has 18.49% upside from the recent share price of $45.22 if the average analyst target price of $53.58/share is reached, and analysts on average are expecting HBAN to reach a target price of $14.61/share, which is 16.21% above the recent price of $12.57. Below is a twelve month price history chart comparing the stock performance of LUK, AAL, and HBAN: 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 SPHB's underlying holdings with notable upside to their analyst target prices are Leucadia National Corp. (Symbol: LUK), American Airlines Group Inc (Symbol: AAL), and Huntington Bancshares Inc (Symbol: HBAN).
|
Below is a twelve month price history chart comparing the stock performance of LUK, AAL, and HBAN: 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 SPHB's underlying holdings with notable upside to their analyst target prices are Leucadia National Corp. (Symbol: LUK), American Airlines Group Inc (Symbol: AAL), and Huntington Bancshares Inc (Symbol: HBAN). Similarly, AAL has 18.49% upside from the recent share price of $45.22 if the average analyst target price of $53.58/share is reached, and analysts on average are expecting HBAN to reach a target price of $14.61/share, which is 16.21% above the recent price of $12.57.
|
e09ec3df-14ca-42d8-8071-958e9082fe30
|
7516.0
|
2017-05-22 00:00:00 UTC
|
Is American Airlines Group (AAL) a Suitable Value Pick?
|
AAL
|
https://www.nasdaq.com/articles/is-american-airlines-group-aal-a-suitable-value-pick-2017-05-22
|
nan
|
nan
|
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn't want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let's put American Airlines Group, Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock's current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, American Airlines has a trailing twelve months PE ratio of 7.41, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 19.89. If we focus on the long-term PE trend, American Airlines' current PE level puts it above its midpoint over the past three years, with the number having risen rapidly over the past few months.
Further, the stock's PE also compares favorably with the Zacks classified Transportation- Airline industry trailing twelve months PE ratio, which stands at 11.35. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that American Airlines has a forward PE ratio (price relative to this year's earnings) of 9.65, so it is fair to expect an increase in the company's share price in the near future.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock's price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, AAL has a P/S ratio of about 0.57. This is lower than the S&P 500 average, which comes in at 3.08 right now. Also, as we can see in the chart below, this is below the highs for this stock in particular over the past few years.
If anything, this suggests some level of undervalued trading-at least compared to historical norms.
Broad Value Outlook
In aggregate, American Airlines currently has a Zacks Value Style Score of 'A', putting it into the top 20% of all stocks we cover from this look. This makes American Airlines a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, its P/CF ratio (another great indicator of value) comes in at 3.40, which is far better than the industry average of 5.10. Clearly, AAL is a good choice on the value front from multiple angles.
What About the Stock Overall?
Though American Airlines might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of 'B' and a Momentum score of 'A'. This gives AAL a Zacks VGM score-or its overarching fundamental grade-of 'A'. (You can read more about the Zacks Style Scores here >> )
Meanwhile, the company's recent earnings estimate has been encouraging. The current quarter has seen six upward and no downward estimate revisions in the past 30 days, while the current year has seen three upward and five downward estimate revision in the same time frame.
As a result, the current quarter consensus estimate has moved up by 6.4% in the past one month, while the current year estimate has inched higher by 2.2%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
Despite this positive trend, the stock has a Zacks Rank #3 (Hold), which indicates expectations of in-line performance from the company in the near term.
Bottom Line
American Airlines is an inspired choice for value investors, as it is hard to beat its good lineup of statistics on this front. Further, the stock belongs to an industry which is ranked among the top 21% (out of more than 250 industries), indicating that broader factors are favorable for the company. In fact, over the past one year, the Zacks Transportation- Airline industry has clearly outperformed the broader market, as you can see below:
So, it might pay for value investors to delve deeper into the company's prospects, as fundamentals indicate that this stock could be a compelling pick.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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.
|
Let's put American Airlines Group, Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. Right now, AAL has a P/S ratio of about 0.57. Clearly, AAL is a good choice on the value front from multiple angles.
|
Let's put American Airlines Group, Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. Right now, AAL has a P/S ratio of about 0.57. Clearly, AAL is a good choice on the value front from multiple angles.
|
Let's put American Airlines Group, Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. Right now, AAL has a P/S ratio of about 0.57. Clearly, AAL is a good choice on the value front from multiple angles.
|
Let's put American Airlines Group, Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. Right now, AAL has a P/S ratio of about 0.57. Clearly, AAL is a good choice on the value front from multiple angles.
|
f10b7411-c9b2-481d-8bf0-9a8faedbe39f
|
7517.0
|
2017-05-21 00:00:00 UTC
|
Worst Stocks Warren Buffett Is Selling Now
|
AAL
|
https://www.nasdaq.com/articles/worst-stocks-warren-buffett-selling-now-2017-05-21
|
nan
|
nan
|
Warren Buffett may be famous for buying great stocks at fair prices, but he doesn't own every stock he buys forever. He's always tinkering with the holdings in Berkshire Hathaway 's (NYSE: BRK-B) (NYSE: BRK-A) portfolio. So, if you're following in his investing footsteps, it's important to keep track of his changes, especially when it comes to knowing what he's selling.
Fortunately, top investors like Buffett file a 13F report with the SEC that shows what stocks he's been selling, and his latest report shows he soured on tech Goliath IBM Corp. (NYSE: IBM) and airline operator Delta Air Lines (NYSE: DAL) last quarter.
Too much competition
Warren Buffett doesn't typically traffic in technology stocks, but IBM is one big technology stock he's owned for a while.
IBM has been making big headway in transitioning itself away from legacy technology solutions that are slowing toward high-growth markets like cloud computing, but it appears Warren Buffett thinks shares reflect a lot of the potential associated with this turnaround.
In Q1, he sold nearly 17 million shares in IBM, leaving Berkshire Hathaway with 64.5 million shares on March 31. IBM remains a big holding, but when Buffett's started selling big positions like this in the past, he's kept on selling them .
IBM's push into artificial intelligence is still a reason to like its stock, but IBM's growth has remained anemic despite its efforts to capitalize on cloud-based services and AI. Competition from Amazon and Microsoft has been fierce, and as a result, growth in those markets hasn't been enough to offset sliding sales in other markets. In Q1, IBM notched its 20th consecutive quarter of year-over-year revenue declines, and earnings per share remains well below its peak.
IBM Revenue (TTM) data by YCharts .
Obviously, we don't know if Buffett's going to sell his remaining IBM shares at today's prices. But he was a seller when shares were $180, and that could indicate he'll be a seller if IBM shares rally from their recent lows. Because of that risk, it's probably best to stay away from IBM until we know for certain what Buffett's doing.
Shifting seats
Warren Buffett's recently been buying airline operators, but last quarter, he sold 5 million shares in Delta Air Lines, reducing Berkshire Hathaway's stake to 55 million shares worth around $2.6 billion.
It's no secret that Buffett's recent interest in airlines is surprising. In the past, he's said his previous foray into airlines was "dumb." And he's joked that "far-sighted capitalists" would have "done their successors a favor shooting Orville [Wright] down."
Despite his prior misgivings, Buffett bought a truckload of shares in airline operators ahead of 2017, and in the first quarter, he added to his Southwest Airlines and American Airlines (NASDAQ: AAL) positions.
His buying and selling last quarter suggests he's getting more selective in his exposure to the industry. Buying more American Airlines still gives him exposure to the majors, despite his Delta Air selling. Buying more Southwest gives him more exposure to discount operators.
There are key differences between American Airlines and Delta Air that shouldn't be ignored. Delta manages fuel costs conservatively by hedging those expenses, while American doesn't. Delta relies on profit sharing as part of its pilot compensation, and that could expose it to wage increases as a pilot shortage takes its toll. Delta trails American in modernizing its fleet, exposing it to greater capital spending, too. Finally, Delta's already captured synergies from its merger with Northwest, but there's arguably more synergies yet to come from American Airlines' more recent merger with US Airways.
Overall, Buffett still seems to believe mergers and bankruptcies have removed enough capacity from the industry to give airlines pricing power, but given his interest in other airlines, and his selling of Delta Air last quarter, investors might want to follow in his footsteps in this industry cautiously.
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 May 1, 2017
Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. Todd Campbell owns shares of Amazon and Microsoft. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Amazon and Berkshire Hathaway (B shares). 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.
|
Despite his prior misgivings, Buffett bought a truckload of shares in airline operators ahead of 2017, and in the first quarter, he added to his Southwest Airlines and American Airlines (NASDAQ: AAL) positions. Fortunately, top investors like Buffett file a 13F report with the SEC that shows what stocks he's been selling, and his latest report shows he soured on tech Goliath IBM Corp. (NYSE: IBM) and airline operator Delta Air Lines (NYSE: DAL) last quarter. IBM has been making big headway in transitioning itself away from legacy technology solutions that are slowing toward high-growth markets like cloud computing, but it appears Warren Buffett thinks shares reflect a lot of the potential associated with this turnaround.
|
Despite his prior misgivings, Buffett bought a truckload of shares in airline operators ahead of 2017, and in the first quarter, he added to his Southwest Airlines and American Airlines (NASDAQ: AAL) positions. Fortunately, top investors like Buffett file a 13F report with the SEC that shows what stocks he's been selling, and his latest report shows he soured on tech Goliath IBM Corp. (NYSE: IBM) and airline operator Delta Air Lines (NYSE: DAL) last quarter. Too much competition Warren Buffett doesn't typically traffic in technology stocks, but IBM is one big technology stock he's owned for a while.
|
Despite his prior misgivings, Buffett bought a truckload of shares in airline operators ahead of 2017, and in the first quarter, he added to his Southwest Airlines and American Airlines (NASDAQ: AAL) positions. Fortunately, top investors like Buffett file a 13F report with the SEC that shows what stocks he's been selling, and his latest report shows he soured on tech Goliath IBM Corp. (NYSE: IBM) and airline operator Delta Air Lines (NYSE: DAL) last quarter. Shifting seats Warren Buffett's recently been buying airline operators, but last quarter, he sold 5 million shares in Delta Air Lines, reducing Berkshire Hathaway's stake to 55 million shares worth around $2.6 billion.
|
Despite his prior misgivings, Buffett bought a truckload of shares in airline operators ahead of 2017, and in the first quarter, he added to his Southwest Airlines and American Airlines (NASDAQ: AAL) positions. Obviously, we don't know if Buffett's going to sell his remaining IBM shares at today's prices. Buying more American Airlines still gives him exposure to the majors, despite his Delta Air selling.
|
e87a6269-e381-4b71-895e-1c8b92e50a2f
|
7518.0
|
2017-05-17 00:00:00 UTC
|
Saba Capital Management, L.P. Buys Clough Global Opportunities Fund, General American ...
|
AAL
|
https://www.nasdaq.com/articles/saba-capital-management-lp-buys-clough-global-opportunities-fund-general-american-2017-05
|
nan
|
nan
|
Saba Capital Management, L.P.
New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE,
Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV,
Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO,
Sold Out:PPT, TSLA, BGX, DSL, EVG,
For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P.
These are the top 5 holdings of Saba Capital Management, L.P.
Wells Fargo Multi-Sector Income Fund ( ERC ) - 6,150,514 shares, 9.33% of the total portfolio.
First Trust High Income Long/Short Fund ( FSD ) - 4,608,568 shares, 8.73% of the total portfolio.
American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio.
Clough Global Opportunities Fund ( GLO ) - 5,454,549 shares, 6.39% of the total portfolio. Shares added by 186.35%
Alpine Total Dynamic Dividend Fund ( AOD ) - 5,567,362 shares, 5.23% of the total portfolio. Shares added by 52.25%
New Purchase: JC Penney Co Inc (JCP)
Saba Capital Management, L.P. initiated holdings in JC Penney Co Inc. The purchase prices were between $5.5 and $8.47, with an estimated average price of $6.61. The stock is now traded at around $4.65. The impact to the portfolio due to this purchase was 0.99%. The holdings were 1,409,000 shares as of 2017-03-31.
New Purchase: American Airlines Group Inc ( AAL )
Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc. The purchase prices were between $40.35 and $49.59, with an estimated average price of $45.24. The stock is now traded at around $45.21. The impact to the portfolio due to this purchase was 0.97%. The holdings were 201,408 shares as of 2017-03-31.
New Purchase: Energy XXI Gulf Coast Inc (EXXI)
Saba Capital Management, L.P. initiated holdings in Energy XXI Gulf Coast Inc. The purchase prices were between $24 and $32.5, with an estimated average price of $29.44. The stock is now traded at around $26.92. The impact to the portfolio due to this purchase was 0.89%. The holdings were 260,601 shares as of 2017-03-31.
New Purchase: Consol Energy Inc (CNX)
Saba Capital Management, L.P. initiated holdings in Consol Energy Inc. The purchase prices were between $14.92 and $19.54, with an estimated average price of $16.96. The stock is now traded at around $15.76. The impact to the portfolio due to this purchase was 0.41%. The holdings were 215,164 shares as of 2017-03-31.
New Purchase: SUPERVALU Inc (SVU)
Saba Capital Management, L.P. initiated holdings in SUPERVALU Inc. The purchase prices were between $3.26 and $4.91, with an estimated average price of $3.9. The stock is now traded at around $3.75. The impact to the portfolio due to this purchase was 0.37%. The holdings were 848,860 shares as of 2017-03-31.
New Purchase: Avon Products Inc (AVP)
Saba Capital Management, L.P. initiated holdings in Avon Products Inc. The purchase prices were between $4.21 and $5.93, with an estimated average price of $4.99. The stock is now traded at around $3.66. The impact to the portfolio due to this purchase was 0.35%. The holdings were 694,224 shares as of 2017-03-31.
Added: Clough Global Opportunities Fund ( GLO )
Saba Capital Management, L.P. added to the holdings in Clough Global Opportunities Fund by 186.35%. The purchase prices were between $8.89 and $10.29, with an estimated average price of $9.76. The stock is now traded at around $10.37. The impact to the portfolio due to this purchase was 4.16%. The holdings were 5,454,549 shares as of 2017-03-31.
Added: General American Investors Inc. (GAM)
Saba Capital Management, L.P. added to the holdings in General American Investors Inc. by 358.52%. The purchase prices were between $31.12 and $33.85, with an estimated average price of $32.83. The stock is now traded at around $33.61. The impact to the portfolio due to this purchase was 3.52%. The holdings were 1,180,791 shares as of 2017-03-31.
Added: Alpine Total Dynamic Dividend Fund ( AOD )
Saba Capital Management, L.P. added to the holdings in Alpine Total Dynamic Dividend Fund by 52.25%. The purchase prices were between $7.58 and $8.32, with an estimated average price of $8.07. The stock is now traded at around $8.53. The impact to the portfolio due to this purchase was 1.79%. The holdings were 5,567,362 shares as of 2017-03-31.
Added: Valeant Pharmaceuticals International Inc (VRX)
Saba Capital Management, L.P. added to the holdings in Valeant Pharmaceuticals International Inc by 132.38%. The purchase prices were between $10.64 and $16.86, with an estimated average price of $13.76. The stock is now traded at around $13.15. The impact to the portfolio due to this purchase was 1.66%. The holdings were 2,315,900 shares as of 2017-03-31.
Added: Hertz Global Holdings Inc (HTZ)
Saba Capital Management, L.P. added to the holdings in Hertz Global Holdings Inc by 446.79%. The purchase prices were between $17.25 and $23.63, with an estimated average price of $20.88. The stock is now traded at around $10.06. The impact to the portfolio due to this purchase was 0.82%. The holdings were 501,433 shares as of 2017-03-31.
Added: Clough Global Equity Fund (GLQ)
Saba Capital Management, L.P. added to the holdings in Clough Global Equity Fund by 26.18%. The purchase prices were between $11.15 and $12.64, with an estimated average price of $11.88. The stock is now traded at around $12.55. The impact to the portfolio due to this purchase was 0.74%. The holdings were 2,473,734 shares as of 2017-03-31.
Sold Out: Putnam Premier Income Trust (PPT)
Saba Capital Management, L.P. sold out the holdings in Putnam Premier Income Trust. The sale prices were between $4.93 and $5.36, with an estimated average price of $5.21.
Sold Out: Tesla Inc (TSLA)
Saba Capital Management, L.P. sold out the holdings in Tesla Inc. The sale prices were between $216.99 and $280.98, with an estimated average price of $253.78.
Sold Out: Blackstone GSO Long Short Credit Income Fund (BGX)
Saba Capital Management, L.P. sold out the holdings in Blackstone GSO Long Short Credit Income Fund. The sale prices were between $15.69 and $16.44, with an estimated average price of $16.15.
Sold Out: DoubleLine Income Solutions Fund (DSL)
Saba Capital Management, L.P. sold out the holdings in DoubleLine Income Solutions Fund. The sale prices were between $19 and $20.42, with an estimated average price of $19.78.
Sold Out: Eaton Vance Short Diversified Income Fund Duration (EVG)
Saba Capital Management, L.P. sold out the holdings in Eaton Vance Short Diversified Income Fund Duration. The sale prices were between $13.76 and $14.15, with an estimated average price of $13.94.
Warning! GuruFocus has detected 2 Warning Signs with GLO. Click here to check it out.
High Yield Dividend Stocks in Gurus' Portfolio
Top dividend stocks of Warren Buffett
Top dividend stocks of George Soros
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.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
|
14b4658a-6650-4418-945c-325acf986e20
|
7519.0
|
2017-05-16 00:00:00 UTC
|
3 Big Stock Charts for Tuesday: Home Depot Inc (HD), Charter Communications, Inc. (CHTR) and American Airlines Group Inc (AAL)
|
AAL
|
https://www.nasdaq.com/articles/3-big-stock-charts-for-tuesday%3A-home-depot-inc-hd-charter-communications-inc.-chtr-and
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This morning's headlines are focusing on Home Depot Inc (NYSE: HD ) as the stock's earnings are providing a bullish catalyst, at least for now. A rush into the earnings announcement suggests that we could see some profit-taking on the popular retail name.
In addition, today's three big stock charts analyzes the charts of the big box retailer with two charts that should have the bulls worried, Charter Communications, Inc. (NASDAQ: CHTR ) and American Airlines Group Inc (NASDAQ: AAL ).
Home Depot Inc (HD)
Home Depot shares are rallying more than 1.5% after the company announced earnings that beat on the bottom line. Revenues were in-line and the company provided an in-line outlook for the next fiscal year. In other words, nothing spectacular.
Looking at the chart, there is some concern that HD shares could see some pressure as traders may be more likely to "sell the news" after the report.
For the two trading days, Home Depot shares rallied almost 2% ahead of the report, taking the stock right back to $160, which has served as chart and round-numbered resistance for the shares recently. This move also returned the stock to its all-time highs.
The short-term rally in HD shares also returned the stock to short-term overbought conditions as the RSI for the stock is once again breaching the $70-level. In recent past, the stock has struggled to move sideways after similar readings.
7 Stocks That Will Get Crushed in the Next Crash
At this point, the charts suggest that the "sell the news" crowd is likely to take some profits off of the table, resulting in a short-term pullback to $150. At this point, support from the rising 50-day moving average should step into support the stock and attract new technical buyers to help push Home Depot shares back into new high territory.
Charter Communications, Inc. (CHTR)
Charter Communications has slumped into an oversold reading after the company's disappointing earnings report on May 2. The bearish move places CHTR stock in a technical must-win position that is worth monitoring over the next week.
First, from a trendline perspective, the stock's current prices are challenging the 100-day moving average. This trendline currently resides at $321.
Second, Charter Communications broke through its 50-day trendline shortly after the earnings miss. This has resulted in a transition from bullish to bearish intermediate-term conditions based on the movement of the 50-day. A continuation in the erosion of this trendline will apply selling pressure to CHTR shares.
Finally, Charter shares are resting on strong chart support at $320. This level has long been a site of support for the stock as it traded sideways with little-to-no volatility in early 2017. A break below this price point will accelerate selling pressure and target a move to $300.
American Airlines Group Inc (AAL)
Airline stocks continue to lag the market as headlines and the ire of consumers plague the stocks on what feels like a daily basis.
Shares of American Airlines have once again rallied, quickly, from chart support at their 200-day moving average. In early May, AAL shares hit this trendline, currently around $42 and found support from the technical community as buying volume perked-up quickly.
Alibaba Group Holding Ltd (BABA) Stock Will Soar After Q4 Earnings
Now, American Airlines stock has hit $47, which has been staunch chart resistance for the stock since February. As the chart above shows, selling volume has risen on each of the recent approaches to this price.
Technical bulls can eye the trend of the 50-day moving average as a potential sign that AAL stock could takeout the pesky $47-level this time around. As of the last week, this trendline has started to transition into a potentially bullish pattern as it begins to slightly rise.
The transition in the 50-day suggests that we may find more support for American Airlines, but likely after a short-term pullback that could target $45.
As of this writing, Chris Johnson, Johnson Research Group did not hold a position in any of the aforementioned securities.
More From InvestorPlace
7 Stocks to Buy Now for BIG Summer Outperformance
7 Stocks to Buy on the Next Big Market Dip
7 Stocks to Sell Thanks to TERRIBLE Seasonality
The post 3 Big Stock Charts for Tuesday: Home Depot Inc (HD), Charter Communications, Inc. (CHTR) and American Airlines Group Inc (AAL) 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.
|
In early May, AAL shares hit this trendline, currently around $42 and found support from the technical community as buying volume perked-up quickly. Technical bulls can eye the trend of the 50-day moving average as a potential sign that AAL stock could takeout the pesky $47-level this time around. In addition, today's three big stock charts analyzes the charts of the big box retailer with two charts that should have the bulls worried, Charter Communications, Inc. (NASDAQ: CHTR ) and American Airlines Group Inc (NASDAQ: AAL ).
|
In addition, today's three big stock charts analyzes the charts of the big box retailer with two charts that should have the bulls worried, Charter Communications, Inc. (NASDAQ: CHTR ) and American Airlines Group Inc (NASDAQ: AAL ). More From InvestorPlace 7 Stocks to Buy Now for BIG Summer Outperformance 7 Stocks to Buy on the Next Big Market Dip 7 Stocks to Sell Thanks to TERRIBLE Seasonality The post 3 Big Stock Charts for Tuesday: Home Depot Inc (HD), Charter Communications, Inc. (CHTR) and American Airlines Group Inc (AAL) appeared first on InvestorPlace . American Airlines Group Inc (AAL) Airline stocks continue to lag the market as headlines and the ire of consumers plague the stocks on what feels like a daily basis.
|
In addition, today's three big stock charts analyzes the charts of the big box retailer with two charts that should have the bulls worried, Charter Communications, Inc. (NASDAQ: CHTR ) and American Airlines Group Inc (NASDAQ: AAL ). More From InvestorPlace 7 Stocks to Buy Now for BIG Summer Outperformance 7 Stocks to Buy on the Next Big Market Dip 7 Stocks to Sell Thanks to TERRIBLE Seasonality The post 3 Big Stock Charts for Tuesday: Home Depot Inc (HD), Charter Communications, Inc. (CHTR) and American Airlines Group Inc (AAL) appeared first on InvestorPlace . American Airlines Group Inc (AAL) Airline stocks continue to lag the market as headlines and the ire of consumers plague the stocks on what feels like a daily basis.
|
In addition, today's three big stock charts analyzes the charts of the big box retailer with two charts that should have the bulls worried, Charter Communications, Inc. (NASDAQ: CHTR ) and American Airlines Group Inc (NASDAQ: AAL ). American Airlines Group Inc (AAL) Airline stocks continue to lag the market as headlines and the ire of consumers plague the stocks on what feels like a daily basis. In early May, AAL shares hit this trendline, currently around $42 and found support from the technical community as buying volume perked-up quickly.
|
0b19a4f3-6623-492b-8955-a17f05ee1c0c
|
7520.0
|
2017-05-16 00:00:00 UTC
|
Berkshire Hathaway Buys Apple, Bank of New York Mellon, Southwest Airlines, Sells IBM, Delta ...
|
AAL
|
https://www.nasdaq.com/articles/berkshire-hathaway-buys-apple-bank-new-york-mellon-southwest-airlines-sells-ibm-delta-2017
|
nan
|
nan
|
Warren BuffettTradesPortfolio
Warning! GuruFocus has detected 8 Warning Signs with AAPL. Click here to check it out.
AAPL 15-Year Financial Data
The intrinsic value of AAPL
Peter Lynch Chart of AAPL
Added Positions: AAPL , BK, LUV, AAL, SIRI, LSXMA,
Reduced Positions: IBM, DAL, WBC,
Sold Out: FOXA,
These are the top 5 holdings of Warren Buffett (Trades, Portfolio)
The Kraft Heinz Co (KHC) - 325,634,818 shares, 18.27% of the total portfolio.
Wells Fargo & Co (WFC) - 479,704,270 shares, 16.49% of the total portfolio.
Apple Inc ( AAPL ) - 129,357,106 shares, 11.48% of the total portfolio. Shares added by 125.52%
Coca-Cola Co (KO) - 400,000,000 shares, 10.49% of the total portfolio.
American Express Co (AXP) - 151,610,700 shares, 7.41% of the total portfolio.
Sold Out: Twenty-First Century Fox Inc ( FOXA )Added: Apple Inc ( AAPL )Added: Bank of New York Mellon Corp ( BK )Added: Southwest Airlines Co ( LUV )Added: American Airlines Group Inc ( AAL )Added: Sirius XM Holdings Inc (SIRI)Added: Liberty SiriusXM Group (LSXMA)Reduced: International Business Machines Corp (IBM)Reduced: Delta Air Lines Inc (DAL)Reduced: WABCO Holdings Inc (WBC)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.
|
AAPL 15-Year Financial Data The intrinsic value of AAPL Peter Lynch Chart of AAPL Added Positions: AAPL , BK, LUV, AAL, SIRI, LSXMA, Reduced Positions: IBM, DAL, WBC, Sold Out: FOXA, These are the top 5 holdings of Warren Buffett (Trades, Portfolio) The Kraft Heinz Co (KHC) - 325,634,818 shares, 18.27% of the total portfolio. Sold Out: Twenty-First Century Fox Inc ( FOXA )Added: Apple Inc ( AAPL )Added: Bank of New York Mellon Corp ( BK )Added: Southwest Airlines Co ( LUV )Added: American Airlines Group Inc ( AAL )Added: Sirius XM Holdings Inc (SIRI)Added: Liberty SiriusXM Group (LSXMA)Reduced: International Business Machines Corp (IBM)Reduced: Delta Air Lines Inc (DAL)Reduced: WABCO Holdings Inc (WBC)Premium Members This article first appeared on GuruFocus . American Express Co (AXP) - 151,610,700 shares, 7.41% of the total portfolio.
|
AAPL 15-Year Financial Data The intrinsic value of AAPL Peter Lynch Chart of AAPL Added Positions: AAPL , BK, LUV, AAL, SIRI, LSXMA, Reduced Positions: IBM, DAL, WBC, Sold Out: FOXA, These are the top 5 holdings of Warren Buffett (Trades, Portfolio) The Kraft Heinz Co (KHC) - 325,634,818 shares, 18.27% of the total portfolio. Sold Out: Twenty-First Century Fox Inc ( FOXA )Added: Apple Inc ( AAPL )Added: Bank of New York Mellon Corp ( BK )Added: Southwest Airlines Co ( LUV )Added: American Airlines Group Inc ( AAL )Added: Sirius XM Holdings Inc (SIRI)Added: Liberty SiriusXM Group (LSXMA)Reduced: International Business Machines Corp (IBM)Reduced: Delta Air Lines Inc (DAL)Reduced: WABCO Holdings Inc (WBC)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.
|
AAPL 15-Year Financial Data The intrinsic value of AAPL Peter Lynch Chart of AAPL Added Positions: AAPL , BK, LUV, AAL, SIRI, LSXMA, Reduced Positions: IBM, DAL, WBC, Sold Out: FOXA, These are the top 5 holdings of Warren Buffett (Trades, Portfolio) The Kraft Heinz Co (KHC) - 325,634,818 shares, 18.27% of the total portfolio. Sold Out: Twenty-First Century Fox Inc ( FOXA )Added: Apple Inc ( AAPL )Added: Bank of New York Mellon Corp ( BK )Added: Southwest Airlines Co ( LUV )Added: American Airlines Group Inc ( AAL )Added: Sirius XM Holdings Inc (SIRI)Added: Liberty SiriusXM Group (LSXMA)Reduced: International Business Machines Corp (IBM)Reduced: Delta Air Lines Inc (DAL)Reduced: WABCO Holdings Inc (WBC)Premium Members This article first appeared on GuruFocus . Click here to check it out.
|
AAPL 15-Year Financial Data The intrinsic value of AAPL Peter Lynch Chart of AAPL Added Positions: AAPL , BK, LUV, AAL, SIRI, LSXMA, Reduced Positions: IBM, DAL, WBC, Sold Out: FOXA, These are the top 5 holdings of Warren Buffett (Trades, Portfolio) The Kraft Heinz Co (KHC) - 325,634,818 shares, 18.27% of the total portfolio. Sold Out: Twenty-First Century Fox Inc ( FOXA )Added: Apple Inc ( AAPL )Added: Bank of New York Mellon Corp ( BK )Added: Southwest Airlines Co ( LUV )Added: American Airlines Group Inc ( AAL )Added: Sirius XM Holdings Inc (SIRI)Added: Liberty SiriusXM Group (LSXMA)Reduced: International Business Machines Corp (IBM)Reduced: Delta Air Lines Inc (DAL)Reduced: WABCO Holdings Inc (WBC)Premium Members This article first appeared on GuruFocus . GuruFocus has detected 8 Warning Signs with AAPL.
|
0bc4d6c8-bece-433f-916d-65a636f92068
|
7521.0
|
2017-05-16 00:00:00 UTC
|
After Mixed Earnings, Why Airlines ETF is Flying Higher
|
AAL
|
https://www.nasdaq.com/articles/after-mixed-earnings-why-airlines-etf-flying-higher-2017-05-16
|
nan
|
nan
|
The pure-play aviation ETF U.S. Global Jets ETF JETS gained about 8.3% in the last one month (as of May 15, 2017) compared with 3.4% returns offered by SPDRÂ S&P 500 ETFSPY despite mixed earnings results. The industry is in the bottom 29% of the Zacks Industry Rank at the time of writing, giving bearish signals (see all industrial ETFs here).
Let's delve a little deeper into the earnings picture and find out what is driving this corner higher.
Q1 Results in Detail
Delta Air Lines Inc.DAL reported almost a month ago with a bottom-line beat and a top-line miss. Operating revenues of $9.148 billion came below the Zacks Consensus Estimate of $9.156 million. Revenues fell marginally from the year-ago figure. The carrier's earnings (excluding special items) of $0.77 per share beat the Zacks Consensus Estimate of $0.73. Earnings, however, fell over 41% on a year-over-year basis. The company has a Zacks Rank #3 (Hold) and a VGM (Value-Growth-Momentum) score of 'B'.
United Continental HoldingsUAL posted first-quarter 2017 earnings (on an adjusted basis) of $0.41 per share, beating the Zacks Consensus Estimate by $0.04. The bottom line, however, plunged 66.7% year over year due to higher costs. Operating revenues of $8,420 million were marginally ahead of the Zacks Consensus Estimate of $8,362.5 million. Revenues increased 2.7% on a year-over-year basis. United Continental has a Zacks Rank #3 and a VGM score of 'B'.
Low cost carrier Southwest Airlines Co.LUV reported lower-than-expected earnings and revenues in the first quarter. The carrier's earnings per share (on an adjusted basis) of 61 cents missed the Zacks Consensus Estimate of 62 cents. Earnings also declined 30.68% year over year. Operating revenues of $4,883 million marginally missed the Zacks Consensus Estimate of $4,894.1 million but improved 1.18% year over year. Zacks Rank #3 LUV has a VGM score of 'A'.
American Airlines Group Inc .'s AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Revenues of $9,624 million were 2% higher than the year-ago figure. Quarterly revenues edged past the Zacks Consensus Estimate of $9,621.3 million. Zacks Rank #3 AAL has a VGM score of 'A'.
Low-cost carrier JetBlue Airways Corporation 's JBLU first-quarter 2017 earnings (excluding special items) of 25 cents per share beat the Zacks Consensus Estimate by a penny. Quarterly earnings, however, declined 57.63% from the year-ago figure due to higher costs. Operating revenues of $1,604 million fell short of the Zacks Consensus Estimate of $1,617.8 million. Zacks Rank #3 JBLU has a VGM score of 'A.'
Alaska Air GroupALK reported mixed results in the first quarter. The carrier's earnings of $1.05 per share beat the Zacks Consensus Estimate by a penny. Revenues of $1,749 million fell short of the Zacks Consensus Estimate of $1,782.7 million. The top line grew 29.8% year over year. Zacks Rank #3 (Hold) ALK has a VGM score of 'A.'
Is JETS a Really Buy Candidate?
By now, it is clear that the beat ratios that the corporate strength in the airlines industry is moderate. However, oil prices play a crucial role in the airlines' cost structure. If oil prices manage to see an uptrend in the coming days on the extension of the OPEC output curb deal, airlines may suffer on profit margins (read: Saudi, Russia Boost Oil Price: Bet on Leveraged ETFs ).
However, United Continental Holdings Inc. was backed by one of its major shareholders and American Airlines dropped hints that it is gaining more control over its fares, as per Bloomberg . This was actually what pushed up the fund in recent trading sessions.
If this was not enough, Warren Buffett's Berkshire Hathaway recently indicated that it made sizable investments in American Airlines and Southwest Airlines, benefiting the sector (read: Invest Like Warren Buffett with These ETF Strategies ).
Nevertheless, investors having a strong stomach for oil-related risks and overall moderate earnings, may target the airline industry in the ETF form. Otherwise, the backdrop is risky for airlines investing. Below we highlight the fund in detail:
JETS in Focus
The $72.8 million-fund holds over 30 stocks in its portfolio and is concentrated on a few individual securities. United Continental (12.68%), American Airlines (12.39%) and Southwest Airlines (12.22%) are the top three elements in the basket. The product charges 60 bps in fees. JETS has a Zacks ETF Rank #3 with a High risk outlook.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines 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
SPDR-SP 500 TR (SPY): ETF Research Reports
US GLOBAL JETS (JETS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Zacks Rank #3 AAL has a VGM score of 'A'. 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 SPDR-SP 500 TR (SPY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here.
|
's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SPDR-SP 500 TR (SPY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. Zacks Rank #3 AAL has a VGM score of 'A'.
|
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 SPDR-SP 500 TR (SPY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. 's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Zacks Rank #3 AAL has a VGM score of 'A'.
|
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 SPDR-SP 500 TR (SPY): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. 's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Zacks Rank #3 AAL has a VGM score of 'A'.
|
d1994d6a-9176-4263-aaaf-1f991d07875f
|
7522.0
|
2017-05-15 00:00:00 UTC
|
United Airlines Safety Alert: Security Procedures ‘May Have Been Compromised’
|
AAL
|
https://www.nasdaq.com/articles/united-airlines-safety-alert-security-procedures-may-have-been-compromised-2017-05-15
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Beleaguered United Airlines, an operating unit of United Continental Holdings (NYSE: UAL ), admitted that details of its cockpit security have been made public. UAL stock was off slightly in premarket trading this morning.
Source: Shutterstock
United said in a "Safety Alert" emailed to employees that information regarding its flight deck access security procedures "may have been compromised," according to a CBS News report on Sunday. The email to employees, sent on Saturday, was short on specifics. But the airline said it was working on a "corrective action plan," noting that pilots have been asked to review procedures during briefings, the network reported .
While the leak followed a series of cyber-attacks affecting more than 200,000 computers in over 150 countries around the world, United spokesperson Maddie King was quoted by various media that the security information was "was inadvertently made public" but not part of a "breach" in the company's computers.
UAL stock crashed last month after a passenger was dragged off a plane to seat airline employees. What followed was a widely acknowledged public relations failure.
InvestorPlace contributor Dana Blakenhorn pointed out earlier this month , things could be worse for UAL stock. "It has the financial strength to get past its present scandal and stocks subject to scandals like this usually come back in time. It won't come back immediately, but it most likely will come back." He noted that of all the major U.S. airlines, UAL is among the cheapest.
UAL stock is up almost 9% this month compared to more than 7% for American Airlines Group Inc (NASDAQ: AAL ).
The post United Airlines Safety Alert: Security Procedures 'May Have Been Compromised' 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.
|
UAL stock is up almost 9% this month compared to more than 7% for American Airlines Group Inc (NASDAQ: AAL ). Source: Shutterstock United said in a "Safety Alert" emailed to employees that information regarding its flight deck access security procedures "may have been compromised," according to a CBS News report on Sunday. But the airline said it was working on a "corrective action plan," noting that pilots have been asked to review procedures during briefings, the network reported .
|
UAL stock is up almost 9% this month compared to more than 7% for American Airlines Group Inc (NASDAQ: AAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Beleaguered United Airlines, an operating unit of United Continental Holdings (NYSE: UAL ), admitted that details of its cockpit security have been made public. The post United Airlines Safety Alert: Security Procedures 'May Have Been Compromised' appeared first on InvestorPlace .
|
UAL stock is up almost 9% this month compared to more than 7% for American Airlines Group Inc (NASDAQ: AAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Beleaguered United Airlines, an operating unit of United Continental Holdings (NYSE: UAL ), admitted that details of its cockpit security have been made public. Source: Shutterstock United said in a "Safety Alert" emailed to employees that information regarding its flight deck access security procedures "may have been compromised," according to a CBS News report on Sunday.
|
UAL stock is up almost 9% this month compared to more than 7% for American Airlines Group Inc (NASDAQ: AAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Beleaguered United Airlines, an operating unit of United Continental Holdings (NYSE: UAL ), admitted that details of its cockpit security have been made public. Source: Shutterstock United said in a "Safety Alert" emailed to employees that information regarding its flight deck access security procedures "may have been compromised," according to a CBS News report on Sunday.
|
de0d1973-b626-4196-9ffd-515885ea89db
|
7523.0
|
2017-05-11 00:00:00 UTC
|
Why Did Buffett Change His Mind on Airline Stocks?
|
AAL
|
https://www.nasdaq.com/articles/why-did-buffett-change-his-mind-on-airline-stocks-2017-05-11
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is one of the most iconic investors of all time, and he hasn't gotten to where he is by chance. Nearly 90 years old, Buffett possess an incredible ability to change his mind on investments he once dismissed, or those he once was the most fervent supporter of. I'll be taking a look at airline stocks as an example of the former.
Source: Shutterstock
In 2016, Berkshire Hathaway Inc. (NYSE: BRK.A ) initiated positions in four major airlines: American Airlines Group Inc (NASDAQ: AAL ), Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), and United Continental Holdings Inc (NYSE: UAL ).
After an investment experiment in the 1980s with U.S. Air - a once-promising airline which eventually merged with American Airlines after intense competition from Southwest Airlines ate away at U.S. Air's customer base for profitable routes - Buffett experienced what became the industry norm for U.S.-based airlines: very high highs, with lows often resulting in bankruptcy.
Buffett has noted that while he was able to exit the investment and made money before U.S. Air went bankrupt and ultimately merged, he was left scarred by the experience and for many years has vowed in his annual letters and in interviews never to invest in an airline again.
It turns out that never is a strong word, and Mr. Buffett is back at it again, confident that he has picked the right time to jump in and take advantage of the long-term prospects of air travel moving forward.
Airline Stocks' Fundamentals Much Better Than Before
Warren Buffett has spoken at length about the difficult fundamentals of the airline industry.
9 Dividend Stocks to Buy for 6%-Plus Yields
Extremely low marginal costs and the desire for airlines to operate at or very near capacity has resulted in price wars which have hampered profitability for decades. While the largest have survived (and in most cases simply gobbled up the competition), the current environment of an effective oligopoly in the industry is one of the reasons Buffett has begun to buy up stakes in each of the companies in the oligopoly.
His bet on airlines is a bet on the industry and profitability increasing across the board for all airline stocks moving forward.
The fact that Buffett did not pick one company out of the bunch is an interesting play, as he has indicated that improving fundamentals will likely be the "tide that lifts all boats," and by buying into the largest players, Buffett gets long-term exposure to the companies that will drive air traffic for the next 100 years.
Recent Scandals Have Not Changed Buffett's View
The aforementioned desire of airlines to operate at capacity has gained infamy of late, with United Airlines' recent scandal involving an incident in April in which a passenger was forcibly dragged off of a flight to make room for staff has sent shockwaves through the industry. Airline passengers who would otherwise not be given the spotlight to voice their grievances publicly against airlines are now speaking up, and issues concerning the operations of all airlines are now being discussed much more fervently than before.
Despite the raucous surrounding airlines and the changing consumer perception of the industry, Warren Buffett has noted that he believes the long-term outlook for airlines is such that the airlines will continue to cram as many people as possible onto given flights to improve upon the economics of the business.
He has also asserted that, as long as people are willing to pay for tickets, anything that improves the fundamentals of the business is something that he can't disagree with.
United Continental Holdings Inc (UAL) Stock Is a Bargain
Bottom Line
Warren Buffett is a prudent investor with decades of experience investing in other large oligopoly-style industries such as railroads, with similar economics to the airline industry.
If Mr. Buffett says jump, I ask "how high?"
As of this writing, Chris MacDonald did not hold a position in any of the aforementioned securities.
More From InvestorPlace
3 Reasons Advanced Micro Devices, Inc. (AMD) Stock Will Rebound
3 Cash-Rich Tech Stocks to Buy and Hold Forever
5 Energy Stocks That Are On the Mend
The post Why Did Buffett Change His Mind on Airline Stocks? appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Source: Shutterstock In 2016, Berkshire Hathaway Inc. (NYSE: BRK.A ) initiated positions in four major airlines: American Airlines Group Inc (NASDAQ: AAL ), Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), and United Continental Holdings Inc (NYSE: UAL ). It turns out that never is a strong word, and Mr. Buffett is back at it again, confident that he has picked the right time to jump in and take advantage of the long-term prospects of air travel moving forward. 9 Dividend Stocks to Buy for 6%-Plus Yields Extremely low marginal costs and the desire for airlines to operate at or very near capacity has resulted in price wars which have hampered profitability for decades.
|
Source: Shutterstock In 2016, Berkshire Hathaway Inc. (NYSE: BRK.A ) initiated positions in four major airlines: American Airlines Group Inc (NASDAQ: AAL ), Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), and United Continental Holdings Inc (NYSE: UAL ). After an investment experiment in the 1980s with U.S. Air - a once-promising airline which eventually merged with American Airlines after intense competition from Southwest Airlines ate away at U.S. Air's customer base for profitable routes - Buffett experienced what became the industry norm for U.S.-based airlines: very high highs, with lows often resulting in bankruptcy. Recent Scandals Have Not Changed Buffett's View The aforementioned desire of airlines to operate at capacity has gained infamy of late, with United Airlines' recent scandal involving an incident in April in which a passenger was forcibly dragged off of a flight to make room for staff has sent shockwaves through the industry.
|
Source: Shutterstock In 2016, Berkshire Hathaway Inc. (NYSE: BRK.A ) initiated positions in four major airlines: American Airlines Group Inc (NASDAQ: AAL ), Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), and United Continental Holdings Inc (NYSE: UAL ). After an investment experiment in the 1980s with U.S. Air - a once-promising airline which eventually merged with American Airlines after intense competition from Southwest Airlines ate away at U.S. Air's customer base for profitable routes - Buffett experienced what became the industry norm for U.S.-based airlines: very high highs, with lows often resulting in bankruptcy. Despite the raucous surrounding airlines and the changing consumer perception of the industry, Warren Buffett has noted that he believes the long-term outlook for airlines is such that the airlines will continue to cram as many people as possible onto given flights to improve upon the economics of the business.
|
Source: Shutterstock In 2016, Berkshire Hathaway Inc. (NYSE: BRK.A ) initiated positions in four major airlines: American Airlines Group Inc (NASDAQ: AAL ), Delta Air Lines, Inc. (NYSE: DAL ), Southwest Airlines Co (NYSE: LUV ), and United Continental Holdings Inc (NYSE: UAL ). After an investment experiment in the 1980s with U.S. Air - a once-promising airline which eventually merged with American Airlines after intense competition from Southwest Airlines ate away at U.S. Air's customer base for profitable routes - Buffett experienced what became the industry norm for U.S.-based airlines: very high highs, with lows often resulting in bankruptcy. It turns out that never is a strong word, and Mr. Buffett is back at it again, confident that he has picked the right time to jump in and take advantage of the long-term prospects of air travel moving forward.
|
951be7fd-594b-4c73-bd2c-0f39e434c34f
|
7524.0
|
2017-05-11 00:00:00 UTC
|
The Zacks Analyst Blog Highlights: American Airlines Group, Southwest Airlines, United Continental Holdings, Spirit Airlines and JetBlue Airways
|
AAL
|
https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-southwest-airlines-united
|
nan
|
nan
|
For Immediate Release
Chicago, IL - May 11, 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 American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Spirit Airlines (NASDAQ: SAVE- Free Report ) and JetBlue Airways (NASDAQ: JBLU- 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:
Airline Stock Roundup: AAL, LUV, UAL, SAVE, JBLU
The past week saw airline heavyweights like American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ) revealing their respective traffic data for April. American Airlines' figures were very impressive, which naturally impacted the stock positively. Also, the International Air Transport Association (IATA) revealed impressive traffic data for March.
Spirit Airlines (NASDAQ: SAVE- Free Report ) was the latest carrier to face customer dissatisfaction as it had to cancel multiple flights due to pilot unrest. The past week also saw an expansion-related update from JetBlue Airways (NASDAQ: JBLU- Free Report ). Transportation - Airline Industry 5YR % Return
(Read the last Airline Stock Roundup for May 03, 2017 ).
Recap of the Past Week's Most Important Stories
1. American Airlines' traffic (measured in revenue passenger miles or RPMs) touched record levels in April. The metric improved 3.1% on a year-over-year basis to $18.6 billion. Consolidated capacity (or available seat miles/ASMs) inched up 0.8% to $22.6 billion.
Moreover, load factor or the percentage of seats filled by passengers increased to 82.2% from 80.4% in Apr 2016, as traffic growth outpaced capacity expansion. The Zacks Rank #3 (Hold) carrier raised its second-quarter projections with respect to a few key metrics.
Total revenue per available seat mile (TRASM) is now expected to grow in the band 3.5%-5.5% year over year. Pre-tax margin (excluding special items) is estimated in the range of 12%-14%. The company's prior guidance for TRASM was 3%-5%, while that for pre-tax margin was 11%-13%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
2. Southwest Airlines posted an 8.4% rise in traffic (to around $11.23 billion) in Apr 2017. Available Seat Miles (ASMs) inched up 7.6% to $13.37 billion. Load factor increased 60 basis points (bps) to 84% in Apr 2017, as traffic growth outpaced capacity expansion (Read more: Southwest Airlines Traffic & Load Factor Rise in April ).
3. Consolidated traffic at United Continental increased 7.4% year over year to 17.6 billion. The carrier witnessed growth on both the domestic (7.7%) as well as international (7%) front. On a year-over-year basis, consolidated capacity expanded 4% to 21.1 billion. Load factor increased 260 bps to 83.1% in Apr 2017, as capacity expansion was outweighed by traffic growth. The carrier still expects consolidated passenger unit revenues for the second quarter to increase in the band of 1%-3%.
4. Spirit Airlines became the latest U.S. airline to face passenger dissatisfaction. The low-cost carrier had to cancel nine flights due to issues with its pilots. The incident not only impacted Spirit Airlines' shares negatively, but also resulted in irate passengers clashing with its employees at Fort Lauderdale-Hollywood International Airport in Florida (Read more: Shares of Spirit Airlines Tumble After Flight Cancellations, Airport Chaos ).
5. The monthly data released by the International Air Transport Association (IATA) revealed a 6.8% year-over-year increase in demand for air travel across the globe for Mar 2017. The rise was attributable to an increase in both international and domestic traffic (measured in revenue passenger kilometres) in the month.
Lower air fares and an improvement in economic conditions contributed to the healthy demand for air travel. The report also revealed a 6.1% rise in capacity (measured in available seat kilometers). The greater increase in traffic than capacity resulted in the load factor increasing 50 bps to 80.4% in March.
7. In a bid to expand further, JetBlue announced the enhancement of its operations between Fort Lauderdale-Hollywood International Airport (FLL) and Mexico City International Airport (MEX) as well as between Orlando International Airport (MCO) and MEX.JetBlue intends to increase its service to four daily roundtrips between Mexico City and the U.S. - two each on the Fort Lauderdale and Orlando routes.
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 UAL - FREE
Get the full Report on AAL - FREE
Get the full Report on LUV - FREE
Get the full Report on JBLU - 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.
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
American Airlines Group, Inc. (AAL): Free Stock Analysis 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
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Spirit Airlines (NASDAQ: SAVE- Free Report ) and JetBlue Airways (NASDAQ: JBLU- Free Report ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: AAL, LUV, UAL, SAVE, JBLU The past week saw airline heavyweights like American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ) revealing their respective traffic data for April. 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 JBLU - 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.
|
Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Spirit Airlines (NASDAQ: SAVE- Free Report ) and JetBlue Airways (NASDAQ: JBLU- Free Report ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: AAL, LUV, UAL, SAVE, JBLU The past week saw airline heavyweights like American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ) revealing their respective traffic data for April. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis 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 JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Spirit Airlines (NASDAQ: SAVE- Free Report ) and JetBlue Airways (NASDAQ: JBLU- Free Report ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: AAL, LUV, UAL, SAVE, JBLU The past week saw airline heavyweights like American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ) revealing their respective traffic data for April. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis 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 JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
|
Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: AAL, LUV, UAL, SAVE, JBLU The past week saw airline heavyweights like American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ) revealing their respective traffic data for April. Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Spirit Airlines (NASDAQ: SAVE- Free Report ) and JetBlue Airways (NASDAQ: JBLU- Free Report ). 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 JBLU - 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.
|
16bf0868-7ff6-432f-b7a4-af370107b57d
|
7525.0
|
2017-05-10 00:00:00 UTC
|
Ex-Dividend Reminder: Skyworks Solutions, Xilinx and American Airlines Group
|
AAL
|
https://www.nasdaq.com/articles/ex-dividend-reminder-skyworks-solutions-xilinx-and-american-airlines-group-2017-05-10
|
nan
|
nan
|
Looking at the universe of stocks we cover at Dividend Channel , on 5/12/17, Skyworks Solutions, Inc. (Symbol: SWKS), Xilinx, Inc. (Symbol: XLNX), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Skyworks Solutions, Inc. will pay its quarterly dividend of $0.28 on 6/6/17, Xilinx, Inc. will pay its quarterly dividend of $0.35 on 6/1/17, and American Airlines Group Inc will pay its quarterly dividend of $0.10 on 5/30/17. As a percentage of SWKS's recent stock price of $102.68, this dividend works out to approximately 0.27%, so look for shares of Skyworks Solutions, Inc. to trade 0.27% lower - all else being equal - when SWKS shares open for trading on 5/12/17. Similarly, investors should look for XLNX to open 0.54% lower in price and for AAL to open 0.21% lower, all else being equal.
Below are dividend history charts for SWKS, XLNX, and AAL, showing historical dividends prior to the most recent ones declared.
Skyworks Solutions, Inc. (Symbol: SWKS) :
Xilinx, Inc. (Symbol: XLNX) :
American Airlines Group Inc (Symbol: AAL) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.09% for Skyworks Solutions, Inc., 2.16% for Xilinx, Inc., and 0.85% for American Airlines Group Inc.
In Wednesday trading, Skyworks Solutions, Inc. shares are currently up about 0.7%, Xilinx, Inc. shares are trading flat, and American Airlines Group Inc shares are up about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at the universe of stocks we cover at Dividend Channel , on 5/12/17, Skyworks Solutions, Inc. (Symbol: SWKS), Xilinx, Inc. (Symbol: XLNX), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for XLNX to open 0.54% lower in price and for AAL to open 0.21% lower, all else being equal. Below are dividend history charts for SWKS, XLNX, and AAL, showing historical dividends prior to the most recent ones declared.
|
Looking at the universe of stocks we cover at Dividend Channel , on 5/12/17, Skyworks Solutions, Inc. (Symbol: SWKS), Xilinx, Inc. (Symbol: XLNX), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Skyworks Solutions, Inc. (Symbol: SWKS) : Xilinx, Inc. (Symbol: XLNX) : American Airlines Group Inc (Symbol: AAL) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for XLNX to open 0.54% lower in price and for AAL to open 0.21% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel , on 5/12/17, Skyworks Solutions, Inc. (Symbol: SWKS), Xilinx, Inc. (Symbol: XLNX), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Skyworks Solutions, Inc. (Symbol: SWKS) : Xilinx, Inc. (Symbol: XLNX) : American Airlines Group Inc (Symbol: AAL) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for XLNX to open 0.54% lower in price and for AAL to open 0.21% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel , on 5/12/17, Skyworks Solutions, Inc. (Symbol: SWKS), Xilinx, Inc. (Symbol: XLNX), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for XLNX to open 0.54% lower in price and for AAL to open 0.21% lower, all else being equal. Below are dividend history charts for SWKS, XLNX, and AAL, showing historical dividends prior to the most recent ones declared.
|
ca3c6c18-5ffc-4d61-8167-ba4d54b7279e
|
7526.0
|
2017-05-10 00:00:00 UTC
|
Stock Market News for May 10, 2017
|
AAL
|
https://www.nasdaq.com/articles/stock-market-news-for-may-10-2017-2017-05-10
|
nan
|
nan
|
The Nasdaq notched record high on Tuesday after Apple's market value broke through the $800 billion barrier for the first time. The S&P 500 and the Dow, however, closed lower after North Korean ambassador to the UK said that the country will proceed with its sixth nuclear test. Additionally, drop in oil prices adversely affected energy shares.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) declined 0.2% to close at 20,975.78. The S&P 500 fell 0.1% to close at 2,396.92 retreating from intraday record of 2,403.84. The tech-laden Nasdaq Composite Index advanced 0.3% to a record close at 6,120.59. The fear-gauge CBOE Volatility Index (VIX) finished below 10, close to levels not seen since late 2006. Decliners outnumbered advancing stocks on the NYSE by a 1.27 to 1 ratio.
Nasdaq Boosted By Apple
The tech-laden Nasdaq finished at a record high after reaching an intraday high of 6,133.00. The upside was driven by news about Apple's AAPL impressive total market capitalization that crossed $800 billion. Shares of the company rose 0.6% on Tuesday.
According to the company's latest quarterly report, Apple's shares exceeded a price of $153.44 per share and the company's 5.214 billion outstanding shares takes its total market capitalization just above $800 billion.
North Korean Ambassador's Comments
North Korean ambassador to the UK, Choe Il on Tuesday commented that North Korea is ready to conduct its sixth nuclear test. Choe Il went a step ahead by threatening to destroy U.S. strategic assets in case U.S. makes any provocations. These comments had an adverse impact on investors' sentiments which ultimately had a negative impact on the broader market.
Oil Prices Drop
Oil prices settled lower on Tuesday as investors kept a close watch on rising U.S. crude production amid Saudi Arabia's oil minister Khalid Al-Falih's comments regarding a possible extension of cuts in crude production by major oil producers.
Investors digested the short-term Energy Outlook report released by the U.S. Energy Information Administration (EIA) on Tuesday. The EIA predicted U.S. crude production would increase at an average 9.31 million barrels per day in the current year, an increase of 1% from the earlier forecast. Moreover, EIA projects next year's output at 9.96 million barrels per day, an increase of 0.6% from the earlier prediction.
Fall in oil prices dragged down energy shares, which ultimately had an adverse impact on the broader market. WTI crude prices dropped by $0.55, or 1.2%, to $45.88 a barrel. The broader Energy Select Sector SPDR (XLE) declined 0.8%, emerging as the worst performing sectors of S&P 500. Some of the key holdings of the energy sector in the S&P 500 including Chevron Corp CVX , ConocoPhillips COP and Occidental Petroleum OXY fell by 1.5%, 1.8% and 1.2% respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Stocks that made Headlines
American Airlines Up on Record April Traffic, Upbeat Q2 View
Premier passenger carrier, American Airlines Group Inc. AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. ( Read More )
Cincinnati Bell Reports Narrower-than-Expected Q1 Loss
Cincinnati Bell Inc. CBB reported mixed financial numbers in the first quarter of 2017. ( Read More )
Electronic Arts Q4 Earnings Decrease, Revenues Rise Y/Y
Electronic Arts EA reported fourth-quarter fiscal 2017 results, wherein the company reported earnings (on a GAAP basis) of $1.81 per share compared with the prior-year quarter's earnings of $2.79. ( Read More )
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum from stocks under $10 to ETF to option movers from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
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
Cincinnati Bell Inc (CBB): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
ConocoPhillips (COP): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): Free Stock Analysis Report
Electronic Arts Inc. (EA): 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.
|
Stocks that made Headlines American Airlines Up on Record April Traffic, Upbeat Q2 View Premier passenger carrier, American Airlines Group Inc. AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cincinnati Bell Inc (CBB): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Occidental Petroleum Corporation (OXY): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. The S&P 500 and the Dow, however, closed lower after North Korean ambassador to the UK said that the country will proceed with its sixth nuclear test.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cincinnati Bell Inc (CBB): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Occidental Petroleum Corporation (OXY): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks that made Headlines American Airlines Up on Record April Traffic, Upbeat Q2 View Premier passenger carrier, American Airlines Group Inc. AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. According to the company's latest quarterly report, Apple's shares exceeded a price of $153.44 per share and the company's 5.214 billion outstanding shares takes its total market capitalization just above $800 billion.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cincinnati Bell Inc (CBB): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Occidental Petroleum Corporation (OXY): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks that made Headlines American Airlines Up on Record April Traffic, Upbeat Q2 View Premier passenger carrier, American Airlines Group Inc. AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. According to the company's latest quarterly report, Apple's shares exceeded a price of $153.44 per share and the company's 5.214 billion outstanding shares takes its total market capitalization just above $800 billion.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cincinnati Bell Inc (CBB): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Occidental Petroleum Corporation (OXY): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks that made Headlines American Airlines Up on Record April Traffic, Upbeat Q2 View Premier passenger carrier, American Airlines Group Inc. AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. The tech-laden Nasdaq Composite Index advanced 0.3% to a record close at 6,120.59.
|
2298881e-d624-4e7e-a928-e7058b6fa181
|
7527.0
|
2017-05-10 00:00:00 UTC
|
American Airlines Up on Record April Traffic, Upbeat Q2 View
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-up-on-record-april-traffic-upbeat-q2-view-2017-05-10
|
nan
|
nan
|
Premier passenger carrier, American Airlines Group Inc.AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. The company witnessed a 3.1% rise in traffic, which is measured in revenue passenger miles (RPMs), to $18.6 billion from $18 billion reported a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.8% to $22.6 billion. Moreover, the load factor or percentage of seats filled by passengers increased to 82.2% from 80.4% in Apr 2016 as traffic growth outpaced capacity expansion.
On a year-to-date basis, the carrier registered a 0.3% decline in RPMs to $69.6 billion, while ASMs declined 0.6% to $87 billion, both on a year-over-year basis. Also, load factor increased 20 basis points (bps) year over year to 80%. Moreover, passenger count (PAX) grew 0.8%, while it declined 0.7% on a year-to-date basis.
American Airlines has raised its projections for the second quarter of 2017. The company expects total revenue per available seat mile (TRASM) growth in the band 3.5%-5.5% year over year. Pre-tax margin (excluding special items) in the second quarter is estimated in the range of 12%-14%. The company's prior guidance for TRASM was 3%-5%, while that for pre-tax margin was 11%-13%.
The company recently reported first-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and revenues. The carrier's adjusted earnings of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Revenues of $9,624 million edged past the Zacks Consensus Estimate of $9,621.3 million. Airline heavyweights like Southwest Airlines LUV and Alaska Air Group ALK have also reported their financial numbers over the past few weeks.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
Zacks Rank & Key Pick
American Airlines currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Deutsche Lufthansa AG DLAKY , which carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Shares of Deutsche Lufthansa have rallied 39.84% on a year-to-date basis.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
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
Deutsche Lufthansa AG (DLAKY): 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.
|
Premier passenger carrier, American Airlines Group Inc.AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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. Moreover, the load factor or percentage of seats filled by passengers increased to 82.2% from 80.4% in Apr 2016 as traffic growth outpaced capacity expansion.
|
Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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. Premier passenger carrier, American Airlines Group Inc.AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote Zacks Rank & Key Pick American Airlines currently carries a Zacks Rank #3 (Hold).
|
Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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. Premier passenger carrier, American Airlines Group Inc.AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. The company witnessed a 3.1% rise in traffic, which is measured in revenue passenger miles (RPMs), to $18.6 billion from $18 billion reported a year ago.
|
Premier passenger carrier, American Airlines Group Inc.AAL saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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 company witnessed a 3.1% rise in traffic, which is measured in revenue passenger miles (RPMs), to $18.6 billion from $18 billion reported a year ago.
|
e49d4c96-c95d-4da5-8c02-d7166e37dd7e
|
7528.0
|
2017-05-09 00:00:00 UTC
|
Shares of Spirit Airlines (SAVE) Tumble After Flight Cancellations, Airport Chaos
|
AAL
|
https://www.nasdaq.com/articles/shares-spirit-airlines-save-tumble-after-flight-cancellations-airport-chaos-2017-05-09
|
nan
|
nan
|
On Tuesday, shares of discount airliner Spirit Airlines SAVE are tumbling, down about 3.8% in late-morning trading after the company had to abruptly cancel nine flights Monday evening, with passenger frustration culminating in fights with Spirit employees at Fort Lauderdale-Hollywood International Airport in Florida.
In the latest incident of airline chaos, multiple videos were posted online showing altercations that had broken out between travelers and airline employees, with authorities doing their best to restore order. While some passengers were pulled aside from the crowd, others were forcibly taken to the ground or placed in handcuffs.
But problems have certainly been building for Spirit, as the airline had to cancel almost 300 flights over the past seven days due to its lawsuit against its own pilot union. The airline alleges "an unlawful job action by Spirit pilots," and said that the Air Line Pilots Association (APLA) and some of its members are "purposely and unlawfully disrupting [its] operations."
CNN notes that just on Sunday, the airline had to cancel 81 flights, "comprising 17% of the carrier's scheduled flights for the day." And, Spirit estimates roughly 20,000 customers have been affected by the lawsuit.
"The Spirit pilots' concerted refusal to accept junior assignments or pick up open time flying has dramatically impacted Spirit's operations leading to cancellations throughout its system, and most particularly for flights departing from Fort Lauderdale, Chicago-O'Hare, Detroit, and Las Vegas," said the airline.
ALPA has denied the allegations, and said that Spirit's suit is "unwarranted and counterproductive legal action."
Spirit is the latest airline company to be embroiled in a public relations disaster since United's UAL passenger-dragging incident in Chicago on April 9. Since then, customer service on flights have been in the spotlight, with many events captured on video and making headlines: the death of a beloved giant rabbit on a United flight; an American Airline AAL flight attendant allegedly yanking a stroller from a mother; and a family being kicked off a Delta DAL flight over a dispute about a toddler's ticketed seat .
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Could you imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United 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.
|
Since then, customer service on flights have been in the spotlight, with many events captured on video and making headlines: the death of a beloved giant rabbit on a United flight; an American Airline AAL flight attendant allegedly yanking a stroller from a mother; and a family being kicked off a Delta DAL flight over a dispute about a toddler's ticketed seat . 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. On Tuesday, shares of discount airliner Spirit Airlines SAVE are tumbling, down about 3.8% in late-morning trading after the company had to abruptly cancel nine flights Monday evening, with passenger frustration culminating in fights with Spirit employees at Fort Lauderdale-Hollywood International Airport in Florida.
|
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. Since then, customer service on flights have been in the spotlight, with many events captured on video and making headlines: the death of a beloved giant rabbit on a United flight; an American Airline AAL flight attendant allegedly yanking a stroller from a mother; and a family being kicked off a Delta DAL flight over a dispute about a toddler's ticketed seat . Download this IPO Watch List today for free >> Want the latest recommendations from Zacks Investment Research?
|
Since then, customer service on flights have been in the spotlight, with many events captured on video and making headlines: the death of a beloved giant rabbit on a United flight; an American Airline AAL flight attendant allegedly yanking a stroller from a mother; and a family being kicked off a Delta DAL flight over a dispute about a toddler's ticketed seat . 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. On Tuesday, shares of discount airliner Spirit Airlines SAVE are tumbling, down about 3.8% in late-morning trading after the company had to abruptly cancel nine flights Monday evening, with passenger frustration culminating in fights with Spirit employees at Fort Lauderdale-Hollywood International Airport in Florida.
|
Since then, customer service on flights have been in the spotlight, with many events captured on video and making headlines: the death of a beloved giant rabbit on a United flight; an American Airline AAL flight attendant allegedly yanking a stroller from a mother; and a family being kicked off a Delta DAL flight over a dispute about a toddler's ticketed seat . 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. But problems have certainly been building for Spirit, as the airline had to cancel almost 300 flights over the past seven days due to its lawsuit against its own pilot union.
|
fcffdb41-063c-412e-9a68-2356171a01f0
|
7529.0
|
2017-05-09 00:00:00 UTC
|
Apple, Airlines Get Buffett Boost, But Dow ETF Turns Negative
|
AAL
|
https://www.nasdaq.com/articles/apple-airlines-get-buffett-boost-dow-etf-turns-negative-2017-05-09
|
nan
|
nan
|
U.S. Global Jets ( JETS ) rose to a new high Tuesday as American Airlines ( AAL ) and United Continental ( UAL ) soared more than 5% each.
The ETF sailed past a 29.67 buy point of a cup with handle and remains in buy range. It advanced 18% the last time it broke out from a cup base in early November.
American, which raised Q2 unit revenue and pretax margin forecasts , is just shy of a 47.49 buy point. United on Monday reported strong April traffic figures; shares cleared a 76.90 entry en route to a new high. Warren Buffett, whose Berkshire Hathaway (BRKA) is a big holder of airline stocks.
SPDR Dow Jones Industrial Average ETF Trust ( DIA ) turned slightly negative despite a new high from Apple ( AAPL ).
The iPhone maker hit another new high as it rose nearly 1%. Buffett raised his company's Apple stake in Q1, according to a Berkshire Hathaway (BRKA) regulatory filing.
U.S. and emerging markets ETFs scored gains, while oil and gold funds underperformed.
Direxion Daily Emerging Markets Bull 3X Shares (EDC) gapped up and rose 4%, surging back above a 78.85 base-on-base buy point. It gained 13% between the two bases.
IShares MSCI Emerging Markets (EEM) added 1.3%. The ETF has about 25% of assets in China, with Alibaba (BABA) as one of the top 10 holdings. The Chinese online retail giant was up more than 2% as it neared its all-time highs.
ProShares UltraPro QQQ (TQQQ) gained 1% to a record best. It's extended from a mid-April bounce off the 50-day moving average. PowerShares QQQ Trust (QQQ) climbed 0.3%.
Among sector funds, gold and oil plays underperformed, though gold ETFs pared earlier losses. VanEck Vectors Junior Gold Miners (GDXJ) and VanEck Vectors Gold Miners (GDX) were down 1.2% and 0.7% respectively, while VanEck Vectors Oil Services (OIH) and SPDR S&P Oil & Gas Exploration & Production (XOP) lost about 1% each.
West Texas intermediate crude prices slid 1% to below $46 a barrel; gold futures fell 0.8% to $1,217.90 an ounce. In the commodity space, SPDR Gold Trust (GLD), iShares Gold Trust (IAU) and United States Oil Fund (USO) dipped more than 0.8% each.
On the upside, SPDR S&P Retail (XRT) and iShares U.S. Home Construction (ITB) both rose more than 1%.
RELATED:
Find out what's happening in the stock market today .
Why Buffett Still Isn't Sure If He'd Buy Amazon, Alphabet Stock Now
Apple Lifts Dow ETF; Tech Fund Hits Highest Level Since 2000
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Global Jets ( JETS ) rose to a new high Tuesday as American Airlines ( AAL ) and United Continental ( UAL ) soared more than 5% each. United on Monday reported strong April traffic figures; shares cleared a 76.90 entry en route to a new high. SPDR Dow Jones Industrial Average ETF Trust ( DIA ) turned slightly negative despite a new high from Apple ( AAPL ).
|
Global Jets ( JETS ) rose to a new high Tuesday as American Airlines ( AAL ) and United Continental ( UAL ) soared more than 5% each. U.S. and emerging markets ETFs scored gains, while oil and gold funds underperformed. VanEck Vectors Junior Gold Miners (GDXJ) and VanEck Vectors Gold Miners (GDX) were down 1.2% and 0.7% respectively, while VanEck Vectors Oil Services (OIH) and SPDR S&P Oil & Gas Exploration & Production (XOP) lost about 1% each.
|
Global Jets ( JETS ) rose to a new high Tuesday as American Airlines ( AAL ) and United Continental ( UAL ) soared more than 5% each. VanEck Vectors Junior Gold Miners (GDXJ) and VanEck Vectors Gold Miners (GDX) were down 1.2% and 0.7% respectively, while VanEck Vectors Oil Services (OIH) and SPDR S&P Oil & Gas Exploration & Production (XOP) lost about 1% each. In the commodity space, SPDR Gold Trust (GLD), iShares Gold Trust (IAU) and United States Oil Fund (USO) dipped more than 0.8% each.
|
Global Jets ( JETS ) rose to a new high Tuesday as American Airlines ( AAL ) and United Continental ( UAL ) soared more than 5% each. Warren Buffett, whose Berkshire Hathaway (BRKA) is a big holder of airline stocks. U.S. and emerging markets ETFs scored gains, while oil and gold funds underperformed.
|
a091433d-a41c-4129-aefd-049f18808ab2
|
7530.0
|
2017-05-09 00:00:00 UTC
|
Why American Airlines Stock Jumped 5% Today
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-stock-jumped-5-today-2017-05-09
|
nan
|
nan
|
What happened
Shares of American Airlines Group (NASDAQ: AAL) leapt as much as 5% higher in Tuesday trading, before settling down to book a 4.8% gain by market close.
So what
American Airlines reported its April and year-to-date traffic results earlier today. Total revenue passenger miles (RPMs) hit a record 18.6 billion in April, up 3.1% versus April 2016. Although the airline increased capacity (total seats flying) by 0.8% year over year, it increased the pace at which it put passengers in those seats even faster. The airline's passenger load factor -- the percentage of seats flying that were occupied by paying passengers -- increased to 82.2%, up 180 basis points over last April.
This marked a bit of a turnaround from results earlier this year. To date, 2017 RPMs have been down 0.3% year over year, while capacity has been down 0.6%, and the load factor is up only 0.2%.
Now what
In other words, while some investors might be concerned to see American Airlines adding capacity (given that more capacity increases the chance that some will go unutilized, hurting profits), so far things seem to be working out well. American is putting more planes into service and it's still filling those planes more efficiently.
This quarter, American Airlines says it could conceivably grow revenues as much as 3.5% to 5.5%, and expects to earn operating profit margins of between 12% and 14% on those revenues. This good news has the potential to inspire a rash of analyst upgrades before earnings come out.
Little wonder investors are positioning themselves to benefit if and when those upgrades materialize.
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 May 1, 2017
Rich Smith has no position in any 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.
|
What happened Shares of American Airlines Group (NASDAQ: AAL) leapt as much as 5% higher in Tuesday trading, before settling down to book a 4.8% gain by market close. So what American Airlines reported its April and year-to-date traffic results earlier today. * 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!
|
What happened Shares of American Airlines Group (NASDAQ: AAL) leapt as much as 5% higher in Tuesday trading, before settling down to book a 4.8% gain by market close. Although the airline increased capacity (total seats flying) by 0.8% year over year, it increased the pace at which it put passengers in those seats even faster. The airline's passenger load factor -- the percentage of seats flying that were occupied by paying passengers -- increased to 82.2%, up 180 basis points over last April.
|
What happened Shares of American Airlines Group (NASDAQ: AAL) leapt as much as 5% higher in Tuesday trading, before settling down to book a 4.8% gain by market close. Although the airline increased capacity (total seats flying) by 0.8% year over year, it increased the pace at which it put passengers in those seats even faster. 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.
|
What happened Shares of American Airlines Group (NASDAQ: AAL) leapt as much as 5% higher in Tuesday trading, before settling down to book a 4.8% gain by market close. Total revenue passenger miles (RPMs) hit a record 18.6 billion in April, up 3.1% versus April 2016. Although the airline increased capacity (total seats flying) by 0.8% year over year, it increased the pace at which it put passengers in those seats even faster.
|
7742fcc0-4647-4fd9-84c7-331d38275904
|
7531.0
|
2017-05-09 00:00:00 UTC
|
Noteworthy Tuesday Option Activity: AAL, TGNA, TSO
|
AAL
|
https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-aal-tgna-tso-2017-05-09
|
nan
|
nan
|
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 56,745 contracts have traded so far, representing approximately 5.7 million underlying shares. That amounts to about 76.8% of AAL's average daily trading volume over the past month of 7.4 million shares. Especially high volume was seen for the $45 strike call option expiring May 19, 2017 , with 3,579 contracts trading so far today, representing approximately 357,900 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $45 strike highlighted in orange:
TEGNA Inc (Symbol: TGNA) saw options trading volume of 11,621 contracts, representing approximately 1.2 million underlying shares or approximately 53.5% of TGNA's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $26 strike call option expiring July 21, 2017 , with 4,044 contracts trading so far today, representing approximately 404,400 underlying shares of TGNA. Below is a chart showing TGNA's trailing twelve month trading history, with the $26 strike highlighted in orange:
And Tesoro Corporation (Symbol: TSO) options are showing a volume of 9,912 contracts thus far today. That number of contracts represents approximately 991,200 underlying shares, working out to a sizeable 52% of TSO's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $100 strike call option expiring June 16, 2017 , with 1,251 contracts trading so far today, representing approximately 125,100 underlying shares of TSO. Below is a chart showing TSO's trailing twelve month trading history, with the $100 strike highlighted in orange:
For the various different available expirations for AAL options , TGNA options , or TSO 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.
|
Especially high volume was seen for the $45 strike call option expiring May 19, 2017 , with 3,579 contracts trading so far today, representing approximately 357,900 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 56,745 contracts have traded so far, representing approximately 5.7 million underlying shares. That amounts to about 76.8% of AAL's average daily trading volume over the past month of 7.4 million shares.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $45 strike highlighted in orange: TEGNA Inc (Symbol: TGNA) saw options trading volume of 11,621 contracts, representing approximately 1.2 million underlying shares or approximately 53.5% of TGNA's average daily trading volume over the past month, of 2.2 million shares. Below is a chart showing TSO's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for AAL options , TGNA options , or TSO options , visit StockOptionsChannel.com. 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 56,745 contracts have traded so far, representing approximately 5.7 million underlying shares.
|
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 56,745 contracts have traded so far, representing approximately 5.7 million underlying shares. Especially high volume was seen for the $45 strike call option expiring May 19, 2017 , with 3,579 contracts trading so far today, representing approximately 357,900 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $45 strike highlighted in orange: TEGNA Inc (Symbol: TGNA) saw options trading volume of 11,621 contracts, representing approximately 1.2 million underlying shares or approximately 53.5% of TGNA's average daily trading volume over the past month, of 2.2 million shares.
|
Below is a chart showing AAL's trailing twelve month trading history, with the $45 strike highlighted in orange: TEGNA Inc (Symbol: TGNA) saw options trading volume of 11,621 contracts, representing approximately 1.2 million underlying shares or approximately 53.5% of TGNA's average daily trading volume over the past month, of 2.2 million shares. 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 56,745 contracts have traded so far, representing approximately 5.7 million underlying shares. That amounts to about 76.8% of AAL's average daily trading volume over the past month of 7.4 million shares.
|
2df6b899-445c-4ca8-8e8b-9ba0afd63ae8
|
7532.0
|
2017-05-07 00:00:00 UTC
|
Your Airplane Seat May Be About to Shrink Once Again
|
AAL
|
https://www.nasdaq.com/articles/your-airplane-seat-may-be-about-shrink-once-again-2017-05-07
|
nan
|
nan
|
Back in 2000, typical coach seats on airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) had 32 inches of pitch (the distance between rows). Some rows on some planes might have had only 31 inches of seat pitch, but that was an absolute minimum.
However, in the years since the Great Recession, legroom has been shrinking steadily. Last week, American Airlines revealed that it plans to push the boundaries even further on its new Boeing 737 MAX planes, which start to arrive this fall.
Economy seats on American's 737 MAX will have a maximum of 30 inches of pitch -- and a handful of unlucky customers will be stuck with just 29 inches of legroom.
Legroom has been shrinking for a while
In the first decade of the new millennium, U.S. airlines faced enormous challenges. The 9/11 attacks and the recession both caused air travel demand to plummet. In between those events, airlines had to cope with a massive spike in oil prices .
One way that airlines responded was by bulking up through a wave of mergers. Today, American, Delta, United, and Southwest account for more than 80% of U.S. airline capacity. Airlines also reacted by cutting costs, most notably by squeezing more seats onto each plane.
In recent years, airlines have rebounded to earn record profits. However, the urge to reduce costs by cutting legroom hasn't gone away.
Virtually all of the U.S. airlines have reconfigured their planes in the past few years to add more seats. Some still have coach seats with 32 inches of pitch, but 31 inches is the new normal. Furthermore, American, Delta, and United have all experimented with 30 inches of seat pitch on some aircraft types. Unfortunately, the shift toward tighter seating configurations doesn't seem to be over.
American Airlines wants to go further
Just a few years ago, American Airlines offered the most generous legroom in the industry on its 737-800 jets. However, during 2014, it added 10 seats to each of those planes, bringing them in line with what was then the industry standard of 160 seats.
The new 737 MAX 8 model is the same size as the 737-800. However, American Airlines plans to squeeze 172 seats onto the 737 MAX 8. It will gain some room by installing space-saving lavatories. But the main way to squeeze more rows in is to reduce legroom. The economy rows will have a maximum of 30 inches of seat pitch, and three rows will have 29 inches of pitch.
By contrast, Delta has 160 seats on its 737-800s, with 31-32 inches of pitch in coach. United has squeezed 166 seats onto most of its 737-800s, reducing its seat pitch in coach to 30 inches, but some planes still have 154 seats and thus more legroom. Lastly, Southwest has 175 seats on its 737-800s but still has at least 32 inches of pitch for each row because it has no first class section.
American Airlines claims that passengers won't notice the loss of legroom because of the slim design of its economy seats. However, while that may be true for the rows with 30 inches of pitch, it's more doubtful for the rows that offer just 29 inches of seat pitch. American hasn't committed to identifying those rows in any special way before customers book their seats.
In an even more ominous sign for airline passengers, American Airlines has said that it may retrofit its roughly 300 737-800s with this cramped 172-seat configuration. United Airlines is considering similar changes to increase seating density.
This isn't the right way to cut costs
American Airlines certainly needs to reduce its costs in order to match the stronger profit margins of peers like Delta Air Lines and Southwest Airlines. It's no surprise that United is considering a similar move, as it has also routinely lagged the rest of the industry in terms of margin performance.
However, these carriers should be reducing their costs through productivity improvements that don't impact customers (or even improve the passenger experience). Cutting legroom will drive some customers toward the few carriers that offer more legroom and better service, while convincing others that there's no reason to pay even $1 extra to fly American or United rather than the cheapest budget carrier.
American Airlines executives may figure that most business travelers will upgrade to seats with more legroom anyway, while the masses are just looking for the cheapest ticket. Perhaps they are right. But if not, then American risks severely damaging its brand with this move to pack even more passengers onto its planes.
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 May 1, 2017
Adam Levine-Weinberg owns shares of Boeing and 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.
|
Back in 2000, typical coach seats on airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) had 32 inches of pitch (the distance between rows). Last week, American Airlines revealed that it plans to push the boundaries even further on its new Boeing 737 MAX planes, which start to arrive this fall. American Airlines claims that passengers won't notice the loss of legroom because of the slim design of its economy seats.
|
Back in 2000, typical coach seats on airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) had 32 inches of pitch (the distance between rows). This isn't the right way to cut costs American Airlines certainly needs to reduce its costs in order to match the stronger profit margins of peers like Delta Air Lines and Southwest Airlines. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
|
Back in 2000, typical coach seats on airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) had 32 inches of pitch (the distance between rows). United has squeezed 166 seats onto most of its 737-800s, reducing its seat pitch in coach to 30 inches, but some planes still have 154 seats and thus more legroom. This isn't the right way to cut costs American Airlines certainly needs to reduce its costs in order to match the stronger profit margins of peers like Delta Air Lines and Southwest Airlines.
|
Back in 2000, typical coach seats on airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) had 32 inches of pitch (the distance between rows). Economy seats on American's 737 MAX will have a maximum of 30 inches of pitch -- and a handful of unlucky customers will be stuck with just 29 inches of legroom. United has squeezed 166 seats onto most of its 737-800s, reducing its seat pitch in coach to 30 inches, but some planes still have 154 seats and thus more legroom.
|
96278f9d-b31f-499c-9524-e893e541f4ea
|
7533.0
|
2017-05-06 00:00:00 UTC
|
Will American Airlines Ever Buy the Airbus A350?
|
AAL
|
https://www.nasdaq.com/articles/will-american-airlines-ever-buy-airbus-a350-2017-05-06
|
nan
|
nan
|
American Airlines (NASDAQ: AAL) is one of Airbus ' (NASDAQOTH: EADSY) top customers. However, its commitment to one of Airbus' key models seems to be wavering.
Less than a year ago, American Airlines deferred its order for 22 A350 widebodies . The largest U.S. airline had originally planned to take delivery of 14 A350s in the 2017-2018 period. This deferral pushed back its first two deliveries to late 2018, with the rest scheduled to arrive between 2019 and 2022.
Late last month, American Airlines announced that it had deferred its entire A350 order by another two years. While the company still claims that it will eventually add the A350 to its fleet, it's not clear that it will ever make sense for American to go through with the order.
Reducing capital expenditures
For the past few years, American Airlines has spent heavily to modernize its fleet. But in the past year or so, as its profitability has come under pressure, the company has started to focus more on keeping capex in check. (American has also needed to reduce its international growth in light of challenging market conditions.)
Holding down capex will be particularly important in the next few years, as American Airlines has scheduled debt maturities totaling $12 billion between 2018 and 2021.
According to American Airlines CFO Derek Kerr, last year's A350 deferral reduced the company's capex by roughly $500 million in 2017 and $700 million in 2018. The more recent deferral will save another $500 million in 2018 and $300 million each in 2019 and 2020.
Does American Airlines need more widebodies?
Even after the most recent deferral, it's not clear that American Airlines will need the A350s when they are scheduled to arrive. Thanks to its recent fleet modernization program, the carrier doesn't have many planes left that need to be retired in the near term.
The Airbus A350 could be a good replacement for American's fleet of 47 Boeing (NYSE: BA) 777-200ERs. However, those planes are just 16 years old, on average. Furthermore, the Boeing 777 is an exceptionally reliable model, and American is in the midst of refurbishing this fleet to add seats to each plane (and thus reduce unit costs). All in all, these planes probably still have a decade of life left.
Alternatively, American Airlines may plan to use its A350s for growth rather than replacement. But future long-haul growth is contingent on a better supply-demand balance in international markets. If international routes remain flooded with excess capacity a couple of years from now, American might just kick the can further down the road by deferring the A350s again.
The A350-900 has a lot of overlap with Boeing's widebodies
Another issue that American Airlines must consider is the overlap between the A350 and its Boeing 777 and Boeing 787 fleets. While American has deferred its A350 deliveries twice in the past year, it has kept its order for Boeing's 787 Dreamliner more or less intact. By early 2019, it will have 42 Dreamliners in its fleet.
Given that American Airlines operates lots of 777s and 787s, it doesn't necessarily need to fly the A350 as well. The 777s and 787s are suited to the same types of long-haul markets as the A350.
By contrast, most of American's international flights are about 3,500-4,500 miles in length, such as flights from Miami to South America or from the Northeast to Europe. American Airlines might be better off converting its A350 order to the cheaper A330neo, which has plenty of range and competitive unit costs for routes of this length. This would further reduce its future capex commitments.
Airbus can afford the loss
It wouldn't necessarily be bad for Airbus if American Airlines chooses to convert its A350 order to the A330neo. The A350 has a long backlog, with more than 700 unfilled orders. And while Airbus only received three A350 orders during the first quarter, it recently bagged an order for 20 A350-900s from China Southern Airlines, indicating that demand remains healthy.
By contrast, Airbus has just over 200 A330neo orders, and many of those are scheduled for far in the future. In short, Airbus has much more of a need to sell A330neos than A350s. As a result, both sides could benefit from making a deal to swap American's endlessly deferred A350 orders for A330neos.
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 May 1, 2017
Adam Levine-Weinberg owns shares of Boeing. 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.
|
American Airlines (NASDAQ: AAL) is one of Airbus ' (NASDAQOTH: EADSY) top customers. Furthermore, the Boeing 777 is an exceptionally reliable model, and American is in the midst of refurbishing this fleet to add seats to each plane (and thus reduce unit costs). If international routes remain flooded with excess capacity a couple of years from now, American might just kick the can further down the road by deferring the A350s again.
|
American Airlines (NASDAQ: AAL) is one of Airbus ' (NASDAQOTH: EADSY) top customers. Less than a year ago, American Airlines deferred its order for 22 A350 widebodies . According to American Airlines CFO Derek Kerr, last year's A350 deferral reduced the company's capex by roughly $500 million in 2017 and $700 million in 2018.
|
American Airlines (NASDAQ: AAL) is one of Airbus ' (NASDAQOTH: EADSY) top customers. According to American Airlines CFO Derek Kerr, last year's A350 deferral reduced the company's capex by roughly $500 million in 2017 and $700 million in 2018. The A350-900 has a lot of overlap with Boeing's widebodies Another issue that American Airlines must consider is the overlap between the A350 and its Boeing 777 and Boeing 787 fleets.
|
American Airlines (NASDAQ: AAL) is one of Airbus ' (NASDAQOTH: EADSY) top customers. While American has deferred its A350 deliveries twice in the past year, it has kept its order for Boeing's 787 Dreamliner more or less intact. Airbus can afford the loss It wouldn't necessarily be bad for Airbus if American Airlines chooses to convert its A350 order to the A330neo.
|
4d980a22-7698-4ac5-80d2-a1343b1de7e4
|
7534.0
|
2017-05-03 00:00:00 UTC
|
Is This the Toughest Question Warren Buffett Can Expect This Weekend?
|
AAL
|
https://www.nasdaq.com/articles/toughest-question-warren-buffett-can-expect-weekend-2017-05-03
|
nan
|
nan
|
Warren Buffett is the most famous investor of all time, and his annual Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholder meetings have attained legendary status for the sheer number of attendees and the candor with which Buffett and his partner Charlie Munger speak about the company and its future prospects. Every year, Buffett faces some tough questions, and this year, some believe the Oracle of Omaha's recent change of mind regarding airline stocks could prompt a controversial query.
But will an airline question really be the toughest one Buffett faces? As I see it, there are some even tougher potential questions.
Buffett, airlines, and customer service
Buffett has a long history of hating the airline industry as an investment. He has used it as an example of a business where competitive advantages are hard to come by, where low-cost rivals can disrupt the entire business, and where even good times don't necessarily translate to long-term profit potential. Yet that didn't stop him from doing an about-face on airlines, arguing that the industry had moved past what he called "a bad 20th century" and should be able to control capacity more effectively going forward. That prompted investments in American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , Southwest Airlines (NYSE: LUV) , and United Continental Holdings (NYSE: UAL) .
It's that last holding that could bring controversial questions this weekend. CNBC anchor and longtime Buffett interviewer Becky Quick told The Motley Fool's Chris Hill on the latest episode of Motley Fool Money that she intends to ask Buffett about his view on United Airlines' recent controversy and the implications it has for customer service in the industry and Buffett's investment going forward.
However, in my view, that's not likely to be an especially tough question for Buffett to answer. The Oracle of Omaha has done a good job of cautiously expressing his views on Wells Fargo (NYSE: WFC) , another Berkshire holding recently plagued by scandal, saying the bank "made a huge mistake" by not responding more quickly to problems. Buffett hasn't changed his views on Wells Fargo, and he's unlikely to change his investing strategy with respect to United Continental.
3 tougher questions for Warren Buffett
There are some more difficult queries that shareholders should pose to the Berkshire Hathaway leader. Buffett will be able to answer them, but he probably won't enjoy doing it -- and the tough questions are often the ones that most need to be asked.
First, why haven't Berkshire's stock returns reflected the full book-value gains that the company has produced lately? Over the past 10 years, book value has climbed by a total of 145%, yet the share price of Berkshire stock is up only 122%. That difference isn't huge, and Buffett will simply say that Mr. Market isn't valuing Berkshire shares as fully as he might in the future. Nevertheless, with Buffett having used book value as a standard for making capital-allocation decisions in the past, this question could lead some to wonder whether stock buybacks could be on the horizon.
Second, will Berkshire make more large outright acquisitions? Lately, the Oracle of Omaha has contented himself with major investments in publicly traded companies; Berkshire's last major acquisition was the 2015 buyout of Precision Castparts. Speculation about future targets has ranged from insurers and other financial institutions to industrial companies of every kind, but for now, Buffett doesn't seem in a hurry to move forward.
Finally, in the context of Buffett's assertions that most investment managers can't add value over simply tracking a stock market index, isn't Berkshire's story itself a rebuttal to that philosophy? There's little question that on average, the higher fees investment managers charge take their toll on total returns. Yet Berkshire has outperformed the S&P 500 in terms of book value and market performance. Following Buffett's argument, some critics have questioned whether Buffett himself would chalk up his own success to blind luck. To be fair, Buffett has acknowledged that there are some smart investors who have the talent to outperform market benchmarks, but he's said that they're hard to identify in advance. The toughest question -- to which we'll never know the answer -- is this: If Buffett went back in time, would he have been able to identify his younger self as one of the few who could consistently outperform the stock market?
Warren Buffett will get plenty of questions this weekend, and many will be simple for him to answer. Having been at this for so long, Buffett is uniquely qualified to handle off-the-cuff questions with his trademark combination of down-home straight talk and well-earned authority. Whatever the questions are, those investors who listen to what Buffett has to say will definitely learn something new and valuable.
10 stocks we like better than Berkshire Hathaway (A shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of May 1, 2017
Dan Caplinger owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). 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.
|
That prompted investments in American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , Southwest Airlines (NYSE: LUV) , and United Continental Holdings (NYSE: UAL) . Yet that didn't stop him from doing an about-face on airlines, arguing that the industry had moved past what he called "a bad 20th century" and should be able to control capacity more effectively going forward. The Oracle of Omaha has done a good job of cautiously expressing his views on Wells Fargo (NYSE: WFC) , another Berkshire holding recently plagued by scandal, saying the bank "made a huge mistake" by not responding more quickly to problems.
|
That prompted investments in American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , Southwest Airlines (NYSE: LUV) , and United Continental Holdings (NYSE: UAL) . Every year, Buffett faces some tough questions, and this year, some believe the Oracle of Omaha's recent change of mind regarding airline stocks could prompt a controversial query. The Oracle of Omaha has done a good job of cautiously expressing his views on Wells Fargo (NYSE: WFC) , another Berkshire holding recently plagued by scandal, saying the bank "made a huge mistake" by not responding more quickly to problems.
|
That prompted investments in American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , Southwest Airlines (NYSE: LUV) , and United Continental Holdings (NYSE: UAL) . Warren Buffett is the most famous investor of all time, and his annual Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholder meetings have attained legendary status for the sheer number of attendees and the candor with which Buffett and his partner Charlie Munger speak about the company and its future prospects. CNBC anchor and longtime Buffett interviewer Becky Quick told The Motley Fool's Chris Hill on the latest episode of Motley Fool Money that she intends to ask Buffett about his view on United Airlines' recent controversy and the implications it has for customer service in the industry and Buffett's investment going forward.
|
That prompted investments in American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , Southwest Airlines (NYSE: LUV) , and United Continental Holdings (NYSE: UAL) . Every year, Buffett faces some tough questions, and this year, some believe the Oracle of Omaha's recent change of mind regarding airline stocks could prompt a controversial query. Over the past 10 years, book value has climbed by a total of 145%, yet the share price of Berkshire stock is up only 122%.
|
715bda21-d2e3-47f2-8dfd-276ae2bf6ef4
|
7535.0
|
2017-05-02 00:00:00 UTC
|
Can American Airlines Sustain Its Strong Unit Revenue Growth?
|
AAL
|
https://www.nasdaq.com/articles/can-american-airlines-sustain-its-strong-unit-revenue-growth-2017-05-02
|
nan
|
nan
|
Late last year, American Airlines (NASDAQ: AAL) became the first of the three big legacy carriers to return to unit revenue growth.
American maintained its advantage last quarter, posting solid increases in passenger revenue per available seat mile (PRASM) and total revenue per available seat mile (TRASM). Meanwhile, Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) both reported that unit revenue was roughly flat year over year.
However, direct comparisons between the three legacy carriers can be misleading because of differences in how they deploy their capacity by region. Let's take a closer look at how American Airlines is outperforming its peers in terms of unit revenue growth.
The three legacy carriers have different strengths
All three legacy carriers get the majority of their revenue from the domestic market. Yet even here, there are meaningful differences. Last quarter, American Airlines generated 74% of its revenue in the domestic region. Delta Air Lines was close behind, with 72% of its revenue coming from domestic routes. By contrast, United Continental has much more of a global focus, generating only 61% of its revenue in the domestic market.
Looking outside the U.S., there are even greater discrepancies in how the legacy carriers allocate capacity. American Airlines has historically been strong in Latin America. Despite a recent push to diversify, Latin America still accounts for more than half of American's international revenue.
Delta is more focused on the transatlantic market, which accounts for 41% of its international revenue. Lastly, United has the most balanced allocation of capacity, with the transatlantic and transpacific markets both driving a little more than a third of its international revenue, compared to 28% for Latin America.
American Airlines is the winner domestically
Within the domestic market, American Airlines is outperforming its competitors right now. Last quarter, its domestic PRASM rose 2.3%, compared to declines of 0.1% and 1.4% at United and Delta, respectively.
Clearly, American Airlines is benefiting from having its largest hub at Dallas-Fort Worth International Airport. The Dallas-Fort Worth metro area has seen sustained high population growth in recent years. Additionally, the regional economy is growing more than twice as fast as the national average, powered by a steady stream of corporate relocations.
American Airlines is also probably seeing a rebound in passengers connecting from Latin America to domestic flights in Miami. This connecting traffic had fallen off dramatically a couple of years ago, primarily due to economic weakness in Brazil.
That said, American Airlines isn't just profiting from its position in growing regional markets. It has also retooled its schedules in the past few years to enable more flight connections. This strategy seems to be having the intended effect of boosting unit revenue.
The international market is a mixed bag
In international markets, American Airlines' performance is more mixed. In Latin America, it posted strong, industry-leading PRASM growth of 7.7% last quarter. However, this likely reflects its disproportionate exposure to Brazil, where demand is bouncing back after collapsing beginning in 2014. (American Airlines has about twice as much market share in Brazil as Delta Air Lines and United Continental combined.)
American Airlines also outperformed in the Pacific region, with a 0.4% PRASM increase, compared to declines of about 4% at Delta and United. However, it was starting from a very low base. United -- the leader in the transpacific market -- produced PRASM that was 18% higher than American's in the region. The good news is that American Airlines still has plenty of room for improvement in Asia, which could drive future unit revenue gains.
By contrast, American Airlines was a distinct laggard in the transatlantic market, where its PRASM fell 5.9%. Delta's transatlantic PRASM was down 0.5%, and United actually posted a 2.1% increase in the region. Here, American Airlines may have been held back by its higher exposure to the U.K., where revenue has been negatively affected by Brexit.
The bottom line is that American modestly outperformed its competitors in the international market, but mainly because most of its international capacity is in Latin America. As year-over-year comparisons in Latin America get tougher later this year, American's international unit revenue growth may slow.
Can American Airlines maintain its lead?
For the second quarter, American Airlines has again forecast solid unit revenue growth that will outpace what Delta and United can achieve. However, by the second half of this year, American Airlines will start to face noticeably tougher year-over-year comparisons than its peers. This could whittle away its advantage.
That said, American Airlines does seem to have some genuine unit revenue momentum in the domestic market. The ongoing rollout of its new basic economy fares could drive further gains. Meanwhile, in the international market, it is officially launching its promising premium economy option later this week.
Thus, American Airlines has some tools to maintain its strong unit revenue growth later this year and into 2018. Nevertheless, American will clearly face more of an uphill climb going forward.
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 May 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.
|
Late last year, American Airlines (NASDAQ: AAL) became the first of the three big legacy carriers to return to unit revenue growth. Lastly, United has the most balanced allocation of capacity, with the transatlantic and transpacific markets both driving a little more than a third of its international revenue, compared to 28% for Latin America. The good news is that American Airlines still has plenty of room for improvement in Asia, which could drive future unit revenue gains.
|
Late last year, American Airlines (NASDAQ: AAL) became the first of the three big legacy carriers to return to unit revenue growth. American maintained its advantage last quarter, posting solid increases in passenger revenue per available seat mile (PRASM) and total revenue per available seat mile (TRASM). As year-over-year comparisons in Latin America get tougher later this year, American's international unit revenue growth may slow.
|
Late last year, American Airlines (NASDAQ: AAL) became the first of the three big legacy carriers to return to unit revenue growth. American Airlines is the winner domestically Within the domestic market, American Airlines is outperforming its competitors right now. For the second quarter, American Airlines has again forecast solid unit revenue growth that will outpace what Delta and United can achieve.
|
Late last year, American Airlines (NASDAQ: AAL) became the first of the three big legacy carriers to return to unit revenue growth. Lastly, United has the most balanced allocation of capacity, with the transatlantic and transpacific markets both driving a little more than a third of its international revenue, compared to 28% for Latin America. The bottom line is that American modestly outperformed its competitors in the international market, but mainly because most of its international capacity is in Latin America.
|
4a4f2ce4-4999-4675-86bf-a028e1687fe4
|
7536.0
|
2017-05-02 00:00:00 UTC
|
Noteworthy Tuesday Option Activity: DE, AAL, GM
|
AAL
|
https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-de-aal-gm-2017-05-02
|
nan
|
nan
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 11,799 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.5% of DE's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $110 strike put option expiring June 16, 2017 , with 4,646 contracts trading so far today, representing approximately 464,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $110 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,427 contracts, representing approximately 4.0 million underlying shares or approximately 55.8% of AAL's average daily trading volume over the past month, of 7.2 million shares. Especially high volume was seen for the $46 strike call option expiring June 16, 2017 , with 11,014 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange:
And General Motors Co. (Symbol: GM) saw options trading volume of 70,599 contracts, representing approximately 7.1 million underlying shares or approximately 53.8% of GM's average daily trading volume over the past month, of 13.1 million shares. Particularly high volume was seen for the $32.50 strike put option expiring May 05, 2017 , with 4,847 contracts trading so far today, representing approximately 484,700 underlying shares of GM. Below is a chart showing GM's trailing twelve month trading history, with the $32.50 strike highlighted in orange:
For the various different available expirations for DE options , AAL options , or GM 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.
|
Especially high volume was seen for the $46 strike call option expiring June 16, 2017 , with 11,014 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing DE's trailing twelve month trading history, with the $110 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,427 contracts, representing approximately 4.0 million underlying shares or approximately 55.8% of AAL's average daily trading volume over the past month, of 7.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: And General Motors Co. (Symbol: GM) saw options trading volume of 70,599 contracts, representing approximately 7.1 million underlying shares or approximately 53.8% of GM's average daily trading volume over the past month, of 13.1 million shares.
|
Below is a chart showing DE's trailing twelve month trading history, with the $110 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,427 contracts, representing approximately 4.0 million underlying shares or approximately 55.8% of AAL's average daily trading volume over the past month, of 7.2 million shares. Especially high volume was seen for the $46 strike call option expiring June 16, 2017 , with 11,014 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: And General Motors Co. (Symbol: GM) saw options trading volume of 70,599 contracts, representing approximately 7.1 million underlying shares or approximately 53.8% of GM's average daily trading volume over the past month, of 13.1 million shares.
|
Below is a chart showing DE's trailing twelve month trading history, with the $110 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,427 contracts, representing approximately 4.0 million underlying shares or approximately 55.8% of AAL's average daily trading volume over the past month, of 7.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: And General Motors Co. (Symbol: GM) saw options trading volume of 70,599 contracts, representing approximately 7.1 million underlying shares or approximately 53.8% of GM's average daily trading volume over the past month, of 13.1 million shares. Especially high volume was seen for the $46 strike call option expiring June 16, 2017 , with 11,014 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL.
|
Below is a chart showing DE's trailing twelve month trading history, with the $110 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 40,427 contracts, representing approximately 4.0 million underlying shares or approximately 55.8% of AAL's average daily trading volume over the past month, of 7.2 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: And General Motors Co. (Symbol: GM) saw options trading volume of 70,599 contracts, representing approximately 7.1 million underlying shares or approximately 53.8% of GM's average daily trading volume over the past month, of 13.1 million shares. Especially high volume was seen for the $46 strike call option expiring June 16, 2017 , with 11,014 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL.
|
f2967a24-4d36-413a-a3f1-3e3610579d42
|
7537.0
|
2017-05-01 00:00:00 UTC
|
United Continental Holdings Inc (UAL) Stock Is a Bargain
|
AAL
|
https://www.nasdaq.com/articles/united-continental-holdings-inc-ual-stock-is-a-bargain-2017-05-01
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For investors seeking big returns on turnaround plays, United Continental Holdings Inc (NYSE: UAL ) has to be worth considering. UAL stock crashed last month after the company forcefully dragged a man off a plane to seat its own employees, then completely mismanaged the public relations fallout.
Source: Shutterstock
United Continental shares are trading at just 10 times earnings, close to its airline peers like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ).
Despite the disaster, there remain millions of passengers who are dependent on the airline, who just don't have many choices. Some hubs, like Denver, are dominated by UAL. Small markets with few flights may offer few flight alternatives.
United, in short, is not going away.
UAL Stock Is a Bargain
United Continental reported earnings on April 17 , delivering fully diluted net income of $96 million, 31 cents per share, on revenues of $8.420 billion. Revenue was up 2.7% from a year earlier, although net income was down 69%.
7 Blue-Chip Stocks You Should Kick to the Curb
The news disappointed investors, the stock losing about $3 per share, but most of that loss has since been recovered, and UAL stock is now trading mid-way between its $76 per share high for the year and the low of $65 per share achieved in the immediate wake of the scandal.
CEO Oscar Munoz was hired in 2015 to turn the company around, having served on the United board and, before that, Continental Airlines' board for a decade, while rising to become chief operating officer at CSX Corporation (NASDAQ: CSX ), the railroad company.
Despite suffering a heart attack a month into his tenure, which required a heart transplant, Munoz was able to get the company's on-time performance up to a record level in 2016 . The company is operationally sound.
Munoz has been chastened by the March failure, and was denied a promotion to chairman that had been written into his employment contract. The CEO has been punished, and UAL stock has been punished.
Has it been punished enough? That's what investors like InvestorPlace contributor Josh Enomoto are asking.
United Continental: Inside the Numbers
Financially, UAL is not in bad shape. It has just $11.2 billion in long-term debt on $41.4 billion in assets. It had almost $4.4 billion in cash and short-term securities on its books at the end of March. In 2016, it delivered nearly $6 billion in operating cash flow.
Compare these values with those of American, which was selling at double its price-to-earnings ratio on Apr 24. On its report for the quarter ending in December, American had nearly $22.5 billion of long-term debt on $51.3 billion in assets. Its profit margin, $289 million on revenues of $9.8 billion, was nearly as poor as United, and its next numbers are expected to be in-line.
Is Amazon.com, Inc. (AMZN) Stock the Best of the FANG Group?
In short, things could be worse for UAL stock. It has the financial strength to get past its present scandal and stocks subject to scandals like this usually come back in time. It won't come back immediately, but it most likely will come back.
That is the conclusion of the analysts following the stock, 9 of whom rate it a buy against 8 who call it a hold, with one sitting on overweight.
The Bottom Line on UAL
Stupid on the scale of last month is not usually repeated. At the company's earnings call last week, analysts seemed anxious to look past the scandal , focusing on the company's growth initiatives and opportunities.
Of all the major U.S. airlines, UAL is the cheapest right now. If you even believe it can revert to the mean over the next year, the stock is cheap.
Dana Blankenhorn is a financial and technology journalist. He is the author of the political polemic Saving Trumpistan, Restoring Democracy , available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn . As of this writing, he owned no shares in companies mentioned in this story.
More From InvestorPlace
The 10 Best Stocks for the Next 1,361 Days of President Donald Trump
The 10 Best Cheap Stocks to Buy for $10 or Less
Is Owning BP plc (ADR) (BP) Stock More "Sinful" Than You Think?
The post United Continental Holdings Inc (UAL) Stock Is a Bargain 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.
|
Source: Shutterstock United Continental shares are trading at just 10 times earnings, close to its airline peers like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). UAL stock crashed last month after the company forcefully dragged a man off a plane to seat its own employees, then completely mismanaged the public relations fallout. UAL Stock Is a Bargain United Continental reported earnings on April 17 , delivering fully diluted net income of $96 million, 31 cents per share, on revenues of $8.420 billion.
|
Source: Shutterstock United Continental shares are trading at just 10 times earnings, close to its airline peers like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips For investors seeking big returns on turnaround plays, United Continental Holdings Inc (NYSE: UAL ) has to be worth considering. UAL Stock Is a Bargain United Continental reported earnings on April 17 , delivering fully diluted net income of $96 million, 31 cents per share, on revenues of $8.420 billion.
|
Source: Shutterstock United Continental shares are trading at just 10 times earnings, close to its airline peers like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips For investors seeking big returns on turnaround plays, United Continental Holdings Inc (NYSE: UAL ) has to be worth considering. UAL Stock Is a Bargain United Continental reported earnings on April 17 , delivering fully diluted net income of $96 million, 31 cents per share, on revenues of $8.420 billion.
|
Source: Shutterstock United Continental shares are trading at just 10 times earnings, close to its airline peers like American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ). UAL Stock Is a Bargain United Continental reported earnings on April 17 , delivering fully diluted net income of $96 million, 31 cents per share, on revenues of $8.420 billion. The post United Continental Holdings Inc (UAL) Stock Is a Bargain appeared first on InvestorPlace .
|
42ea05e7-3e2f-4710-bd04-a301fd7125cd
|
7538.0
|
2017-05-01 00:00:00 UTC
|
Is Sprint Corp (S) Stock Getting Into a Bidding War?
|
AAL
|
https://www.nasdaq.com/articles/is-sprint-corp-s-stock-getting-into-a-bidding-war-2017-05-01
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to investing, betting on a buyout can be dicey. While there may be many reasons for a deal, management may still think it's better to remain independent (yes, it's a good bet that they just want to keep their jobs). One company that meets this criteria is Sprint Corp (NYSE: S ).
Source: Mike Mozart via Flickr
Granted, Sprint's share price has already baked in some type of transaction - S stock has added about 46% over the past six months.
But sometimes there are major catalysts to move a deal forward - which are hard to ignore. Some examples include the potential for a hefty premium, or perhaps that the industry is getting too competitive.
7 Tech Stocks That Will Bruise Your Portfolio
Yet there could be more gains to come.
The Bull Case for Sprint Stock
First of all, S stock could be weighed down by the rising competitive pressures. During the past few months, the mega operators - AT&T Inc. (NYSE: T ) and Verizon Communications Inc. (NYSE: VZ ) - have ramped promotions and discounting. In fact, Sprint recently dropped its 50% off deal , as VZ and T have launched their own unlimited data plans.
In other words, it's going to get tougher for Sprint to standout. At the same time, the company could ultimately be marginalized, as it is already No. 4 player in the mobile market. The company has not posted full-year profits since 2006 and the customer growth continues to lag T-Mobile US Inc's (NASDAQ: TMUS ), even though there has been traction with the ad campaign with Paul Marcarelli (Verizon's jilted ex-pitchman).
For example, in the latest quarter, Sprint reported a 5% increase in revenues and 577,000 net customers, while TMUS grew its top line by 11% and added 1.1 million net customer. There was also a nice GAAP-profit of $698 million, up from $479 million on a year-over-year basis.
So to help preserve value for holders for Sprint stock, exploring an M&A option does look like a good move.
Something else: the timing could be spot-on. After all, as of Thursday, telecom companies are allowed to begin discussions on merger transactions, which marks the end of the "quiet period" set by the FCC regarding spectrum auctions.
And yes, when it comes to Sprint stock, the buzz is that the ideal partner is T-Mobile. A deal would not only result in much more scale to compete against T and VZ, but also fill important gaps in the networks . Sprint owns a large portion of high-frequency spectrum, whereas T-Mobile is concentrated on the low-end. No doubt, there should be lots of cost-cutting opportunities.
The Real Deal For Sprint Stock?
Yet, the endgame for S stock may be a deal with a cable operator. Already Comcast Corporation (NASDAQ: CMCSA ) has indicated it wants to move into the mobile market, which will make its other offerings more attractive to customers.
But of course, there are other potential companies that may want to pursue the same strategy, such as Dish Network Corp (NASDAQ: DISH ), Charter Communications, Inc. (NASDAQ: CHTR ) and Altice NV .
All in all, this could mean that Sprint stock may be the target of a bidding war - which could drive up the valuation. We've already seen this with AT&T's proposed buyout of Straight Path Communications Inc (NYSE: STRP ) - a holder of valuable swaths of spectrum. It looks like Verizon has made a higher bid . Actually, since early April, STRP stock has soared from $36 to $131.
How to Trade Apple Inc. (AAPL) Stock After Q2 Earnings
So the irony is that Sprint stock's weaknesses can make its stock a hot commodity. In light of this, why remain independent - especially when the mega rivals are getting more aggressive? Hey, might as well sell now when the valuations could perk up, right? Definitely.
Granted, this does not mean that a deal is a foregone conclusion for Sprint stock holders. But then again, it's going to be tough for Sprint's management to just sit on the sidelines.
Tom Taulli runs the InvestorPlace blog IPO Playbook as well as OptionExercise.com , which provides interactive tools & services for employee stock options of pre/post IPO companies. Follow him on Twitter at @ttaulli . As of this writing, he did not hold a position in any of the aforementioned securities.
More From InvestorPlace
7 Blue-Chip Stocks You Should Kick to the Curb
My 7 Favorite Energy Stocks for the Rest of Trump's Presidency
Ride American Airlines Group Inc (AAL) Stock Turbulence With Confidence
The post Is Sprint Corp (S) Stock Getting Into a Bidding War? 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.
|
More From InvestorPlace 7 Blue-Chip Stocks You Should Kick to the Curb My 7 Favorite Energy Stocks for the Rest of Trump's Presidency Ride American Airlines Group Inc (AAL) Stock Turbulence With Confidence The post Is Sprint Corp (S) Stock Getting Into a Bidding War? Source: Mike Mozart via Flickr Granted, Sprint's share price has already baked in some type of transaction - S stock has added about 46% over the past six months. The company has not posted full-year profits since 2006 and the customer growth continues to lag T-Mobile US Inc's (NASDAQ: TMUS ), even though there has been traction with the ad campaign with Paul Marcarelli (Verizon's jilted ex-pitchman).
|
More From InvestorPlace 7 Blue-Chip Stocks You Should Kick to the Curb My 7 Favorite Energy Stocks for the Rest of Trump's Presidency Ride American Airlines Group Inc (AAL) Stock Turbulence With Confidence The post Is Sprint Corp (S) Stock Getting Into a Bidding War? During the past few months, the mega operators - AT&T Inc. (NYSE: T ) and Verizon Communications Inc. (NYSE: VZ ) - have ramped promotions and discounting. For example, in the latest quarter, Sprint reported a 5% increase in revenues and 577,000 net customers, while TMUS grew its top line by 11% and added 1.1 million net customer.
|
More From InvestorPlace 7 Blue-Chip Stocks You Should Kick to the Curb My 7 Favorite Energy Stocks for the Rest of Trump's Presidency Ride American Airlines Group Inc (AAL) Stock Turbulence With Confidence The post Is Sprint Corp (S) Stock Getting Into a Bidding War? The Bull Case for Sprint Stock First of all, S stock could be weighed down by the rising competitive pressures. How to Trade Apple Inc. (AAPL) Stock After Q2 Earnings So the irony is that Sprint stock's weaknesses can make its stock a hot commodity.
|
More From InvestorPlace 7 Blue-Chip Stocks You Should Kick to the Curb My 7 Favorite Energy Stocks for the Rest of Trump's Presidency Ride American Airlines Group Inc (AAL) Stock Turbulence With Confidence The post Is Sprint Corp (S) Stock Getting Into a Bidding War? InvestorPlace - Stock Market News, Stock Advice & Trading Tips When it comes to investing, betting on a buyout can be dicey. During the past few months, the mega operators - AT&T Inc. (NYSE: T ) and Verizon Communications Inc. (NYSE: VZ ) - have ramped promotions and discounting.
|
3f72747c-fc12-4f5b-9178-270c66fcf73a
|
7539.0
|
2017-04-28 00:00:00 UTC
|
American Airlines Q1 Earnings: Stock Slumps As Prices Rise
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-q1-earnings-stock-slumps-prices-rise-2017-04-28
|
nan
|
nan
|
American Airlines ( AAL ) reported a solid quarter in terms of earnings and revenues. Both figures surpassed the analyst estimates by a comfortable margin. Earnings came in at $0.61 a share, beating the consensus estimate by 4 cents. Revenues came in around $9,624 million, up 2% year-over-year, beating the consensus estimate marginally. Additionally, unit revenue is positive for the second quarter in a row, achieved again by restricting capacity growth. The company expects unit revenues to remain positive all through 2017. Despite the positives though, the company's stock price dipped by about 5% post the call on the fear of increased wages and rising fuel costs.
Probably the most important news coming out of the quarter is American's decision to increase the wages of its pilots and air attendants. The airline has agreed to increase the pay by about 5% for air attendants and 8% for pilots. The pay hike is expected to add $930 million in costs through 2019. The decision comes at a time when fuel costs are increasing rapidly and the trend is expected to remain constant in the near term.
Net income in the quarter came out to about $303 million, excluding certain special items. This figure represents a near 60% decline year-over-year on the back of a 37.8% or $472 million increase in consolidated fuel expenses, as mentioned previously. The company paid a hefty $1.69 per gallon towards fuel procurement in the quarter, as opposed to $1.20 in the same period last year.
As mentioned above, unit revenues were positive, up 2.4% year-over-year. As in the last quarter, this was achieved by severely restricting capacity measured in available seat miles ( ASM ), which declined by almost 1.7% this time around. Further, the company expects this strategy to realize a 3-5% growth in unit revenues in the second quarter.
Domestic unit revenues increased in every month of the quarter, landing an average increase of 2.4%. The increase was partially facilitated by implementing a number of revenue management initiatives in the airline's Premium cabin. Further, the company has also benefited from targeted sales initiatives that have shown strong response across the network. This trend is expected to continue into future quarters as well.
Internationally, Latin America continues to be the strongest market for the company. Unit revenues in the region increased by a massive 7.7%, driven primarily by a 44% increase in PRASM (passenger revenue per available seat miles) in Brazil. The poorest international performance was witnessed in the Atlantic sector. Adverse currency headwinds and a soft pricing environment greatly affected the unit revenue here.
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines ( AAL ) reported a solid quarter in terms of earnings and revenues. Despite the positives though, the company's stock price dipped by about 5% post the call on the fear of increased wages and rising fuel costs. The decision comes at a time when fuel costs are increasing rapidly and the trend is expected to remain constant in the near term.
|
American Airlines ( AAL ) reported a solid quarter in terms of earnings and revenues. The company expects unit revenues to remain positive all through 2017. Probably the most important news coming out of the quarter is American's decision to increase the wages of its pilots and air attendants.
|
American Airlines ( AAL ) reported a solid quarter in terms of earnings and revenues. Further, the company expects this strategy to realize a 3-5% growth in unit revenues in the second quarter. Domestic unit revenues increased in every month of the quarter, landing an average increase of 2.4%.
|
American Airlines ( AAL ) reported a solid quarter in terms of earnings and revenues. The company expects unit revenues to remain positive all through 2017. The airline has agreed to increase the pay by about 5% for air attendants and 8% for pilots.
|
d587793c-7482-4dcd-a13f-0433e0d4dad9
|
7540.0
|
2017-04-28 00:00:00 UTC
|
Why American Airlines Stock Slumped on Thursday
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-stock-slumped-thursday-2017-04-28
|
nan
|
nan
|
Shares of American Airlines (NASDAQ: AAL) fell more than 5% on Thursday, even though the company reported earnings per share that beat analysts' estimates. The company's guidance for the second quarter was slightly better than what analysts had expected, as well.
However, a solid earnings report couldn't make up for American's announcement on Wednesday that it plans to give big mid-contract raises to its pilots (and to a lesser extent, its flight attendants). This raised the specter of further cost inflation for a company where costs are already somewhat out of control .
Another round of raises
Due to new labor contracts that have gone into effect at Delta Air Lines (NYSE: DAL) and United Continental recently, American Airlines' pilots and flight attendants currently have lower wage rates than their peers. They also receive lower profit-sharing payouts, particularly compared to Delta's pilots.
The American Airlines pilots' and flight attendants' contracts run until around the end of 2019. On the one hand, this means that American has a built in cost advantage over its rivals for now. But on the flip side, it faces a big future step-up in costs around 2020 -- and would have to deal with a lot of unhappy employees between now and then.
This is an untenable situation. As a result, American Airlines wants to bring its pilots' and flight attendants' wages up to the new industry standard as early as next month. That will require an 8% raise for the pilots and a 5% raise for the flight attendants.
American Airlines isn't asking for any concessions from its labor groups in exchange for these raises, so they will probably be implemented quickly. This will add about $230 million of costs this year and $350 million a year in 2018 and 2019.
A necessary but expensive move
Wall Street analysts criticized American's move to voluntarily boost employees' pay outside of the usual contract negotiation setting. The alternative was even worse, though, as it risked lasting damage to the company's labor relations for the sake of temporary cost savings.
Nevertheless, investors' frustration is very understandable. American Airlines generated about $40 billion of revenue last year, so a $350 million increase in annual costs will reduce its pre-tax margin by nearly a full percentage point.
This is worrisome, given that American's profit margin already lags that of industry-leader Delta Air Lines. In the first quarter, Delta made almost twice as much money as American Airlines. Meanwhile, for the second quarter, Delta's pre-tax margin is on pace to be about 5 percentage points higher than American's, based on the two companies' current outlooks.
Furthermore, American Airlines is facing significant margin pressure due to rising fuel costs, as well as its labor cost inflation. In Q1, its adjusted pre-tax margin plunged to 5.1% from 12.9% a year earlier. For Q2, it expects to produce a pre-tax margin of 11%-13%, down from 15.4% in Q2 2016 and 17.2% in Q2 2015.
Thus, it's reasonable to wonder if cost inflation will hurt American Airlines' profitability significantly. The company already lags Delta in terms of margin performance despite paying lower wages -- bringing wages up to industry standards could just widen the margin gap.
Unit revenue growth may be the only solution
American Airlines' management has said in the past that non-fuel cost pressures will finally start to abate in 2018. Nevertheless, to meet CEO Doug Parker's goal of having industry-leading margins, American will need to significantly increase its unit revenue in the coming years.
Right now, it's on track in that respect. The company returned to unit revenue growth in late 2016, and American Airlines expects to produce a solid 3%-5% increase in revenue per available seat mile this quarter. But until the company shows that this kind of unit revenue growth is sustainable, American Airlines stock is likely to stay grounded.
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 April 3, 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.
|
Shares of American Airlines (NASDAQ: AAL) fell more than 5% on Thursday, even though the company reported earnings per share that beat analysts' estimates. However, a solid earnings report couldn't make up for American's announcement on Wednesday that it plans to give big mid-contract raises to its pilots (and to a lesser extent, its flight attendants). Another round of raises Due to new labor contracts that have gone into effect at Delta Air Lines (NYSE: DAL) and United Continental recently, American Airlines' pilots and flight attendants currently have lower wage rates than their peers.
|
Shares of American Airlines (NASDAQ: AAL) fell more than 5% on Thursday, even though the company reported earnings per share that beat analysts' estimates. Another round of raises Due to new labor contracts that have gone into effect at Delta Air Lines (NYSE: DAL) and United Continental recently, American Airlines' pilots and flight attendants currently have lower wage rates than their peers. The company already lags Delta in terms of margin performance despite paying lower wages -- bringing wages up to industry standards could just widen the margin gap.
|
Shares of American Airlines (NASDAQ: AAL) fell more than 5% on Thursday, even though the company reported earnings per share that beat analysts' estimates. Another round of raises Due to new labor contracts that have gone into effect at Delta Air Lines (NYSE: DAL) and United Continental recently, American Airlines' pilots and flight attendants currently have lower wage rates than their peers. American Airlines generated about $40 billion of revenue last year, so a $350 million increase in annual costs will reduce its pre-tax margin by nearly a full percentage point.
|
Shares of American Airlines (NASDAQ: AAL) fell more than 5% on Thursday, even though the company reported earnings per share that beat analysts' estimates. Another round of raises Due to new labor contracts that have gone into effect at Delta Air Lines (NYSE: DAL) and United Continental recently, American Airlines' pilots and flight attendants currently have lower wage rates than their peers. Furthermore, American Airlines is facing significant margin pressure due to rising fuel costs, as well as its labor cost inflation.
|
75dccca5-b8b4-42c4-948f-6c7df00ca7b5
|
7541.0
|
2017-04-27 00:00:00 UTC
|
Nasdaq 100 Movers: AAL, PYPL
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-aal-pypl-2017-04-27
|
nan
|
nan
|
In early trading on Thursday, shares of PayPal Holdings ( PYPL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.1%. Year to date, PayPal Holdings registers a 21.6% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 6.6%. American Airlines Group is lower by about 7.2% looking at the year to date performance.
Two other components making moves today are Akamai Technologies ( AKAM ), trading down 3.9%, and Intuit ( INTU ), trading up 7.5% on the day.
VIDEO: Nasdaq 100 Movers: AAL, PYPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 6.6%. VIDEO: Nasdaq 100 Movers: AAL, PYPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 7.2% looking at the year to date performance.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 6.6%. VIDEO: Nasdaq 100 Movers: AAL, PYPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 6.6%. VIDEO: Nasdaq 100 Movers: AAL, PYPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of PayPal Holdings ( PYPL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.1%.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 6.6%. VIDEO: Nasdaq 100 Movers: AAL, PYPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of PayPal Holdings ( PYPL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.1%.
|
316167e4-41e6-4313-b05f-e78c1d205b76
|
7542.0
|
2017-04-27 00:00:00 UTC
|
American Airlines Group (AAL) Beats on Q1 Earnings
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-aal-beats-on-q1-earnings-2017-04-27
|
nan
|
nan
|
American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.
American Airlines Group has a healthy track record with respect to earnings. The company has delivered positive earnings surprises in three of the last four quarters, with an average beat of 20%.
Zacks Rank : Currently, American Airlines Group has a Zacks Rank #3 (Hold), but that could change following the company's earnings report which was just released. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : American Airlines Group beat on earnings. Adjusted earnings per share came in at 61 cents per share, beating the Zacks Consensus Estimate of 57 cents. Quarterly earnings declined significantly on a year over year basis.
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Revenue : Revenues of $9,624 million were 2% above the year-ago figure. Quarterly revenues edged past the Zacks Consensus Estimate of $9,621.3 million.
Key Stats : American Airlines Group's bottom-line in the quarter was hurt by higher labor costs. Cost per available seat mile excluding fuel and special items increased 7.6% on a year over year basis. During the quarter, the company returned $563 million billion to its shareholders through the payment of $51 million in dividends and buyback of shares worth $512 million. Furthermore, the carrier also declared a dividend of $0.10 per share. The dividend will be paid on May 30, to the shareholders on May 16. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments. The company announced the increase in hourly base pay for the its crewmembers (outside of contract negotiations). Total revenue per available seat miles (TRASM) is expected to increase in the band of 3% to 5% in the second quarter. Pre-tax margin excluding special items is projected in the range of 11% to 13%.
Stock Price : The earnings report failed to find favor with investors. Consequently, shares of the company were down in pre-market trading at the time of writing.
Check back later for our full write up on this American Airlines Group earnings report later!
Looking for Ideas with Even Greater Upside?
Most of Zacks' investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information>>
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.
|
American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.
|
American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We have highlighted some of the key stats from this just-revealed announcement below: Earnings : American Airlines Group beat on earnings.
|
American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. 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 Rank : Currently, American Airlines Group has a Zacks Rank #3 (Hold), but that could change following the company's earnings report which was just released.
|
American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We have highlighted some of the key stats from this just-revealed announcement below: Earnings : American Airlines Group beat on earnings.
|
45a20e66-ced9-4cba-b50c-4742ef40d1f7
|
7543.0
|
2017-04-27 00:00:00 UTC
|
All Eye On Q1 Earnings
|
AAL
|
https://www.nasdaq.com/articles/all-eye-on-q1-earnings-2017-04-27
|
nan
|
nan
|
As investors sift through a rather vague tax cut proposal that Treasury Secretary Steve Mnuchin asserts "will pay for itself" but House Ways & Means Chairman Kevin Brady allows may see resistance from both the left and the right, we see new Initial Jobless Claims this morning, as well as another heavy dose of Q1 earnings reports, of course. Markets have been what can be best described as "cautiously optimistic" - pleased to see talk of tax cuts moving forward on the White House agenda, but wary of the lack of detail thus far disclosed. So we saw trading slide into the red yesterday afternoon following a healthy day in the green earlier.
Initial Jobless Claims once again popped out of its range of the past few months between 225K-250K to 257K for last week, a jump of 14K from the previous read. This is still reflective of U.S. labor market strength, although not as strong as in prior weeks of 2017. That said, the 4-week moving average is a notch above 242K, and even then a 250K jobless claims number is merely psychologically profound, not materially.
Q1 Earnings for Transportation Stocks
Transporting back to Q1 earnings results ahead of the bell today, we focus on reports from companies in the broader Transportation sector.
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Higher fuel costs and higher crew payouts created some headwinds for the airline major, which also announced it will now offer up to $10K for customers to give up their seats on overbooked flights - a clear response to the PR nightmare that befell United Airlines UAL earlier this month.
Southwest Airlines LUV , also a Zacks Rank #3 but with a Style Score of C, reported 61 cents per share as well. Trouble is, it was a one-cent miss from the Zacks consensus estimate. Revenues came in just a tad below estimates at $4.88 billion. The company also cited higher fuel costs and mentioned that its passenger revenue environment has gotten tougher. This is the second earnings miss for Southwest in the last 4 quarters.
Ford Motor Co. F posted a 5-cent beat ahead of today's opening bell to 39 cents per share. Quarterly sales were similarly impressive: $39 billion easily bested the $34.8 billion expected. This is all despite the pent-up demand for new autos having softened over the past year or so, and Ford also spent nearly $300 million on two safety recalls in the quarter. The underlying strength has bolstered Ford shares up roughly 2% in today's pre-market.
Railroad major Union Pacific UNP surprised analysts to the upside this morning when it reported earnings of $1.32 per share on $5.13 billion in quarterly sales, topping the $1.23 per share and $5.00 billion expected. Earnings growth is an impressive 14% year over year, despite a cooled-off coal market that reduced shipments via rail. Union Pacific is also a Zacks Rank #3 stock with a Style Score of C prior to the earnings 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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Ford Motor Company (F): 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.
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report To read this article on Zacks.com click here. As investors sift through a rather vague tax cut proposal that Treasury Secretary Steve Mnuchin asserts "will pay for itself" but House Ways & Means Chairman Kevin Brady allows may see resistance from both the left and the right, we see new Initial Jobless Claims this morning, as well as another heavy dose of Q1 earnings reports, of course.
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): 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.
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report To read this article on Zacks.com click here. Railroad major Union Pacific UNP surprised analysts to the upside this morning when it reported earnings of $1.32 per share on $5.13 billion in quarterly sales, topping the $1.23 per share and $5.00 billion expected.
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report To read this article on Zacks.com click here. Initial Jobless Claims once again popped out of its range of the past few months between 225K-250K to 257K for last week, a jump of 14K from the previous read.
|
a3bd29ae-02dd-4695-9b5e-1aaba9460d19
|
7544.0
|
2017-04-27 00:00:00 UTC
|
Why American Airlines Group Inc (AAL) Stock Is Taking a Hard Hit Today
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-stock-taking-hard-hit-today-2017-04-27
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines Group Inc (NASDAQ: AAL ) stock was down on Thursday following the release of its earnings report for the first quarter of 2017.
Source: Shutterstock
American Airlines Group Inc reported earnings per share of 61 cents during the first quarter of the year. This is a decrease from its earnings per share of $1.25 that was reported in the first quarter of 2017. However, it did come in above Wall Street's earnings per share estimate of 55 cents for the quarter.
During the first quarter of 2017, American Airlines Group Inc reported revenue of $9.62 billion . This is an increase over its revenue of $9.44 billion from the same time last year. It also barely came in above analysts' revenue estimate of $9.6 billion for the first quarter of the year.
American Airlines Group Inc reported operating income of $601 million for the first quarter of the year. This is down from its operating income of $1.34 billion from the same period of the year prior.
Net income reported by American Airlines Group Inc in the first quarter of 2017 was $234 million. This is a drop from the airline company's net income of $700 from the first quarter of the previous year.
American Airlines Group Inc has also announced that it will b paying a cash dividend of 10 cents per share to investors. This dividend will be payable May 30, 2017 to shareholders that are on record as of May 16, 2017.
10 Stocks That Won't Exist in a Decade
American Airlines Group Inc also noted that it has filed an 8-K with the SEC to increase the hourly base pay of its flight attendants and pilots. This increase the employees' pay by an average of 5% and 8%, respectively.
AAL stock was down 7% as of noon Thursday.
More From InvestorPlace
The 10 Best Stocks to Buy for the Next Decade
8 Retail Stocks That Can Win Despite Amazon
7 Short Squeeze Stocks That Will Be Shot Into Orbit
The post Why American Airlines Group Inc (AAL) Stock Is Taking a Hard Hit Today 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.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) stock was down on Thursday following the release of its earnings report for the first quarter of 2017. AAL stock was down 7% as of noon Thursday. More From InvestorPlace The 10 Best Stocks to Buy for the Next Decade 8 Retail Stocks That Can Win Despite Amazon 7 Short Squeeze Stocks That Will Be Shot Into Orbit The post Why American Airlines Group Inc (AAL) Stock Is Taking a Hard Hit Today appeared first on InvestorPlace .
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) stock was down on Thursday following the release of its earnings report for the first quarter of 2017. AAL stock was down 7% as of noon Thursday. More From InvestorPlace The 10 Best Stocks to Buy for the Next Decade 8 Retail Stocks That Can Win Despite Amazon 7 Short Squeeze Stocks That Will Be Shot Into Orbit The post Why American Airlines Group Inc (AAL) Stock Is Taking a Hard Hit Today appeared first on InvestorPlace .
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) stock was down on Thursday following the release of its earnings report for the first quarter of 2017. More From InvestorPlace The 10 Best Stocks to Buy for the Next Decade 8 Retail Stocks That Can Win Despite Amazon 7 Short Squeeze Stocks That Will Be Shot Into Orbit The post Why American Airlines Group Inc (AAL) Stock Is Taking a Hard Hit Today appeared first on InvestorPlace . AAL stock was down 7% as of noon Thursday.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) stock was down on Thursday following the release of its earnings report for the first quarter of 2017. AAL stock was down 7% as of noon Thursday. More From InvestorPlace The 10 Best Stocks to Buy for the Next Decade 8 Retail Stocks That Can Win Despite Amazon 7 Short Squeeze Stocks That Will Be Shot Into Orbit The post Why American Airlines Group Inc (AAL) Stock Is Taking a Hard Hit Today appeared first on InvestorPlace .
|
26b0cc1b-083f-46dd-a57c-a4624e5de0df
|
7545.0
|
2017-04-27 00:00:00 UTC
|
Why American Airlines Group, Isle of Capri Casinos, and Synchronoss Technologies Slumped Today
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-group-isle-capri-casinos-and-synchronoss-technologies-slumped-today
|
nan
|
nan
|
Thursday was a relatively quiet day for the stock market, with major market indexes posting only marginal gains. Uncertainty about the eventual fate of the Trump administration's outline for a new tax plan weighed on market participants, although a generally positive tone among earnings reports continued to bolster many stocks. Still, there were plenty of companies announcing bad news, which held back the overall market's gains. American Airlines Group (NASDAQ: AAL) , Isle of Capri Casinos (NASDAQ: ISLE) , and Synchronoss Technologies (NASDAQ: SNCR) were among the worst performers on the day.
American loses altitude
American Airlines Group finished down more than 5% after reports that it will offer substantial pay increases to its employees. The airline said that negotiations included an offer that would give pilots and flight attendants pay raises of up to 8%, prompting concerns that competitive pressures among the major airlines will prompt them to make labor deals that will eventually come back to bite them. In addition, American's earnings report Thursday morning included a 2% rise in total revenue, but pre-tax income plunged by nearly 60%, accentuating the need for American and its peers to keep cost issues at the front of their minds as they plot long-term strategy. Without ongoing discipline, the same problems that have historically plagued airlines like American could come back to haunt them again.
Isle of Capri investors lose their bet
Isle of Capri Casinos finished the day down 14% after the market got confirmation about the current terms of a buyout offer. Eldorado Resorts (NASDAQ: ERI) has been looking to buy Isle of Capri, and it had offered a mix of stock and cash for the casino company. However, the price of Isle of Capri stock had been higher than the offer price, reflecting an expectation that Eldorado might end up making a higher offer to complete the merger.
Instead, news today that the merger was on pace to close early next week essentially locked in current shareholders with the present terms of the deal. With most shareholders having elected to accept Eldorado shares, those who wanted cash will get their $23 per share -- which is still less than where the stock closed even after today's plunge.
Synchronoss gives investors a nasty surprise
Finally, Synchronoss Technologies lost nearly half of its value Thursday. The mobile cloud specialist shocked investors by announcing that CEO Ronald Hovsepian and CFO John Frederick were both departing the company, with the press release saying only that they would "pursue other interests." Founder and Chairman Stephen Waldis will take over as CEO immediately, while Lawrence Irving will take over as CFO. Even worse, Synchronoss warned that its revenue will be $13 million to $14 million below its previous guidance, which works out to a shortfall of roughly 7% to 8%. The executive departures suggest that the integration of Synchronoss with recently acquired Intraworks might not have gone as well as expected, leaving investors with the assumption that it could be some time before the company heals its wounds and starts making substantial forward progress again.
Offer from The Motley Fool: The 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor , has tripled the S&P 500!*
Tom and David just revealed their ten top stock picks for investors to buy right now.
Click here to get access to the full list!
* Stock Advisor returns as of 4/3/2017
Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 (NASDAQ: AAL) , Isle of Capri Casinos (NASDAQ: ISLE) , and Synchronoss Technologies (NASDAQ: SNCR) were among the worst performers on the day. Uncertainty about the eventual fate of the Trump administration's outline for a new tax plan weighed on market participants, although a generally positive tone among earnings reports continued to bolster many stocks. The mobile cloud specialist shocked investors by announcing that CEO Ronald Hovsepian and CFO John Frederick were both departing the company, with the press release saying only that they would "pursue other interests."
|
American Airlines Group (NASDAQ: AAL) , Isle of Capri Casinos (NASDAQ: ISLE) , and Synchronoss Technologies (NASDAQ: SNCR) were among the worst performers on the day. Isle of Capri investors lose their bet Isle of Capri Casinos finished the day down 14% after the market got confirmation about the current terms of a buyout offer. However, the price of Isle of Capri stock had been higher than the offer price, reflecting an expectation that Eldorado might end up making a higher offer to complete the merger.
|
American Airlines Group (NASDAQ: AAL) , Isle of Capri Casinos (NASDAQ: ISLE) , and Synchronoss Technologies (NASDAQ: SNCR) were among the worst performers on the day. However, the price of Isle of Capri stock had been higher than the offer price, reflecting an expectation that Eldorado might end up making a higher offer to complete the merger. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
|
American Airlines Group (NASDAQ: AAL) , Isle of Capri Casinos (NASDAQ: ISLE) , and Synchronoss Technologies (NASDAQ: SNCR) were among the worst performers on the day. American loses altitude American Airlines Group finished down more than 5% after reports that it will offer substantial pay increases to its employees. Isle of Capri investors lose their bet Isle of Capri Casinos finished the day down 14% after the market got confirmation about the current terms of a buyout offer.
|
5f470f62-bc44-4edb-be15-5e8a3ad1f8ff
|
7546.0
|
2017-04-27 00:00:00 UTC
|
Market Close Report: Historical high reached as NASDAQ Composite Index closes at 6,048.94.
|
AAL
|
https://www.nasdaq.com/articles/market-close-report-historical-high-reached-nasdaq-composite-index-closes-604894-2017-04
|
nan
|
nan
|
Thursday's session closes with the NASDAQ Composite Index reaching a historical high. The index closed at 6,048.94 up 23.71 for the day. The index had a previous high 6025.49152 on 04/25/2017. The total shares traded for the NASDAQ was over 1.99 billion. Declining stocks led advancers by 1.15 to 1 ratio. There were 1343 advancers and 1542 decliners for the day. On the NASDAQ Stock Exchange 129 stocks reached a 52 week high and 22 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 .54% for the day; a total of 30.19 points. The current value is 5,571.28. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.22%) while Intuit Inc. ( INTU ) had the largest percent change gain rising 8.46%.
The Dow Jones index closed up .03% for the day; a total of 6.24 points. The current value is 20,981.33. Caterpillar, Inc. ( CAT ) had the largest percent change down (-1.89%) while Intel Corporation ( INTC ) had the largest percent change gain rising 1.35%.
NASDAQ Market Wrap
As of 4/27/2017 4:45:04 PM
NASDAQ COMPOSITE INDEX 6,048.94 milestone closes at 129 STOCKS REACHED A 52 WEEK HIGH 22 THOSE REACHING LOWS TOTALEDIntuit Inc. [INTU]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 8.46 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.
|
American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.22%) while Intuit Inc. ( INTU ) had the largest percent change gain rising 8.46%. Thursday's session closes with the NASDAQ Composite Index reaching a historical high. The Dow Jones index closed up .03% for the day; a total of 6.24 points.
|
American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.22%) while Intuit Inc. ( INTU ) had the largest percent change gain rising 8.46%. On the NASDAQ Stock Exchange 129 stocks reached a 52 week high and 22 those reaching lows totaled. NASDAQ Market Wrap As of 4/27/2017 4:45:04 PM NASDAQ COMPOSITE INDEX 6,048.94 milestone closes at 129 STOCKS REACHED A 52 WEEK HIGH 22 THOSE REACHING LOWS TOTALEDIntuit Inc. [INTU]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 8.46 ROSE 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 ) had the largest percent change down (-5.22%) while Intuit Inc. ( INTU ) had the largest percent change gain rising 8.46%. On the NASDAQ Stock Exchange 129 stocks reached a 52 week high and 22 those reaching lows totaled. The NASDAQ 100 index closed up .54% for the day; a total of 30.19 points.
|
American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.22%) while Intuit Inc. ( INTU ) had the largest percent change gain rising 8.46%. On the NASDAQ Stock Exchange 129 stocks reached a 52 week high and 22 those reaching lows totaled. The NASDAQ 100 index closed up .54% for the day; a total of 30.19 points.
|
a8fdf410-43f4-4032-a73a-72bd746b2675
|
7547.0
|
2017-04-27 00:00:00 UTC
|
American Airlines (AAL) Q1 Earnings Top Estimates, Down Y/Y
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-aal-q1-earnings-top-estimates-down-y-y-2017-04-27
|
nan
|
nan
|
American Airlines Group Inc .'s AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents.
Quarterly earnings decreased significantly year over year due to higher costs, which displeased the investors. Consequently, shares of the company were down in early trading.
Revenues of $9,624 million were 2% above the year-ago figure. Quarterly revenues edged past the Zacks Consensus Estimate of $9,621.3 million. Total revenue per available seat miles (TRASM) improved 3.1% to 14.96 cents in the reported quarter. In fact, this quarter marked the second successive one in which the metric grew on a year-over-year basis, since the fourth quarter of 2014.
Consolidated yield improved 2.4% to 16 cents. Passenger revenue per available seat miles improved 2% to 12.67 cents. Traffic was down 1.5%, whereas capacity was down 1.1%. This resulted in relatively empty planes. Consolidated load factor (percentage of seats filled by passengers) declined as traffic contraction was more than the capacity decline. Load factor deteriorated to 79.2% from the comparable year-ago figure of 79.6%.
Total operating expenses climbed 11.4% year over year to $9 billion primarily due to the rise in fuel costs. Expenses pertaining to salaries and benefits were up 6.5%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 7.6%. Average fuel price (including taxes) increased 40.4% to $1.7 per gallon.
During the quarter, this Zacks Rank # 3 (Hold) company returned $563 million billion to its shareholders through the payment of $51 million in dividends and buyback of shares worth $512 million. Furthermore, the carrier also declared a dividend of 10 cents per share.
The dividend will be paid on May 30, to the shareholders on May 16. The carrier has returned more than $10.2 billion to stockholders through share repurchases and dividends since mid-2014. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Notably, American Airlines announced the increase in hourly base pay for its crew members (outside of contract negotiations). Additionally, 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 17 new mainline aircraft and five regional ones during the first quarter of 2017.
Also, the company invested $1.2 billion toward a new aircraft during the quarter. Moving ahead, 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 3% to 5% in the second quarter of 2017 on a year-over-year basis. Pre-tax margin excluding special items is projected in the range of 11% to 13%. Consolidated CASM (excluding special itemsand fuel) for the second quarter is projected to increase 7%. The metric is expected to increase approximately 5% in 2017. Capacity (system) in 2017 is projected to increase 1.5% in 2017.
Other Key Releases Coming Up
Investors interested in the broader transportation space keenly await the first-quarter earnings reports of Spirit Airlines SAVE , Copa Holdings CPA and Air Lease Corp. AL , slated to be released on Apr 28, May 10 and May 4, respectively.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): 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.
|
's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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. Notably, American Airlines announced the increase in hourly base pay for its crew members (outside of contract negotiations).
|
Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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. 's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. American Airlines Group, Inc. Price, Consensus and EPS Surprise American Airlines Group, Inc. Price, Consensus and EPS Surprise | American Airlines Group, Inc. Quote Outlook Total revenue per available seat miles (TRASM) is expected to increase in the band of 3% to 5% in the second quarter of 2017 on a year-over-year basis.
|
Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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. 's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. During the quarter, this Zacks Rank # 3 (Hold) company returned $563 million billion to its shareholders through the payment of $51 million in dividends and buyback of shares worth $512 million.
|
Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): 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. 's AAL first-quarter 2017 earnings (adjusted) of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Also, the company invested $1.2 billion toward a new aircraft during the quarter.
|
80bf4a73-d081-43d4-aa47-7508c1a4b46d
|
7548.0
|
2017-04-27 00:00:00 UTC
|
Why American Airlines Stock Sank 7%
|
AAL
|
https://www.nasdaq.com/articles/why-american-airlines-stock-sank-7-2017-04-27
|
nan
|
nan
|
What happened
American Airlines (NASDAQ: AAL) stock crashed after the company reported earnings this morning. It was down 7.3% as of 11 a.m. EDT.
So what
Don't blame " earnings " per se for the collapsing stock price, though. Fact is, American's $0.46 earnings per share ($0.61 per share, pro forma) and $9.6 billion in revenue partially beat and matched expectations for the quarter. Analysts had expected American to report only $0.55 in pro forma profits on expected sales of $9.6 billion.
Rather, it seems that investors are reacting to American's announcement that it is offering its pilots and flight attendants an unnegotiated pay raise -- outside of ordinary contract renewal negotiations -- in an attempt to keep pace with pay hikes at rival airlines.
Now what
American Airlines described the pay move as "an unprecedented step to increase hourly base pay for the airline's crew members outside of contract negotiations, bringing those workgroups' base pay levels to the top of the industry." CEO Doug Parker says he's "excited about the long-term prospects for American Airlines." He characterized the pay move in particular as an investment in American's team that will both fulfill the company's promise to ensure that American employees are paid "as much as their industry peers" and help to "retain... customers' loyalty."
That all sounds pretty good. On Wall Street, however, investment bank JPMorgan blasted the move as a "wealth transfer of nearly $1 billion to [American's] labor groups," and immediately downgraded American Airlines stock to neutral.
With American Airlines stock now down 7% in just a few hours, you don't need three guesses to figure out which assessment investors are agreeing with today.
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 April 3, 2017
Rich Smith has no position in any 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.
|
What happened American Airlines (NASDAQ: AAL) stock crashed after the company reported earnings this morning. With American Airlines stock now down 7% in just a few hours, you don't need three guesses to figure out which assessment investors are agreeing with today. * 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!
|
What happened American Airlines (NASDAQ: AAL) stock crashed after the company reported earnings this morning. Fact is, American's $0.46 earnings per share ($0.61 per share, pro forma) and $9.6 billion in revenue partially beat and matched expectations for the quarter. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
|
What happened American Airlines (NASDAQ: AAL) stock crashed after the company reported earnings this morning. Now what American Airlines described the pay move as "an unprecedented step to increase hourly base pay for the airline's crew members outside of contract negotiations, bringing those workgroups' base pay levels to the top of the industry." On Wall Street, however, investment bank JPMorgan blasted the move as a "wealth transfer of nearly $1 billion to [American's] labor groups," and immediately downgraded American Airlines stock to neutral.
|
What happened American Airlines (NASDAQ: AAL) stock crashed after the company reported earnings this morning. Now what American Airlines described the pay move as "an unprecedented step to increase hourly base pay for the airline's crew members outside of contract negotiations, bringing those workgroups' base pay levels to the top of the industry." 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.
|
67ed2cfb-2992-4d01-a987-c5db0e9d9cd0
|
7549.0
|
2017-04-27 00:00:00 UTC
|
Q1 Earnings in Transportation: AAL, LUV, F, UNP
|
AAL
|
https://www.nasdaq.com/articles/q1-earnings-transportation-aal-luv-f-unp-2017-04-27
|
nan
|
nan
|
Thursday, April 27, 2017
As investors sift through a rather vague tax cut proposal that Treasury Secretary Steve Mnuchin asserts "will pay for itself" but House Ways & Means Chairman Kevin Brady allows may see resistance from both the left and the right, we see new Initial Jobless Claims this morning, as well as another heavy dose of Q1 earnings reports, of course. Markets have been what can be best described as "cautiously optimistic" - pleased to see talk of tax cuts moving forward on the White House agenda, but wary of the lack of detail thus far disclosed. So we saw trading slide into the red yesterday afternoon following a healthy day in the green earlier.
Initial Jobless Claims once again popped out of its range of the past few months between 225K-250K to 257K for last week, a jump of 14K from the previous read. This is still reflective of U.S. labor market strength, although not as strong as in prior weeks of 2017. That said, the 4-week moving average is a notch above 242K, and even then a 250K jobless claims number is merely psychologically profound, not materially.
Q1 Earnings for Transportation Stocks
Transporting back to Q1 earnings results ahead of the bell today, we focus on reports from companies in the broader Transportation sector.
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Higher fuel costs and higher crew payouts created some headwinds for the airline major, which also announced it will now offer up to $10K for customers to give up their seats on overbooked flights - a clear response to the PR nightmare that befell United Airlines UAL earlier this month.
Southwest Airlines LUV , also a Zacks Rank #3 but with a Style Score of C, reported 61 cents per share as well. Trouble is, it was a one-cent miss from the Zacks consensus estimate. Revenues came in just a tad below estimates at $4.88 billion. The company also cited higher fuel costs and mentioned that its passenger revenue environment has gotten tougher. This is the second earnings miss for Southwest in the last 4 quarters.
Ford Motor Co. F posted a 5-cent beat ahead of today's opening bell to 39 cents per share. Quarterly sales were similarly impressive: $39 billion easily bested the $34.8 billion expected. This is all despite the pent-up demand for new autos having softened over the past year or so, and Ford also spent nearly $300 million on two safety recalls in the quarter. The underlying strength has bolstered Ford shares up roughly 2% in today's pre-market.
Railroad major Union Pacific UNP surprised analysts to the upside this morning when it reported earnings of $1.32 per share on $5.13 billion in quarterly sales, topping the $1.23 per share and $5.00 billion expected. Earnings growth is an impressive 14% year over year, despite a cooled-off coal market that reduced shipments via rail. Union Pacific is also a Zacks Rank #3 stock with a Style Score of C prior to the earnings release.
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
Southwest Airlines Company (LUV): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Ford Motor Company (F): 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.
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report To read this article on Zacks.com click here. Thursday, April 27, 2017 As investors sift through a rather vague tax cut proposal that Treasury Secretary Steve Mnuchin asserts "will pay for itself" but House Ways & Means Chairman Kevin Brady allows may see resistance from both the left and the right, we see new Initial Jobless Claims this morning, as well as another heavy dose of Q1 earnings reports, of course.
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research?
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report To read this article on Zacks.com click here. Railroad major Union Pacific UNP surprised analysts to the upside this morning when it reported earnings of $1.32 per share on $5.13 billion in quarterly sales, topping the $1.23 per share and $5.00 billion expected.
|
American Airlines AAL , a Zacks Rank #3 (Hold) stock with a Zacks Style Score (Value, Growth, Momentum) of A, beat earnings estimates by 4 cents to 61 cents per share on revenues exactly in line with the $9.62 billion expected. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report To read this article on Zacks.com click here. Initial Jobless Claims once again popped out of its range of the past few months between 225K-250K to 257K for last week, a jump of 14K from the previous read.
|
bdbb8c26-ee35-40ce-b4e8-f9b5026c8e8e
|
7550.0
|
2017-04-26 00:00:00 UTC
|
Spirit Airlines (SAVE) Q1 Earnings: A Beat in the Cards?
|
AAL
|
https://www.nasdaq.com/articles/spirit-airlines-save-q1-earnings%3A-a-beat-in-the-cards-2017-04-26
|
nan
|
nan
|
Florida-based Spirit Airlines SAVE is scheduled to report first-quarter 2017 results on Apr 28, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 4.05%. Moreover, the company's earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 4.70%.
In the last one month, Spirit Airlines gained 13.53% outperforming the Zacks categorized Transportation-Airline industry's gain of 5.15%.
Why a Likely Positive Surprise?
Our proven model shows that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter as it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Spirit Airlines is +2.08% as the Most Accurate estimate is pegged at 49 cents while the Zacks Consensus Estimate is 48 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Spirit Airlines carries a Zacks Rank #3 (Hold). Please note that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Factors at Play
Spirit Airlines reported an impressive 11.6% year-over-year increase in traffic in Mar 2017. We are optimistic about the carrier's relentless efforts to expand operations. The carrier's focus on modernizing its fleet also buoys hope. The company's initiatives to reward stockholders through share buybacks are impressive as well.
Spirit Airlines expects total revenue per available seat mile (TRASM: a key measure of unit revenues) to decline approximately 4.3% in the first quarter. The sharp decline in the metric is expected due to the shift in Easter holiday.
Despite the bearish TRASM view, an earnings beat in the first quarter might not be too difficult for Spirit Airlines. This is because of the conservative nature of the Zacks Consensus Estimate for the first quarter of 2017. The measure stands at 48 cents, which is much lower than the comparable figure of 97 cents in the first quarter of 2016.
Spirit Airlines, Inc. Price and EPS Surprise
Spirit Airlines, Inc. Price and EPS Surprise | Spirit Airlines, Inc. Quote
Stocks to Consider
Investors interested in the broader transportation sector may also consider Air Lease Corporation AL , American Airlines Group AAL and Fly Leasing Limited FLY as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
Air Lease Corporation has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4.
American Airlines has an Earnings ESP of +1.75% and a Zacks Rank #3. The company will report first-quarter results on Apr 27.
Fly Leasing has an Earnings ESP of +11.43% a Zacks Rank #3. The company will report first-quarter results on May 11. You can see the complete list of today's Zacks #1 Rank stocks here .
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Fly Leasing Limited (FLY): Free Stock Analysis Report
Air Lease Corporation (AL): 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.
|
Spirit Airlines, Inc. Price and EPS Surprise Spirit Airlines, Inc. Price and EPS Surprise | Spirit Airlines, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may also consider Air Lease Corporation AL , American Airlines Group AAL and Fly Leasing Limited FLY as our model shows it possesses the right combination of elements to post an earnings beat in its next release. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Fly Leasing Limited (FLY): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Florida-based Spirit Airlines SAVE is scheduled to report first-quarter 2017 results on Apr 28, before the opening bell.
|
Spirit Airlines, Inc. Price and EPS Surprise Spirit Airlines, Inc. Price and EPS Surprise | Spirit Airlines, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may also consider Air Lease Corporation AL , American Airlines Group AAL and Fly Leasing Limited FLY as our model shows it possesses the right combination of elements to post an earnings beat in its next release. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Fly Leasing Limited (FLY): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter as it has the perfect combination of two key ingredients.
|
Spirit Airlines, Inc. Price and EPS Surprise Spirit Airlines, Inc. Price and EPS Surprise | Spirit Airlines, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may also consider Air Lease Corporation AL , American Airlines Group AAL and Fly Leasing Limited FLY as our model shows it possesses the right combination of elements to post an earnings beat in its next release. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Fly Leasing Limited (FLY): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP: The Earnings ESP for Spirit Airlines is +2.08% as the Most Accurate estimate is pegged at 49 cents while the Zacks Consensus Estimate is 48 cents.
|
Spirit Airlines, Inc. Price and EPS Surprise Spirit Airlines, Inc. Price and EPS Surprise | Spirit Airlines, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may also consider Air Lease Corporation AL , American Airlines Group AAL and Fly Leasing Limited FLY as our model shows it possesses the right combination of elements to post an earnings beat in its next release. Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Fly Leasing Limited (FLY): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP: The Earnings ESP for Spirit Airlines is +2.08% as the Most Accurate estimate is pegged at 49 cents while the Zacks Consensus Estimate is 48 cents.
|
9c380031-6133-4e0c-a62f-ac23f84963c7
|
7551.0
|
2017-04-26 00:00:00 UTC
|
3 Airlines Want to Expand in Cuba As Budget Carriers Fly Away
|
AAL
|
https://www.nasdaq.com/articles/3-airlines-want-expand-cuba-budget-carriers-fly-away-2017-04-26
|
nan
|
nan
|
Since U.S. airlines resumed scheduled flights to Cuba last fall, the financial performance of these new routes has fallen short of expectations. As a result, there have been a plethora of service cutbacks.
American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) started things off by switching to smaller planes on most of its routes. American also cut some of its flights to smaller cities in Cuba. In the past two months, tiny regional carrier Silver Airways and ultra-low cost carriers Spirit Airlines and Frontier Airlines have announced plans to exit the Cuban market entirely.
After these cutbacks, U.S. airlines will have only 17 scheduled flights per day to Havana -- Cuba's capital and largest city -- compared to a maximum of 20 allowed under the U.S.-Cuba aviation treaty. In the past week, American, JetBlue, and Delta Air Lines (NYSE: DAL) have shown that they are eager to snap up the three route authorities that are about to become available.
Shrinking to grow
JetBlue was the first airline to request authority to expand in Havana. Last Thursday, it filed an application with the Department of Transportation for seven weekly frequencies.
JetBlue hopes to start Saturday-only service from Boston to Havana while adding a third Fort Lauderdale-Havana flight for the other six days a week. (Currently, JetBlue flies twice a day between Fort Lauderdale and Havana, except for Saturdays, when it has one flight.) The new flights would begin in early November.
This is an interesting move insofar as JetBlue is trimming its capacity in Havana by switching all of its flights there from the 200-seat A321 to the 150-seat A320. There are three plausible explanations.
First, JetBlue may see significant advantages to offering more flight options to customers. Second, it may be stockpiling Havana route authorities to meet future demand growth. Third, it may be applying for the extra route as a defensive measure, to prevent the route authority from going to a rival that would add new service in competition with JetBlue.
Catching up to its rivals
Delta Air Lines moved next to request an additional Havana route authority. Today, Delta has daily flights to Havana from three cities: Atlanta, Miami, and New York. It now wants to add a second daily flight between Miami and Havana, beginning in mid-December.
In its filing, Delta said Miami has been its best-performing market for Havana flights, even though it doesn't operate a hub there. This isn't especially surprising, given that about half of the Cuban-American population lives in the Miami area.
In arguing for its request, Delta noted that of the remaining carriers flying between South Florida and Havana, it is the only one with just one daily flight. American Airlines, JetBlue, and Southwest Airlines all offer at least two daily flights on that route. Thus, adding a second daily flight will make Delta more competitive in the market.
Settling for steady expansion
Finally, on Monday, American Airlines filed a request to add another daily flight between Miami and Havana in early October. This would be its fifth daily flight on the route.
Indeed, American Airlines initially requested authority to operate 10 daily flights between Miami and Havana, arguing that its hub in Miami is by far the best gateway for U.S.-Cuba flights. In its filing this week, American maintained that it would really prefer to get all three available route authorities to expand its Miami-Havana service, but that it would settle for just one in order to avoid a contentious route allocation proceeding.
Airlines have curbed their enthusiasm
The expansion requests by JetBlue, Delta Air Lines, and American Airlines show that many carriers still see Havana as a promising market. That said, it is also apparent that even these airlines aren't as bullish about flying to Havana as they once were.
For example, last year, JetBlue was arguing vehemently for the right to offer daily Boston-Havana flights. Now it wants to fly that route just once a week. Meanwhile, if American Airlines were really that desperate to add three more daily Miami-Havana flights, it probably would have filed its application earlier.
After more than half a century without scheduled service between the U.S. and Cuba, it's not surprising that airlines have had to modify their expectations for the market. However, as the market matures and airlines tweak their capacity to match demand, Havana should become a solidly profitable market for JetBlue, Delta, and American.
Find out why JetBlue Airwaysis one of the 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)
Tom and David just revealed their 10 top stock picks for investors to buy right now. JetBlue Airways is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of April 3, 2017.
Adam Levine-Weinberg owns shares of Delta Air Lines, JetBlue Airways, and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways. 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.
|
American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) started things off by switching to smaller planes on most of its routes. After these cutbacks, U.S. airlines will have only 17 scheduled flights per day to Havana -- Cuba's capital and largest city -- compared to a maximum of 20 allowed under the U.S.-Cuba aviation treaty. Settling for steady expansion Finally, on Monday, American Airlines filed a request to add another daily flight between Miami and Havana in early October.
|
American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) started things off by switching to smaller planes on most of its routes. Catching up to its rivals Delta Air Lines moved next to request an additional Havana route authority. Settling for steady expansion Finally, on Monday, American Airlines filed a request to add another daily flight between Miami and Havana in early October.
|
American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) started things off by switching to smaller planes on most of its routes. American Airlines, JetBlue, and Southwest Airlines all offer at least two daily flights on that route. Indeed, American Airlines initially requested authority to operate 10 daily flights between Miami and Havana, arguing that its hub in Miami is by far the best gateway for U.S.-Cuba flights.
|
American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) started things off by switching to smaller planes on most of its routes. American Airlines, JetBlue, and Southwest Airlines all offer at least two daily flights on that route. This would be its fifth daily flight on the route.
|
9cf477a2-0c5b-444d-ad55-ca602ea24ae9
|
7552.0
|
2017-04-26 00:00:00 UTC
|
Transports to Watch for Earnings on Apr 27: AAL, UNP & More
|
AAL
|
https://www.nasdaq.com/articles/transports-to-watch-for-earnings-on-apr-27%3A-aal-unp-more-2017-04-26
|
nan
|
nan
|
The picture that has been unfolding in the Q1 earnings season is a rosy one so far. According to our Earnings Preview report, this positive scenario is expected to continue. The above report projects S&P 500 companies' bottom-line growth of 9.1% year over year. Additionally, stocks in the highly sought-after fraternity are projected to end Q1 with their top line expanding 6%. Both figures compared favorably to the readings in Q4, when bottom line expanded 7.4% (highest growth in almost two years) and revenues grew 4.8%.
In fact, 10 of the 16 Zacks sectors are expected to see their bottom line expand on a year-over-year basis at the end of Q1. However, the transportation sector, does not share this rosy picture with the sectoral earnings projected to contract 20% due to higher costs. In fact, the bottom line for key sectoral participants like Delta Air LinesDAL and United Continental HoldingsUAL , have contracted 41.7% and 66.7% in Q1, both on a year-over-year basis. Nonetheless, the picture with respect to revenues is much better. The top line for the sector is projected to expand at 6.1%.
Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key sector participants like American Airlines GroupAAL , Union Pacific CorporationUNP , Southwest Airlines Co.LUV and SkyWest, Inc.SKYW , which are scheduled for Apr 27.
According to our quantitative model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise.
American Airlines Group , headquartered in Fort Worth, TX, operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. This legacy carrier has high chances of beating the Zacks Consensus Estimate in Q1, as it currently has an Earnings ESP of +1.75% (Most Accurate estimate is 1 cent above the Zacks Consensus Estimate of 57 cents) and carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
In fact, our model had predicted earnings beat earlier as well. Previously, when we issued its Q1 earnings preview article , the company had an Earnings ESP of +3.64%, while the Zacks Rank remained the same. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Based in Omaha, NE, Union Pacific Corporation is a renowned U.S. Class 1 railroad company. The chances of this company beating the Zacks Consensus Estimate in Q1 are less, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23 per share (Read more: Union Pacific Q1 Earnings: Surprise in Store? ).
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote
SkyWest , through its subsidiaries, operates a regional airline in the U.S. This St. George, UT-based company has less chances of beating the Zacks Consensus Estimate in Q1, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 52 cents per share.
SkyWest, Inc. Price and EPS Surprise
SkyWest, Inc. Price and EPS Surprise | SkyWest, Inc. Quote
The Dallas-based Southwest Airlines is a low-cost carrier, whose chances of beating the Zacks Consensus Estimate in Q1 are less as well, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 62 cents per share (Read more: What to Expect from Southwest Airlines in Q1 Earnings? ).
Southwest Airlines Company Price and EPS Surprise
Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote
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
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
Union Pacific Corporation (UNP): 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.
|
Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key sector participants like American Airlines GroupAAL , Union Pacific CorporationUNP , Southwest Airlines Co.LUV and SkyWest, Inc.SKYW , which are scheduled for Apr 27. 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 Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Both figures compared favorably to the readings in Q4, when bottom line expanded 7.4% (highest growth in almost two years) and revenues grew 4.8%.
|
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 Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key sector participants like American Airlines GroupAAL , Union Pacific CorporationUNP , Southwest Airlines Co.LUV and SkyWest, Inc.SKYW , which are scheduled for Apr 27. American Airlines Group, Inc. Price and EPS Surprise American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote Based in Omaha, NE, Union Pacific Corporation is a renowned U.S. Class 1 railroad company.
|
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 Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key sector participants like American Airlines GroupAAL , Union Pacific CorporationUNP , Southwest Airlines Co.LUV and SkyWest, Inc.SKYW , which are scheduled for Apr 27. This legacy carrier has high chances of beating the Zacks Consensus Estimate in Q1, as it currently has an Earnings ESP of +1.75% (Most Accurate estimate is 1 cent above the Zacks Consensus Estimate of 57 cents) and carries a Zacks Rank #3.
|
Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key sector participants like American Airlines GroupAAL , Union Pacific CorporationUNP , Southwest Airlines Co.LUV and SkyWest, Inc.SKYW , which are scheduled for Apr 27. 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 Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. However, the transportation sector, does not share this rosy picture with the sectoral earnings projected to contract 20% due to higher costs.
|
c9c61015-6f03-4396-91ae-0f57a9f6f1e5
|
7553.0
|
2017-04-25 00:00:00 UTC
|
What to Expect from Southwest Airlines (LUV) in Q1 Earnings?
|
AAL
|
https://www.nasdaq.com/articles/what-to-expect-from-southwest-airlines-luv-in-q1-earnings-2017-04-25
|
nan
|
nan
|
Southwest Airlines Co.LUV is scheduled to report first-quarter 2017 results on Apr 27, before the market opens.
In the fourth quarter, this low-cost carrier posted a positive earnings surprise of 7.25% aided by higher revenues. Operating revenues of $5,076 million edged past the Zacks Consensus Estimate of $5,025.3 million. Revenues also increased 2% on a year-over-year basis. Let's see what awaits the stock in the first quarter.
Earnings Whispers
Our quantitative model does not show conclusively that the Dallas-based Southwest Airlines is likely to beat on earnings in the first quarter. This is because a stock needs to have combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise. However, this is not the case as highlighted below.
Zacks ESP: Southwest Airlines has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 62 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Southwest Airlines currently carries a Zacks Rank #3 However, its which Earnings ESP of 0.00% makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Southwest Airlines Company Price and EPS Surprise
Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote
Factors Likely at Play
Due to the recent labor deals inked by the company, labor costs have spiked. Increasing labor costs are expected to hurt the bottom line in the first quarter. Southwest Airlines expects CASM - excluding fuel and oil expenses, special items and profit sharing expenses - to increase in the band of 6% to 7% in the first quarter of 2017.
Notably, labor deals are in vogue in the airline space. Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL have signed deals with various labor groups over the past few months. The rising fuel costs might also limit bottom-line growth at Southwest Airlines in the quarter.
The company expects operating revenue per available seat miles (RASM) in the first quarter to decline in the band of 2% to 3%. However, we are impressed by Southwest Airlines' employee-friendly approach. Evidently, in Feb 2017 the carrier paid $586 million to its employees as part of its profit-sharing plan for 2016. Moreover, Southwest Airlines efforts to enhance its shareholders' wealth through dividends and share buybacks are encoutraging. We expect an update on this issue at the first-quarter conference call.
A Stock to Consider
Investors interested in the broader transportation space may also consider Norfolk Southern Corporation NSC as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter.
Norfolk Southern has an Earnings ESP of +0.74% and a Zacks Rank #3. The company will report first-quarter 2017 results on Apr 26. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks' Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private 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
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): 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.
|
Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL have signed deals with various labor groups over the past few months. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
|
Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL have signed deals with various labor groups over the past few months. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines Company Price and EPS Surprise Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote Factors Likely at Play Due to the recent labor deals inked by the company, labor costs have spiked.
|
Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL have signed deals with various labor groups over the past few months. Zacks ESP: Southwest Airlines has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 62 cents per share.
|
Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL have signed deals with various labor groups over the past few months. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. This is because a stock needs to have combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise.
|
2d53d5e3-5be2-45eb-8d35-4e3df55016a8
|
7554.0
|
2017-04-24 00:00:00 UTC
|
Will American Airlines (AAL) Deliver a Beat in Q1 Earnings?
|
AAL
|
https://www.nasdaq.com/articles/will-american-airlines-aal-deliver-a-beat-in-q1-earnings-2017-04-24
|
nan
|
nan
|
American Airlines GroupAAL is scheduled to unveil first-quarter 2017 results on Apr 27, before the market opens.
In the fourth quarter, the carrier had reported earnings in line with the Zacks Consensus Estimate. Quarterly earnings, however, decreased significantly year over year. Higher costs hurt the bottom line. Revenues of $9,789 million were 1.7% above the year-ago figure and edged past the Zacks Consensus Estimate of $9,765.5 million.
Nonetheless, things might be looking up for the company this time. In fact, the optimism regarding the stock before the first-quarter earnings release can be gauged by 12.2% increase in the Zacks Consensus Estimate over the last month.
Notably, American Airlines has an impressive history with respect to earnings per share. It surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 20%. Moving ahead, we expect the company to keep up the impressive trend and top the Zacks Consensus Estimate for the first quarter of 2017. Our quantitative model too shows that the company is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for American Airlines is +3.64% with the Most Accurate estimate exceeding the Zacks Consensus Estimate of 55 cents per share by 2 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: American Airlines carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a significantly higher chance of beating earnings estimates. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Conversely, we caution you against the sell-rated stocks (Zacks Rank #4 or 5), which should never be considered while going into an earnings announcement.
The combination of American Airlines' favorable Zacks Rank and a positive ESP makes us reasonably confident of earnings beat.
What is Driving the Better-than-Expected Earnings?
American Airlines recently unveiled a bullish guidance for the first-quarter total revenue per available seat mile (TRASM: a key measure of unit revenues). The carrier now expects the metric to grow in the range of 2-4%, on a year-over-year basis in the to-be-reported quarter. In fact, the company's current view represents a marked improvement from the guidance issued last month, when it expected the metric in the band of 1.5-3.5%. Also, it projects pre-tax margin, excluding special items, in the range of 4-6%, which is an increase from the original 3-5%. This raised guidance is primarily based on higher yields. Going forward, we anticipate American Airlines to come out with an improved view on unit revenues for the second quarter, like Delta Air Lines DAL did on Apr 12.
However, the bottom line is likely to be impacted by higher costs due to the recent labor deals inked by the company. Cost per available seat mile (CASM: excluding fuel and special items) is anticipated to increase approximately 8% in the first quarter primarily due to higher labor costs. Average fuel cost per gallon (mainline) is projected in the band of $1.67 to $1.72 per gallon.
But the company's efforts to reward shareholders through share buybacks and dividend payments seem to be impressive. American Airlines returned $606 million to its shareholders through the payment of $52 million in dividends and buyback of shares worth $554 million in the fourth quarter. The carrier also approved a new $2 billion buyback program, which is scheduled to expire on Dec 31, 2018. We expect a commentary on the issue on the first quarter conference call. In addition, the company's efforts to modernize its fleet raise optimism in the stock.
Furthermore, it should be noted that American Airlines is trying hard to expand. To this end, it purchased a minority stake in China Southern Airlines ZNH in the first quarter.
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Another Stock to Consider
Investors interested in the broader transportation space may also consider Norfolk Southern Corporation NSC as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter.
Norfolk Southern has an Earnings ESP of +0.74% and a Zacks Rank #3. The company will report first-quarter 2017 results on Apr 26.
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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): 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.
|
American Airlines GroupAAL is scheduled to unveil first-quarter 2017 results on Apr 27, before the market opens. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. The combination of American Airlines' favorable Zacks Rank and a positive ESP makes us reasonably confident of earnings beat.
|
Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to unveil first-quarter 2017 results on Apr 27, before the market opens. Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a significantly higher chance of beating earnings estimates.
|
Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to unveil first-quarter 2017 results on Apr 27, before the market opens. Zacks ESP: The Earnings ESP for American Airlines is +3.64% with the Most Accurate estimate exceeding the Zacks Consensus Estimate of 55 cents per share by 2 cents.
|
American Airlines GroupAAL is scheduled to unveil first-quarter 2017 results on Apr 27, before the market opens. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter, the carrier had reported earnings in line with the Zacks Consensus Estimate.
|
90096929-d147-4807-93fd-325566dfd4da
|
7555.0
|
2017-04-24 00:00:00 UTC
|
Is a Surprise in Store for SIRIUS XM (SIRI) in Q1 Earnings?
|
AAL
|
https://www.nasdaq.com/articles/is-a-surprise-in-store-for-sirius-xm-siri-in-q1-earnings-2017-04-24
|
nan
|
nan
|
Sirius XM HoldingsSIRI is scheduled to report first-quarter 2017 results on Apr 27, before the market opens.
Last quarter, the company's bottom line met the Zacks Consensus Estimate while the top line beat the same. Earnings improved on a year-over-year basis as well. Total revenue of $1.30 billion grew 9% year over year and also surpassed the Zacks Consensus Estimate of $1.28 billion.
Price Performance
Shares of Sirius XM outperformed the Zacks categorized Broadcast Radio and Television industry over the last three months. The stock rallied 8.02% while the industry gained 6.60%.
Factors at Play
The company's healthy net subscriber growth is encouraging. This is expected to drive first-quarter results. The company's efforts to expand its product portfolio also raise optimism. We are also impressed by the company's initiatives to reward shareholders. Also, Sirius XM's move to increase stake in its Canadian unit to 70% from 37% is a positive. The company's deal with a leading player like AT&T to provide 4G LTE connectivity also raises hopes of better returns in the future.
However, Sirius XM's high debt level raises concerns. Increased leverage and stiff competition are likely to act as headwinds.
Earnings Whispers
Our quantitative model does not show conclusively that Sirius XM is likely to beat earnings in the first quarter. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: The Earnings ESP for Sirius XM is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 4 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Sirius XM carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company's 0.00% ESP complicates our surprise prediction.
Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Sirius XM Holdings Inc. Price and EPS Surprise
Sirius XM Holdings Inc. Price and EPS Surprise | Sirius XM Holdings Inc. Quote
Stocks to Consider
Investors interested in the broader consumer discretionary space may consider the following stocks. This is because our model shows that these companies possess the right combination of elements to post an earnings beat this quarter.
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. The company will report first-quarter results on Apr 27. You can see the complete list of today's Zacks #1 Rank stocks here .
C.H. Robinson Worldwide CHRW has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
Air Lease Corporation AL has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4.
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
Air Lease Corporation (AL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Sirius XM Holdings Inc. (SIRI): 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.
|
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Sirius XM HoldingsSIRI is scheduled to report first-quarter 2017 results on Apr 27, before the market opens.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. Sirius XM Holdings Inc. Price and EPS Surprise Sirius XM Holdings Inc. Price and EPS Surprise | Sirius XM Holdings Inc. Quote Stocks to Consider Investors interested in the broader consumer discretionary space may consider the following stocks.
|
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Zacks ESP: The Earnings ESP for Sirius XM is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 4 cents per share.
|
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise.
|
a5ee9cce-32f5-4df1-839b-835441db54c4
|
7556.0
|
2017-04-24 00:00:00 UTC
|
United Parcel (UPS) Q1 Earnings: Disappointment in Store?
|
AAL
|
https://www.nasdaq.com/articles/united-parcel-ups-q1-earnings%3A-disappointment-in-store-2017-04-24
|
nan
|
nan
|
United Parcel ServiceUPS is scheduled to report first-quarter 2017 results on Apr 27, before the market opens.
In the last quarter, the company posted a negative earnings surprise of 2.98%. The company reported earnings of $1.63 per share, missing the Zacks Consensus Estimate by 5 cents. Earnings increased 3.82% year over year. Revenues improved 5.5% over the year-ago quarter to $16.93 billion, lagging the Zacks Consensus Estimate of $16.96 billion. Let's see what awaits the company in the first quarter.
Price Performance
Shares of United Parcel underperformed the Zacks categorized Transportation - Air Freight and Cargo in the last six months. The stock lost 1.95% while the industry fell 1.21%.
Factors Likely to Influence this Quarter
United Parcel struggled in the most recent holiday season, thanks to higher package delivery costs. The escalated costs are likely to hurt first-quarter 2017 results. Foreign currency-related headwinds are also expected to hurt the first quarter results. Unfavorable product mix and weakness in industrial production may dampen the company's first quarter performance.
However, the company's decision to hike dividend by 6.4% in the first quarter is encouraging. United Parcel's efforts to expand and grow its top line also raise optimism. In a bid to speed up operations in the U.K. and European truckload brokerage operations, the company acquired Freightex Ltd in Jan 2017. The expanded product portfolio might aid first quarter results.
Earnings Whispers
Our proven model does not conclusively show that United Parcel will beat the Zacks Consensus Estimate this quarter as well. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for United Parcel is -0.77% as the Most Accurate estimate is pegged at $1.29 while the Zacks Consensus Estimate is at $1.30. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: United Parcel carries a Zacks Rank #4 (Sell). Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
United Parcel Service, Inc. Price and EPS Surprise
United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote
Stocks to Consider
Investors interested in the transportation space may consider the following stocks. This is because our model shows that these companies possess the right combination of elements to post an earnings beat this quarter.
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. The company will report first-quarter results on Apr 27. You can see the complete list of today's Zacks #1 Rank stocks here .
C.H. Robinson Worldwide CHRW has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
Air Lease Corporation AL has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4.
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
Air Lease Corporation (AL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): 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.
|
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Price Performance Shares of United Parcel underperformed the Zacks categorized Transportation - Air Freight and Cargo in the last six months.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. United Parcel Service, Inc. Price and EPS Surprise United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote Stocks to Consider Investors interested in the transportation space may consider the following stocks.
|
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Zacks ESP: The Earnings ESP for United Parcel is -0.77% as the Most Accurate estimate is pegged at $1.29 while the Zacks Consensus Estimate is at $1.30.
|
American Airlines Group AAL has an Earnings ESP of +3.64% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Zacks Rank: United Parcel carries a Zacks Rank #4 (Sell).
|
3db57709-101b-4cf6-892d-0deba2c29d6b
|
7557.0
|
2017-04-24 00:00:00 UTC
|
What's in Store for Alaska Air (ALK) this Earnings Season?
|
AAL
|
https://www.nasdaq.com/articles/whats-in-store-for-alaska-air-alk-this-earnings-season-2017-04-24
|
nan
|
nan
|
Alaska Air GroupALK is slated to report its first-quarter 2017 results on Apr 26, before the market opens.
In the fourth quarter of 2016, the company posted a positive earnings surprise of 10.64%. Moreover the company beat the Zacks Consensus Estimate in each of the four quarters with an average positive surprise of 5.5%. Let's see how things are shaping up for this announcement.
Despite its impressive fourth-quarter results, an earnings beat does not seem to be too likely for Alaska Air. The pessimism surrounding the stock ahead of its first quarter earnings release can be made out from the fact that the Zacks Consensus Estimate has slipped 4 cents to $1.06 over the last seven days.
Price Performance
Shares of Alaska Air underperformed the Zackscategorized Transportation - Airline industry over the last three months. The stock lost 4% while the industry gained 4.22%.
Factors at Play
Alaska Air's high debt levels raise concern. Also, the costs related to its acquisition of Virgin America, completed late last year, might hurt the bottom line in the first quarter. We expect a detailed commentary on the progress of the integration process on the conference call.
Following the buyout, Alaska Air has expanded significantly, particularly along the West Coast.We are also positive on the U.S. Transportation Department's decision to award (tentatively) Mexico City slots to the carrier. Other carriers that have been awarded slots are JetBlue Airways Corp. JBLU and Southwest Airlines Co. LUV . We are also impressed by Alaska Air's move to raise its quarterly dividend by 9% to 30 cents per share, earlier in the year.
Earnings Whispers
According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: The Earnings ESP for Alaska Air is -2.83% as the Most Accurate estimate is pegged at $1.03 while the Zacks Consensus Estimate is at $1.06. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Alaska Air carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company's negative ESP complicates our surprise prediction.
Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote
Stock to Consider
Investors interested in the airline space may consider American Airlines Group AAL as our model shows that the company possesses the right combination of elements to post an earnings beat this quarter.
American Airlines has an Earnings ESP of +3.64% and a Zacks Rank #3. The company will report first-quarter results on Apr 27. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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
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.
|
Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Stock to Consider Investors interested in the airline space may consider American Airlines Group AAL as our model shows that the company possesses the right combination of elements to post an earnings beat this quarter. 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 pessimism surrounding the stock ahead of its first quarter earnings release can be made out from the fact that the Zacks Consensus Estimate has slipped 4 cents to $1.06 over the last seven days.
|
Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Stock to Consider Investors interested in the airline space may consider American Airlines Group AAL as our model shows that the company possesses the right combination of elements to post an earnings beat this quarter. 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. Other carriers that have been awarded slots are JetBlue Airways Corp. JBLU and Southwest Airlines Co. LUV .
|
Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Stock to Consider Investors interested in the airline space may consider American Airlines Group AAL as our model shows that the company possesses the right combination of elements to post an earnings beat this quarter. 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. Zacks ESP: The Earnings ESP for Alaska Air is -2.83% as the Most Accurate estimate is pegged at $1.03 while the Zacks Consensus Estimate is at $1.06.
|
Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Stock to Consider Investors interested in the airline space may consider American Airlines Group AAL as our model shows that the company possesses the right combination of elements to post an earnings beat this quarter. 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. We are also impressed by Alaska Air's move to raise its quarterly dividend by 9% to 30 cents per share, earlier in the year.
|
ad1cd232-227c-4fc9-a82c-d5714d8d41aa
|
7558.0
|
2017-04-24 00:00:00 UTC
|
Delta Air Lines Is Turning to Latin America for International Growth
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-turning-latin-america-international-growth-2017-04-24
|
nan
|
nan
|
For years, legacy carriers like Delta Air Lines (NYSE: DAL) and American Airlines (NASDAQ: AAL) have recognized that their biggest growth opportunities lie outside the U.S. While their domestic hub-and-spoke operations are highly profitable, the U.S. market is mature and holds only modest long-term growth potential for the legacy carriers.
However, international markets haven't been very attractive recently. The strong dollar, economic weakness in key markets like Brazil, stiff fare competition from budget carriers in the transatlantic market, and industry overcapacity on routes to China have made international routes less profitable for Delta, American, and United Continental . So they have been deploying the bulk of their growth in the domestic market, with mixed results.
That said, Delta Air Lines sees at least one attractive region for international growth going forward: Latin America. Latin America is leading Delta's unit revenue recovery, and the carrier plans to continue expanding there to capitalize on strong travel demand in the region.
Latin America is recovering
Less than two years ago, Latin America was the worst-performing international region for U.S. airlines. For the fourth quarter of 2015, American Airlines -- which has by far the largest Latin American route network of any U.S. carrier -- reported that passenger revenue per available seat mile (PRASM) plunged 40% on its routes to Brazil.
However, in the past year, Brazil's economy has started to recover and its currency has rebounded. Other markets in Latin America are also moving in the right direction.
During this recovery, American Airlines has benefited from its strong position in Latin America. In Q4 2016, its PRASM increased 10.2% year over year in the Latin America region. This was the biggest driver of American's return to unit revenue growth during that quarter. Unit revenue growth accelerated last quarter. In all likelihood, when American Airlines reports its results later this week, it will reveal another big PRASM gain in Latin America.
Delta has seen similar success in Latin America. Last quarter, unit revenue surged nearly 45% on its routes to Brazil, and 4.4% overall in the Latin America region. However, Delta has historically had a much smaller presence in Latin America than American Airlines, so its strong results there haven't fully offset unit revenue declines elsewhere .
Delta pulls back in Asia
The transpacific market has been one source of persistent unit revenue declines in recent years. Not too long ago, transpacific flights were a key part of Delta's international route network. Delta operated a small hub in Tokyo (inherited from Northwest Airlines), which it used to connect passengers from across the U.S. to various cities in Asia.
However, the falling value of the Japanese yen and the increased availability of nonstop flights from the U.S. to mainland Asia combined to undermine the profitability of Delta's hub in Tokyo over the past few years. Unit revenue for these routes has been declining since 2013. In response, Delta has steadily reduced its capacity in Tokyo.
As a result, Delta's transpacific revenue reached $550 million last quarter, down from $871 million just four years earlier. Delta has reallocated some of the capacity cut from the transpacific market to Latin America, where revenue has surged more than 30% in the past four years.
More growth ahead
If unit revenue continues to rebound in Latin America, Delta is likely to keep growing there, while it retrenches in the transatlantic and transpacific markets.
Most notably, the company is about to implement a new joint venture with Aeromexico for travel between the U.S. and Mexico. This will allow the two carriers to cooperate more closely on schedules and fares, unlocking new growth opportunities.
Delta Air Lines also has a partnership with Brazilian low-cost carrier GOL. GOL offers connecting service to smaller cities that Delta could never serve profitably on its own. This additional connecting traffic should enable Delta to add more service in Sao Paulo and Rio di Janeiro as Brazil's economy recovers.
For the foreseeable future, legacy carriers like Delta Air Lines and American Airlines will have to limit their international growth. However, Latin America could be one of the few bright spots for them. Delta is likely to be particularly aggressive in shifting capacity from some of its underperforming markets to Latin America as it tries to compete more effectively with market leader American Airlines.
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 April 3, 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.
|
For years, legacy carriers like Delta Air Lines (NYSE: DAL) and American Airlines (NASDAQ: AAL) have recognized that their biggest growth opportunities lie outside the U.S. However, Delta has historically had a much smaller presence in Latin America than American Airlines, so its strong results there haven't fully offset unit revenue declines elsewhere . However, the falling value of the Japanese yen and the increased availability of nonstop flights from the U.S. to mainland Asia combined to undermine the profitability of Delta's hub in Tokyo over the past few years.
|
For years, legacy carriers like Delta Air Lines (NYSE: DAL) and American Airlines (NASDAQ: AAL) have recognized that their biggest growth opportunities lie outside the U.S. For the fourth quarter of 2015, American Airlines -- which has by far the largest Latin American route network of any U.S. carrier -- reported that passenger revenue per available seat mile (PRASM) plunged 40% on its routes to Brazil. However, Delta has historically had a much smaller presence in Latin America than American Airlines, so its strong results there haven't fully offset unit revenue declines elsewhere .
|
For years, legacy carriers like Delta Air Lines (NYSE: DAL) and American Airlines (NASDAQ: AAL) have recognized that their biggest growth opportunities lie outside the U.S. The strong dollar, economic weakness in key markets like Brazil, stiff fare competition from budget carriers in the transatlantic market, and industry overcapacity on routes to China have made international routes less profitable for Delta, American, and United Continental . However, Delta has historically had a much smaller presence in Latin America than American Airlines, so its strong results there haven't fully offset unit revenue declines elsewhere .
|
For years, legacy carriers like Delta Air Lines (NYSE: DAL) and American Airlines (NASDAQ: AAL) have recognized that their biggest growth opportunities lie outside the U.S. Latin America is recovering Less than two years ago, Latin America was the worst-performing international region for U.S. airlines. Last quarter, unit revenue surged nearly 45% on its routes to Brazil, and 4.4% overall in the Latin America region.
|
d1d72f67-361e-4dff-89df-0d6f976b8341
|
7559.0
|
2017-04-24 00:00:00 UTC
|
Union Pacific (UNP) Q1 Earnings: Surprise in Store?
|
AAL
|
https://www.nasdaq.com/articles/union-pacific-unp-q1-earnings%3A-surprise-in-store-2017-04-24
|
nan
|
nan
|
Leading railroad operator, Union Pacific CorporationUNP is slated to release first-quarter 2017 results on Apr 27, before the market opens.
In the fourth quarter of 2016, the company's earnings of $1.39 beat the Zacks Consensus Estimate of $1.34 per share. Also the bottom line climbed 6.11% on a year-over-year basis, aided by lower costs. However, declining coal shipments weighed on the company's results. While, coal revenues (freight) decreased 6% year over year to $699 million, volumes declined 9%.
Lets see what awaits the company in the first quarter.
Earnings Whispers
Our quantitative model does not show conclusively that Union Pacific is likely to beat on earnings in the first quarter. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise. However, this is not the case as highlighted below.
Zacks ESP: The Earnings ESP for Union Pacific is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Union Pacific holds a Zacks Rank #3. Though the company has a favorable Zacks Rank, its 0.00% ESP complicates our surprise prediction. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell-rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Likely at Play
We expect the company's first quarter results to benefit from improving coal volumes. At the 38th Raymond James Annual Institutional Investors Conference in March, the company's CFO - Rob Knight - stated that coal volumes had improved 15% as of Feb 28. Volumes of agricultural products had improved 3%.
Additionally, we are impressed with Union Pacific's efforts to reward its investors through share buybacks and dividend payments. In fact, Union Pacific's prudent cost management also encourages us. We believe, the company is on track to achieve its operating ratio guidance of around 60% by 2019. Union Pacific's peers like Canadian National CNI and Norfolk Southern NSC are also aiming to drive earnings growth by controlling costs.
However, other segments including the likes of intermodal and automotive might perform disappointingly in the first quarter. According to Knight, volumes of intermodal, automotive, industrial products and chemicals had declined as of Feb 28.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote
Another Stock to Consider
Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter.
American Airlines has an Earnings ESP of +3.64% and a Zacks Rank #3. The company will report first-quarter 2017 results on Apr 27.
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
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): 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.
|
Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Leading railroad operator, Union Pacific CorporationUNP is slated to release first-quarter 2017 results on Apr 27, before the market opens.
|
Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank: Union Pacific holds a Zacks Rank #3.
|
Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP: The Earnings ESP for Union Pacific is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23 per share.
|
Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Factors Likely at Play We expect the company's first quarter results to benefit from improving coal volumes.
|
d71b4bfc-31db-4226-8bb3-c8379340c26f
|
7560.0
|
2017-04-21 00:00:00 UTC
|
GATX Corp's (GATX) Q1 Earnings & Sales Top, Shares Gain
|
AAL
|
https://www.nasdaq.com/articles/gatx-corps-gatx-q1-earnings-sales-top-shares-gain-2017-04-21
|
nan
|
nan
|
GATX CorporationGATX reported better-than-expected earnings per share and revenues in the first quarter of 2017. The company's earnings (on an adjusted basis) of $1.44 per share breezed past the Zacks Consensus Estimate of $1.08.
Revenues of $316.1 million were also above the Zacks Consensus Estimate of $312.2 million. Naturally, the top- and bottom-line outperformance found favor with investors. The stock gained in the trading session on Apr 20 to $62.08, up 3.17% from the closing price on Apr 19.
In fact, the company's stock has been performing well for quite some time outpacing the Zacks categorized Transportation - Equipment and Leasing industry in the last three months. The stock was up 4.9% compared with the industry's gain of only 0.4%.
Segment-Wise Results
Profits at the Rail North America segment declined to $93 million from $108.7 million a year ago. The downside was mainly due to lower lease revenues and higher maintenance costs. During the reported quarter, GATX Corp.'s Lease Price Index (LPI) decreased 32.6% as against 6.4% increase in the same period last year. The metric declined 36.2% in the previous quarter. Furthermore, average lease renewal term for cars included in the LPI was 29 months in the reported quarter compared with 34 months in the year-ago quarter.
Per GATX Corp.'s press release, Rail North America's wholly owned fleet had approximately 121,000 rail cars at the end of the first quarter. Fleet utilization came in at 99.1% compared with 98.9% in the year-earlier quarter.
Profits at the Rail International segment improved 6.3% year over year to $13.4 million. The upside was driven by lower maintenance expenses. Moreover, GATX Rail Europe's fleet totaled approximately 23,100 rail cars at the end of the reported quarter. Fleet utilization was 95% compared with 95.1% at the end of the first quarter of 2016.
Profits at the Portfolio Management unit were $14.7 million in the quarter, down significantly from the year-ago figure of $18.6 million. The American Steamship segment's loss of $0.2 million in the first quarter compared unfavorably with the year-ago profit of $0.9 million.
Liquidity
GATX Corp. exited the quarter with cash and cash equivalents of $155.2 million compared with $307.5 million at the end of 2016. Restricted cash was $3.8 million compared with $3.6 million at the end of 2016.
GATX Corporation Price, Consensus and EPS Surprise
GATX Corporation Price, Consensus and EPS Surprise | GATX Corporation Quote
Outlook for 2017
This Zacks Rank #2 (Buy) company still expects 2017 earnings per share in the band of $4.40-$4.60. In fact, the Zacks Consensus Estimate of $4.53 is within the guided range. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Upcoming Releases
Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI in the coming days. American Airlines and Union Pacific are scheduled to report on Apr 27, while Canadian National will report on Apr 24.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
GATX Corporation (GATX): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI in the coming days. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the company's stock has been performing well for quite some time outpacing the Zacks categorized Transportation - Equipment and Leasing industry in the last three months.
|
Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI in the coming days. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. GATX Corporation Price, Consensus and EPS Surprise GATX Corporation Price, Consensus and EPS Surprise | GATX Corporation Quote Outlook for 2017 This Zacks Rank #2 (Buy) company still expects 2017 earnings per share in the band of $4.40-$4.60.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI in the coming days. Liquidity GATX Corp. exited the quarter with cash and cash equivalents of $155.2 million compared with $307.5 million at the end of 2016.
|
Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI in the coming days. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Revenues of $316.1 million were also above the Zacks Consensus Estimate of $312.2 million.
|
f9613688-99c4-436f-a49d-51d11ccf0aa5
|
7561.0
|
2017-04-21 00:00:00 UTC
|
Will Norfolk Southern (NSC) Deliver a Beat in Q1 Earnings?
|
AAL
|
https://www.nasdaq.com/articles/will-norfolk-southern-nsc-deliver-a-beat-in-q1-earnings-2017-04-21
|
nan
|
nan
|
Virginia-based, Norfolk Southern CorporationNSC is scheduled to report first-quarter 2017 results on Apr 26, before the market opens.
Last quarter, the company posted a positive earnings surprise of 2.9%. Moreover, the company's bottom line surpassed the Zacks Consensus Estimate in all of the trailing four quarters, with an average beat of 10.88%. Let's see how things are shaping up for this announcement.
Earnings Whispers
Our proven model shows that Norfolk Southern is likely to beat the Zacks Consensus Estimate this quarter because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Norfolk Southern is +0.74% as the Most Accurate estimate is pegged at $1.36, while the Zacks Consensus Estimate is at $1.35. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Norfolk Southern carries a Zacks Rank #3 (Hold). Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Norfolk Souther Corporation Price and EPS Surprise
Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote
Factors at Play
Norfolk Southern is making constant efforts to streamline its operations in order to increase productivity. To counter the coal-related headwinds, the company is looking to cut costs in order to drive the bottom line. The company's first-quarter results are likely to be benefited by its cost-cutting measures.
Coal volumes are likely to rise in the first quarter buoyed by favorable conditions. The company's move to hike its quarterly dividend is also encouraging. The company announced a 3% raise in its dividend in the first quarter. We are, however, concerned about the company's high debt levels.
According to Wells Fargo, the improvement in coal prices should benefit railroads immensely. According to the firm, Eastern Rails like Norfolk Southern are likely to benefit from this scenario.
Price Performance
Shares of Norfolk Southern outperformed the Zacks categorized Transportation - Rail industry over the last three months. The stock gained 2.0% while the industry gained a meager 0.58%.
Stocks to Consider
Investors interested in the transportation space may also consider the following stocks. This is because our model shows that these companies also possess the right combination of elements to post an earnings beat this quarter.
American Airlines AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. The company will report first-quarter results on Apr 27. You can see the complete list of today's Zacks #1 Rank stocks here .
Air Lease AL has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4.
C.H. Robinson CHRW has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air Lease Corporation (AL): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): 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.
|
American Airlines AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. Virginia-based, Norfolk Southern CorporationNSC is scheduled to report first-quarter 2017 results on Apr 26, before the market opens.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. American Airlines AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. Norfolk Souther Corporation Price and EPS Surprise Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote Factors at Play Norfolk Southern is making constant efforts to streamline its operations in order to increase productivity.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. American Airlines AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. Zacks ESP: The Earnings ESP for Norfolk Southern is +0.74% as the Most Accurate estimate is pegged at $1.36, while the Zacks Consensus Estimate is at $1.35.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. American Airlines AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. Zacks Rank: Norfolk Southern carries a Zacks Rank #3 (Hold).
|
0a7f9c56-6b6e-4fc5-bb87-c0f442b2a8b5
|
7562.0
|
2017-04-21 00:00:00 UTC
|
Trinity Industries (TRN) Q1 Earnings: What's in the Cards?
|
AAL
|
https://www.nasdaq.com/articles/trinity-industries-trn-q1-earnings%3A-whats-in-the-cards-2017-04-21
|
nan
|
nan
|
Dallas, TX-based Trinity Industries Inc.TRN is a provider of products and services to the energy, transportation, chemical, and construction sectors across the globe. The company is scheduled to report first-quarter 2017 results on Apr 25, after market close.
In the fourth quarter of 2016, the company had posted a positive earnings surprise of 15.79%. Moreover, the company's earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 12.94%. Let's see how things are shaping up for this announcement.
Factors Likely at Play
The company's first-quarter results are expected to be hurt primarily by weak market conditions as well as weak demand for railcars. High costs and adverse foreign currency movement may also hamper the company's top line.
The Rail Group segment, which recorded disastrous results in the fourth quarter, is expected to continue its poor run in the first quarter as well. Also, the Inland Barge Group might also come up with a below-par performance in the first quarter, mainly due to lower barge deliveries.
On the brighter side, the Construction Products Group of the company might perform well in the first quarter. Segmental results are likely to be aided by its construction aggregates and highway products operations. Moreover, Trinity stands to benefit from a favorable financial position. Notably, we are pleased by the company's efforts to reward shareholders through dividend payments.
Earnings Whispers
Our proven model does not conclusively show that Trinity Industries is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here, as elaborated below.
Zacks ESP: Trinity Industries has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 28 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Trinity Industries carriesa Zacks Rank #3 which increases the predictive power of ESP. However, the company's 0.00% ESP complicates our surprise prediction.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Trinity Industries, Inc. Price and EPS Surprise
Trinity Industries, Inc. Price and EPS Surprise | Trinity Industries, Inc. Quote
Stocks to Consider
Investors interested in the transportation space may consider the following stocks. This is because our model shows that these companies too possess the right combination of elements to post an earnings beat this quarter.
American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. The company will report first-quarter results on Apr 27.
Air Lease AL has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4. You can see the complete list of today's Zacks #1 Rank stocks here .
C.H. Robinson CHRW has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Trinity Industries, Inc. (TRN): Free Stock Analysis Report
Air Lease Corporation (AL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): 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.
|
American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Dallas, TX-based Trinity Industries Inc.TRN is a provider of products and services to the energy, transportation, chemical, and construction sectors across the globe.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. 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.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. In the fourth quarter of 2016, the company had posted a positive earnings surprise of 15.79%.
|
e8af8799-b5e3-42c7-a1b2-2783105fe423
|
7563.0
|
2017-04-21 00:00:00 UTC
|
Kansas City Southern (KSU) Q1 Earnings In Line, Sales Beat
|
AAL
|
https://www.nasdaq.com/articles/kansas-city-southern-ksu-q1-earnings-in-line-sales-beat-2017-04-21
|
nan
|
nan
|
Railroad operator Kansas CitySouthernKSU reported mixed results in the first quarter of 2017. Earnings were in line with the Zacks Consensus Estimate, while revenues beat the same. The company's earnings (on an adjusted basis) of $1.17 per share improved 13.6% on a year-over-year basis.
Kansas City Southern reported revenues of $609.5 million, which beat the Zacks Consensus Estimate of $604.7 million. Revenues improved 8.3% on a year-over-year basis. Moreover, excluding the estimated impact of the depreciation of the Mexican peso, revenues improved 11%.
The results were aided by a 6% rise in overall carload volumes. The earnings report found favor with investors. Consequently, shares of the company rose in pre-market trading .
In the reported quarter, operating income increased 12% to $211 million. Kansas CitySouthern reported operating ratio of 65.4% in the reported quarter, reflecting an improvement of 120 basis points on a year-over-year basis.
Segment Results
The Chemical & Petroleum segment generated revenues of $126.5 million, up 8% year over year. Volumes improved 4% year over year. Revenues per carload also improved 4% from the prior-year quarter.
The Industrial & Consumer Products generated revenues of $140.1 million, down 1% year over year. Business volumes decreased 1%, whereas revenues per carload were flat year over year.
The Agriculture & Minerals segment revenues totaled $116.3 million, up 6% year over year. While business volumes climbed 2%, revenues per carload were up 4%, both on a year-over-year basis.
The Energy segment generated revenues of $69 million, up 64% year over year. Impressive performance of Utility Coal boosted the segment's results. Business volumes improved 30% year over year, while revenues per carload grew 26%.
Intermodal revenues were $83.5 million, down 2% year over year. However, business volumes and revenues per carload dropped 1% each.
The Automotive segment accounted for $51.3 million of the total revenue, up 25% year over year. Business volumes improved 38%, whereas revenues per carload dropped 9%.
Other revenues totaled $22.8 million, down 12% year over year.
Kansas City Southern Price and EPS Surprise
Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote
Kansas City Southern currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Upcoming Releases
Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI , in the coming days. American Airlines and Union Pacific are scheduled to report on Apr 27, while Canadian National will report on Apr 24.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Kansas City Southern (KSU): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI , in the coming days. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Railroad operator Kansas CitySouthernKSU reported mixed results in the first quarter of 2017.
|
Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI , in the coming days. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Kansas City Southern Price and EPS Surprise Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote Kansas City Southern currently carries a Zacks Rank #3 (Hold).
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI , in the coming days. Segment Results The Chemical & Petroleum segment generated revenues of $126.5 million, up 8% year over year.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader transportation space are also keenly waiting for first-quarter earnings reports from key players like Union Pacific Corporation UNP , American Airlines Group AAL and Canadian National Railway Company CNI , in the coming days. Kansas City Southern reported revenues of $609.5 million, which beat the Zacks Consensus Estimate of $604.7 million.
|
51d125d0-7c16-48e5-b701-b0139350251d
|
7564.0
|
2017-04-21 00:00:00 UTC
|
Allegiant Travel (ALGT) Q1 Earnings: Is Disappointment in Store?
|
AAL
|
https://www.nasdaq.com/articles/allegiant-travel-algt-q1-earnings%3A-is-disappointment-in-store-2017-04-21
|
nan
|
nan
|
Allegiant Travel CompanyALGT is scheduled to report its first-quarter 2017 results on Apr 25, after market closes.
In the fourth quarter of 2016, the company's earnings of $2.48 beat the Zacks Consensus Estimate by 8 cents. Quarterly revenues increased 8% year over year to $336 million and also surpassed the Zacks Consensus Estimate of $334 million. Network growth boosted results.
However, things might not be so rosy for the company in the first quarter. The negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the first quarter has decreased 4.3% over the last seven days.
In fact, the Allegiant Travel stock has struggled of late, underperforming the Zacks categorized Transportation-Airline industry in the last three months . The stock was down 8.7% as against the industry's gain of 3.8%.
What Does Our Model Indicate?
Our quantitative model too does not show conclusively that Allegiant Travel will beat earnings in the first quarter of 2017. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: Allegiant Travel has an Earnings ESP of -2.27%. This is because the Most Accurate estimate is 6 cents, below the Zacks Consensus Estimate of $2.64 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Allegiant Travel carriesa Zacks Rank #3 which increases the predictive power of ESP. However, the company's -2.27% ESP complicates our surprise prediction.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.
Factors Likely at Play
We expect the company's bottom line in the first quarter of 2017 to be hurt by increased labor costs. Higher fuel costs (projected at $1.81 per gallon in the first quarter) are also expected to limit bottom line growth. But cost per available seat mile excluding fuel is projected to increase in the band of 11.6% to 12%.
The shift of Easter into April is expected to hurt the top line in the quarter. The company expects total revenue per available seat mile (TRASM) to decline in the range of 4.4% to 4.8% in the first quarter. However, traffic (total system) for the first quarter is projected to increase 7.5%, that compares unfavorably to the increase of 10.9% in the fourth quarter of 2016. Load factor (percentage of seats filled by passengers) is projected to decline 380 basis points (bps) in the first quarter, which too is worse than the 170 bps reduction witnessed in the fourth quarter of 2016.
We are however impressed by the company's efforts to expand and are also encouraged by its efforts to reward shareholders.
Stocks to Consider
Investors interested in the transportation space may consider the following stocks. This is because our model shows that these companies too possess the right combination of elements to post an earnings beat this quarter.
American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. The company will report first-quarter results on Apr 27.
Air Lease AL has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
C.H. Robinson CHRW has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right 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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air Lease Corporation (AL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): 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.
|
American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. The negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the first quarter has decreased 4.3% over the last seven days.
|
Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. In the fourth quarter of 2016, the company's earnings of $2.48 beat the Zacks Consensus Estimate by 8 cents.
|
Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise.
|
Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. American Airlines Group AAL has an Earnings ESP of +7.55% and a Zacks Rank #3. In the fourth quarter of 2016, the company's earnings of $2.48 beat the Zacks Consensus Estimate by 8 cents.
|
dd81d9d7-7c43-41bb-8443-883475f6295d
|
7565.0
|
2017-04-20 00:00:00 UTC
|
JetBlue Airways (JBLU) Q1 Earnings: Disappointment in Store?
|
AAL
|
https://www.nasdaq.com/articles/jetblue-airways-jblu-q1-earnings%3A-disappointment-in-store-2017-04-20
|
nan
|
nan
|
JetBlue Airways CorporationJBLU is scheduled to report its first-quarter 2017 results on Apr 25, before market opens.
In the fourth quarter of 2016, this low-cost carrier had delivered a positive earnings surprise of 2.04%. Operating revenues came in at $1,641 million. The top line improved 2.9% from the year-ago figure.
However, things might not be so rosy for the company in the first quarter. The negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the first quarter has decreased over 39% over the last three months.
In fact, the stock has struggled recently, underperforming the Zacks categorized Transportation-Airline industry in the last three months. The stock has declined 1%, whereas the industry has gained 1.6%.
Our quantitative model too does not show conclusively that JetBlue Airways will beat earnings in the first quarter of 2017. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise. However, that is not the case as highlighted below.
Zacks ESP: The Earnings ESP for JetBlue Airways is -12.00%. This is because the Most Accurate estimate is 3 cents below the Zacks Consensus Estimate of 25 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: JetBlue Airways carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company's -12.00% ESP complicates our surprise prediction.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
JetBlue Airways Corporation Price and EPS Surprise
JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote
Factors Likely at Play
We expect the bottom line in the first quarter to be hurt by higher expenses due to the recent labor deals inked by the company and the spike in fuel costs. Consequently, the carrier expects consolidated operating cost per available seat mile, excluding fuel, to grow in the band of 3% to 5%. Fuel price is also projected to rise to $1.73 per gallon in the first quarter from $1.56 recorded in the fourth quarter. Operating revenue per ASM (RASM) is anticipated to decline approximately 4.8%.
We are, however, impressed by JetBlue Airways' efforts to expand its operations. The company's efforts to attract more passengers should boost the top line in the first quarter. Further, its efforts to reduce debt levels also raise optimism.
In a bid to meet the surge in demand, the carrier recently announced that it intends to expand its premium service (Mint). Following the move, this low-cost carrier intends to operate 70 Mint flights by Dec 31, 2017. We expect a further update on the Mint issue on the conference call.
Stocks to Consider
Investors interested in the broader transportation space may consider American Airlines Group AAL , Air Lease Corporation AL and C.H. Robinson Worldwide CHRW as our model shows that these companies possess the right combination of elements to post an earnings beat in their upcoming releases.
American Airlines has an Earnings ESP of +7.55% and a Zacks Rank #3. The company will report first-quarter results on Apr 27.
Air Lease has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4. You can see the complete list of today's Zacks #1 Rank stocks here .
C.H. Robinson has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air Lease Corporation (AL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): 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.
|
Stocks to Consider Investors interested in the broader transportation space may consider American Airlines Group AAL , Air Lease Corporation AL and C.H. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
|
Stocks to Consider Investors interested in the broader transportation space may consider American Airlines Group AAL , Air Lease Corporation AL and C.H. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. JetBlue Airways Corporation Price and EPS Surprise JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote Factors Likely at Play We expect the bottom line in the first quarter to be hurt by higher expenses due to the recent labor deals inked by the company and the spike in fuel costs.
|
Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Stocks to Consider Investors interested in the broader transportation space may consider American Airlines Group AAL , Air Lease Corporation AL and C.H. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise.
|
Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report C.H. Stocks to Consider Investors interested in the broader transportation space may consider American Airlines Group AAL , Air Lease Corporation AL and C.H. We are, however, impressed by JetBlue Airways' efforts to expand its operations.
|
218e7fef-57dc-40dc-839d-e22b0264a2f9
|
7566.0
|
2017-04-20 00:00:00 UTC
|
Is a Beat in Store for C.H. Robinson (CHRW) in Q1 Earnings?
|
AAL
|
https://www.nasdaq.com/articles/is-a-beat-in-store-for-c.h.-robinson-chrw-in-q1-earnings-2017-04-20
|
nan
|
nan
|
C.H. Robinson Worldwide Inc.CHRW is scheduled to announce its first-quarter 2017 results on Apr 25, after the market closes .
In the fourth-quarter 2016, the company's earnings per share of 86 cents beat the Zacks Consensus Estimate of 84 cents. However, earnings declined 2.2% year over year due to higher costs. Total revenue increased 6.4% year over year to $3,415 million and beat the Zacks Consensus Estimate of $3,335 million. Volume growth drove the top line.
Why a Likely Positive Surprise?
Our proven model shows that C.H. Robinson is likely to beat the Zacks Consensus Estimate this quarter as well because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for C.H. Robinson is +2.50 % as the Most Accurate estimate is pegged at 82 cents per share while the Zacks Consensus Estimate is at 80 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: C.H. Robinson carries a Zacks Rank #3 (Hold). Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
C.H. Robinson Worldwide, Inc. Price and EPS Surprise
C.H. Robinson Worldwide, Inc. Price and EPS Surprise | C.H. Robinson Worldwide, Inc. Quote
Factors at Play
We are encouraged by the company's efforts to reward shareholders. In the first quarter, the company's board declared a regular quarterly cash dividend of 45 cents per share. Its expansion efforts are also encouraging. In Feb 2017, the company announced the opening of new offices in Asia and Canada. Following these expansions, C.H. Robinson now has 15 additional Global Forwarding offices.The expanded product portfolio should boost the top line in this quarter.
We expect higher costs to limit bottom-line growth in the first quarter as well as it did in the fourth quarter. We remain concerned about the slow economic growth in certain key markets in addition to adverse foreign exchange movements. The company's high debt levels also raise concerns.
Price Performance
Shares of C.H. Robinson outperformed the Zacks categorized Transportation - Services industry over the last three months. The stock gained 2.32% while the industry lost 2.35%.
Other Stocks to Consider
Investors interested in the broader transportation space may also consider American Airlines Group AAL , Air Lease Corporation AL and Norfolk Southern Corporation NSC as our model shows these possess the right combination of elements to post an earnings beat in the first quarter.
American Airlines has an Earnings ESP of +7.55% and a Zacks Rank #3. The company will report first-quarter 2017 results on Apr 27. You can see the complete list of today's Zacks #1 Rank stocks here .
Air Lease has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter 2017 results on May 4.
Norfolk Southern has an Earnings ESP of +2.24% a Zacks Rank #3. The company will report first-quarter 2017 results on Apr 26.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air Lease Corporation (AL): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): 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.
|
Other Stocks to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL , Air Lease Corporation AL and Norfolk Southern Corporation NSC as our model shows these possess the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. We remain concerned about the slow economic growth in certain key markets in addition to adverse foreign exchange movements.
|
Other Stocks to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL , Air Lease Corporation AL and Norfolk Southern Corporation NSC as our model shows these possess the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. In the fourth-quarter 2016, the company's earnings per share of 86 cents beat the Zacks Consensus Estimate of 84 cents.
|
Other Stocks to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL , Air Lease Corporation AL and Norfolk Southern Corporation NSC as our model shows these possess the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. In the fourth-quarter 2016, the company's earnings per share of 86 cents beat the Zacks Consensus Estimate of 84 cents.
|
Other Stocks to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL , Air Lease Corporation AL and Norfolk Southern Corporation NSC as our model shows these possess the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report C.H. Robinson Worldwide Inc.CHRW is scheduled to announce its first-quarter 2017 results on Apr 25, after the market closes .
|
997117e9-b7dc-47f9-901d-405ab42c8856
|
7567.0
|
2017-04-20 00:00:00 UTC
|
GM Factory Seized in Venezuela: More Companies Flee as Economic Crisis Worsens
|
AAL
|
https://www.nasdaq.com/articles/gm-factory-seized-venezuela-more-companies-flee-economic-crisis-worsens-2017-04-20
|
nan
|
nan
|
On Thursday, U.S. automaker General Motors GM said that it will immediately shut down its operations in Venezuela after its manufacturing plant in the country was unexpectedly seized by Venezuelan officials.
"[GM] strongly rejects the arbitrary measures taken by the authorities and will vigorously take all legal actions, within and outside of Venezuela, to defend its rights," it said in a statement. GM said the seizure showed a "total disregard" of its legal rights, and that authorities removed assets such as cars from company facilities.
It is not immediately clear why authorities seized GM's plant. Located in Valencia, the plant employs about 2,700 workers, though it stopped producing any vehicles back in 2015, and has been only selling spare parts since then.
Venezuela is currently embroiled in a severe economic crisis . According to CNNMoney , the country's economy declined by 18% last year, marking its third consecutive year of recession. Hyperinflation, which is when inflation occurs at an extremely rapid pace, has essentially wiped out the value of the bolivar, Venezuela's currency, and unemployment is getting ready to surpass 25%.
GM Isn't the Only One
As large-scale protests erupt against President Nicolas Maduro, major American countries are pulling business operations out of Venezuela.
Food and drink giants Pepsi PEP and Mondelez MDLZ have both halted business operations in Venezuela over the past two years. The companies took massive $1.4 billion and $800 million losses, respectively, as a result.
Even McDonald's MCD has had to scale back its business in Venezuela, temporarily stopping sales of its french fries and Big Macs due to food shortages. Coca-Cola KO has also recorded multiple losses from its own Venezuela business, but it still operates in the country. In 2016, Coca-Cola had to briefly stop production due to the lack of sugar supply in the country.
Oil companies like Baker Hughes BHI and Schlumberger SLB have shut down their rigs stationed in Venezuela in the past year, citing unpaid bills from the government. The country is home to some of the world's largest oil reserves, but because of its economic crisis, and these huge energy giants leaving, Venezuela's oil production is experiencing a sharp decline.
Companies like Oracle ORCL , Ford F , General Electric GE , and IBM IBM , among others, have all mentioned the dangers of exposure to Venezuela in earnings reports over the last two years, and many have stopped counting any revenue from the country.
Airlines, too, have followed suit. With a considerable amount of their profits trapped in Venezuela, American AAL , Delta DAL , and United UAL have trimmed down their flight services to the country. International carriers like Chile-based LATAM LFL , Lufthansa DLAKY , and Alitalia have all drastically reduced flights to Venezuela as well.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street.
They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks 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
LATAM Airlines Group S.A. (LFL): Free Stock Analysis 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
International Business Machines Corporation (IBM): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Pepsico, Inc. (PEP): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
General Electric Company (GE): Free Stock Analysis Report
Mondelez International, Inc. (MDLZ): Free Stock Analysis Report
Baker Hughes Incorporated (BHI): Free Stock Analysis Report
Schlumberger N.V. (SLB): 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.
|
With a considerable amount of their profits trapped in Venezuela, American AAL , Delta DAL , and United UAL have trimmed down their flight services to the country. Click to get this free report LATAM Airlines Group S.A. (LFL): Free Stock Analysis 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 International Business Machines Corporation (IBM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Baker Hughes Incorporated (BHI): Free Stock Analysis Report Schlumberger N.V. (SLB): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. On Thursday, U.S. automaker General Motors GM said that it will immediately shut down its operations in Venezuela after its manufacturing plant in the country was unexpectedly seized by Venezuelan officials.
|
With a considerable amount of their profits trapped in Venezuela, American AAL , Delta DAL , and United UAL have trimmed down their flight services to the country. Click to get this free report LATAM Airlines Group S.A. (LFL): Free Stock Analysis 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 International Business Machines Corporation (IBM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Baker Hughes Incorporated (BHI): Free Stock Analysis Report Schlumberger N.V. (SLB): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. Companies like Oracle ORCL , Ford F , General Electric GE , and IBM IBM , among others, have all mentioned the dangers of exposure to Venezuela in earnings reports over the last two years, and many have stopped counting any revenue from the country.
|
Click to get this free report LATAM Airlines Group S.A. (LFL): Free Stock Analysis 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 International Business Machines Corporation (IBM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Baker Hughes Incorporated (BHI): Free Stock Analysis Report Schlumberger N.V. (SLB): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. With a considerable amount of their profits trapped in Venezuela, American AAL , Delta DAL , and United UAL have trimmed down their flight services to the country. On Thursday, U.S. automaker General Motors GM said that it will immediately shut down its operations in Venezuela after its manufacturing plant in the country was unexpectedly seized by Venezuelan officials.
|
Click to get this free report LATAM Airlines Group S.A. (LFL): Free Stock Analysis 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 International Business Machines Corporation (IBM): Free Stock Analysis Report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report General Electric Company (GE): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Baker Hughes Incorporated (BHI): Free Stock Analysis Report Schlumberger N.V. (SLB): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report To read this article on Zacks.com click here. With a considerable amount of their profits trapped in Venezuela, American AAL , Delta DAL , and United UAL have trimmed down their flight services to the country. It is not immediately clear why authorities seized GM's plant.
|
4f8baea4-f14b-46fe-b85c-bb2adf3bef73
|
7568.0
|
2017-04-20 00:00:00 UTC
|
Add Up The Pieces: IYT Could Be Worth $177
|
AAL
|
https://www.nasdaq.com/articles/add-pieces-iyt-could-be-worth-177-2017-04-20
|
nan
|
nan
|
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 $177.46 per unit.
With IYT trading at a recent price near $161.50 per unit, that means that analysts see 9.88% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), United Continental Holdings Inc (Symbol: UAL), and FedEx Corp (Symbol: FDX). Although AAL has traded at a recent price of $44.40/share, the average analyst target is 23.05% higher at $54.64/share. Similarly, UAL has 22.79% upside from the recent share price of $69.29 if the average analyst target price of $85.08/share is reached, and analysts on average are expecting FDX to reach a target price of $207.43/share, which is 13.00% above the recent price of $183.56. Below is a twelve month price history chart comparing the stock performance of AAL, UAL, and FDX:
Combined, AAL, UAL, and FDX represent 20.14% 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.
|
Although AAL has traded at a recent price of $44.40/share, the average analyst target is 23.05% higher at $54.64/share. Below is a twelve month price history chart comparing the stock performance of AAL, UAL, and FDX: Combined, AAL, UAL, and FDX represent 20.14% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), United Continental Holdings Inc (Symbol: UAL), and FedEx Corp (Symbol: FDX).
|
Below is a twelve month price history chart comparing the stock performance of AAL, UAL, and FDX: Combined, AAL, UAL, and FDX represent 20.14% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), United Continental Holdings Inc (Symbol: UAL), and FedEx Corp (Symbol: FDX). Although AAL has traded at a recent price of $44.40/share, the average analyst target is 23.05% higher at $54.64/share.
|
Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), United Continental Holdings Inc (Symbol: UAL), and FedEx Corp (Symbol: FDX). Although AAL has traded at a recent price of $44.40/share, the average analyst target is 23.05% higher at $54.64/share. Below is a twelve month price history chart comparing the stock performance of AAL, UAL, and FDX: Combined, AAL, UAL, and FDX represent 20.14% of the iShares Transportation Average ETF.
|
Below is a twelve month price history chart comparing the stock performance of AAL, UAL, and FDX: Combined, AAL, UAL, and FDX represent 20.14% of the iShares Transportation Average ETF. Three of IYT's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), United Continental Holdings Inc (Symbol: UAL), and FedEx Corp (Symbol: FDX). Although AAL has traded at a recent price of $44.40/share, the average analyst target is 23.05% higher at $54.64/share.
|
c2be4344-ae3e-4807-8f69-29b788c093d1
|
7569.0
|
2017-04-19 00:00:00 UTC
|
Canadian National Railway (CNI) Q1 Earnings: Beat in Store?
|
AAL
|
https://www.nasdaq.com/articles/canadian-national-railway-cni-q1-earnings%3A-beat-in-store-2017-04-19
|
nan
|
nan
|
Canadian National Railway CompanyCNI is scheduled to report first-quarter 2017 results on Apr 24, after market close.
Last quarter, the company posted a positive earnings surprise of 1.09%. Moreover, the company beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 3.71%. Let's see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Canadian National Railway is likely to beat the Zacks Consensus Estimate this quarter because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Canadian National Railway is +3.61% as the Most Accurate estimate is pegged at 86 cents while the Zacks Consensus Estimate is at 83 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Canadian National Railway carries a Zacks Rank #3 (Hold). Please note that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Canadian National Railway Company Price and EPS Surprise
Canadian National Railway Company Price and EPS Surprise | Canadian National Railway Company Quote
Factors at Play
Canadian National Railway's efforts to control costs are impressive. We expect the company's bottom line to benefit from lower costs in the first quarter as well. Canadian National Railway's peers like Union Pacific Corporation UNP and Norfolk Southern NSC are also aiming to drive earnings growth by controlling costs.We are also encouraged by the improving scenario relating to coal.
The company's initiatives to reward investors also raise optimism. During the first quarter, the company hiked its quarterly dividend payout by 10%.
Further, we also laud the company's C$2.5 billion 2017 capital investment plan, announced in the first quarter. The plan complements its efforts to promote safety along with enhancing productivity.
We are positive on the company's view of strong markets in certain segments such as automotive, lumber and panes, refined petroleum products and grains. With better market conditions, volumes are expected to increase, thus resulting in higher revenues.
Price Performance
Shares of Canadian National Railway outperformed the Zacks categorized Transportation - Rail industry in the last three months. The stock gained 4.91% while the industry lost 1.6%.
Another Stock to Consider
Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter.
American Airlines has an Earnings ESP of +5.66% and a Zacks Rank #3. The company will report first-quarter 2017 results on Apr 27. You can see the complete list of today's Zacks #1 Rank stocks here .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): 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.
|
Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Canadian National Railway is likely to beat the Zacks Consensus Estimate this quarter because it has the perfect combination of two key ingredients.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Our proven model shows that Canadian National Railway is likely to beat the Zacks Consensus Estimate this quarter because it has the perfect combination of two key ingredients.
|
Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Zacks ESP: The Earnings ESP for Canadian National Railway is +3.61% as the Most Accurate estimate is pegged at 86 cents while the Zacks Consensus Estimate is at 83 cents.
|
Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company posted a positive earnings surprise of 1.09%.
|
f6269834-84db-457a-b670-140ed67be6be
|
7570.0
|
2017-04-19 00:00:00 UTC
|
Alaska Air Targets the Dallas Business-Travel Market
|
AAL
|
https://www.nasdaq.com/articles/alaska-air-targets-dallas-business-travel-market-2017-04-19
|
nan
|
nan
|
When Alaska Air (NYSE: ALK) purchased smaller rival Virgin America last year, it raised questions about the future of Virgin America's underperforming operations at Love Field in Dallas. Earlier this month, a senior executive at Alaska indicated that the company did not intend to exit the Love Field market, but that changes could be coming.
Last week, Alaska Air revealed what those changes will look like. The carrier plans to add nonstop service from Love Field to several new cities over the next year. However, it will primarily use regional jets at Love Field going forward. These moves signal a focus on gaining business-travel market share at the expense of American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) .
A sticky situation
Since late 2014, Virgin America has flown several times a day from Dallas Love Field to San Francisco, Los Angeles, New York's LaGuardia Airport, and Washington's Reagan National Airport. It added service to Las Vegas in late 2015. While the flights to Virgin America's California focus cities have performed reasonably well, the other routes never met the company's expectations.
Indeed, Virgin America thought that flying from Love Field to LaGuardia Airport and Reagan Airport would be extremely lucrative, because all three airports are capacity constrained. Furthermore, Love Field is closer to downtown Dallas than Dallas-Fort Worth International Airport (DFW), where American Airlines has its hub.
However, a huge wave of capacity growth on those routes caused fares to plummet just as Virgin America entered the market. Southwest Airlines and American Airlines were better able to manage around the overcapacity as the market leaders in the Dallas region.
Virgin America has reduced its capacity in Dallas in response to the weak fare environment. As a result, it isn't fully utilizing its valuable gate space there. Moreover, its financial results in Dallas still aren't up to par.
New routes coming
Alaska Air has a two-pronged plan for maximizing its profitability at Love Field. The first piece of that plan involves adding flights to several other cities where Alaska Airlines has a strong presence.
Last week, Alaska Air announced that it will start nonstop flights from Love Field to its two main hubs of Seattle and Portland in late August. The Seattle flights will operate twice a day, while Alaska will offer one daily flight to Portland. Alaska Airlines will add daily flights from Love Field to San Jose and San Diego next February.
In conjunction with these new flights, the Virgin America route from Dallas to Las Vegas will end in August. As of next spring, Alaska Airlines and Virgin America together will offer 18 daily departures in Dallas, with four daily flights to New York, three daily flights to San Francisco, Los Angeles, and Washington, D.C., two daily flights to Seattle, and daily service to Portland, San Jose, and San Diego.
Using smaller planes
The second aspect of Alaska Air's new strategy in Dallas is that it plans to shift most of its flights there to regional jets. The existing routes to San Francisco and Los Angeles will continue to use Virgin America's Airbus fleet, as will one of the two daily flights to Seattle. However, the other 11 flights will all operate with 76-seat E175 regional jets.
This means that Alaska Air will barely increase its total capacity at Love Field over the next year, despite going from 13 daily departures today up to 18 daily departures by next spring.
On the Love Field-LaGuardia Airport route, seating capacity will decline by 15% even though Alaska is adding an extra daily frequency. For the Love Field-Reagan Airport route, the aircraft change will reduce its capacity by 36%.
Going for the business market
Alaska Air's route additions and aircraft changes indicate that it plans to challenge American Airlines and Southwest Airlines in the business market. By this time next year, it will fly from Love Field to all of the major West Coast metro areas, as well as two of the biggest East Coast business markets. Meanwhile, with smaller aircraft, it won't need to attract lots of leisure travelers to fill the back of the plane.
While Alaska will continue to have a tiny presence in Dallas relative to American Airlines and Southwest Airlines, it does have some advantages over its larger rivals. First, with respect to American Airlines, Alaska benefits from operating at Love Field. In addition to being closer to downtown Dallas, Love Field is a smaller, more manageable airport than DFW.
Second, with respect to Southwest Airlines, Alaska Air has the advantage of offering three-class service. Indeed, the E175s that it's introducing at Love Field have 12 first-class seats and another 12 extra-legroom seats. (That's even more premium seating than the 119-seat A319s that Virgin America currently operates at Love Field.)
Alaska Air prides itself on making many of its extra-legroom and first-class seats available as complimentary upgrades for elite frequent fliers. This may encourage business travelers who want a little more comfort to pick Alaska Airlines over Southwest if they have a choice.
It's a bit of a shame to see Alaska Air switching to regional jets at Love Field when other airlines are eager to add capacity there. However, this move seems to be the best way for the company to maximize its profitability in Dallas based on the current competitive dynamics there.
10 stocks we like better than Alaska Air 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 Alaska Air 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 April 3, 2017
Adam Levine-Weinberg owns shares of Alaska Air Group. 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.
|
These moves signal a focus on gaining business-travel market share at the expense of American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) . Furthermore, Love Field is closer to downtown Dallas than Dallas-Fort Worth International Airport (DFW), where American Airlines has its hub. Last week, Alaska Air announced that it will start nonstop flights from Love Field to its two main hubs of Seattle and Portland in late August.
|
These moves signal a focus on gaining business-travel market share at the expense of American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) . A sticky situation Since late 2014, Virgin America has flown several times a day from Dallas Love Field to San Francisco, Los Angeles, New York's LaGuardia Airport, and Washington's Reagan National Airport. Alaska Airlines will add daily flights from Love Field to San Jose and San Diego next February.
|
These moves signal a focus on gaining business-travel market share at the expense of American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) . When Alaska Air (NYSE: ALK) purchased smaller rival Virgin America last year, it raised questions about the future of Virgin America's underperforming operations at Love Field in Dallas. As of next spring, Alaska Airlines and Virgin America together will offer 18 daily departures in Dallas, with four daily flights to New York, three daily flights to San Francisco, Los Angeles, and Washington, D.C., two daily flights to Seattle, and daily service to Portland, San Jose, and San Diego.
|
These moves signal a focus on gaining business-travel market share at the expense of American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) . Southwest Airlines and American Airlines were better able to manage around the overcapacity as the market leaders in the Dallas region. Going for the business market Alaska Air's route additions and aircraft changes indicate that it plans to challenge American Airlines and Southwest Airlines in the business market.
|
df31e822-6863-43c7-a84f-b2f1a320dcf6
|
7571.0
|
2017-04-18 00:00:00 UTC
|
United Continental Holdings Inc (UAL) Stock Is Good … For Dividends?
|
AAL
|
https://www.nasdaq.com/articles/united-continental-holdings-inc-ual-stock-is-good-...-for-dividends-2017-04-18
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Let's just say, this hasn't exactly been United Continental Holdings Inc's (NYSE: UAL ) week. We've all seen the video of United forcefully dragging a doctor off of one of its flights so its own employees could catch a flight home. Moreover, we've all seen the non-response from the company in the wake of the scandal. As the world expresses its collective outrage via protests, nasty tweets and some good old fashioned trolling , UAL stock has imploded.
Source: Shutterstock
United Continental tanked nearly 7% in the wake of the incident.
But that kind of drop should make some investors pretty excited. Especially those looking for future income.
The Potential for UAL Stock
When you're looking for dividend stocks, odds are major airlines aren't exactly at the top of your list. After all, this is the sector that has a moniker of being a "destructor of capital." Bankruptcies, sinking stock prices and major losses have plagued many of the top carriers for what seems like decades.
But that was then, and this is now. Today, airlines like Delta Air Lines, Inc. (NYSE: DAL ) and American Airlines Group Inc (NASDAQ: AAL ) are profit machines. Even better is that they are handing back to those profits in a big way.
The 11 Best Dividend Stocks to Buy
The reason why is simple. One of their main costs is basically non-existent at this point.
As prices for crude oil have cratered, so too has the cost of jet fuel. It's the number one cost for the major airlines. And oil prices have risen in recent months - they are nowhere near as high as $100 per barrel reached just a few years ago. According to the U.S. Bureau of Transportation Statistics , a gallon of jet fuel only costs around $1.56. Back in 2013, they were paying an excess of $3 per gallon. That's a huge difference and means some big things for the bottom line of airlines.
Moreover, many of the fees enacted during the time of high oil prices haven't gone away. We're still paying excess baggage fees, our drinks/snacks on board and even for pillows.
That has made the major airlines hugely profitable. And when you add in that ticket sales and air traffic has recovered since the recession, that really puts the wind beneath the airlines' wings.
With multiple years worth of big-time profits behind them, the airline stocks have started to do something they haven't done in decades - pay meaningful dividends. Thanks to their higher margins, the airline stocks managed to return more than $10 billion back to shareholders via dividends and buybacks in 2015. And they've continued to raise their payouts last year as cash flows continue to be robust.
Stocks like DAL and Alaska Air Group, Inc. (NYSE: ALK ) yield nearly 2%.
United Continental Will Follow
For United Continental, the dividend story is just getting started. Despite the recent mishap, UAL is pretty darn profitable. For all of 2016, the company reported full-year net income of $2.3 billion and diluted earnings per share of $6.85. That's right. Not only was an airline stock making money, but it made billions of dollars. This was simply the best performance in United's history.
With its cash flows really cooking, UAL stock has been on the buyback train. However, it hasn't indicated a dividend just yet. It's still yielding a big fat goose egg, but the scandal should change that.
Given that it has the ability to pay one, I'd be willing to bet that it does so rather quickly. Investors' confidence after the incident has been rattled. What better way to show your love than handing over some cold hard cash? Management has to be seriously considering doing just that. They were considering it before, why not strike when the iron is hot?
UnitedHealth Group Inc (UNH) Stock Is a Clear Winner After Q1 Beat
As for keeping that dividend going, UAL stock should have no issues. While the scandal may drop bookings in the near-term, with less and fewer carriers to choose from, United should have no trouble regaining lost customers from the incident. And with crude oil and various labor issues behind it, the company's margins and cash flows should continue to be robust.
Buying the Future Dividend At UAL
For income seekers, that poses an interesting play in UAL stock. The ability and need to pay a dividend is there. There's a good chance United could start paying one as early as next earnings announcement.
With the recent drop in shares, there's an opportunity to snag up UAL stock at a discount to its peers. The airlines have been on fire as of late - driving by the higher margins, profits and Warren Buffett's love of the sector .
In the end, United has the ability to be one of the biggest dividend growth stories in the sector. The recent overbooking incident provides an inroads for investors to snag that potential.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.
More From InvestorPlace
7 Top Emerging Markets Stocks to Buy Now
10 Hopeless Stocks to Wash From Your Portfolio Forever
What Does the Goldman Sachs Group Inc (GS) Miss Mean?
The post United Continental Holdings Inc (UAL) Stock Is Good … For Dividends? 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.
|
Today, airlines like Delta Air Lines, Inc. (NYSE: DAL ) and American Airlines Group Inc (NASDAQ: AAL ) are profit machines. As the world expresses its collective outrage via protests, nasty tweets and some good old fashioned trolling , UAL stock has imploded. With multiple years worth of big-time profits behind them, the airline stocks have started to do something they haven't done in decades - pay meaningful dividends.
|
Today, airlines like Delta Air Lines, Inc. (NYSE: DAL ) and American Airlines Group Inc (NASDAQ: AAL ) are profit machines. And with crude oil and various labor issues behind it, the company's margins and cash flows should continue to be robust. The post United Continental Holdings Inc (UAL) Stock Is Good … For Dividends?
|
Today, airlines like Delta Air Lines, Inc. (NYSE: DAL ) and American Airlines Group Inc (NASDAQ: AAL ) are profit machines. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Let's just say, this hasn't exactly been United Continental Holdings Inc's (NYSE: UAL ) week. The Potential for UAL Stock When you're looking for dividend stocks, odds are major airlines aren't exactly at the top of your list.
|
Today, airlines like Delta Air Lines, Inc. (NYSE: DAL ) and American Airlines Group Inc (NASDAQ: AAL ) are profit machines. The Potential for UAL Stock When you're looking for dividend stocks, odds are major airlines aren't exactly at the top of your list. That has made the major airlines hugely profitable.
|
a49cd151-52b8-4ee4-b3db-e952042e1e7b
|
7572.0
|
2017-04-18 00:00:00 UTC
|
United Continental (UAL) Beats on Q1 Earnings & Revenues
|
AAL
|
https://www.nasdaq.com/articles/united-continental-ual-beats-on-q1-earnings-revenues-2017-04-18
|
nan
|
nan
|
United Continental HoldingsUAL , which has been vehemently criticized for the passenger fiasco on flight 3411 on Apr 9, finally witnessed some good tidings with better-than-expected earnings and revenues in the first quarter of 2017.
The Chicago-based carrier's first-quarter 2017 earnings (on an adjusted basis) of 41 cents per share beat the Zacks Consensus Estimate by 4 cents. The bottom line, however, plunged 66.7% year over year due to higher costs.
Operating revenues of $8,420 million in the first quarter were marginally ahead of the Zacks Consensus Estimate of $8,362.5 million. Revenues increased 2.7% on a year-over-year basis.
In fact, United Continental is the second major carrier after Delta Air Lines DAL to report better-than-expected earnings in the ongoing earnings season.
Operating Results
Consolidated passenger revenue per available seat mile (PRASM or unit revenues) was flat at 12 cents on a year-over- year basis. Yield on a consolidated basis increased 0.4% from the first quarter of 2016, while passenger revenues increased 2.6% to $7,174 million. Cargo and other revenues increased 13.4% and 1.5%, respectively. During the reported quarter, airline traffic measured in revenue passenger miles, improved 2.2% year over year on a consolidated basis. Also, capacity (or available seat miles) grew 2.6%, which led to a 30 basis point decline in load factor (percentage of seats filled with passengers) to 79.6% because capacity expansion outweighed traffic growth.
Moreover, average fuel price (on a consolidated basis) per gallon, excluding hedge losses, increased 41.3% year over year to $1.71. Total operating expenses, excluding special items, grew 10% year over year to $8.1 billion. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, third-party business expenses and profit sharing - increased 5% year over year, primarily due to the labor deals ratified.
Liquidity
United Continental exited the quarter with $6.4 billion in unrestricted liquidity, which included its $2 billion revolving credit facility. The carrier generated $547 million in operating cash flow in the quarter under review.
Guidance
United Continental expects consolidated PRASM to increase in the band of 1% to 3% in the second quarter. Consolidated capacity is projected to increase in the range of 3% to 4% in the second quarter of 2017. The company expects pre-tax margin (adjusted) in the range of 10%-12% and fuel price per gallon is expected in the band of $1.72 to $1.77 in the same period. In addition, unit costs (excluding Fuel, Profit Sharing & Third Party business costs) are anticipated to increase in the band of 4% to 5% due to higher labor costs.
Notably, labor deals are in vogue in the airline space. Not only United Continental, but other players in the space like Southwest Airlines LUV and American Airlines Group AAL too have signed deals with various labor groups over the past few months.
Another Apology from CEO
United Continental's CEO, Oscar Munoz, issued yet another apology while releasing earnings results, for the well-documented "passenger dragging" incident at Chicago's O'Hare International Airport. Munoz called the incident a "humbling" one for which he took full responsibility as the head of the company. Additionally, he promised that the company would leave no stone unturned to improve the flying experience of its passengers.
Following the incident, the company has taken several steps to revive its battered image. It offered to refund all the 70 passengers, who were on board the infamous flight. The carrier has also changed its policy on crew-booking to avoid repetition of the incident. Evidently, the CEO's latest apology is another step in that direction.
Price Performance
The United Continental stock has struggled of late, underperforming the Zacks categorized Transportation-Airline industry in the last three months. The stock was down 3.7%, while the industry gained 2.6%.
Zacks Rank
United Continental currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
5 Trades Could Profit "Big-League" from TrumpPolicies
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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Not only United Continental, but other players in the space like Southwest Airlines LUV and American Airlines Group AAL too have signed deals with various labor groups over the past few months. 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. United Continental HoldingsUAL , which has been vehemently criticized for the passenger fiasco on flight 3411 on Apr 9, finally witnessed some good tidings with better-than-expected earnings and revenues in the first quarter of 2017.
|
Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Not only United Continental, but other players in the space like Southwest Airlines LUV and American Airlines Group AAL too have signed deals with various labor groups over the past few months. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, third-party business expenses and profit sharing - increased 5% year over year, primarily due to the labor deals ratified.
|
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. Not only United Continental, but other players in the space like Southwest Airlines LUV and American Airlines Group AAL too have signed deals with various labor groups over the past few months. During the reported quarter, airline traffic measured in revenue passenger miles, improved 2.2% year over year on a consolidated basis.
|
Not only United Continental, but other players in the space like Southwest Airlines LUV and American Airlines Group AAL too have signed deals with various labor groups over the past few months. 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. Yield on a consolidated basis increased 0.4% from the first quarter of 2016, while passenger revenues increased 2.6% to $7,174 million.
|
ff9d1c18-2db3-4e47-87a0-1086c77109db
|
7573.0
|
2017-04-13 00:00:00 UTC
|
United Continental To Show Improvement in Q1'17, Despite The Recent PR Debacle
|
AAL
|
https://www.nasdaq.com/articles/united-continental-show-improvement-q117-despite-recent-pr-debacle-2017-04-13
|
nan
|
nan
|
United Continental ( UAL ) is scheduled to announce its first quarter 2017 earnings on the 17th of April. The fourth quarter was that of significant improvement for the company on the back of a lower than expected decline in unit revenues, and the 8.2% y-o-y growth in revenues from cargo. United is expected to stay on trend in the first quarter owing to dissipating of headwinds related to passenger yields, and capacity discipline practiced by the carrier. However, the higher oil prices may accentuate the downside in the upcoming results. In the following article we discuss some of the trends which are expected to be seen in the upcoming quarterly results.
Key Trends:
United has been in the news all this week due to the PR crisis it underwent, followed by the CEO Oscar Munoz's response to that. While one may expect the stock to have plunged post the news, the drop is only slight at 3%. We do not expect the upcoming earnings to be consequentially impacted by the incident.
In the previous quarter, United saw lower than expected decline in unit revenues, mainly due to the robust performance by the carrier domestically due to stronger close-in bookings and yields in November and December, and in Latin America. However, the Atlantic and the Pacific regions continued to be under pressure. United expects its PRASM numbers to come in flat in Q1'17, as compared to the same period last year. The guidance implies a notable improvement.
The company's system-wide capacity should come in slightly higher than the guided range of 1%-2% in the quarter, driven by higher completion factor. This, in addition to improvement in unit revenues, is likely to support the airline's top line. Furthermore, a significant improvement of 11% y-o-y is also expected in the company's cargo revenues.
We have recently seen some recovery in oil prices, owing to the OPEC countries' decision to restrict their combined oil output by 1.2 million barrels of oil per day (Mbpd) over the coming months. In addition to this, the Non-OPEC members, such as Russia, also supported the OPEC's move by offering to bring down their production by roughly 600,000 barrels of oil per day. In response, crude oil prices have returned to the upper portion of their range of the last six months, reinforcing to investors that the commodity markets may be on the path of recovery. The increase is likely to impact the airline's fuel expenditure, but not by much, as the prices continue to be much lower than the historical $100 per barrel.
Excluding the costs associated with fuel, the company will see its unit costs rise significantly, at approximately 5% y-o-y, in the March quarter. A majority of this increase is attributable to United's recently ratified labor agreements with the pilots, flight attendants, technicians, IAM-represented employees, and dispatchers.
The higher fuel and non-fuel costs are expected to burden the company's bottom-line, affecting earnings per share adversely. Consequently, United's pre-tax margins are expected to come down to 2.0%- 2.25% in Q1'17 from 10% in Q4'16.
Have more questions about United Continental ( UAL )? See the links below:
How Will United Continental's Initiatives To Promote Operational Efficiency Contribute To Its Earnings?
How Will United Continental's Cost Savings Initiatives Add To Earnings Growth?
How Will United Continental Benefit From Segmentation And Fee Bundling?
How Does United Continental Plan To Optimize Its Network Potential?How Will United Continental's Re-fleeting Initiatives Contribute To Its Earnings?
How Is United Continental Driving Cost Efficiency?
Is A Turnaround In The Cards For United Continental?
How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018?
How Will United's Equity Value Be Impacted If The Crude Oil Prices Average At $50 Per Barrel In 2018?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Continental
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United is expected to stay on trend in the first quarter owing to dissipating of headwinds related to passenger yields, and capacity discipline practiced by the carrier. A majority of this increase is attributable to United's recently ratified labor agreements with the pilots, flight attendants, technicians, IAM-represented employees, and dispatchers. For precise figures, please refer to our complete analysis for United Continental View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
|
The fourth quarter was that of significant improvement for the company on the back of a lower than expected decline in unit revenues, and the 8.2% y-o-y growth in revenues from cargo. In the previous quarter, United saw lower than expected decline in unit revenues, mainly due to the robust performance by the carrier domestically due to stronger close-in bookings and yields in November and December, and in Latin America. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The fourth quarter was that of significant improvement for the company on the back of a lower than expected decline in unit revenues, and the 8.2% y-o-y growth in revenues from cargo. In the previous quarter, United saw lower than expected decline in unit revenues, mainly due to the robust performance by the carrier domestically due to stronger close-in bookings and yields in November and December, and in Latin America. How Does United Continental Plan To Optimize Its Network Potential?How Will United Continental's Re-fleeting Initiatives Contribute To Its Earnings?
|
However, the higher oil prices may accentuate the downside in the upcoming results. How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018? How Will United's Equity Value Be Impacted If The Crude Oil Prices Average At $50 Per Barrel In 2018?
|
c544e252-02a6-47ee-985c-3404544a3716
|
7574.0
|
2017-04-12 00:00:00 UTC
|
Nasdaq 100 Movers: TSCO, AAL
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-tsco-aal-2017-04-12
|
nan
|
nan
|
In early trading on Wednesday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.4%. Year to date, American Airlines Group has lost about 3.6% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Tractor Supply ( TSCO ), trading down 5.9%. Tractor Supply is lower by about 12.5% looking at the year to date performance.
Two other components making moves today are Fastenal ( FAST ), trading down 5.3%, and eBay ( EBAY ), trading up 1.3% on the day.
VIDEO: Nasdaq 100 Movers: TSCO, 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.
|
In early trading on Wednesday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.4%. VIDEO: Nasdaq 100 Movers: TSCO, 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 Tractor Supply ( TSCO ), trading down 5.9%.
|
VIDEO: Nasdaq 100 Movers: TSCO, 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 Wednesday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.4%. Year to date, American Airlines Group has lost about 3.6% of its value.
|
In early trading on Wednesday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.4%. VIDEO: Nasdaq 100 Movers: TSCO, 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 Tractor Supply ( TSCO ), trading down 5.9%.
|
In early trading on Wednesday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.4%. VIDEO: Nasdaq 100 Movers: TSCO, 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 Tractor Supply ( TSCO ), trading down 5.9%.
|
09f124d2-967f-4a25-9dbd-a73c5ec51dba
|
7575.0
|
2017-04-12 00:00:00 UTC
|
S&P 500 Movers: TSCO, HPQ
|
AAL
|
https://www.nasdaq.com/articles/sp-500-movers-tsco-hpq-2017-04-12
|
nan
|
nan
|
In early trading on Wednesday, shares of HP ( HPQ ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. Year to date, HP registers a 22.5% gain.
And the worst performing S&P 500 component thus far on the day is Tractor Supply ( TSCO ), trading down 6.3%. Tractor Supply is lower by about 12.9% looking at the year to date performance.
Two other components making moves today are Fastenal ( FAST ), trading down 5.3%, and American Airlines Group ( AAL ), trading up 2.4% on the day.
VIDEO: S&P 500 Movers: TSCO, HPQ
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Two other components making moves today are Fastenal ( FAST ), trading down 5.3%, and American Airlines Group ( AAL ), trading up 2.4% on the day. And the worst performing S&P 500 component thus far on the day is Tractor Supply ( TSCO ), trading down 6.3%. Tractor Supply is lower by about 12.9% looking at the year to date performance.
|
Two other components making moves today are Fastenal ( FAST ), trading down 5.3%, and American Airlines Group ( AAL ), trading up 2.4% on the day. And the worst performing S&P 500 component thus far on the day is Tractor Supply ( TSCO ), trading down 6.3%. VIDEO: S&P 500 Movers: TSCO, HPQ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Two other components making moves today are Fastenal ( FAST ), trading down 5.3%, and American Airlines Group ( AAL ), trading up 2.4% on the day. In early trading on Wednesday, shares of HP ( HPQ ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. And the worst performing S&P 500 component thus far on the day is Tractor Supply ( TSCO ), trading down 6.3%.
|
Two other components making moves today are Fastenal ( FAST ), trading down 5.3%, and American Airlines Group ( AAL ), trading up 2.4% on the day. And the worst performing S&P 500 component thus far on the day is Tractor Supply ( TSCO ), trading down 6.3%. Tractor Supply is lower by about 12.9% looking at the year to date performance.
|
f4b5c570-3b1e-42a4-acc7-ee3b079f831a
|
7576.0
|
2017-04-12 00:00:00 UTC
|
Delta Air Lines (DAL) Earnings Beat in Q1, Revenues Miss
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-dal-earnings-beat-in-q1-revenues-miss-2017-04-12
|
nan
|
nan
|
Delta Air Lines Inc.DAL kick-started the first-quarter earnings season in the airline space with a mixed performance. While the company's earnings beat estimates, revenues lagged expectations.
The Atlanta, GA-based carrier's first-quarter earnings (excluding special items) of 77 cents per share beat the Zacks Consensus Estimate of 73 cents, which pleased investors. Consequently, shares of the company were up in pre-market trading .
However, the bottom line contracted 41.7% on a year-over-year basis due to higher costs. Operating revenues came in at $9,148 million, below the Zacks Consensus Estimate of $9,155.9 million. Revenues declined 1.1% from the year-ago figure. During the quarter, passenger revenues, cargo revenues and others declined 1%, 1.2% and 2%, respectively, on a year-over-year basis. Average fuel price (adjusted) was up 28.6% to $1.71 per gallon.
Operating Statistics
Revenue passenger miles (a measure of air traffic) increased marginally to 48 billion. Capacity or available seat miles contracted 0.5% to 57.9 billion. Load factor (percentage of seats filled by passengers) improved 80 basis points year over year to 82.9% as traffic expanded, while capacity contracted in the quarter. Passenger revenue per available seat mile (PRASM) dipped 0.5% year over year to 13.28 cents. Also, passenger mile yield declined 1.4% to 16.03 cents.
Operating Expenses
Total operating expenses, including special items, climbed 5% year over year to $8,095 million. Consolidated unit cost or cost per available seat mile (CASM), including profit sharing, increased 5.8%, mainly due to the recent labor deals inked by the company.
Liquidity
At the end of the first quarter, Delta had $1.9 billion in cash and cash equivalents and adjusted net debt of $8.8 billion. The carrier generated $0.7 billion of adjusted operating cash flow in the quarter (excluding the $1.5 billion pension contribution).
Dividend and Share Repurchase
Delta returned $349 million to its shareholders through dividends ($149 million) and share buybacks ($200 million) in the quarter under review. In fact, we are impressed with the company's efforts to return greater value to its investors.
In May 2016, the company raised its quarterly cash dividend to over 20 cents per share or 81 cents per share annualized. This represented an increase of 50% over the previous quarterly payout of 13.5 cents per share or 54 cents per share annualized. Now only time will tell whether the carrier increases its dividend payout this year too.
Second-Quarter 2017 Guidance
For the second quarter of 2017, the carrier expects operating margin in the range of 17% to 19%. The estimated fuel price, including taxes and refinery impact, is projected to be in the range of $1.68 to $1.73 per gallon. Also, system capacity is expected to be flat to up 1% on a year-over- year basis. Moreover, Delta expects passenger unit revenue to increase in the band of 1% to 3% (on a year-over-year basis). Cost per Available Seat Mile, (including profit sharing) is also anticipated to increase in the band of 6% to 8% in the second quarter, mainly due to higher labor costs.
We note that labor deals are in vogue in the airline space. Not only Delta, but other players in the space like Southwest Airlines LUV , United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months.
Delta Air Lines, Inc. Price, Consensus and EPS Surprise
Delta Air Lines, Inc. Price, Consensus and EPS Surprise | Delta Air Lines, Inc. Quote
Zacks Rank
Currently, Delta has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks' Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public. Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private 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
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.
|
Not only Delta, but other players in the space like Southwest Airlines LUV , United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines Inc.DAL kick-started the first-quarter earnings season in the airline space with a mixed performance.
|
Not only Delta, but other players in the space like Southwest Airlines LUV , United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. Price, Consensus and EPS Surprise Delta Air Lines, Inc. Price, Consensus and EPS Surprise | Delta Air Lines, Inc. Quote Zacks Rank Currently, Delta has a Zacks Rank #3 (Hold).
|
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. Not only Delta, but other players in the space like Southwest Airlines LUV , United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. Dividend and Share Repurchase Delta returned $349 million to its shareholders through dividends ($149 million) and share buybacks ($200 million) in the quarter under review.
|
Not only Delta, but other players in the space like Southwest Airlines LUV , United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. 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. Passenger revenue per available seat mile (PRASM) dipped 0.5% year over year to 13.28 cents.
|
626679fa-2597-4889-b636-c20c4960ae41
|
7577.0
|
2017-04-12 00:00:00 UTC
|
American Airlines Group (AAL) Up on Raised Q1 TRASM View
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-aal-up-on-raised-q1-trasm-view-2017-04-12
|
nan
|
nan
|
Shares of Fort Worth, TX-based American Airlines GroupAAL rallied on Apr 11 following a guidance revision. The stock closed the last trading session at $43.93, up 3.8% from the previous day's closing. The upbeat guidance was issued by the company while releasing its March traffic data.
The carrier posted a decline in air traffic in the month of March. Traffic - measured in revenue passenger miles (RPMs) - was 18.8 billion, down 1.2% from the year-ago figure in the same month.
On a year-over-year basis, consolidated capacity (available seat miles/ASMs) fell 0.9% to 23 billion. Load factor or percentage of seats filled by passengers decreased 200 basis points (bps) to 81.5% due to greater reduction in traffic compared with capacity contraction.
In the first three months of 2017, American Airlines recorded a 1.5% fall in RPMs to 51 billion, while ASMs declined 1.1% to 64.3 billion, both on a year-over-year basis. Also, the load factor declined 400 bps year over year to 79.2%. Moreover, total passenger count (Enplanements) fell 0.5% and 1.2% in the month of March and the first three months of 2017, respectively, from the same period in 2016.
Guidance for Q1 Tweaked
The carrier expects first-quarter 2017 total revenue per available seat mile (TRASM) year-over-year growth of 2-4%, up from the prior 1.5-3.5%. It expects pre-tax margin, excluding special items, in the range of 4-6%, an increase from the original 3-5%. The raised guidance is primarily based on higher yields. First quarter cost per available seat mile (CASM: excluding fuel and special items) is anticipated to increase approximately 8% due to higher labor costs. Average fuel cost per gallon (mainline) is projected in the band of $1.67 to $1.72 per gallon.
Price Performance
Shares of American Airlines gained 3.68% over the last one month, outperforming the Zacks categorized Transportation-Airline industry's gain of 1.33% over the same period.
Zacks Rank & Key Picks
American AirlinesGroupcurrently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader transportation sector are Gol Linhas Aereas Inteligentes GOL , Aegean Marine Petroleum Network ANW and Deutsche Lufthansa DLAKY . Gol Linhas and Aegean Marine Petroleum sport a Zacks Rank #1 (Strong Buy), while Deutsche Lufthansa carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Shares of Gol Linhas, Aegean Marine Petroleum and Deutsche Lufthansa gained over 141%, 21% and 30%, respectively, on a year-to-date basis.
Zacks' Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private 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
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Aegean Marine Petroleum Network Inc. (ANW): 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.
|
Shares of Fort Worth, TX-based American Airlines GroupAAL rallied on Apr 11 following a guidance revision. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Aegean Marine Petroleum Network Inc. (ANW): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor or percentage of seats filled by passengers decreased 200 basis points (bps) to 81.5% due to greater reduction in traffic compared with capacity contraction.
|
Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Aegean Marine Petroleum Network Inc. (ANW): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Fort Worth, TX-based American Airlines GroupAAL rallied on Apr 11 following a guidance revision. Better-ranked stocks in the broader transportation sector are Gol Linhas Aereas Inteligentes GOL , Aegean Marine Petroleum Network ANW and Deutsche Lufthansa DLAKY .
|
Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Aegean Marine Petroleum Network Inc. (ANW): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Fort Worth, TX-based American Airlines GroupAAL rallied on Apr 11 following a guidance revision. First quarter cost per available seat mile (CASM: excluding fuel and special items) is anticipated to increase approximately 8% due to higher labor costs.
|
Shares of Fort Worth, TX-based American Airlines GroupAAL rallied on Apr 11 following a guidance revision. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Aegean Marine Petroleum Network Inc. (ANW): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier posted a decline in air traffic in the month of March.
|
5983b129-1e8a-4d01-9fff-2cb4b553c0d4
|
7578.0
|
2017-04-11 00:00:00 UTC
|
Consumer Sector Update for 04/11/2017: AAL
|
AAL
|
https://www.nasdaq.com/articles/consumer-sector-update-04112017-aal-2017-04-11
|
nan
|
nan
|
Top Consumer Shares:
WMT: flat
MCD: +0.9%
DIS: +1.1%
CVS: flat
KO: -0.1%
GE: -0.1%
Consumer shares were mixed ahead of the opening bell on Tuesday.
In consumer stocks news, American Airlines Group ( AAL ) shares were higher in pre-market trade after the company said while total revenue passenger miles fell 1.2% from a year ago to 18.8 billion, it has raised its guidance for Q1 total revenue per available seat mile to be up 2% to 4% compared to the prior range of up 1.5% to 3.5%.
Shares in the company were 1.5% higher at $42.95 in pre-market trade. The stock has traded between $24.85 and $50.64 over the past 52 weeks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In consumer stocks news, American Airlines Group ( AAL ) shares were higher in pre-market trade after the company said while total revenue passenger miles fell 1.2% from a year ago to 18.8 billion, it has raised its guidance for Q1 total revenue per available seat mile to be up 2% to 4% compared to the prior range of up 1.5% to 3.5%. Top Consumer Shares: WMT: flat Consumer shares were mixed ahead of the opening bell on Tuesday.
|
In consumer stocks news, American Airlines Group ( AAL ) shares were higher in pre-market trade after the company said while total revenue passenger miles fell 1.2% from a year ago to 18.8 billion, it has raised its guidance for Q1 total revenue per available seat mile to be up 2% to 4% compared to the prior range of up 1.5% to 3.5%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In consumer stocks news, American Airlines Group ( AAL ) shares were higher in pre-market trade after the company said while total revenue passenger miles fell 1.2% from a year ago to 18.8 billion, it has raised its guidance for Q1 total revenue per available seat mile to be up 2% to 4% compared to the prior range of up 1.5% to 3.5%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In consumer stocks news, American Airlines Group ( AAL ) shares were higher in pre-market trade after the company said while total revenue passenger miles fell 1.2% from a year ago to 18.8 billion, it has raised its guidance for Q1 total revenue per available seat mile to be up 2% to 4% compared to the prior range of up 1.5% to 3.5%. Top Consumer Shares: WMT: flat Shares in the company were 1.5% higher at $42.95 in pre-market trade.
|
af3c7395-f4b1-431f-ab0c-cddc8038f591
|
7579.0
|
2017-04-11 00:00:00 UTC
|
United Continental's Passenger Fiasco Dulls Traffic Growth
|
AAL
|
https://www.nasdaq.com/articles/united-continentals-passenger-fiasco-dulls-traffic-growth-2017-04-11
|
nan
|
nan
|
Chicago-based United Continental Holdings, Inc.UAL , the parent company of United Airlines, recently grabbed headlines, albeit for wrong reasons, with media reports suggesting that a passenger was forcefully removed from a United Continental flight (3411: Chicago to Louisville). The uncalled-for incident seems to have stemmed from the concerned passenger refusing to voluntarily vacate his seat in the overbooked flight. The company's CEO, Oscar Munoz, in a letter to the employees reportedly said that the incident was "unfortunately compounded."
The above incident overshadowed the March traffic report of United Continental. Consolidated traffic - measured in revenue passenger miles (RPMs) - increased 3% on a year-over-year basis to 17.6 billion. The uptick was mainly due to a 5.8% rise in domestic traffic. However, the metric declined marginally on the international front due to weakness in the Latin American and Atlantic divisions.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) expanded 3.4% to 21.7 billion. Load factor decreased 30 basis points to 81.3% in Mar 2017, as capacity expansion outweighed traffic growth.
This Chicago-based company now expects passenger unit revenues for the first quarter (detailed results will be out on Apr 17) to be flat on a year-over-year basis (previously the metric was expected in the range of a decline of 1% to an increase of 1%). The improved guidance was due to better-than-expected close in traffic for the month. In fact, United Continental's bullish guidance with respect to this key metric seems to be highly encouraging. This is because rival Delta Air Lines DAL had trimmed its view with respect to first-quarter passenger unit revenues for the second time, last week.
Additionally, United Continental raised its view for consolidated capacity for the first quarter due to an improvement in completion factor (mainline). The metric is now projected to grow 2.6% on a year-over-year basis (previous guidance had called for an expansion in the band of 1% to 2%). Moreover, first-quarter cost per available seat mile (CASM: excluding profit sharing, fuel & third party business cost) is anticipated to increase in the band of 4.75%-5.25% due to higher labor costs.
Notably, labor deals are in vogue in the airline space. Apart from United Continental Holdings, other players in the space like Southwest Airlines LUV and American Airlines Group AAL have also signed deals with various labor groups over the past few months.
Price Performance
We note that the United Continental stock underperformed the broader Zacks categorized Transportation-Airline industry over the last three months due to multiple headwinds. While shares of the company declined 4.7%, the industry gained 1.22%.
Zacks Rank
United Continental Holdings currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apart from United Continental Holdings, other players in the space like Southwest Airlines LUV and American Airlines Group AAL have also signed deals with various labor groups over the past few months. 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. This is because rival Delta Air Lines DAL had trimmed its view with respect to first-quarter passenger unit revenues for the second time, last week.
|
Apart from United Continental Holdings, other players in the space like Southwest Airlines LUV and American Airlines Group AAL have also signed deals with various labor groups over the past few months. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank United Continental Holdings currently carries a Zacks Rank # 3 (Hold).
|
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. Apart from United Continental Holdings, other players in the space like Southwest Airlines LUV and American Airlines Group AAL have also signed deals with various labor groups over the past few months. Chicago-based United Continental Holdings, Inc.UAL , the parent company of United Airlines, recently grabbed headlines, albeit for wrong reasons, with media reports suggesting that a passenger was forcefully removed from a United Continental flight (3411: Chicago to Louisville).
|
Apart from United Continental Holdings, other players in the space like Southwest Airlines LUV and American Airlines Group AAL have also signed deals with various labor groups over the past few months. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated traffic - measured in revenue passenger miles (RPMs) - increased 3% on a year-over-year basis to 17.6 billion.
|
1918c33f-9349-4a76-8390-754c96f14e7f
|
7580.0
|
2017-04-11 00:00:00 UTC
|
Hawaiian Airlines Is Soaring Above Its Airline Peers (Again)
|
AAL
|
https://www.nasdaq.com/articles/hawaiian-airlines-soaring-above-its-airline-peers-again-2017-04-11
|
nan
|
nan
|
Since the beginning of March, three of the four largest U.S. airlines have slashed their first-quarter unit revenue guidance , blaming a slowdown in demand for last-minute tickets. Of the major carriers, only American Airlines expects to report unit revenue growth for Q1. It currently projects that revenue per available seat mile (RASM) rose 2%-4% last quarter.
By contrast, Hawaiian Holdings (NASDAQ: HA) continues to sail along, as demand for travel to Hawaii remains as strong as ever. Hawaiian Airlines posted the best unit revenue results in the industry last year, and it's well positioned to repeat that performance in 2017.
Hawaiian Airlines catches a break
Between 2010 and 2013, Hawaiian Airlines embarked on an ambitious expansion plan that drove its revenue up from $1.18 billion in 2009 to $2.16 billion in 2013. However, it wasn't all smooth sailing. Hawaiian entered a slew of new markets during that period, and some didn't live up to the company's expectations. Meanwhile, rising competition constrained its unit revenue growth in the core West Coast-Hawaii market.
In the past few years, Hawaiian Airlines has exited some of its underperforming international markets. Others have gradually matured as consumers' interest in traveling to Hawaii has increased. In the domestic market, competitive capacity growth has finally slowed.
As a result, Hawaiian Airlines is now outperforming its peers. In 2016, it was the only U.S. airline to post unit revenue growth, with a 2% full-year RASM increase. This helped Hawaiian Holdings produce adjusted earnings per share of $5.19 last year: up from just $0.88 in 2013.
The momentum continues
While other airlines are still struggling to get unit revenue growing consistently, Hawaiian Airlines appears to be gaining momentum. In January, it reported that RASM rose 6% in the fourth quarter. At that time, management projected that RASM would rise by a relatively comparable 4%-7% during Q1.
However, Hawaiian Airlines raised its first-quarter RASM forecast on Monday. It now expects to report a stellar 6.5%-8% RASM gain this quarter, putting it well ahead of American Airlines -- let alone the other airlines that still haven't returned to unit revenue growth.
To some extent, Hawaiian is simply benefiting from a more benign competitive environment on West Coast-Hawaii routes compared to many other domestic markets. That said, it has also built up an impressive unit revenue premium over rivals. For most West Coast-Hawaii routes, Hawaiian's average fare is at least 5% higher than its competitors' average fares.
It's not surprising that Hawaiian Airlines has become a passenger-preferred airline. It is the only U.S. airline that still serves a meal at mealtimes on every flight. It also offers an authentic Hawaiian experience onboard, effectively allowing customers to start their vacations early. Moreover, the carrier is in the midst of a project to add more extra-legroom seating while upgrading its first class seats to flat beds on its A330 fleet.
Don't fear the cost increases
Hawaiian Airlines shares rallied following the unit revenue guidance update on Monday. Nevertheless, the stock remains more than 20% below the all-time high it reached in late 2016.
This underperformance can probably be traced to investors' worries about Hawaiian's rising costs. Entering the year, management forecast that the company's non-fuel cost per available seat mile (CASM) would increase at a mid-single-digit rate in 2017. Since then, Hawaiian has signed a new pilot contract, which will add $25 million-$30 million of incremental costs this year (excluding one-time payments).
As a result, Hawaiian now expects its adjusted non-fuel CASM to rise 6%-8% year over year this quarter. It's on pace for a similar increase on a full-year basis. Fuel efficiency is also declining, because Hawaiian is removing some seats from its A330s to make room for the new flat-bed seats and the expanded extra-legroom section.
However, the company's strong unit revenue growth will offset most of these cost increases. Furthermore, some costs being incurred in 2017 represent investments that could lead to lower unit costs going forward.
Most notably, Hawaiian will incur various training costs related to its new A321neo fleet during 2017, but it doesn't expect to begin operating those planes until early 2018. Yet in the long run, the A321neos should reduce unit costs dramatically relative to the aging Boeing 767s that they will replace.
Investors may have soured on Hawaiian Holdings shares in the past few months. But the company remains on track to become one of the most profitable airlines in the world. That should drive a stock price recovery sooner or later.
10 stocks we like better than Hawaiian 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 Hawaiian Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of April 3, 2017.
Adam Levine-Weinberg owns shares of Boeing and is 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.
|
Since the beginning of March, three of the four largest U.S. airlines have slashed their first-quarter unit revenue guidance , blaming a slowdown in demand for last-minute tickets. Don't fear the cost increases Hawaiian Airlines shares rallied following the unit revenue guidance update on Monday. Most notably, Hawaiian will incur various training costs related to its new A321neo fleet during 2017, but it doesn't expect to begin operating those planes until early 2018.
|
Of the major carriers, only American Airlines expects to report unit revenue growth for Q1. Entering the year, management forecast that the company's non-fuel cost per available seat mile (CASM) would increase at a mid-single-digit rate in 2017. As a result, Hawaiian now expects its adjusted non-fuel CASM to rise 6%-8% year over year this quarter.
|
Hawaiian Airlines catches a break Between 2010 and 2013, Hawaiian Airlines embarked on an ambitious expansion plan that drove its revenue up from $1.18 billion in 2009 to $2.16 billion in 2013. It now expects to report a stellar 6.5%-8% RASM gain this quarter, putting it well ahead of American Airlines -- let alone the other airlines that still haven't returned to unit revenue growth. Don't fear the cost increases Hawaiian Airlines shares rallied following the unit revenue guidance update on Monday.
|
In 2016, it was the only U.S. airline to post unit revenue growth, with a 2% full-year RASM increase. As a result, Hawaiian now expects its adjusted non-fuel CASM to rise 6%-8% year over year this quarter. That's right -- they think these 10 stocks are even better buys.
|
c81de64f-dd82-4ce0-847d-3adc7a9d65eb
|
7581.0
|
2017-04-10 00:00:00 UTC
|
Southwest Airlines (LUV) March Traffic Grows, Stock Up
|
AAL
|
https://www.nasdaq.com/articles/southwest-airlines-luv-march-traffic-grows-stock-up-2017-04-10
|
nan
|
nan
|
Low-cost carrier Southwest Airlines Co.LUV saw its shares gain 2.17% to $54.54 at the close of business on Apr 7, following the disclosure of its traffic report for the month of March. The company recorded a 3.9% year-over-year improvement in revenue passenger miles or RPMs (a measure of air traffic) on a year-over-year basis to 11.3 billion. Available seat miles or ASMs (a measure of capacity) expanded 4.5% to 13.4 billion.
Another important metric - load factor (percentage of seats filled by passengers) - deteriorated 50 basis points (bps) to 84.1% during the month as capacity expansion outpaced traffic growth, leading to relatively empty planes. For the first three months of 2017, Southwest Airlines reported a 3.3% rise in RPMs to 29.3 billion and a 4.1% increase ASMs to 36.7 billion. Total load factor contracted 60 bps to 79.9%.
We believe that more than the above readings, investors were pleased with the Dallas-based company reaffirming first-quarter 2017 unit revenues view. This seems to be the primary reason for the stock price appreciation. The low-cost carrier still expects operating revenue per ASM (RASM) in the first quarter (detailed results should be out on Apr 27) to decline in the band of 2% to 3%. Southwest Airlines' decision to reiterate its unit revenue guidance is significant since Atlanta, GA-based Delta Air Lines DAL recently trimmed its first-quarter 2017 forecast for passenger unit revenues for the second successive month.
Apart from sticking to its unit revenue view for the first quarter, this low-cost carrier unveiled a positive commentary on the current quarter. It stated that trends with respect to RASM and bookings "remain strong" for the second quarter.
Additionally, Southwest Airlines made news on the labor front. Southwest Airlines inked a tentative deal with the International Brotherhood of Teamsters pertaining to the terms of a new contract that covers material specialists of the low-cost carrier. Material specialists take care of Southwest Airlines' technical operations inventory management across the system. The "Agreement in Principle" was reached last month.
We note that labor deals are in vogue in the airline space. Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months.
Price Performance
We note that the Southwest Airlines stock has performed well of late, comfortably outperforming the Zacks categorized Transportation-Airline industry over the last three months. While the stock gained 5.51%, while the industry registred an increase of 1.22%.
The traffic growth in March and the most recent labor deal, albeit tentative, are further positives for the stock.
Zacks Rank
Southwest Airlines currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. 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. Another important metric - load factor (percentage of seats filled by passengers) - deteriorated 50 basis points (bps) to 84.1% during the month as capacity expansion outpaced traffic growth, leading to relatively empty planes.
|
Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. 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 company recorded a 3.9% year-over-year improvement in revenue passenger miles or RPMs (a measure of air traffic) on a year-over-year basis to 11.3 billion.
|
Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. 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. Southwest Airlines' decision to reiterate its unit revenue guidance is significant since Atlanta, GA-based Delta Air Lines DAL recently trimmed its first-quarter 2017 forecast for passenger unit revenues for the second successive month.
|
Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and American Airlines Group AAL too have signed deals with various labor groups over the past few months. 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. Low-cost carrier Southwest Airlines Co.LUV saw its shares gain 2.17% to $54.54 at the close of business on Apr 7, following the disclosure of its traffic report for the month of March.
|
af36ffd0-5989-4ea8-807f-638ab00962ad
|
7582.0
|
2017-04-09 00:00:00 UTC
|
7 Things You Probably Didn't Know About Delta Air Lines, Inc.
|
AAL
|
https://www.nasdaq.com/articles/7-things-you-probably-didnt-know-about-delta-air-lines-inc-2017-04-09
|
nan
|
nan
|
Although Delta Air Lines (NYSE: DAL) is a familiar name in airports around the globe, there are plenty of investors who don't know everything about the airline. Since the best investors are well-informed investors, let's look at some things that help provide a more complete view of the company.
1. Dusting off the history books
Today, Delta is recognized as one of the world's largest airline carriers, but it comes from much more meager beginnings. Delta Air Lines can trace its history to 1924, when the Huff Daland Dusters crop-dusting organization -- the world's first commercial agricultural flying company -- was founded. In 1928, Huff Daland Dusters was sold and renamed Delta Air Service, after the Mississippi Delta region it served.
2. A high flyer
Delta Air Lines is gaining plenty of recognition recently, ranking No. 31 on Fortune 's list of The World's Most Admired Companies for 2016. It also appeared on another of Fortune 's lists for 2016: 100 Best Companies to Work For, where it ranked No. 63. According to Fortune , this is the first time the airline has made the list and the first time in more than 10 years that any airline has made the list.
Among other reasons for such high accolades, the company is committed to rewarding its employees. In fiscal 2016, Delta reported $8.85 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), and returned about $1.12 billion to employees through its profit-sharing program -- about 12.6%. United Continental (NYSE: UAL) , on the other hand, returned $628 million to employees through its profit-sharing program -- about 9.5% of the $6.34 billion it reported in EBITDA for fiscal 2016.
3. Getting there is half the fun
Demonstrating its commitment to providing a superior in-flight experience, Delta became the first U.S. airline to offer free in-flight entertainment to its passengers in the summer of 2016. The onboard entertainment suite, Delta Studio, offers passengers up to 300 movies, 750 TV shows, more than 2,000 songs, and 18 channels of live satellite TV on select aircraft.
It didn't take long, however, for competitors to follow suit. Weeks after Delta announced the launch of Delta Studio, American Airlines Group (NASDAQ: AAL) issued a press release revealing its plan to "elevate the customer experience by adding complimentary premium movies, TV shows, music and games in the Main Cabin on domestic flights offering seatback entertainment systems or Wi-Fi streaming."
4. A bit of turbulence
In September 2005, Delta filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Completing its restructuring plan one year ahead of schedule, Delta emerged from bankruptcy on April 30, 2007. Since the stock was relisted on the New York Stock Exchange on May 3, 2007, it has handily outperformed the S&P 500, climbing more than 120%.
DAL data by YCharts .
5. Winning the dogfight
Bankruptcy was far from the only adversity with which Delta Air Lines contended during 2007; the company fended off a hostile takeover bid by US Airways. Valued at nearly $10 billion, the offer from US Airways (which has subsequently merged with American Airlines) was rejected by Delta Air Lines' creditors.
6. A smooth ride ahead
Between replacing older aircraft, maintaining upkeep of aircraft in service, and keeping its facilities in good shape (among plenty of other requirements) running a successful airline doesn't come cheap. In 2016, for example, Delta Air Lines reported that it had invested over $3 billion in improved products, including 38 new aircraft and new terminals in New York, Los Angeles, and Salt Lake City. Consequently, maintaining a healthy balance sheet is imperative for any airline.
Having emerged from bankruptcy, Delta has proved that it's adept at managing its debt. In the company's 10-K for fiscal 2016, management reported that the company "received upgrades to [its] credit ratings by all three major rating agencies, including investment grade ratings from Moody's and Fitch."
DAL Financial Debt To EBITDA (Annual) data by YCharts .
A quick peek at its peers' performance provides another perspective on Delta's impressive management of debt. The company maintains a total debt-to-EBITDA ratio under 1.0 and a debt-to-equity ratio under 0.6. Both metrics suggest the company is in a far more secure position than American Airlines and United Continental.
7. Shareholders are enjoying their flight
Besides being committed to returning cash to employees through its profit-sharing program, Delta is also committed to returning cash to investors. Between its dividend and share-buyback program, Delta maintains a target of returning at least 70% of free cash flow to shareholders. In fact, the company allocated more than $3 billion to dividends and stock repurchases in fiscal 2016, exceeding its target of a 70% return of free cash flow to shareholders.
Delta's dividend currently represents a 1.62% yield, while American Airlines' stock offers a 0.95% yield. United Continental, meanwhile, doesn't currently pay a dividend.
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 February 6, 2017
Scott Levine has no position in any 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.
|
Weeks after Delta announced the launch of Delta Studio, American Airlines Group (NASDAQ: AAL) issued a press release revealing its plan to "elevate the customer experience by adding complimentary premium movies, TV shows, music and games in the Main Cabin on domestic flights offering seatback entertainment systems or Wi-Fi streaming." Delta Air Lines can trace its history to 1924, when the Huff Daland Dusters crop-dusting organization -- the world's first commercial agricultural flying company -- was founded. In 2016, for example, Delta Air Lines reported that it had invested over $3 billion in improved products, including 38 new aircraft and new terminals in New York, Los Angeles, and Salt Lake City.
|
Weeks after Delta announced the launch of Delta Studio, American Airlines Group (NASDAQ: AAL) issued a press release revealing its plan to "elevate the customer experience by adding complimentary premium movies, TV shows, music and games in the Main Cabin on domestic flights offering seatback entertainment systems or Wi-Fi streaming." Getting there is half the fun Demonstrating its commitment to providing a superior in-flight experience, Delta became the first U.S. airline to offer free in-flight entertainment to its passengers in the summer of 2016. The onboard entertainment suite, Delta Studio, offers passengers up to 300 movies, 750 TV shows, more than 2,000 songs, and 18 channels of live satellite TV on select aircraft.
|
Weeks after Delta announced the launch of Delta Studio, American Airlines Group (NASDAQ: AAL) issued a press release revealing its plan to "elevate the customer experience by adding complimentary premium movies, TV shows, music and games in the Main Cabin on domestic flights offering seatback entertainment systems or Wi-Fi streaming." 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. * 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!
|
Weeks after Delta announced the launch of Delta Studio, American Airlines Group (NASDAQ: AAL) issued a press release revealing its plan to "elevate the customer experience by adding complimentary premium movies, TV shows, music and games in the Main Cabin on domestic flights offering seatback entertainment systems or Wi-Fi streaming." Although Delta Air Lines (NYSE: DAL) is a familiar name in airports around the globe, there are plenty of investors who don't know everything about the airline. Valued at nearly $10 billion, the offer from US Airways (which has subsequently merged with American Airlines) was rejected by Delta Air Lines' creditors.
|
b205622e-a92c-4098-9b4e-f3c7d1b81126
|
7583.0
|
2017-04-08 00:00:00 UTC
|
Which Airline Stocks Does Warren Buffett Own?
|
AAL
|
https://www.nasdaq.com/articles/which-airline-stocks-does-warren-buffett-own-2017-04-08
|
nan
|
nan
|
The short answer to the question is "most of the big U.S. airline stocks." Late in 2016, Berkshire's Hathaway's (NYSE: BRK-A) (NYSE: BRK-B) third-quarter SEC filings shocked the investing world when substantial stakes in four major U.S. airlines were revealed. Warren Buffett's dislike for the airline industry as an investment was well-known, so the addition of these four airlines could be a big endorsement of a change in the industry's fundamentals.
When they were first added to Berkshire's portfolio, the airlines represented relatively small investments by Buffett's standards. However, Berkshire's latest SEC filings showed that the airline holdings in the portfolio dramatically increased during the fourth quarter, and are now worth a combined $9 billion, representing stakes of 7%-10% in each of the four companies.
Berkshire Hathaway's airline stocks
Source: Berkshire Hathaway SEC Filings, current as of 12/31/2016. Share prices are as of 3/26/2017.
Berkshire Hathaway invested in these airlines, which happen to be the four largest airlines in the United States, and are listed in size order in the chart above. In fact, American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental Holdings (NYSE: UAL) , are the three largest airlines, by revenue, in the entire world. Southwest Airlines (NYSE: LUV) is the seventh-largest airline in the world, and has grown rapidly over the past couple of decades. In fact, Southwest's revenue has more than doubled since 2007.
Why did Buffett finally invest in airlines?
The reason that the airline investments were so surprising to many Buffett followers was that the Oracle of Omaha has been so negative on the airline industry for such a long time. Buffett invested $350 million in US Airways preferred stock, an investment he later came to regret, and Buffett stayed away from airline investments from that point on.
In fact, as recently as Berkshire's 2013 annual meeting, Buffett referred to the sector as having "been a death trap for investors." In 2007, Buffett even went so far as to say, "The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, then earns little or no money. Think airlines."
According to reports, a presentation from American Airlines CEO Doug Parker had a lot to do with changing Buffett's mind. In a nutshell, it appears that Buffett is far more bullish on the airline industry as a business now that there are only a few major airlines left after years of consolidation and bankruptcies.
Buffett's right-hand man, Charlie Munger, said that "It (the railroad industry) was a terrible business for 80 years...but they finally got down to four big railroads, and it was a better business. And something similar is happening in the airline business."
Because of comments like this, and given that Berkshire acquired BNSF railroad after similar industry consolidation, and under similar circumstances, it's been speculated that Buffett may eventually try to take over one of the airlines, especially if the stock prices weaken. Before acquiring BNSF in 2010, Berkshire had acquired a major stake in the railroad, as well as rivals Union Pacific Corp. and Norfolk Southern Corp., selling the others shortly after the BNSF acquisition.
Find out why Berkshire Hathawayis one of the 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)
Tom and David just revealed their ten top stock picks for investors to buy right now. Berkshire Hathaway (B shares) is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of April 3, 2017
Matthew Frankel owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). 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.
|
In fact, American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental Holdings (NYSE: UAL) , are the three largest airlines, by revenue, in the entire world. However, Berkshire's latest SEC filings showed that the airline holdings in the portfolio dramatically increased during the fourth quarter, and are now worth a combined $9 billion, representing stakes of 7%-10% in each of the four companies. In 2007, Buffett even went so far as to say, "The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, then earns little or no money.
|
In fact, American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental Holdings (NYSE: UAL) , are the three largest airlines, by revenue, in the entire world. Late in 2016, Berkshire's Hathaway's (NYSE: BRK-A) (NYSE: BRK-B) third-quarter SEC filings shocked the investing world when substantial stakes in four major U.S. airlines were revealed. Berkshire Hathaway's airline stocks Source: Berkshire Hathaway SEC Filings, current as of 12/31/2016.
|
In fact, American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental Holdings (NYSE: UAL) , are the three largest airlines, by revenue, in the entire world. Berkshire Hathaway's airline stocks Source: Berkshire Hathaway SEC Filings, current as of 12/31/2016. Berkshire Hathaway invested in these airlines, which happen to be the four largest airlines in the United States, and are listed in size order in the chart above.
|
In fact, American Airlines Group (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental Holdings (NYSE: UAL) , are the three largest airlines, by revenue, in the entire world. Warren Buffett's dislike for the airline industry as an investment was well-known, so the addition of these four airlines could be a big endorsement of a change in the industry's fundamentals. Berkshire Hathaway invested in these airlines, which happen to be the four largest airlines in the United States, and are listed in size order in the chart above.
|
29d2c6f9-a981-459a-bff4-8eac6ba6a066
|
7584.0
|
2017-04-07 00:00:00 UTC
|
3 Big Stock Charts for Friday: Biogen Inc (BIIB), American Airlines Group Inc (AAL) and Cisco Systems, Inc. (CSCO)
|
AAL
|
https://www.nasdaq.com/articles/3-big-stock-charts-for-friday%3A-biogen-inc-biib-american-airlines-group-inc-aal-and-cisco
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We continue to see some fractures in the market from a technical perspective as the number of companies that are trading below their respective 50-day moving averages in the S&P 500 is on the rise. What does this mean?
Most importantly, the positive breadth that held this rally in place for months is beginning to erode. In addition, it means that the nimble traders may have more opportunities for shorting opportunities as these breaks normally mean an acceleration to the downside.
Today's three big stock charts looks at the A B C's of companies that are challenging technical support levels that will result in opportunities for traders.
American Airlines Group Inc (AAL)
Airline stocks have been lagging the market and the transportation sector. As such, AAL stock recently declined into a zone that is forcing a technical squeeze play that should result in a volatile move for the shares.
The 7 Best Retirement Stocks That No One Talks About
The last two weeks have seen the stock follow its 20-day trendline straight on a collision course with its 200-day moving average. The longer of these trendlines has been lending support to American Airlines since mid-March.
Unfortunately, the decline has been somewhat low in volatility, slow steps lower in price, which has avoided pushing AAL stock into an oversold situation. This means that there is room for some volatility selling to pull shares lower before they hit a temporary bottom.
This selloff may further be accelerated by a break below $40, which has been support for the stock on a long-term basis a number of times. Bottom line is that American Airlines shares are in a technical make-or-break with the $40 that traders need to maintain an eye on.
Biogen Inc (BIIB)
The biotech sector is fracturing along with the market as this range-bound group of stocks is seeing an increase in volatility again. One of the bigger names to watch in the group is Biogen as the stock accounts for about 8% of the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB ).
BIIB shares have been struggling to rebound from an oversold condition that developed a few weeks ago, to no avail. Overhead chart resistance from $275 has acted as a trigger for sellers and now Biogen stock is breaking below the 200-day moving average.
Looking at a longer-term chart, $270 has also played an important role as support and resistance, a level that BIIB shares are trying to maintain prices above right now. One catch is that the daily volume on Biogen shares is on the decline as this level tries holding, indicating that the technicians are putting less money behind supporting this technical level.
Watch for an increase in volume to accelerate prices towards an intermediate-term price target of $250 according to BIIB's current charts.
Cisco Systems, Inc. (CSCO)
The networking giant has been pulling back of late and CSCO shares are now in position to test their 50-day moving average for the first time since the stock's staggering rally, which started in February.
Fortunately for Cisco stock, the current readings of the RSI have just dipped into oversold conditions, which means that we may see our first signs of technical buyers coming into the market in some time.
Why AT&T Inc. (T) Stock Should Weather the Internet Privacy Storm
The combination of support from the 50-day and a technically oversold condition last occurred in June last year when CSCO stock took a sharp one-day decline after breaking this trendline. The resulting rally from this volatile move took the shares from $28 to $31 over a one-month rally.
With earning season firing-up we don't consider this to be likely as traders will approach Cisco stock cautiously to get an idea of how earnings results will start to take hold of the market. However, we do expect the short-term to experience some buying pressure as this technical duo is likely to attract buyers to CSCO.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
More From InvestorPlace
10 Under-the-Radar Stocks to Buy Now for Explosive Upside
The 7 Best Retirement Stocks That No One Talks About
Facebook Inc (FB) Stock Is a Buy Regardless of the Inevitable Pullback
The post 3 Big Stock Charts for Friday: Biogen Inc (BIIB), American Airlines Group Inc (AAL) and Cisco Systems, Inc. (CSCO) 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.
|
As such, AAL stock recently declined into a zone that is forcing a technical squeeze play that should result in a volatile move for the shares. Unfortunately, the decline has been somewhat low in volatility, slow steps lower in price, which has avoided pushing AAL stock into an oversold situation. American Airlines Group Inc (AAL) Airline stocks have been lagging the market and the transportation sector.
|
American Airlines Group Inc (AAL) Airline stocks have been lagging the market and the transportation sector. More From InvestorPlace 10 Under-the-Radar Stocks to Buy Now for Explosive Upside The 7 Best Retirement Stocks That No One Talks About Facebook Inc (FB) Stock Is a Buy Regardless of the Inevitable Pullback The post 3 Big Stock Charts for Friday: Biogen Inc (BIIB), American Airlines Group Inc (AAL) and Cisco Systems, Inc. (CSCO) appeared first on InvestorPlace . As such, AAL stock recently declined into a zone that is forcing a technical squeeze play that should result in a volatile move for the shares.
|
More From InvestorPlace 10 Under-the-Radar Stocks to Buy Now for Explosive Upside The 7 Best Retirement Stocks That No One Talks About Facebook Inc (FB) Stock Is a Buy Regardless of the Inevitable Pullback The post 3 Big Stock Charts for Friday: Biogen Inc (BIIB), American Airlines Group Inc (AAL) and Cisco Systems, Inc. (CSCO) appeared first on InvestorPlace . American Airlines Group Inc (AAL) Airline stocks have been lagging the market and the transportation sector. As such, AAL stock recently declined into a zone that is forcing a technical squeeze play that should result in a volatile move for the shares.
|
More From InvestorPlace 10 Under-the-Radar Stocks to Buy Now for Explosive Upside The 7 Best Retirement Stocks That No One Talks About Facebook Inc (FB) Stock Is a Buy Regardless of the Inevitable Pullback The post 3 Big Stock Charts for Friday: Biogen Inc (BIIB), American Airlines Group Inc (AAL) and Cisco Systems, Inc. (CSCO) appeared first on InvestorPlace . American Airlines Group Inc (AAL) Airline stocks have been lagging the market and the transportation sector. As such, AAL stock recently declined into a zone that is forcing a technical squeeze play that should result in a volatile move for the shares.
|
8845915a-2eef-49b5-9d97-39c39845792d
|
7585.0
|
2017-04-05 00:00:00 UTC
|
Noteworthy Wednesday Option Activity: AAL, NPO, CLR
|
AAL
|
https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-aal-npo-clr-2017-04-05
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,185 contracts has been traded thus far today, a contract volume which is representative of approximately 3.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.4% of AAL's average daily trading volume over the past month, of 7.6 million shares. Particularly high volume was seen for the $37 strike put option expiring May 19, 2017 , with 3,323 contracts trading so far today, representing approximately 332,300 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $37 strike highlighted in orange:
EnPro Industries Inc (Symbol: NPO) saw options trading volume of 587 contracts, representing approximately 58,700 underlying shares or approximately 40.9% of NPO's average daily trading volume over the past month, of 143,375 shares. Particularly high volume was seen for the $50 strike put option expiring May 19, 2017 , with 383 contracts trading so far today, representing approximately 38,300 underlying shares of NPO. Below is a chart showing NPO's trailing twelve month trading history, with the $50 strike highlighted in orange:
And Continental Resources Inc. (Symbol: CLR) saw options trading volume of 12,108 contracts, representing approximately 1.2 million underlying shares or approximately 40.5% of CLR's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $30 strike put option expiring May 19, 2017 , with 7,500 contracts trading so far today, representing approximately 750,000 underlying shares of CLR. Below is a chart showing CLR's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for AAL options , NPO options , or CLR 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.
|
Particularly high volume was seen for the $37 strike put option expiring May 19, 2017 , with 3,323 contracts trading so far today, representing approximately 332,300 underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,185 contracts has been traded thus far today, a contract volume which is representative of approximately 3.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.4% of AAL's average daily trading volume over the past month, of 7.6 million shares.
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,185 contracts has been traded thus far today, a contract volume which is representative of approximately 3.2 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 $37 strike highlighted in orange: EnPro Industries Inc (Symbol: NPO) saw options trading volume of 587 contracts, representing approximately 58,700 underlying shares or approximately 40.9% of NPO's average daily trading volume over the past month, of 143,375 shares. That number works out to 42.4% of AAL's average daily trading volume over the past month, of 7.6 million shares.
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,185 contracts has been traded thus far today, a contract volume which is representative of approximately 3.2 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 $37 strike highlighted in orange: EnPro Industries Inc (Symbol: NPO) saw options trading volume of 587 contracts, representing approximately 58,700 underlying shares or approximately 40.9% of NPO's average daily trading volume over the past month, of 143,375 shares. That number works out to 42.4% of AAL's average daily trading volume over the past month, of 7.6 million shares.
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,185 contracts has been traded thus far today, a contract volume which is representative of approximately 3.2 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 $37 strike highlighted in orange: EnPro Industries Inc (Symbol: NPO) saw options trading volume of 587 contracts, representing approximately 58,700 underlying shares or approximately 40.9% of NPO's average daily trading volume over the past month, of 143,375 shares. That number works out to 42.4% of AAL's average daily trading volume over the past month, of 7.6 million shares.
|
6a5b563d-084d-47e9-8e54-c188d21844b0
|
7586.0
|
2017-04-05 00:00:00 UTC
|
Wednesday Sector Leaders: Technology & Communications, Industrial
|
AAL
|
https://www.nasdaq.com/articles/wednesday-sector-leaders-technology-communications-industrial-2017-04-05
|
nan
|
nan
|
In afternoon trading on Wednesday, Technology & Communications stocks are the best performing sector, up 0.9%. Within the sector, Salesforce.com Inc (Symbol: CRM) and Advanced Micro Devices, Inc. (Symbol: AMD) are two large stocks leading the way, showing a gain of 3.5% and 2.8%, respectively. Among technology ETFs , one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 0.7% on the day, and up 11.36% year-to-date. Salesforce.com Inc, meanwhile, is up 25.47% year-to-date, and Advanced Micro Devices, Inc. is up 28.31% year-to-date. Combined, CRM and AMD make up approximately 1.4% of the underlying holdings of XLK.
The next best performing sector is the Industrial sector, up 0.9%. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Stericycle Inc. (Symbol: SRCL) are the most notable, showing a gain of 2.7% and 2.6%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF ( XLI ), which is up 0.7% in midday trading, and up 5.82% on a year-to-date basis. American Airlines Group Inc, meanwhile, is down 9.82% year-to-date, and Stericycle Inc. is up 7.98% year-to-date. Combined, AAL and SRCL make up approximately 1.3% of the underlying holdings of XLI.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Wednesday. As you can see, nine sectors are up on the day, while none of the sectors are down.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Combined, AAL and SRCL make up approximately 1.3% of the underlying holdings of XLI. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Stericycle Inc. (Symbol: SRCL) are the most notable, showing a gain of 2.7% and 2.6%, respectively. In afternoon trading on Wednesday, Technology & Communications stocks are the best performing sector, up 0.9%.
|
Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Stericycle Inc. (Symbol: SRCL) are the most notable, showing a gain of 2.7% and 2.6%, respectively. Combined, AAL and SRCL make up approximately 1.3% of the underlying holdings of XLI. Within the sector, Salesforce.com Inc (Symbol: CRM) and Advanced Micro Devices, Inc. (Symbol: AMD) are two large stocks leading the way, showing a gain of 3.5% and 2.8%, respectively.
|
Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Stericycle Inc. (Symbol: SRCL) are the most notable, showing a gain of 2.7% and 2.6%, respectively. Combined, AAL and SRCL make up approximately 1.3% of the underlying holdings of XLI. Among technology ETFs , one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 0.7% on the day, and up 11.36% year-to-date.
|
Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Stericycle Inc. (Symbol: SRCL) are the most notable, showing a gain of 2.7% and 2.6%, respectively. Combined, AAL and SRCL make up approximately 1.3% of the underlying holdings of XLI. Among technology ETFs , one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 0.7% on the day, and up 11.36% year-to-date.
|
fbc45211-9e47-4db5-848c-e3ab6d3d1d66
|
7587.0
|
2017-04-05 00:00:00 UTC
|
Warren Buffett's Airline Stocks Are Coming Back to Earth: Here's Why
|
AAL
|
https://www.nasdaq.com/articles/warren-buffetts-airline-stocks-are-coming-back-earth-heres-why-2017-04-05
|
nan
|
nan
|
After a weak start to 2016, airline stocks surged in the second half of the year. The rally was primarily driven by optimism that airlines' unit revenue would soon start growing again. The revelation that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) drove the stocks even higher beginning in mid-November.
Berkshire Hathaway continued its airline stock buying spree in the last few months of 2016. However, Buffett's newfound interest in the sector hasn't been enough to keep airline stocks afloat. Shares of American, Delta, United, and Southwest have plunged in the past month.
Airline Stock 1 Month Performance, data by YCharts .
It's not very surprising that these stocks are taking a breather. The huge rally in airline stocks during the second half of 2016 left very little room for error. And unfortunately, airlines' unit revenue hasn't been improving as fast as investors had hoped.
Unit revenue falls short at Delta (again)
Delta Air Lines has been the main culprit behind airline stocks' recent woes, as it failed to meet its Q1 unit revenue guidance.
In January, Delta had projected that passenger revenue per available seat mile (PRASM) would rise 0%-2% during the first quarter. However, while fares for last-minute bookings are starting to rebound from last year's slump, they didn't improve as quickly as expected. As a result, Delta cut its Q1 unit revenue guidance last month, saying that PRASM would be roughly flat.
Even that revised outlook was a bit too optimistic. On Tuesday, Delta announced that PRASM rose 0.5% last month, marking the first monthly increase since November 2015. Yet that was less than what the company (and most analysts) had expected. Delta's management now estimates that PRASM fell 0.5% year over year in the first quarter.
A 0.5% unit revenue decline wouldn't normally be cause for alarm. However, fuel and labor costs are both up significantly relative to a year ago. As a result, even with flattish unit revenue, Delta's operating margin will decline significantly year over year in Q1.
Other airlines are struggling with unit revenue, too
Delta Air Lines was not the only airline to miss its revenue expectations in Q1. In March, American Airlines and Southwest Airlines joined Delta in cutting their forecasts .
Among those three carriers, American Airlines is the only one that still expects unit revenue to be positive for the first quarter. It now projects that revenue per available seat mile (RASM) will rise 1.5%-3.5%, compared to its initial guidance for a 2.5%-4.5% increase.
Southwest Airlines cut its revenue guidance even more. Originally, the company had forecast that RASM would slip 0%-1%, but it now expects to report a 2%-3% RASM decline for the quarter.
United has distinguished itself as one of the few carriers to maintain its original guidance. That's why United Continental stock hasn't fallen quite as much as shares of American, Delta, and Southwest.
Still, United's forecast that PRASM will be roughly flat in Q1 and that its pre-tax margin will be a puny 0.5%-2.5% is hardly impressive. Furthermore, the company's plans to aggressively increase capacity later this year could threaten its future unit revenue trajectory.
Look before you leap
Warren Buffett and his lieutenants at Berkshire Hathaway are long-term investors. They certainly aren't panicking about the airlines' recent share price declines. By and large, U.S. airlines are making the right moves to stabilize their unit revenue and get profit growing again. Meanwhile, airline stocks remain relatively cheap compared to the rest of the market.
That said, the recent turbulence for airline stocks highlights the danger of blindly copying famous investors' trades after they become public. The best time to buy airline stocks was last summer, when they were out of favor and investors still believed that Warren Buffett would never invest in an airline stock .
By contrast, Berkshire Hathaway's investments in the top four airlines helped drive those stocks to levels that made them less attractive, even for long-term investors. The "Buffett premium" is finally fading for American Airlines, Delta Air Lines, Southwest Airlines, and United Continental. This could make it a good time to give these stocks another look.
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 April 3, 2017.
Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). 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.
|
The revelation that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) drove the stocks even higher beginning in mid-November. That said, the recent turbulence for airline stocks highlights the danger of blindly copying famous investors' trades after they become public. By contrast, Berkshire Hathaway's investments in the top four airlines helped drive those stocks to levels that made them less attractive, even for long-term investors.
|
The revelation that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) drove the stocks even higher beginning in mid-November. As a result, Delta cut its Q1 unit revenue guidance last month, saying that PRASM would be roughly flat. The "Buffett premium" is finally fading for American Airlines, Delta Air Lines, Southwest Airlines, and United Continental.
|
The revelation that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) drove the stocks even higher beginning in mid-November. Unit revenue falls short at Delta (again) Delta Air Lines has been the main culprit behind airline stocks' recent woes, as it failed to meet its Q1 unit revenue guidance. Other airlines are struggling with unit revenue, too Delta Air Lines was not the only airline to miss its revenue expectations in Q1.
|
The revelation that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) drove the stocks even higher beginning in mid-November. As a result, Delta cut its Q1 unit revenue guidance last month, saying that PRASM would be roughly flat. Other airlines are struggling with unit revenue, too Delta Air Lines was not the only airline to miss its revenue expectations in Q1.
|
6a084e4a-6c9d-452d-a596-dc6bfe9af73a
|
7588.0
|
2017-04-03 00:00:00 UTC
|
Frontier Airlines Nears IPO, Files Papers with SEC
|
AAL
|
https://www.nasdaq.com/articles/frontier-airlines-nears-ipo-files-papers-with-sec-2017-04-03
|
nan
|
nan
|
Putting all speculation to rest, Frontier Airlines has finally filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to launch its initial public offering (IPO). Although, the Denver, CO-based ultra-low-cost carrier disclosed nothing regarding the proceeds from the transaction, it is reportedly aiming to make its trading debut, under the symbol 'FRNT,' in the current quarter itself.
Carrier Overcomes Bankruptcy Woes
In fact, Frontier Airlines had filed for bankruptcy protection in 2008. In the following year, the carrier was purchased by Republic Airways Holdings. Interestingly, Indigo Partners bought Frontier Airlines from Republic Airways in 2013.
Frontier Airlines operates in excess of 270 daily flights within the U.S., Mexico and the Caribbean. In fact, the no-frills carrier has filed for IPO at a time when its financial position is much improved in comparison to a few years ago. Evidently, this can be gauged from the fact that the 2016 net income of the owned carrier was $200 million, up 42.9% from the 2014 level. The carrier exited 2016 with cash and cash equivalents of $612 million, significantly above the 2015 level of $419 million.
Apart from its improved financial status, the carrier is working hard to diversify its operations and reduce dependence on Denver International Airport. To this end, approximately 45% Frontier Airlines flights starting/ending at its hometown were in operation in 2016. The comparable figure was in excess of 90% in 2013.
Low-Cost Carriers in Focus
Frontier Airlines is the latest name in the low-cost segment of the U.S. aviation industry seeking to go public. The last U.S. carrier to go public was Virgin America. The carrier, also belonging to the low-cost segment, made its trading debut in late 2014. Virgin America was acquired late last year by Alaska Air Group ALK , another low-cost carrier. Alaska Air Group carries a Zacks Rank # 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Another successful low-cost carrier is Spirit Airlines SAVE , which went public in 2011. Notably, the success of low-cost carriers has raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . Moreover, in a bid to combat the threat of low-cost carriers and attract budget-conscious travelers both the above-mentioned legacy carriers have recently started to sell cheaper tickets (Basic Economy Fares).
Airline Industry Looking up
We believe that Frontier Airlines has filed of the IPO at the correct time as stocks in the airline space are looking up, after struggling for quite some time. The overall picture seems to be healthy, despite some hiccups, which is evident from the fact that the Zacks categorized Transportation- Airline industry has handsomely outperformed the S&P 500 Index over the last six months. The industry gained 21.2% compared with the S&P 500's return of 9.5%.
Bottom-line
Given the bullish industry scenario and the success as well as popularity of low-cost carriers like Southwest Airlines LUV and Spirit Airlines, we expect Frontier Airlines' IPO to get a favorable response from investors. Consequently, we expect this burning issue to invite significant attention in the coming days.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right 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
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.
|
Notably, the success of low-cost carriers has raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . 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. Putting all speculation to rest, Frontier Airlines has finally filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to launch its initial public offering (IPO).
|
Notably, the success of low-cost carriers has raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . 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. Bottom-line Given the bullish industry scenario and the success as well as popularity of low-cost carriers like Southwest Airlines LUV and Spirit Airlines, we expect Frontier Airlines' IPO to get a favorable response from investors.
|
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. Notably, the success of low-cost carriers has raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . Airline Industry Looking up We believe that Frontier Airlines has filed of the IPO at the correct time as stocks in the airline space are looking up, after struggling for quite some time.
|
Notably, the success of low-cost carriers has raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . 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. In the following year, the carrier was purchased by Republic Airways Holdings.
|
f4f3e7c1-f535-49c4-b9e0-8134ad668043
|
7589.0
|
2017-03-29 00:00:00 UTC
|
Here's Why American Airlines Just Invested in China's Biggest Airline
|
AAL
|
https://www.nasdaq.com/articles/heres-why-american-airlines-just-invested-chinas-biggest-airline-2017-03-29
|
nan
|
nan
|
On Tuesday, American Airlines (NASDAQ: AAL) announced that it would spend $200 million to buy a small 2.76% stake in China Southern Airlines, the largest airline in China. The two airlines will also form a strategic partnership, cooperating in the fast-growing U.S.-China air travel market.
Making this investment was probably a wise move on American Airlines' part. China is the most important growth market for international air travel, and American is well behind rivals Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) there. Unfortunately, even with this deal, it will likely stay in last place in China.
Delta and United are strong in China
United Airlines has historically had the strongest route network to Asia of the U.S. legacy carriers. Its hub in San Francisco is widely acknowledged to be the best legacy carrier hub on the West Coast, and United also flies to Asia from several other big hubs -- most notably Chicago and Newark.
In recent years, United Airlines has used its strong San Francisco hub as a springboard for growth into China's interior. American, Delta, and United all fly to Beijing, Shanghai, and Hong Kong. But United is alone in flying nonstop from the U.S. to cities like Chengdu, Hangzhou, and Xi'an. Additionally, it has a codeshare partnership with Air China to provide connecting service beyond Beijing to other destinations in China.
Delta Air Lines has also historically had a strong position in Asia because Northwest Airlines (which merged with Delta about a decade ago) had a big hub in Tokyo. Still, Delta doesn't offer service to any cities in China aside from Beijing, Shanghai, and Hong Kong.
Without a big West Coast hub like San Francisco, it would be hard for Delta to add much direct service to cities other than the three big gateways. Instead, in July 2015, Delta Air Lines announced a $450 million investment in China Eastern Airlines (good for a 3.55% stake) and a new partnership with that carrier.
China Eastern operates its main hub in Shanghai. The partnership with Delta allows travelers to easily connect between Delta's existing flights to Shanghai and China Eastern's flights from there to dozens of smaller cities in China. Delta hopes to expand and deepen this alliance significantly over time.
American Airlines bolsters its position
American Airlines is essentially copying Delta's strategy by partnering up with China Southern. The two carriers will form codeshare and interline agreements to allow passengers to connect between their flights in several key cities.
Ultimately, American Airlines customers will be able to connect on China Southern to nearly 40 destinations beyond Beijing and more than 30 destinations beyond Shanghai. China Southern customers flying to the U.S. will be able to connect to nearly 80 destinations on American Airlines via New York, Los Angeles, and San Francisco.
However, while American Airlines president Robert Isom called the carriers' route networks "highly complementary," that's a bit of a stretch. China Southern's main hub is actually in Guangzhou, a city that American doesn't serve. Meanwhile, New York and Los Angeles may be the two biggest cities in the U.S., but they are two of American Airlines' smallest hubs. And American doesn't even have a hub in San Francisco.
Still more work to be done
American Airlines will have a much better position in China after it finishes implementing the new codeshare and interline agreements with China Southern. But it will still probably be in third place in China among the "Big Three," albeit no longer a distant third.
In the long run, American Airlines and China Southern need to create direct connections between their biggest hubs to enable more connecting itineraries. Flights from Dallas-Fort Worth and Chicago to Guangzhou would go a long way toward maximizing the value of this new partnership.
Unfortunately, flights between the U.S. and China's Tier 1 airports (such as Beijing, Shanghai, and Guangzhou) are virtually maxed out under the current bilateral aviation agreement. Until those flight limits are revised higher, American Airlines and China Southern won't even have the opportunity to reshape their route networks to reflect the new alliance.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 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.
|
On Tuesday, American Airlines (NASDAQ: AAL) announced that it would spend $200 million to buy a small 2.76% stake in China Southern Airlines, the largest airline in China. Instead, in July 2015, Delta Air Lines announced a $450 million investment in China Eastern Airlines (good for a 3.55% stake) and a new partnership with that carrier. China Southern customers flying to the U.S. will be able to connect to nearly 80 destinations on American Airlines via New York, Los Angeles, and San Francisco.
|
On Tuesday, American Airlines (NASDAQ: AAL) announced that it would spend $200 million to buy a small 2.76% stake in China Southern Airlines, the largest airline in China. Delta and United are strong in China United Airlines has historically had the strongest route network to Asia of the U.S. legacy carriers. Instead, in July 2015, Delta Air Lines announced a $450 million investment in China Eastern Airlines (good for a 3.55% stake) and a new partnership with that carrier.
|
On Tuesday, American Airlines (NASDAQ: AAL) announced that it would spend $200 million to buy a small 2.76% stake in China Southern Airlines, the largest airline in China. The partnership with Delta allows travelers to easily connect between Delta's existing flights to Shanghai and China Eastern's flights from there to dozens of smaller cities in China. American Airlines bolsters its position American Airlines is essentially copying Delta's strategy by partnering up with China Southern.
|
On Tuesday, American Airlines (NASDAQ: AAL) announced that it would spend $200 million to buy a small 2.76% stake in China Southern Airlines, the largest airline in China. Instead, in July 2015, Delta Air Lines announced a $450 million investment in China Eastern Airlines (good for a 3.55% stake) and a new partnership with that carrier. China Southern's main hub is actually in Guangzhou, a city that American doesn't serve.
|
1b4adae0-5ea1-466c-8bcb-f3855afd4a83
|
7590.0
|
2017-03-29 00:00:00 UTC
|
Delta Air Lines Strengthens Relationship with Korean Air
|
AAL
|
https://www.nasdaq.com/articles/delta-air-lines-strengthens-relationship-with-korean-air-2017-03-29
|
nan
|
nan
|
In a bid to expand its presence in Asia, Delta Air LinesDAL inked a memorandum of understanding with Korean Air to implement a joint venture arrangement. This customer-friendly deal, which becomes effective following regulatory approvals, will see the carriers sharing the costs and revenues on flights apart from coordinating schedules to enhance connectivity between the U.S. and Asia.
In fact, this new trans-Pacific deal has resulted in the formation of a huge network covering in excess of 290 and 80 destinations in the Americas and Asia, respectively. Additionally, it provides benefits to reciprocal frequent flyers as the carriers aim to increase traffic amid increased competition. Notably, both these carriers are among the four founding members of the SkyTeam alliance in 2000.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote
Delta has been looking to strengthen its Asian presence for quite some time. To this end, it aims to operate non-stop flights connecting Atlanta and Seoul from June. The company will utilize a 291-seat, Boeing 777-200LR aircraft for operating the flights between the two cities. Further, the flights complementing Korean Air's current operations on this route, are aimed to provide greater choice for travel between the U.S. and China.
In addition, this Zacks Rank #3 (Hold) company had shelled out $450 million to own 3.55% of China Eastern Airlines CEA , in 2015. In fact, the highly lucrative Asian aviation market has attracted Delta's rival, American Airlines Group AAL , too. Recently, American Airlines Group also signed a deal with China Southern Airlines ZNH to buy a minority stake in the latter. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right 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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report
China Eastern Airlines Corporation Ltd. (CEA): 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.
|
In fact, the highly lucrative Asian aviation market has attracted Delta's rival, American Airlines Group AAL , too. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This customer-friendly deal, which becomes effective following regulatory approvals, will see the carriers sharing the costs and revenues on flights apart from coordinating schedules to enhance connectivity between the U.S. and Asia.
|
Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the highly lucrative Asian aviation market has attracted Delta's rival, American Airlines Group AAL , too. Delta Air Lines, Inc. Price Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote Delta has been looking to strengthen its Asian presence for quite some time.
|
Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the highly lucrative Asian aviation market has attracted Delta's rival, American Airlines Group AAL , too. Delta Air Lines, Inc. Price Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote Delta has been looking to strengthen its Asian presence for quite some time.
|
Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the highly lucrative Asian aviation market has attracted Delta's rival, American Airlines Group AAL , too. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
|
f17d8b05-4494-4e5a-87ab-a48c34ec3685
|
7591.0
|
2017-03-28 00:00:00 UTC
|
American Airlines Group Inc (AAL) Takes $200 Million Stake in China Southern Airlines
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-group-inc-aal-takes-%24200-million-stake-in-china-southern-airlines-2017
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines Group Inc (NASDAQ: AAL ) is taking a $200 million stake in China Southern Airlines Co Ltd (ADR) (NYSE: ZNH ).
American Airlines Group Inc notes that its investment in China Southern Airlines Co Ltd (ADR) will start a beneficial relationship between the two. It points out that ZNH is the largest airline in the country and that it is the largest airline company in the world.
According to American Airlines Group Inc, the relationship with China Southern Airlines Co Ltd (ADR) will allow the two companies to compliment each other. ZNH offers flights to many locations in China that AAL doesn't have access to. In turn, AAL has several flights from China to the United States.
American Airlines Group Inc says that it offers flights to Beijing and Shanghai from its hubs in Chicago, Dallas Fort Worth and Los Angeles. China Southern Airlines Co Ltd's main hub is in Guangzhou and most of its transpacific flights come from there.
American Airlines Group Inc and China Southern Airlines Co Ltd (ADR) will start codeshare and interline agreements later this year. This will help passengers of both companies expand their options. This will also let customers book flights between the two companies on a single ticket and possibly earn AAdvantage Miles.
The 10 Best ETFs to Buy for the Rest of 2017
"We're pleased to begin this relationship to better connect two of the world's largest aviation markets and leading economies," Wang Chang Shun, Chairman of China Southern Airlines Co Ltd (ADR), said in a statement . "Our cooperation has the possibility to create enormous benefits for our industry and customers around the world as we work to offer them more travel options and better value."
AAL stock was up slightly and ZNH stock was down 3% as of noon Tuesday.
More From InvestorPlace
10 Monthly Dividend Stocks to Buy to Pay the Bills
10 Mutual Funds You Can Buy and Hold Forever
7 Future Blue-Chip Stocks You Need to Buy
The post American Airlines Group Inc (AAL) Takes $200 Million Stake in China Southern Airlines appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) is taking a $200 million stake in China Southern Airlines Co Ltd (ADR) (NYSE: ZNH ). ZNH offers flights to many locations in China that AAL doesn't have access to. In turn, AAL has several flights from China to the United States.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) is taking a $200 million stake in China Southern Airlines Co Ltd (ADR) (NYSE: ZNH ). More From InvestorPlace 10 Monthly Dividend Stocks to Buy to Pay the Bills 10 Mutual Funds You Can Buy and Hold Forever 7 Future Blue-Chip Stocks You Need to Buy The post American Airlines Group Inc (AAL) Takes $200 Million Stake in China Southern Airlines appeared first on InvestorPlace . ZNH offers flights to many locations in China that AAL doesn't have access to.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) is taking a $200 million stake in China Southern Airlines Co Ltd (ADR) (NYSE: ZNH ). More From InvestorPlace 10 Monthly Dividend Stocks to Buy to Pay the Bills 10 Mutual Funds You Can Buy and Hold Forever 7 Future Blue-Chip Stocks You Need to Buy The post American Airlines Group Inc (AAL) Takes $200 Million Stake in China Southern Airlines appeared first on InvestorPlace . ZNH offers flights to many locations in China that AAL doesn't have access to.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) is taking a $200 million stake in China Southern Airlines Co Ltd (ADR) (NYSE: ZNH ). ZNH offers flights to many locations in China that AAL doesn't have access to. In turn, AAL has several flights from China to the United States.
|
95c3f3ea-1388-4793-96fc-18dafba4baf6
|
7592.0
|
2017-03-28 00:00:00 UTC
|
Consumer Sector Update for 03/28/2017: ZNH,AAL,DRI,WPRT
|
AAL
|
https://www.nasdaq.com/articles/consumer-sector-update-03282017-znhaaldriwprt-2017-03-28
|
nan
|
nan
|
Top Consumer Stocks
WMT +0.83%
MCD +0.17%
DIS +0.72%
CVS +0.26%
KO +0.40%
Consumer stocks were mostly higher today, with shares of consumer staples companies in the S&P 500 adding over 0.3% in value while shares of consumer discretionary firms in the S&P 500 jumped out to a 0.9% gain in late trade.
In company news, American depository shares of China Southern Airlines Co Ltd ( ZNH ) declined Tuesday despite the carrier overnight announcing a $200 million investment by American Airlines ( AAL ) as part of a broader long-term relationship between the companies.
Under terms of the partnership, the carriers will soon begin code sharing and interline agreements followed later by American customers gaining access to 70 additional destinations in China and China Southern customers being able to fly to almost 80 more cities beyond in North and South America.
ZNH shares were down almost 3% at $34.63 each, previously sinking to a session low of $34.38 per ADS. AAL shares were higher this afternoon, rising over 2% to $42.65 apiece following a recent advance to $42.93 a share.
In other sector news,
(+) DRI, Acquires Cheddar's Scratch Kitchen for $780 mln in cash. Reports fiscal Q3 EPS of $1.32, topping Capital IQ consensus by $0.05 per share. Revenue rises 1.7% over the same quarter last year to $1.88 bln, matching the $1.87 bln analyst mean. Guides FY17 EPS over Street view.
(-) WPRT, Q4 net loss of $0.43 per share expands on $0.38 per share net loss during year-ago period and is $0.23 wider than the analyst mean. Revenue jumps 220% to $80.4 mln, exceeding Street view by $5.9 mln. Also said it was "reducing expenses and improving operating efficiencies" to to address liquidity needs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In company news, American depository shares of China Southern Airlines Co Ltd ( ZNH ) declined Tuesday despite the carrier overnight announcing a $200 million investment by American Airlines ( AAL ) as part of a broader long-term relationship between the companies. AAL shares were higher this afternoon, rising over 2% to $42.65 apiece following a recent advance to $42.93 a share. Under terms of the partnership, the carriers will soon begin code sharing and interline agreements followed later by American customers gaining access to 70 additional destinations in China and China Southern customers being able to fly to almost 80 more cities beyond in North and South America.
|
In company news, American depository shares of China Southern Airlines Co Ltd ( ZNH ) declined Tuesday despite the carrier overnight announcing a $200 million investment by American Airlines ( AAL ) as part of a broader long-term relationship between the companies. AAL shares were higher this afternoon, rising over 2% to $42.65 apiece following a recent advance to $42.93 a share. Revenue jumps 220% to $80.4 mln, exceeding Street view by $5.9 mln.
|
In company news, American depository shares of China Southern Airlines Co Ltd ( ZNH ) declined Tuesday despite the carrier overnight announcing a $200 million investment by American Airlines ( AAL ) as part of a broader long-term relationship between the companies. AAL shares were higher this afternoon, rising over 2% to $42.65 apiece following a recent advance to $42.93 a share. Consumer stocks were mostly higher today, with shares of consumer staples companies in the S&P 500 adding over 0.3% in value while shares of consumer discretionary firms in the S&P 500 jumped out to a 0.9% gain in late trade.
|
In company news, American depository shares of China Southern Airlines Co Ltd ( ZNH ) declined Tuesday despite the carrier overnight announcing a $200 million investment by American Airlines ( AAL ) as part of a broader long-term relationship between the companies. AAL shares were higher this afternoon, rising over 2% to $42.65 apiece following a recent advance to $42.93 a share. Consumer stocks were mostly higher today, with shares of consumer staples companies in the S&P 500 adding over 0.3% in value while shares of consumer discretionary firms in the S&P 500 jumped out to a 0.9% gain in late trade.
|
858b9878-7137-45a7-842c-d0c7a02b94cf
|
7593.0
|
2017-03-27 00:00:00 UTC
|
American Airlines Eyes China Southern to Expand in Asia
|
AAL
|
https://www.nasdaq.com/articles/american-airlines-eyes-china-southern-to-expand-in-asia-2017-03-27
|
nan
|
nan
|
In a bid to strengthen its Asian footprint, Fort Worth, TX-based American Airlines GroupAAL is looking to buy a stake in Asia's biggest carrier (in terms of passenger numbers) China Southern Airlines ZNH . While rumors regarding the buyout were doing the rounds for quite some time, the fact that talks are in progress was confirmed by the Chinese carrier according to a Bloomberg report.
According to people familiar with the matter, the U.S. based carrier was looking to invest approximately $200 million in the Hong Kong-listed shares of China Southern. American Airlines' latest move to expand its Chinese presence comes at a time when it is embroiled in a struggle with Chinese aviation authorities for slots to operate flights connecting Los Angeles and Beijing.
American Airlines, which carries a Zacks Rank #3 (Hold), had announced its intention to operate flights on the above route last year. But a denial by the Chinese authorities to grant slots, presented fresh obstacles in its path to expand in the fast-growing Chinese aviation market. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
In this scenario, we believe a code sharing agreement with China Southern may be the best way forward for American Airlines to fulfill its objective of expanding its presence.
A codeshare deal allows sharing of flights, which implies that a passenger has the free will to avail any flight operated by either of the companies under the agreement, irrespective of the flight number.
American Airlines Following Delta?
In the event of the talks materializing and American Airlines buying a stake in the Chinese carrier, it would follow rival Delta Air Lines, Inc. DAL efforts to expand in the lucrative market. To that end, Delta purchased a 3.55% stake in China Eastern Airlines CEA last year.
Notably, the focus of U.S. carriers like American Airlines on the Chinese market is fully understandable, given the projection that China will be the largest aviation market by 2024, overtaking the U.S.
Stock Struggling
The American Airlines stock has struggled of late due to multiple headwinds like Winter Storm Stella, among others. The stock has declined 12.44% in the last three months, against the Transportation-Airline industry's gain of 1.65%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right 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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report
China Eastern Airlines Corporation Ltd. (CEA): 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.
|
In a bid to strengthen its Asian footprint, Fort Worth, TX-based American Airlines GroupAAL is looking to buy a stake in Asia's biggest carrier (in terms of passenger numbers) China Southern Airlines ZNH . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. According to people familiar with the matter, the U.S. based carrier was looking to invest approximately $200 million in the Hong Kong-listed shares of China Southern.
|
In a bid to strengthen its Asian footprint, Fort Worth, TX-based American Airlines GroupAAL is looking to buy a stake in Asia's biggest carrier (in terms of passenger numbers) China Southern Airlines ZNH . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the focus of U.S. carriers like American Airlines on the Chinese market is fully understandable, given the projection that China will be the largest aviation market by 2024, overtaking the U.S. Stock Struggling The American Airlines stock has struggled of late due to multiple headwinds like Winter Storm Stella, among others.
|
Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In a bid to strengthen its Asian footprint, Fort Worth, TX-based American Airlines GroupAAL is looking to buy a stake in Asia's biggest carrier (in terms of passenger numbers) China Southern Airlines ZNH . American Airlines' latest move to expand its Chinese presence comes at a time when it is embroiled in a struggle with Chinese aviation authorities for slots to operate flights connecting Los Angeles and Beijing.
|
In a bid to strengthen its Asian footprint, Fort Worth, TX-based American Airlines GroupAAL is looking to buy a stake in Asia's biggest carrier (in terms of passenger numbers) China Southern Airlines ZNH . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report China Southern Airlines Company Limited (ZNH): Free Stock Analysis Report China Eastern Airlines Corporation Ltd. (CEA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines' latest move to expand its Chinese presence comes at a time when it is embroiled in a struggle with Chinese aviation authorities for slots to operate flights connecting Los Angeles and Beijing.
|
b6ee5487-3437-41bd-8925-17d3da9ccf07
|
7594.0
|
2017-03-27 00:00:00 UTC
|
Noteworthy Monday Option Activity: CELG, GPN, AAL
|
AAL
|
https://www.nasdaq.com/articles/noteworthy-monday-option-activity-celg-gpn-aal-2017-03-27
|
nan
|
nan
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Celgene Corp. (Symbol: CELG), where a total volume of 17,579 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.6% of CELG's average daily trading volume over the past month, of 4.0 million shares. Particularly high volume was seen for the $119 strike put option expiring March 31, 2017 , with 1,058 contracts trading so far today, representing approximately 105,800 underlying shares of CELG. Below is a chart showing CELG's trailing twelve month trading history, with the $119 strike highlighted in orange:
Global Payments Inc (Symbol: GPN) saw options trading volume of 5,363 contracts, representing approximately 536,300 underlying shares or approximately 41.9% of GPN's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $75 strike put option expiring April 21, 2017 , with 3,190 contracts trading so far today, representing approximately 319,000 underlying shares of GPN. Below is a chart showing GPN's trailing twelve month trading history, with the $75 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 33,544 contracts, representing approximately 3.4 million underlying shares or approximately 41.9% of AAL's average daily trading volume over the past month, of 8.0 million shares. Especially high volume was seen for the $55 strike call option expiring August 18, 2017 , with 5,610 contracts trading so far today, representing approximately 561,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for CELG options , GPN 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.
|
Especially high volume was seen for the $55 strike call option expiring August 18, 2017 , with 5,610 contracts trading so far today, representing approximately 561,000 underlying shares of AAL. Below is a chart showing GPN's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 33,544 contracts, representing approximately 3.4 million underlying shares or approximately 41.9% of AAL's average daily trading volume over the past month, of 8.0 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for CELG options , GPN options , or AAL options , visit StockOptionsChannel.com.
|
Below is a chart showing GPN's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 33,544 contracts, representing approximately 3.4 million underlying shares or approximately 41.9% of AAL's average daily trading volume over the past month, of 8.0 million shares. Especially high volume was seen for the $55 strike call option expiring August 18, 2017 , with 5,610 contracts trading so far today, representing approximately 561,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for CELG options , GPN options , or AAL options , visit StockOptionsChannel.com.
|
Below is a chart showing GPN's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 33,544 contracts, representing approximately 3.4 million underlying shares or approximately 41.9% of AAL's average daily trading volume over the past month, of 8.0 million shares. Especially high volume was seen for the $55 strike call option expiring August 18, 2017 , with 5,610 contracts trading so far today, representing approximately 561,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for CELG options , GPN options , or AAL options , visit StockOptionsChannel.com.
|
Below is a chart showing GPN's trailing twelve month trading history, with the $75 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 33,544 contracts, representing approximately 3.4 million underlying shares or approximately 41.9% of AAL's average daily trading volume over the past month, of 8.0 million shares. Especially high volume was seen for the $55 strike call option expiring August 18, 2017 , with 5,610 contracts trading so far today, representing approximately 561,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for CELG options , GPN options , or AAL options , visit StockOptionsChannel.com.
|
c9ada9c4-2c78-42d3-bcf0-45e6ad9d0e42
|
7595.0
|
2017-03-24 00:00:00 UTC
|
Alaska Airlines to Do Away With Virgin America Brand in 2019
|
AAL
|
https://www.nasdaq.com/articles/alaska-airlines-to-do-away-with-virgin-america-brand-in-2019-2017-03-24
|
nan
|
nan
|
One of the most notable events 2016 was the acquisition of Virgin America by Alaska Air GroupALK , the parent company of Alaska Airlines. The completion of the buyout on Dec 14, 2016 saw the creation of the fifth-largest airline in the U.S. (in terms of passenger traffic).
Following the takeover, a West Coast powerhouse has been created. The deal has allowed Alaska Air Group to expand significantly, gaining access to most of the West Coast hubs (Seattle, Portland, Anchorage, San Francisco and Los Angeles). Moving ahead, the merged entity is expected to provide 1,200 departure options per day to 118 destinations across the U.S. and Mexico, among other countries.
At the time of the completion of the merger, Alaska Air Group's CEO and chairman Brad Tilden had said that the picture regarding the amenities available on the erstwhile Virgin America flights will become clear only in the first quarter of 2017. Keeping the promise, the Seattle, WA-based carrier recently clarified the above aspect.
Nevertheless, the commentary proved to be a disappointment for those who had hoped that the Virgin America brand would remain. Disappointing loyalists of the banner, Alaska Air Group announced that it will do away with the Virgin America name likely sometime in 2019. Justifying the decision, it also added that to be a successful low-cost airline along with wide acceptance on the West Coast, it was a necessity to operate under one brand.
However, all the features of the erstwhile Virgin America will not be reduced to ashes. In order to enhance the flying experience of passengers, those availing Alaska Air Group flights will have some features like enhanced in-flight entertainment, mood lighting and music. Such features characterized Virgin America flights, prior to its takeover. The merged entity will operate under Alaska Air Group's name and logo.
We believe that the announcement to end the Virgin America brand in 2019 is not surprising and has precedence. The AirTran brand became history in 2014, following the purchase of AirTran Airways by Southwest Airlines Co. LUV in 2011. In fact, merger driven consolidation is not new in the airline space. Apart from the Southwest Airlines-AirTran merger, other notable takeovers include Delta Air Lines' DAL tie-up with Northwest Airlines.
Currently, Alaska Air Group, which carries a Zacks Rank # 3 (Hold), is striving to get the Federal Aviation Administration (FAA) certification. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Following receipt of the single operating certificate, which is expected to take one year, the two airlines can operate as a single carrier. The Alaska Air Group-Virgin America merger is the first significant consolidation in the airline space since late 2013, when AMR (American Airlines' parent group) and US Airways had combined to create American Airlines Group AAL . American Airlines Group received a single operating certificate in 2015.
Price Movement
Shares of Alaska Air Group have increased significantly following the merger. This is evident from the fact that the stock has returned 8.9% since Dec 14, comfortably outperforming the Zacks categorized Transportation- Airline industry's loss of 1.5%.
Conclusion
Despite the uptick so far, it remains to be seen how the stock is impacted following the announcement to put an end to the Virgin America brand. It goes without saying that the update has disappointed Virgin America loyalists. Apparently , Richard Branson, the British billionaire, who partly owned Virgin America (prior to the takeover), has voiced his disappointment over the impending disappearance of the brand. The exact magnitude of the impact will, however, become clearer with the passage of time. Consequently, we expect investors to keenly await updates on this issue.
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
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.
|
The Alaska Air Group-Virgin America merger is the first significant consolidation in the airline space since late 2013, when AMR (American Airlines' parent group) and US Airways had combined to create American Airlines Group AAL . Click to get this free report Southwest Airlines Company (LUV): 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 deal has allowed Alaska Air Group to expand significantly, gaining access to most of the West Coast hubs (Seattle, Portland, Anchorage, San Francisco and Los Angeles).
|
The Alaska Air Group-Virgin America merger is the first significant consolidation in the airline space since late 2013, when AMR (American Airlines' parent group) and US Airways had combined to create American Airlines Group AAL . Click to get this free report Southwest Airlines Company (LUV): 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 Alaska Air Group-Virgin America merger is the first significant consolidation in the airline space since late 2013, when AMR (American Airlines' parent group) and US Airways had combined to create American Airlines Group AAL . Click to get this free report Southwest Airlines Company (LUV): 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. One of the most notable events 2016 was the acquisition of Virgin America by Alaska Air GroupALK , the parent company of Alaska Airlines.
|
The Alaska Air Group-Virgin America merger is the first significant consolidation in the airline space since late 2013, when AMR (American Airlines' parent group) and US Airways had combined to create American Airlines Group AAL . Click to get this free report Southwest Airlines Company (LUV): 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. Disappointing loyalists of the banner, Alaska Air Group announced that it will do away with the Virgin America name likely sometime in 2019.
|
5060e05d-476f-40f2-96ac-f1b477151380
|
7596.0
|
2017-03-24 00:00:00 UTC
|
American (AAL), United (UAL) Expand, O'Hare Airport in Focus
|
AAL
|
https://www.nasdaq.com/articles/american-aal-united-ual-expand-ohare-airport-in-focus-2017-03-24
|
nan
|
nan
|
Chicago O'Hare International Airport is one of the busiest airports in the U.S. United Continental HoldingsUAL is the largest operator at the airport, followed by American Airlines GroupAAL . It is no surprise these two are vying for market share. In fact, both the carriers have recently announced the introduction of new routes from O'Hare.
Other carriers operating at the airport include the likes of Delta Air Lines DAL and Spirit Airlines SAVE , And all the above-mentioned carriers carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Expansion Drive
In Feb 27, 2017, United Continental announced that it will add six new routes from O'Hare apart from introducing additional flights to three other destinations from June. These new routes are part of the Chicago-based carrier's expansion drive. In fact, the airport at Chicago was the recipient of bulk of the 47 new round trips announced by the carrier in February.
Moreover, the carrier's focus on the Chicago O' Hare airport was evident from its investor presentation in Nov 2016 where it was described as "Well positioned geographically for connecting passengers'.
Responding to United Continental's move to introduce new routes from O'Hare, American Airlines Group also came up with its own expansion plan at O'Hare barely, ten days later. The Fort Worth, TX-based carrier announced that it intends to add flights connecting the O'Hare airport to seven new U.S. mid-sized cities including the likes of Appleton, WI, Birmingham, AL, Boise, ID and Colorado Springs, CO from Jul 5. American Airlines is looking to add five new gates at O'Hare as part of its expansion efforts.
In fact, the competition between United Continental and American Airlines at O'Hare has gained pace after Scott Kirby became the president of United Continental last year. Kirby had moved to United Continental from American Airlines, where he served in similar capacity. The appointment was one of the several management changes at the airline, as it aims to improve its operational performance under Oscar Munoz.
The above announcements by the two major players at O'Hare highlights their efforts to fly to more regional cities where there's less competition. Consequently, the ability to control prices is much more. Both carriers are aiming to attract more traffic through its hub airports like O'Hare, from smaller cities.
Price Performance
The efforts are bearing fruits as can be seen from United Continental's price performance over the last six months. During the period, the stock has returned 33.4%, outperforming the Zacks categorized. Transportation-Airline industry which has gained 24% in the period. In contrast, the American Airlines stock increased only 17.2%, over the last six months.
Conclusion
Further, we note that the enhanced competition at O'Hare is good news for Chicago passengers. This is because enhanced competition might result in lower ticket prices. Consequently, we expect investor focus to remain on updates pertaining to this burning issue.
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
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.
|
Chicago O'Hare International Airport is one of the busiest airports in the U.S. United Continental HoldingsUAL is the largest operator at the airport, followed by American Airlines GroupAAL . 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. Expansion Drive In Feb 27, 2017, United Continental announced that it will add six new routes from O'Hare apart from introducing additional flights to three other destinations from June.
|
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. Chicago O'Hare International Airport is one of the busiest airports in the U.S. United Continental HoldingsUAL is the largest operator at the airport, followed by American Airlines GroupAAL . Other carriers operating at the airport include the likes of Delta Air Lines DAL and Spirit Airlines SAVE , And all the above-mentioned carriers carry a Zacks Rank #3 (Hold).
|
Chicago O'Hare International Airport is one of the busiest airports in the U.S. United Continental HoldingsUAL is the largest operator at the airport, followed by American Airlines GroupAAL . 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. In fact, the competition between United Continental and American Airlines at O'Hare has gained pace after Scott Kirby became the president of United Continental last year.
|
Chicago O'Hare International Airport is one of the busiest airports in the U.S. United Continental HoldingsUAL is the largest operator at the airport, followed by American Airlines GroupAAL . 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. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
|
8e825e7a-43cd-405e-9870-b1ebaa81d5f9
|
7597.0
|
2017-03-23 00:00:00 UTC
|
2 Stocks Billionaires Own
|
AAL
|
https://www.nasdaq.com/articles/2-stocks-billionaires-own-2017-03-23
|
nan
|
nan
|
Billionaires Warren Buffett and George Soros earned their vast fortunes by consistently finding gems lying in plain sight. And after decades of running their own investment businesses, these superinvestors remain as active as ever.
Individual savers interested in learning from or investing alongside these financial legends need to look no further than the 13-F filings that all large investment firms file with the SEC each quarter. With that in mind, let's look at two of the largest and most noteworthy current investments in Buffett's and Soros' portfolios.
Liberty Broadband
After focusing on his philanthropic activities for a number of years, Soros resumed a more active role at his eponymous Soros Fund Management in mid-2016. Around the same time, the famed investor loaded up on shares of Liberty Broadband (NASDAQ: LBRDK) (NASDAQ: LBRDA) , and the roughly $615 million stake he owns in the company represented his largest holding in his latest quarterly filing -- and for good reason.
As one of the group of companies associated with telecom magnate John Malone -- who regularly uses complex, tax-efficient corporate transactions to unlock value for shareholders -- Liberty Broadband serves as a holding company that controls a diverse set of media assets. The most important of these is Liberty Broadband's ownership of 25% of Charter Communications '(NASDAQ: CHTR) total voting power, which effectively makes Liberty Broadband a tracking stock for Charter Communications shares. As such, Liberty Broadband shares have largely mirrored the impressive rally in Charter Communications stock over the past year. Particularly given Charter's upcoming launch of its own wireless service network, Soros' investment in Liberty Broadband remains an interesting option as the cable and telecom industries continue to evolve.
Delta Air Lines
Buffett's surprise move into airline stocks has garnered plenty of headlines in recent months. And though it remains far from his largest holding by dollar value, Buffett's purchase of $2.8 billion worth of Delta Air Lines (NYSE: DAL) shares -- his largest airline industry holding -- speaks to the superinvestor's ability to change his thinking over time.
The U.S. airline industry today looks far different today from how it did in early 1990s, when Buffett lost big betting on airline shares. The Great Recession prompted a wave of industry consolidation that increased the percentage of industry revenue captures by the four largest carriers, from 65% in 2010 to 84% in 2015. The operational efficiencies brought on by this merger bonanza have combined with investments in more fuel-efficient planes and improvements in the job market to leave large carriers like Delta in arguably their strongest competitive position ever. Case in point: Delta's gross, operating, and profit margins -- each important measures of profitability -- lie well above the industry averages over the past one and five years.
That said, Buffett's interest in the airline industry extends to all four major U.S. carriers. Berkshire Hathaway owns also stakes in Southwest Airlines , United Continental Holdings , and American Airlines ranging from $2.3 billion to $1.9 billion.
It also bears noting that Delta has been struggling lately with its latest round of expansions. The carrier has been increasing its capacity over the past two years, but its investments in new routes have slightly outpaced the revenue growth Delta believed they would create. This situation prompted the company's revenue per available seat mile, an important industry metric, to decline 2.7% in January and to come in flat in February, worse than management originally projected. And that's part of why Delta's shares have struggled lately. Its stock has declined 7.5% over the past 12 months, compared with a 15.9% rise on the S&P 500 .
Looking to the long term, though, the continued strengthening of large U.S. carriers' competitive positions and ongoing improvements in the economy should serve as tailwinds for Buffett's largest holding and its peers in the years to come.
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 February 6, 2017
Andrew Tonner has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). 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.
|
Particularly given Charter's upcoming launch of its own wireless service network, Soros' investment in Liberty Broadband remains an interesting option as the cable and telecom industries continue to evolve. The operational efficiencies brought on by this merger bonanza have combined with investments in more fuel-efficient planes and improvements in the job market to leave large carriers like Delta in arguably their strongest competitive position ever. Looking to the long term, though, the continued strengthening of large U.S. carriers' competitive positions and ongoing improvements in the economy should serve as tailwinds for Buffett's largest holding and its peers in the years to come.
|
Around the same time, the famed investor loaded up on shares of Liberty Broadband (NASDAQ: LBRDK) (NASDAQ: LBRDA) , and the roughly $615 million stake he owns in the company represented his largest holding in his latest quarterly filing -- and for good reason. And though it remains far from his largest holding by dollar value, Buffett's purchase of $2.8 billion worth of Delta Air Lines (NYSE: DAL) shares -- his largest airline industry holding -- speaks to the superinvestor's ability to change his thinking over time. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares).
|
Around the same time, the famed investor loaded up on shares of Liberty Broadband (NASDAQ: LBRDK) (NASDAQ: LBRDA) , and the roughly $615 million stake he owns in the company represented his largest holding in his latest quarterly filing -- and for good reason. The most important of these is Liberty Broadband's ownership of 25% of Charter Communications '(NASDAQ: CHTR) total voting power, which effectively makes Liberty Broadband a tracking stock for Charter Communications shares. And though it remains far from his largest holding by dollar value, Buffett's purchase of $2.8 billion worth of Delta Air Lines (NYSE: DAL) shares -- his largest airline industry holding -- speaks to the superinvestor's ability to change his thinking over time.
|
Around the same time, the famed investor loaded up on shares of Liberty Broadband (NASDAQ: LBRDK) (NASDAQ: LBRDA) , and the roughly $615 million stake he owns in the company represented his largest holding in his latest quarterly filing -- and for good reason. As such, Liberty Broadband shares have largely mirrored the impressive rally in Charter Communications stock over the past year. And though it remains far from his largest holding by dollar value, Buffett's purchase of $2.8 billion worth of Delta Air Lines (NYSE: DAL) shares -- his largest airline industry holding -- speaks to the superinvestor's ability to change his thinking over time.
|
bb18b77e-e4f2-41da-bbf5-ba2a5d21c4ad
|
7598.0
|
2017-03-22 00:00:00 UTC
|
Nasdaq 100 Movers: AAL, SYMC
|
AAL
|
https://www.nasdaq.com/articles/nasdaq-100-movers-aal-symc-2017-03-22
|
nan
|
nan
|
In early trading on Wednesday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%. Year to date, Symantec registers a 27.9% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. American Airlines Group is lower by about 15.5% looking at the year to date performance.
Two other components making moves today are Sirius XM Holdings ( SIRI ), trading down 1.5%, and Marriott International ( MAR ), trading up 1.7% on the day.
VIDEO: Nasdaq 100 Movers: AAL, SYMC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 15.5% looking at the year to date performance.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%.
|
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 15.5% looking at the year to date performance.
|
2d848300-e383-47ea-813c-f7692b975d67
|
7599.0
|
2017-03-22 00:00:00 UTC
|
Hope You're Hungry: This Major Airline Is Bringing Back Free Meals on Long Domestic Flights
|
AAL
|
https://www.nasdaq.com/articles/hope-youre-hungry-major-airline-bringing-back-free-meals-long-domestic-flights-2017-03-22
|
nan
|
nan
|
Competition is heating up among the airlines -- and for travelers, that's good news.
You've probably heard by now that Delta Air Lines (NYSE: DAL) has resumed offering free meals on transcontinental flights , right? Well, whether you heard about it or not, Delta rival American Airlines (NASDAQ: AAL) certainly did -- and it's rushing to match Delta's offer to bring back the popular perk.
The rundown
Last week, American Airlines announced that beginning May 1, all flyers traveling between New York and Los Angeles or San Francisco will be treated to a continental breakfast (morning flights), or a boxed meal consisting of a wrap, chips, and dessert (with an option for vegetarians).
American's move mirrors Delta's announcement of free in-flight meals beginning on March 1, but it's more of a pocket mirror -- not full-length. Like American, Delta is offering free in-flight meals on flights between JFK and LAX, and JFK and SFO; but Delta also says it will roll out free meals on other flights in short order.
By April 24 -- a full week before American's first batch of freebies kick in -- Delta will already have added free meals on flights along 10 other routes. These include routes to and from Boston and San Francisco, L.A., or Seattle, between Reagan National and LAX, on JFK routes to and from Portland (Oregon), San Diego, or Seattle, and between Seattle and Fort Lauderdale, Orlando, or Raleigh-Durham.
All of which kind of makes American Airlines' announcement sound a day late and a dollar short -- or more precisely, a month late and 10 routes short of Delta's offer.
Why the sudden generosity?
Chances are, American is going to have to up its game, and quick -- but why? I mean, free meals for you and me aren't free for Delta and American to provide, so why did Delta start this freebie war in the first place? Aren't the airlines doing gangbusters business, feeling no compunction about shrinking seats -- and bathrooms! -- to cram more passengers onto airplanes and extract more profit from them? Aren't the airlines consequently rolling in dough?
Well, yes and no. The airline industry has returned to health after the dark days following 9/11. S&P Global Market Intelligence data show that Delta has put together a seven-year profitable streak, tipping the scales at a monstrous $10.5 billion in 2013.
American, too, is looking a whole lot better lately, with a streak of three uninterrupted years of positive profits. (And just to round out the big three, United Airlines (NYSE: UAL) has posted profits in each of the past four years -- and six of the last seven.)
That said, revenue has declined at all three of the legacy airlines for two years straight, and last year, Delta saw its profits drop 3%. The situation's even worse at American, where profits dropped 65%, and United -- a 69% profits decline!
That's a worrisome enough trend in and of itself. But at the same time as revenues are ebbing and profits sagging, rival airlines are starting to encroach on the big three's turf. Competition is said to be especially intense from JetBlue , Alaska Airlines (NYSE: ALK) , and Virgin America -- recently acquired by Alaska Air.
Given this, it's no surprise Delta and American are moving to nip customer defections in the bud, and give customers a solid reason to fly with them and not with the other guy. The only question now is: When will United Airlines throw in the towel and throw in some freebies for its customers as well?
And of course, the corollary: When they ultimately do give in, will that stem the tide of revenue and profit declines -- or will the high price of free food ultimately push these airlines back into unprofitability?
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 February 6, 2017
Rich Smith has no position in any 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.
|
Well, whether you heard about it or not, Delta rival American Airlines (NASDAQ: AAL) certainly did -- and it's rushing to match Delta's offer to bring back the popular perk. The rundown Last week, American Airlines announced that beginning May 1, all flyers traveling between New York and Los Angeles or San Francisco will be treated to a continental breakfast (morning flights), or a boxed meal consisting of a wrap, chips, and dessert (with an option for vegetarians). By April 24 -- a full week before American's first batch of freebies kick in -- Delta will already have added free meals on flights along 10 other routes.
|
Well, whether you heard about it or not, Delta rival American Airlines (NASDAQ: AAL) certainly did -- and it's rushing to match Delta's offer to bring back the popular perk. American's move mirrors Delta's announcement of free in-flight meals beginning on March 1, but it's more of a pocket mirror -- not full-length. Like American, Delta is offering free in-flight meals on flights between JFK and LAX, and JFK and SFO; but Delta also says it will roll out free meals on other flights in short order.
|
Well, whether you heard about it or not, Delta rival American Airlines (NASDAQ: AAL) certainly did -- and it's rushing to match Delta's offer to bring back the popular perk. Like American, Delta is offering free in-flight meals on flights between JFK and LAX, and JFK and SFO; but Delta also says it will roll out free meals on other flights in short order. I mean, free meals for you and me aren't free for Delta and American to provide, so why did Delta start this freebie war in the first place?
|
Well, whether you heard about it or not, Delta rival American Airlines (NASDAQ: AAL) certainly did -- and it's rushing to match Delta's offer to bring back the popular perk. You've probably heard by now that Delta Air Lines (NYSE: DAL) has resumed offering free meals on transcontinental flights , right? Like American, Delta is offering free in-flight meals on flights between JFK and LAX, and JFK and SFO; but Delta also says it will roll out free meals on other flights in short order.
|
13b37b9a-9568-4dc1-bd27-550c325bb984
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.