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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 $14.69, marking a +1.87% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.

The company's shares have seen an increase of 10.22% over the last month, surpassing the Transportation sector's gain of 2.08% and the S&P 500's gain of 3.4%.

Analysts and investors alike will be keeping a close eye on the performance of Air Canada in its upcoming earnings disclosure.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Air Canada. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 10.53% upward. Air Canada presently features a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Air Canada is presently trading at a Forward P/E ratio of 4.29. For comparison, its industry has an average Forward P/E of 8.34, which means Air Canada is trading at a discount to the group.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 21% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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