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6 Reasons Why Investors Should Buy Air Transport (ATSG) Stock
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Air Transport Services Group (ATSG - Free Report) is benefiting from a surge in e-commerce demand. The upbeat adjusted EBITDA view for full-year 2022 is an added positive.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Air Transport an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Air Transport have gained 5.9% over the past year against the 11.2% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Air Transport currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. 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.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Air Transport’s fourth-quarter 2022 earnings has moved up 1.8% year over year. For the full-year 2022, the company’s earnings have increased 4.1% year over year.
Positive Earnings Surprise History: Air Transport has an impressive earnings surprise history. The company delivered an earnings surprise of 17.78% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2022, Air Transport’s earnings are expected to register 9.62% growth. For 2022 and 2023, the company’s earnings are expected to grow 39.16% and 7.71%, year over year, respectively.
Growth Factors: The surge in e-commerce demand is a tailwind for Air Transport Services Group. Driven by increased demand for midsize freighters, the company has issued a bullish adjusted EBITDA view for 2022. The company expects the metric to be $640 million, nearly $100 million above the 2021 levels. Additionally, the performance of the Cargo Aircraft Management unit (revenues up 23.5% year over year in the first nine months of 2022) is encouraging.
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 12.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 190% over the past year.
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6 Reasons Why Investors Should Buy Air Transport (ATSG) Stock
Air Transport Services Group (ATSG - Free Report) is benefiting from a surge in e-commerce demand. The upbeat adjusted EBITDA view for full-year 2022 is an added positive.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Air Transport an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Air Transport have gained 5.9% over the past year against the 11.2% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Air Transport currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. 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.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Air Transport’s fourth-quarter 2022 earnings has moved up 1.8% year over year. For the full-year 2022, the company’s earnings have increased 4.1% year over year.
Positive Earnings Surprise History: Air Transport has an impressive earnings surprise history. The company delivered an earnings surprise of 17.78% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2022, Air Transport’s earnings are expected to register 9.62% growth. For 2022 and 2023, the company’s earnings are expected to grow 39.16% and 7.71%, year over year, respectively.
Growth Factors: The surge in e-commerce demand is a tailwind for Air Transport Services Group. Driven by increased demand for midsize freighters, the company has issued a bullish adjusted EBITDA view for 2022. The company expects the metric to be $640 million, nearly $100 million above the 2021 levels. Additionally, the performance of the Cargo Aircraft Management unit (revenues up 23.5% year over year in the first nine months of 2022) is encouraging.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Ryder Systems (R - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) ).
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 12.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 190% over the past year.