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Air Canada (ACDVF) Stock Drops Despite Market Gains: Important Facts to Note

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Air Canada (ACDVF - Free Report) ended the recent trading session at $13.54, demonstrating a -0.07% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.57%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.39%.

Shares of the company witnessed a gain of 1.46% over the previous month, beating the performance of the Transportation sector with its gain of 1.02% and underperforming the S&P 500's gain of 2.97%.

The investment community will be paying close attention to the earnings performance of Air Canada in its upcoming release.

Investors should also note any recent changes to analyst estimates for Air Canada. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Air Canada currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Air Canada is holding a Forward P/E ratio of 4.07. This denotes a discount relative to the industry's average Forward P/E of 8.48.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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