Back to top

Image: Bigstock

Atlas Air Worldwide (AAWW) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Atlas Air Worldwide closed at $69.63, marking a +1.8% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.93%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.17%.

Heading into today, shares of the airplane leasing company and service provider had gained 7.72% over the past month, outpacing the Transportation sector's gain of 4.37% and the S&P 500's gain of 6.31% in that time.

Atlas Air Worldwide will be looking to display strength as it nears its next earnings release, which is expected to be August 5, 2022. The company is expected to report EPS of $3.30, down 19.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 12.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.27 per share and revenue of $4.59 billion. These totals would mark changes of -12.1% and +13.97%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Atlas Air Worldwide. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Atlas Air Worldwide is currently a Zacks Rank #3 (Hold).

Investors should also note Atlas Air Worldwide's current valuation metrics, including its Forward P/E ratio of 4.21. For comparison, its industry has an average Forward P/E of 14.33, which means Atlas Air Worldwide is trading at a discount to the group.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Published in