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AZUL (AZUL) Moves 11.9% Higher: Will This Strength Last?

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AZUL (AZUL - Free Report) shares rallied 11.9% in the last trading session to close at $9.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.6% loss over the past four weeks.

The uptick followed the decision by a Goldman Sachs analyst to upgrade AZUL to buy from neutral. The analyst believes that AZUL's best is yet to come and increased the stock's target price as well.  Goldman Sachs also named AZUL as its top pick among Latin American airlines.

This company is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $998.4 million, up 19.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For AZUL, the consensus EPS estimate for the quarter has been revised 3.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AZUL 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 >>>>

AZUL is part of the Zacks Transportation - Airline industry. Gol Linhas Aereas Inteligentes S.A. , another stock in the same industry, closed the last trading session 6.3% higher at $2.88. GOL has returned -17.9% in the past month.

For Gol Linhas Aereas Inteligentes S.A., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. This represents a change of +110.7% from what the company reported a year ago. Gol Linhas Aereas Inteligentes S.A. currently has a Zacks Rank of #3 (Hold).

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