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

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Air Canada (ACDVF - Free Report) closed at $15 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's 0.07% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the company had lost 10.16% over the past month. This has lagged the Transportation sector's loss of 2.91% and the S&P 500's gain of 0.38% in that time.

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

Any recent changes to analyst estimates for Air Canada should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Air Canada is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, Air Canada currently has a Forward P/E ratio of 8.04. Its industry sports an average Forward P/E of 8.24, so we one might conclude that Air Canada is trading at a discount comparatively.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 35% 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.

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


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