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Air Canada (ACDVF) Dips More Than Broader Markets: What You Should Know

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Air Canada (ACDVF - Free Report) closed at $16.54 in the latest trading session, marking a -1.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.42%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.08%.

Prior to today's trading, shares of the company had lost 1.09% over the past month. This has was narrower than the Transportation sector's loss of 2.82% and lagged the S&P 500's gain of 1.02% in that time.

Investors will be hoping for strength from Air Canada as it approaches its next earnings release.

Investors should also note any recent changes to analyst estimates for Air Canada. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 57.14% higher within the past month. Air Canada currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Air Canada is holding a Forward P/E ratio of 8.98. Its industry sports an average Forward P/E of 8.73, so we one might conclude that Air Canada is trading at a premium comparatively.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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