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Airline Stocks in Focus for Earnings Season: UAL, LUV, AAL, HA, ALK

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In this video, we take a look at five of the country’s most important airlines in order to get a better handle on how they might perform this earnings season. This will be especially important following Delta’s (DAL) beat last week, as the company surpassed expectations though it gave some warning signals too.

Additionally, the airline industry has a horrific industry rank right now, putting it into the bottom 10% of all the ones we cover. And with terrorism and Zika concerns in the background, things might not change anytime soon for this space.

Still, no two airline stocks are the same and many have vastly different outlooks heading into earnings season. Let’s take a quick look at the big five that are all reporting this week:

United Airlines (UAL - Free Report)

United has seen some turbulent trading lately and shares have been beaten down over the past three month time frame. Analysts aren’t very optimistic either, as shares have a Zacks Rank #5 (Strong Sell) right now. UAL does have a ‘B’ for its VGM score so at least it is looking promising from a fundamental look—and especially value—heading into the report.

UNITED CONT HLD Price and Consensus

UNITED CONT HLD Price and Consensus | UNITED CONT HLD Quote

American Airlines (AAL - Free Report)

Another legacy carrier that has seen some issues in recent trading is American. Shares here are well off of their 2016 highs, though they have fought back in July. Still, with a Zacks Rank #5 (strong sell) it is hard to like this stock even with its strong VGM score of ‘B’ and its incredible history of beats in earnings season.

AMER AIRLINES Price and EPS Surprise

AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote

Southwest Airlines (LUV - Free Report)

Unlike its legacy counterparts, Southwest Airlines has done a bit better leading into this report. However, it hasn’t made much of a difference to analysts, as shares still have a Zacks Rank #5 (strong sell). The stock does at least have a positive Earnings ESP and an ‘A’ VGM score though. So while the company isn’t looking to great heading into earnings, it still has strong fundamentals.

SOUTHWEST AIR Price, Consensus and EPS Surprise

SOUTHWEST AIR Price, Consensus and EPS Surprise | SOUTHWEST AIR Quote

Hawaiian Holdings (HA - Free Report)

HA shares have fought back nicely in recent trading and are on the upswing. Part of the reason for this shift is their relative insulation from Zika concerns, and arguably lower terrorism related issues to worry about too. Perhaps that is why the stock is the only one of the five to have a Zacks Rank #3 (hold) in addition to an ‘A’ VGM score, and could be among the best of the bunch this earnings season.

HAWAIIAN HLDGS Price and Consensus

HAWAIIAN HLDGS Price and Consensus | HAWAIIAN HLDGS Quote

Alaska Air Group (ALK - Free Report)

ALK is kind of a mixed bag these days as the company has a Zacks Rank #5 (strong sell) though it has a positive Earnings ESP and a VGM score of ‘B’. Additionally, any further commentary regarding the merger between ALK and Virgin America is likely to be the main focus, potentially stealing the spotlight from the coming report.

ALASKA AIR GRP Price and Consensus

ALASKA AIR GRP Price and Consensus | ALASKA AIR GRP Quote

And for more on how to trade earnings, make sure to listen to our podcast below:

Author is long LUV