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Here's Why Air Canada (ACDVF) Fell More Than Broader Market

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The most recent trading session ended with Air Canada (ACDVF - Free Report) standing at $14.51, reflecting a -1.97% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.72% loss on the day. Elsewhere, the Dow lost 1%, while the tech-heavy Nasdaq lost 0.95%.

Coming into today, shares of the company had gained 11.03% in the past month. In that same time, the Transportation sector gained 1.19%, while the S&P 500 gained 2.16%.

The investment community will be paying close attention to the earnings performance of Air Canada in its upcoming release.

Any recent changes to analyst estimates for Air Canada should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Air Canada boasts a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Air Canada is holding a Forward P/E ratio of 4.44. This indicates a discount in contrast to its industry's Forward P/E of 9.33.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 22% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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