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Air Transport Services (ATSG) Moves 5.1% Higher: Will This Strength Last?

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Air Transport Services (ATSG - Free Report) shares ended the last trading session 5.1% higher at $34.15. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.6% gain over the past four weeks.

Air Transport Services Group is being well-served by the increased demand for midsize freighters. Driven by the strength of its freighter leasing and airline operations, ATSG expects adjusted EPS for 2022 to be $2, indicating growth of 20% from the 2021 reported level. In fact, ATSG shares have performed well so far this year, gaining 16.2% year to date,

This air cargo company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +121.1%. Revenues are expected to be $455.05 million, up 21% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Air Transport Services, the consensus EPS estimate for the quarter has been revised 9.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ATSG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Air Transport Services belongs to the Zacks Transportation - Air Freight and Cargo industry. Another stock from the same industry, Atlas Air Worldwide , closed the last trading session 2% higher at $88.36. Over the past month, AAWW has returned 14.9%.

For Atlas Air, the consensus EPS estimate for the upcoming report has changed -1% over the past month to $2.46. This represents a change of +0.4% from what the company reported a year ago. Atlas Air currently has a Zacks Rank of #3 (Hold).


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