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Air Canada (ACDVF) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Air Canada (ACDVF - Free Report) closed at $19.36, marking a +1.31% move from the previous day. This change outpaced the S&P 500's 0.71% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq gained 4.62%.

Coming into today, shares of the company had gained 7.27% in the past month. In that same time, the Transportation sector gained 3.43%, while the S&P 500 gained 2.65%.

Air Canada will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.38, up 126.57% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Air Canada. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 has moved 3.48% higher within the past month. Air Canada currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Air Canada currently has a Forward P/E ratio of 16.06. This valuation marks a premium compared to its industry's average Forward P/E of 10.82.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow ACDVF in the coming trading sessions, be sure to utilize Zacks.com.


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