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Atlas Air Worldwide (AAWW) Dips More Than Broader Markets: What You Should Know

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Atlas Air Worldwide (AAWW - Free Report) closed at $52.68 in the latest trading session, marking a -1.51% move from the prior day. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.25%.

Prior to today's trading, shares of the airplane leasing company and service provider had gained 3.62% over the past month. This has lagged the Transportation sector's gain of 7.19% and outpaced the S&P 500's gain of 3.57% in that time.

AAWW will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. On that day, AAWW is projected to report earnings of $2.89 per share, which would represent year-over-year growth of 18.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $756.57 million, up 20.48% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.10 per share and revenue of $2.67 billion, which would represent changes of +44.02% and +23.78%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AAWW. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.81% higher. AAWW is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, AAWW is currently trading at a Forward P/E ratio of 7.53. Its industry sports an average Forward P/E of 15.02, so we one might conclude that AAWW is trading at a discount comparatively.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.

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

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