The Zacks Analyst Blog Highlights: JetBlue Airways, Copa Holdings and Spirit Airlines
CHICAGO, Nov. 20, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the JetBlue Airways Corp. (Nasdaq:JBLU-Free Report), Copa Holdings SA (NYSE:CPA-Free Report) and Spirit Airlines (Nasdaq:SAVE-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Airline Stock Roundup
Over the past 5 trading days, most airline stocks retained their positive momentum as oil prices continued to experience a downward trend. Lower jet fuel prices have been a boon for the airline industry given the inversely proportional relation between crude prices and aviation stocks. Notably, fuel costs account for a major chunk of an airline's operating expense.
The impressive trading debut of low-cost airline Virgin America (VA) was an eye-catching event in the airline space over the past 5 trading days. Leading passenger airline JetBlue Airways Corp. (Nasdaq:JBLU-Free Report) also figured in the headlines, reporting healthy October traffic numbers.
We note that the current trend continues the momentum that airline stocks gained after they managed to bounce back post a lean period through September and early October. The improvement, with Ebola-related scare on the decline, came largely on the back of healthy earnings reports and weak oil prices (read the last 'Airline Stock Roundup' here: Traffic Data for Southwest, American Airlines and United Continental Dominate Headlines).
Recap of Most Important Stories of the Last Five Trading Days
1. Virgin America made an impressive debut on Nasdaq last week. Shares of this California-based carrier jumped over 30% on its first day (Nov 14) as a publicly traded company. The warm welcome extended by the market to the company is attributable to the good times prevailing in the U.S. aviation industry, thanks to plunging oil prices (read more: Virgin America IPO: Stock Surges 30.4% After Trading Debut).
2. JetBlue Airways revealed a 10.4% year-over-year growth in its October traffic. This marked the ninth consecutive month of traffic growth at JetBlue post a dip in numbers in Jan 2014. Furthermore, the carrier launched a new daily nonstop service from Salt Lake City International Airport to Orlando International Airport in a bid to expand its reach further and augment the flying experience for its customers (read more: JetBlue Airways' October Traffic Up 10.4% on Packed Planes).
3. Latin American company Copa Holdings SA (NYSE:CPA-Free Report) also released solid traffic data for the month of October. Copa Holdings' air traffic climbed 12% year over year on a consolidated basis in Oct 2014 compared to the year-ago period (read more: Copa Holdings Air Traffic Rises 12% in October).
4. Low-cost carrier Spirit Airlines (Nasdaq:SAVE-Free Report) announced that it plans to expand its nonstop service to ten new destinations. Passengers will be able to avail these flights effective spring next year. With the launch of this service, travelers will enjoy affordable ticket rates, which, in turn, should boost air traffic and load factor for the carrier (read more: Spirit Airlines Plans Flights to 10 New Destinations).
5. Another important event was the €1 billion ($1.25 billion) outsourcing deal signed between IBM and Germany-based carrier Deutsche Lufthansa Aktiengesellschaft. Through this seven-year IT infrastructure contract, inked on Nov 15, the German aviation company is looking to bring in new Mobile, Social Business and Analytics technologies so that it can offer new services to customers.
The deal will result in annual savings of approximately €70M for Lufthansa which will enable it to compete effectively with rivals. Incidentally, the airline, which recently cut its 2015 profit forecast for the second time in the span of a few months, has been going through troubled times.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on JBLU - FREE
Get the full Report on CPA - FREE
Get the full Report on SAVE - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
Share this article