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Here's Why Air Canada (ACDVF) Gained But Lagged the Market Today

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Air Canada (ACDVF - Free Report) ended the recent trading session at $13.61, demonstrating a +0.22% swing from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 1.25%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.3%.

Shares of the company witnessed a gain of 2.11% over the previous month, beating the performance of the Transportation sector with its loss of 2.61% and the S&P 500's gain of 1.58%.

Analysts and investors alike will be keeping a close eye on the performance of Air Canada in its upcoming earnings disclosure. The company's earnings report is set to go public on February 16, 2024.

It's also important for investors to be aware of any recent modifications to analyst estimates for Air Canada. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 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 its valuation, Air Canada is holding a Forward P/E ratio of 4.04. This represents a discount compared to its industry's average Forward P/E of 8.13.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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