We recently issued an updated report on Allegiant Travel Company (ALGT - Free Report) .
Low fuel prices are aiding Allegiant amid adversities. Evidently, average fuel cost per gallon (scheduled) declined 30.9% to $1.50 in the first nine months of 2020. The company expects the metric for the fourth quarter to be $1.35 per gallon.
We are also impressed by the company's efforts to modernize its fleet. The carrier operates an all-Airbus fleet. Allegiant's fleet-size at the end of 2019 was 91 (37 A319 and 54 A320), up from 2018's reported figure. The transition to an all-Airbus fleet, completed in November 2018, increased Allegiant’s fuel efficiency.
However, with air-travel demand spiraling down to an unprecedented level, the company’s first nine months operating revenues declined 46.1% year over year. The downtick was caused by 46.5% fall in passenger revenues. Load factor tanked 2450 basis points as capacity contraction surpassed traffic plunge. Low air travel demand is also expected to hurt Allegiant's fourth-quarter performance.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings (HRI - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
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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 2021.
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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 >>
We recently issued an updated report on Allegiant Travel Company (ALGT - Free Report) .
Low fuel prices are aiding Allegiant amid adversities. Evidently, average fuel cost per gallon (scheduled) declined 30.9% to $1.50 in the first nine months of 2020. The company expects the metric for the fourth quarter to be $1.35 per gallon.
We are also impressed by the company's efforts to modernize its fleet. The carrier operates an all-Airbus fleet. Allegiant's fleet-size at the end of 2019 was 91 (37 A319 and 54 A320), up from 2018's reported figure. The transition to an all-Airbus fleet, completed in November 2018, increased Allegiant’s fuel efficiency.
However, with air-travel demand spiraling down to an unprecedented level, the company’s first nine months operating revenues declined 46.1% year over year. The downtick was caused by 46.5% fall in passenger revenues. Load factor tanked 2450 basis points as capacity contraction surpassed traffic plunge. Low air travel demand is also expected to hurt Allegiant's fourth-quarter performance.
Zacks Rank & Stocks to Consider
Allegiant currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings (HRI - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
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 2021.
Click here for the 6 trades >>
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 >>
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