Back to top

Image: Bigstock

International Consolidated Airlines Group SA (ICAGY) Soars to 52-Week High, Time to Cash Out?

Read MoreHide Full Article

A strong stock as of late has been International Consolidated Airlines Group SA (ICAGY - Free Report) . Shares have been marching higher, with the stock up 17% over the past month. The stock hit a new 52-week high of $10 in the previous session. International Consolidated Airlines Group has gained 31.6% since the start of the year compared to the -2.4% move for the Zacks Transportation sector and the 2.4% return for the Zacks Transportation - Airline industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 9, 2025, International Consolidated Airlines Group reported EPS of $0.05 versus consensus estimate of -$0.01.

For the current fiscal year, International Consolidated Airlines Group is expected to post earnings of $1.33 per share on $38.54 in revenues. This represents a 8.13% change in EPS on a 10.92% change in revenues. For the next fiscal year, the company is expected to earn $1.43 per share on $40.13 in revenues. This represents a year-over-year change of 7.52% and 4.12%, respectively.

Valuation Metrics

While International Consolidated Airlines Group has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

International Consolidated Airlines Group has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 7.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.4X. On a trailing cash flow basis, the stock currently trades at 4.2X versus its peer group's average of 4.5X. Additionally, the stock has a PEG ratio of 0.89. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making International Consolidated Airlines Group an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, International Consolidated Airlines Group currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if International Consolidated Airlines Group fits the bill. Thus, it seems as though International Consolidated Airlines Group shares could still be poised for more gains ahead.

How Does ICAGY Stack Up to the Competition?

Shares of ICAGY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is SkyWest, Inc. (SKYW - Free Report) . SKYW has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. SkyWest, Inc. beat our consensus estimate by 18.63%, and for the current fiscal year, SKYW is expected to post earnings of $9.36 per share on revenue of $3.91 billion.

Shares of SkyWest, Inc. have gained 16.7% over the past month, and currently trade at a forward P/E of 11.94X and a P/CF of 6.38X.

The Transportation - Airline industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ICAGY and SKYW, even beyond their own solid fundamental situation.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


SkyWest, Inc. (SKYW) - free report >>

International Consolidated Airlines Group SA (ICAGY) - free report >>

Published in