A Midsummer Night’s Dream! Time to travel to the lakes, the beach, and the mountains. The Airline Transportation industry is what caught my attention in July. Zacks Industry Rank System put Airlines at #13 out of 265 industries we rank. That puts this 25-company strong group into the top 5%.YTD returns have been +19.8%, while the S&P500 offered +10.8%. This spells out a nice share price outperformance. But can it continue?
The airline industry shoulders a lot of significant risks. Macro factors like sudden shifts in personal disposable income and spending patterns, safety concerns like terrorist attacks, oil price shocks, and covering analyst sentiment, all of these can turn quickly. They weigh on airline profits.
In addition, the USA “welcome mat” has been selectively removed from our airports, gratis the President’s Travel Ban. The world’s tourists (more broadly) have taken notice. In March, Tourism Economics forecasts had projected 4.3 million fewer visitors to the USA in 2017, with $7.4 billion in lost revenue. Let’s see what actually happens. The U.S. Supreme Court will hear arguments and write its opinion on the travel ban later this year, or early next year.
As to longer-term risk management --going forward-- look for order deferrals on large aircraft. This is not usually a good sign, on future demand at that particular airline.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
A Midsummer Night’s Dream! Time to travel to the lakes, the beach, and the mountains. The Airline Transportation industry is what caught my attention in July. Zacks Industry Rank System put Airlines at #13 out of 265 industries we rank. That puts this 25-company strong group into the top 5%.YTD returns have been +19.8%, while the S&P500 offered +10.8%. This spells out a nice share price outperformance. But can it continue?
The airline industry shoulders a lot of significant risks. Macro factors like sudden shifts in personal disposable income and spending patterns, safety concerns like terrorist attacks, oil price shocks, and covering analyst sentiment, all of these can turn quickly. They weigh on airline profits.
In addition, the USA “welcome mat” has been selectively removed from our airports, gratis the President’s Travel Ban. The world’s tourists (more broadly) have taken notice. In March, Tourism Economics forecasts had projected 4.3 million fewer visitors to the USA in 2017, with $7.4 billion in lost revenue. Let’s see what actually happens. The U.S. Supreme Court will hear arguments and write its opinion on the travel ban later this year, or early next year.
As to longer-term risk management --going forward-- look for order deferrals on large aircraft. This is not usually a good sign, on future demand at that particular airline.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on DAL - FREE
Get the latest research report on LUV - FREE
Get the latest research report on AAL - FREE
Get the latest research report on AFLYY - FREE