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Bull of the Day: Azul (AZUL)

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Often times you’ll find the best stocks in the strongest industries. One way to find strong industries is by leaning on the Zacks Industry Rank. Zacks takes the Zacks Ranks of stocks in all 265 industries and gives you, in order, which industries have seen the strongest earnings trends. By choosing the Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks in top industries, you can find hot stocks in great industries. This one-two punch can help you find winners for your portfolio. One of those winners is today’s Bull of the Day, Azul (AZUL - Free Report) .

Azul is a Zacks Rank #1 (Strong Buy) in the airline industry which ranks in the Top 2% of our Zacks Industry Rank. Azul S.A. provides passenger and cargo air transportation services in Brazil. As of March 31, 2018, it operated 739 daily flights to 106 destinations through a network of 206 non-stop routes with a fleet of 120 aircraft. The company was incorporated in 2008 and is headquartered in Barueri, Brazil.

The reason for the favorable Zacks Rank lies in the series of earnings estimate revisions to the upside coming from analysts. Over the last sixty days, analysts have increased their estimates for the current year as well as next year. The bullish moves have increased our Zacks Consensus Estimates for both periods. Current year consensus estimates have moved from $1.28 to $1.42 which next year’s number has jumped from $1.75 to $2.05.

Heading into next Thursday’s earnings report, we have a positive ESP number of 8.3%. That means that there is a good chance that Azul will meet or exceed expectations. Analysts are currently looking for 48 cents EPS on revenues of $692 million.

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