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Ryanair (RYAAY) Moves 5% Higher: Will This Strength Last?
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Ryanair (RYAAY - Free Report) shares soared 5% in the last trading session to close at $59.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.2% loss over the past four weeks.
The uptick in RYAAY shares was part of a broader rally by European airline stocks on Oct 13. The rally was owing to encouraging forecasts from Intercontinental Consolidated Airline Group and easyJet plc as air-travel demand bounces back strongly from the pandemic lows. Per easyJet's CEO Johan Lundgren "easyJet achieved a record bounce back this summer with Q4 operating profit expected to be between £525m and £545m and passenger numbers almost doubling versus last summer to 24 million with a load factor of 92%, as demand for our leading network and services remains strong,” Intercontinental Consolidated Airline Group expects operating profit for the third quarter to be around EUR1.2 billion driven by high passenger revenues.
RYAAY is expected to post quarterly earnings of $5.73 per share in its upcoming report, which represents a year-over-year change of +394%. Revenues are expected to be $4.02 billion, up 91.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Ryanair, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RYAAY going forward to see if this recent jump can turn into more strength down the road.
Ryanair is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, Frontier Group Holdings (ULCC - Free Report) , finished the last trading session 2.2% lower at $9.25. ULCC has returned -25.7% over the past month.
For Frontier Group, the consensus EPS estimate for the upcoming report has changed +29% over the past month to $0.10. This represents a change of +190.9% from what the company reported a year ago. Frontier Group currently has a Zacks Rank of #3 (Hold).
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Ryanair (RYAAY) Moves 5% Higher: Will This Strength Last?
Ryanair (RYAAY - Free Report) shares soared 5% in the last trading session to close at $59.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.2% loss over the past four weeks.
The uptick in RYAAY shares was part of a broader rally by European airline stocks on Oct 13. The rally was owing to encouraging forecasts from Intercontinental Consolidated Airline Group and easyJet plc as air-travel demand bounces back strongly from the pandemic lows. Per easyJet's CEO Johan Lundgren "easyJet achieved a record bounce back this summer with Q4 operating profit expected to be between £525m and £545m and passenger numbers almost doubling versus last summer to 24 million with a load factor of 92%, as demand for our leading network and services remains strong,” Intercontinental Consolidated Airline Group expects operating profit for the third quarter to be around EUR1.2 billion driven by high passenger revenues.
RYAAY is expected to post quarterly earnings of $5.73 per share in its upcoming report, which represents a year-over-year change of +394%. Revenues are expected to be $4.02 billion, up 91.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Ryanair, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RYAAY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ryanair is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, Frontier Group Holdings (ULCC - Free Report) , finished the last trading session 2.2% lower at $9.25. ULCC has returned -25.7% over the past month.
For Frontier Group, the consensus EPS estimate for the upcoming report has changed +29% over the past month to $0.10. This represents a change of +190.9% from what the company reported a year ago. Frontier Group currently has a Zacks Rank of #3 (Hold).