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Here's Why Investors Should Give Ryanair Stock a Miss Now
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Key Takeaways
RYAAY's operating expenses rose 5.1% in Q1, led by higher route charges and repair costs.
The stock is down 13.1% in 30 days, lagging its Transportation - Airline industry's 3.6% fall.
Liquidity concerns grow as RYAAY's current ratio slid to 0.66 from 1.01 in fiscal 2022.
Ryanair (RYAAY - Free Report) is grappling with significant challenges that are adversely affecting its performance. Weak liquidity and escalated operating expenses are major headwinds, straining the company’s prospects and making it an unattractive choice for investors’ portfolios.
Let’s delve deeper.
RYAAY: Key Risks to Watch
Southward Earnings Estimate Revision:The Zacks Consensus Estimate for the upcoming-quarter earnings has been revised 16% downward in the past 60 days. Meanwhile, for fiscal 2026, the consensus mark for earnings has been revised 0.44% downward in the same time frame.
The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.
Dim Price Performance: The company’s price trend reveals that its shares have fallen 13.1% in the past 30 days, compared with its Transportation - Airline industry’s 2.5% fall.
Image Source: Zacks Investment Research
Weak Zacks Rank: RYAAY currently carries a Zacks Rank #4 (Sell).
Headwinds: RYAAY’s financial stability is challenged by elevated expenses and weak liquidity. In the first quarter of fiscal 2026, total operating expenses rose 5.1% year over year, with route charges increasing 16% and maintenance, materials and repairs climbing 8% respectively.
Moreover, RYAAY’s liquidity position is deteriorating. The company’s current ratio has declined steadily from 1.01 in fiscal 2022 to 0.66 in the first quarter of fiscal 2026, staying well below the desirable threshold of 1. This downward trend shows that the company is not holding sufficient current assets to cover short-term liabilities, raising concerns about its ability to meet near-term obligations.
Airline Stocks to Consider
Investors interested in the industry may consider LATAM Airlines Group (LTM - Free Report) and SkyWest (SKYW - Free Report) .
LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.
SKYW currently sports a Zacks Rank #2 (Buy).
SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.
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Here's Why Investors Should Give Ryanair Stock a Miss Now
Key Takeaways
Ryanair (RYAAY - Free Report) is grappling with significant challenges that are adversely affecting its performance. Weak liquidity and escalated operating expenses are major headwinds, straining the company’s prospects and making it an unattractive choice for investors’ portfolios.
Let’s delve deeper.
RYAAY: Key Risks to Watch
Southward Earnings Estimate Revision:The Zacks Consensus Estimate for the upcoming-quarter earnings has been revised 16% downward in the past 60 days. Meanwhile, for fiscal 2026, the consensus mark for earnings has been revised 0.44% downward in the same time frame.
The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.
Dim Price Performance: The company’s price trend reveals that its shares have fallen 13.1% in the past 30 days, compared with its Transportation - Airline industry’s 2.5% fall.
Image Source: Zacks Investment Research
Weak Zacks Rank: RYAAY currently carries a Zacks Rank #4 (Sell).
Headwinds: RYAAY’s financial stability is challenged by elevated expenses and weak liquidity. In the first quarter of fiscal 2026, total operating expenses rose 5.1% year over year, with route charges increasing 16% and maintenance, materials and repairs climbing 8% respectively.
Moreover, RYAAY’s liquidity position is deteriorating. The company’s current ratio has declined steadily from 1.01 in fiscal 2022 to 0.66 in the first quarter of fiscal 2026, staying well below the desirable threshold of 1. This downward trend shows that the company is not holding sufficient current assets to cover short-term liabilities, raising concerns about its ability to meet near-term obligations.
Airline Stocks to Consider
Investors interested in the industry may consider LATAM Airlines Group (LTM - Free Report) and SkyWest (SKYW - Free Report) .
LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.
SKYW currently sports a Zacks Rank #2 (Buy).
SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.