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Here's Why You Should Invest in Air Transport Services Stock Now
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Air Transport Services Group, Inc.’s (ATSG - Free Report) efforts to expand and upgrade its fleet are commendable. Decreasing operating costs also bode well for the company’s bottom line. Owing to the tailwinds, ATSG shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Factors That Make ATSG Stock Worth Betting On
Robust Stock Price Performance: A look at the company’s price trend reveals that its shares have risen 6.1% in the past 30 days, surpassing the industry’s 0.9% decline.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 15.1% over the past 60 days for the current year. For the upcoming quarter, the consensus mark for earnings per share has moved 38.1% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Solid Rank: ATSG currently carries a Zacks Rank #2 (Buy).
Tailwinds: Declining operating expenses bode well for the company. In the second quarter of 2024, total operating expenses fell by 0.6% year over year. This decline was driven by a fall in labor, maintenance and fuel costs.
ATSG’s labor costs, comprising salaries, wages and benefits, accounting for 36% of the total operating expenses, fell by 3.7% year over year. Expenses on maintenance, materials and repair fell by 7.4% year over year, and fuel costs declined by 2.5%.
The expanded agreement with Amazon (AMZN - Free Report) is a major tailwind for ATSG. Starting this summer, Air Transport Services will operate 10 Boeing 767-300 freighters provided by Amazon, with the potential for 10 more aircraft. The company raised its 2024 adjusted EBITDA guidance by $10 million to around $516 million, expecting increased flying opportunities from these aircraft.
The expansion of Air Transport Services’ fleet is promising. At the end of 2022, ATSG had a total of 128 aircraft in service (18 passengers and 110 freighters), up from 117 at the end of 2021. By the end of 2023, the fleet size increased to 129 aircraft (18 passenger planes and 111 freighters). The company expects to end 2024 with 139 aircraft in service, including 129 freighters and 20 passenger planes.
Other Stocks to Consider
Some other top-ranked stocks for investors’ consideration in the Zacks Transportation sector include C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 10% in the past year.
WAB holds a Zacks Rank #2 at present and has an expected earnings growth rate of 26% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 11.8%. Shares of WAB have climbed 47.2% in the past year.
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Here's Why You Should Invest in Air Transport Services Stock Now
Air Transport Services Group, Inc.’s (ATSG - Free Report) efforts to expand and upgrade its fleet are commendable. Decreasing operating costs also bode well for the company’s bottom line. Owing to the tailwinds, ATSG shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Factors That Make ATSG Stock Worth Betting On
Robust Stock Price Performance: A look at the company’s price trend reveals that its shares have risen 6.1% in the past 30 days, surpassing the industry’s 0.9% decline.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 15.1% over the past 60 days for the current year. For the upcoming quarter, the consensus mark for earnings per share has moved 38.1% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Solid Rank: ATSG currently carries a Zacks Rank #2 (Buy).
Tailwinds: Declining operating expenses bode well for the company. In the second quarter of 2024, total operating expenses fell by 0.6% year over year. This decline was driven by a fall in labor, maintenance and fuel costs.
ATSG’s labor costs, comprising salaries, wages and benefits, accounting for 36% of the total operating expenses, fell by 3.7% year over year. Expenses on maintenance, materials and repair fell by 7.4% year over year, and fuel costs declined by 2.5%.
The expanded agreement with Amazon (AMZN - Free Report) is a major tailwind for ATSG. Starting this summer, Air Transport Services will operate 10 Boeing 767-300 freighters provided by Amazon, with the potential for 10 more aircraft. The company raised its 2024 adjusted EBITDA guidance by $10 million to around $516 million, expecting increased flying opportunities from these aircraft.
The expansion of Air Transport Services’ fleet is promising. At the end of 2022, ATSG had a total of 128 aircraft in service (18 passengers and 110 freighters), up from 117 at the end of 2021. By the end of 2023, the fleet size increased to 129 aircraft (18 passenger planes and 111 freighters). The company expects to end 2024 with 139 aircraft in service, including 129 freighters and 20 passenger planes.
Other Stocks to Consider
Some other top-ranked stocks for investors’ consideration in the Zacks Transportation sector include C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
C.H. Robinson Worldwide currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. CHRW has an expected earnings growth rate of 25.2% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 10% in the past year.
WAB holds a Zacks Rank #2 at present and has an expected earnings growth rate of 26% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 11.8%. Shares of WAB have climbed 47.2% in the past year.