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Here's Why Gol Linhas (GOL) Deserves a Place in Your Portfolio
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Gol Linhas is benefiting from the uptick in air-travel demand (particularly on the domestic front).
Let’s delve deeper to unearth the factors that make the stock an attractive investment opportunity.
Solid Rank & VGM Score: Gol Linhas currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2022, Gol Linhas’ earnings are expected to register 96.77% growth. For 2022 and 2023, the company’s earnings are expected to grow 56.01% and 50.9%, respectively, year over year.
Other Tailwinds:The continued recovery in air-travel demand in Brazil bodes well for Gol Linhas. In third-quarter 2022, revenues from passenger transportation, accounting for 93.7% of total revenues, surged 112.7%, thanks to continued recovery in air-travel demand in Brazil. Gol Linhas transported 6.9 million passengers in the third quarter, up 39.2% from the year-ago number. Strong air-travel demand is likely to aid fourth-quarter results. For 2022, GOL continues to expect net revenues to be R$15.4 billion.
In November 2022, domestic traffic and capacity improved 18.7% and 19.6%, respectively. On the domestic front, 21.7% more passengers boarded GOL’s flights in November 2022. The domestic load factor was 81.8%. The volume of departures and seats increased 22.1% and 24.8%, respectively.
With air-travel demand improving, Gol Linhas’ acquisition of domestic airline MAP Transportes Aéreos Ltd, a Brazilian domestic airline, for R$28 million is a prudent move. The acquisition is likely to boost the company's top line by attracting additional traffic.
Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise
Some other top-ranked stocks from the broader Zacks Transportation sector are as follows:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
CVLG currently sports a Zacks Rank #1. The gradually improving freight market scenario is a tailwind for Covenant. CVLG’s cost-control efforts are also appreciated. The Zacks Consensus Estimate for 2022 earnings has been revised 10.1% upward in the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. However, high fuel costs are weighing on the bottom line.
Teekay Tankers currently flaunts a Zacks Rank #1. TNK’s shares have soared 171% in a year. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
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Here's Why Gol Linhas (GOL) Deserves a Place in Your Portfolio
Gol Linhas is benefiting from the uptick in air-travel demand (particularly on the domestic front).
Let’s delve deeper to unearth the factors that make the stock an attractive investment opportunity.
Solid Rank & VGM Score: Gol Linhas currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2022, Gol Linhas’ earnings are expected to register 96.77% growth. For 2022 and 2023, the company’s earnings are expected to grow 56.01% and 50.9%, respectively, year over year.
Other Tailwinds:The continued recovery in air-travel demand in Brazil bodes well for Gol Linhas. In third-quarter 2022, revenues from passenger transportation, accounting for 93.7% of total revenues, surged 112.7%, thanks to continued recovery in air-travel demand in Brazil. Gol Linhas transported 6.9 million passengers in the third quarter, up 39.2% from the year-ago number. Strong air-travel demand is likely to aid fourth-quarter results. For 2022, GOL continues to expect net revenues to be R$15.4 billion.
In November 2022, domestic traffic and capacity improved 18.7% and 19.6%, respectively. On the domestic front, 21.7% more passengers boarded GOL’s flights in November 2022. The domestic load factor was 81.8%. The volume of departures and seats increased 22.1% and 24.8%, respectively.
With air-travel demand improving, Gol Linhas’ acquisition of domestic airline MAP Transportes Aéreos Ltd, a Brazilian domestic airline, for R$28 million is a prudent move. The acquisition is likely to boost the company's top line by attracting additional traffic.
Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise
Gol Linhas Aereas Inteligentes S.A. price-consensus-eps-surprise-chart | Gol Linhas Aereas Inteligentes S.A. Quote
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are as follows:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
CVLG currently sports a Zacks Rank #1. The gradually improving freight market scenario is a tailwind for Covenant. CVLG’s cost-control efforts are also appreciated. The Zacks Consensus Estimate for 2022 earnings has been revised 10.1% upward in the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. However, high fuel costs are weighing on the bottom line.
Teekay Tankers currently flaunts a Zacks Rank #1. TNK’s shares have soared 171% in a year. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.