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Atlas Air Worldwide (AAWW) Dips More Than Broader Markets: What You Should Know

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Atlas Air Worldwide closed at $56.17 in the latest trading session, marking a -1.59% move from the prior day. This change lagged the S&P 500's daily loss of 0.25%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.53%.

Prior to today's trading, shares of the airplane leasing company and service provider had gained 6.25% over the past month. This has outpaced the Transportation sector's loss of 3.33% and the S&P 500's loss of 2.35% in that time.

Wall Street will be looking for positivity from AAWW as it approaches its next earnings report date. This is expected to be February 28, 2019. The company is expected to report EPS of $2.88, up 18.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $759.63 million, up 20.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $2.68 billion, which would represent changes of +42.19% and +24.35%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AAWW. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.07% higher. AAWW is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that AAWW has a Forward P/E ratio of 8.14 right now. This represents a discount compared to its industry's average Forward P/E of 15.06.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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