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Strength Seen in Controladora Vuela (VLRS): Can Its 5.5% Jump Turn into More Strength?
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Controladora Vuela (VLRS - Free Report) shares rallied 5.5% in the last trading session to close at $5.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.7% gain over the past four weeks.
The uptick in share price was due to the impressive load factor (% of seats filled by passengers) of 87% maintained by the Mexican carrier in August despite challenges. Load factor in August was flat year over year. The airline transported 2.6 million passengers in the month of August even though 30% of its fleet was grounded due to engiene issues. The airline expects a 14% reduction in capacity for the current year from 2023 levels.
This operator of low-cost airline Volaris is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +151.5%. Revenues are expected to be $814.95 million, down 3.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Controladora Vuela, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VLRS going forward to see if this recent jump can turn into more strength down the road.
Controladora Vuela is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, JetBlue Airways (JBLU - Free Report) , finished the last trading session 7.2% higher at $5.39. JBLU has returned -14.3% over the past month.
For JetBlue, the consensus EPS estimate for the upcoming report has changed -5.5% over the past month to -$0.42. This represents a change of -7.7% from what the company reported a year ago. JetBlue currently has a Zacks Rank of #3 (Hold).
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Strength Seen in Controladora Vuela (VLRS): Can Its 5.5% Jump Turn into More Strength?
Controladora Vuela (VLRS - Free Report) shares rallied 5.5% in the last trading session to close at $5.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.7% gain over the past four weeks.
The uptick in share price was due to the impressive load factor (% of seats filled by passengers) of 87% maintained by the Mexican carrier in August despite challenges. Load factor in August was flat year over year. The airline transported 2.6 million passengers in the month of August even though 30% of its fleet was grounded due to engiene issues. The airline expects a 14% reduction in capacity for the current year from 2023 levels.
This operator of low-cost airline Volaris is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +151.5%. Revenues are expected to be $814.95 million, down 3.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Controladora Vuela, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VLRS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Controladora Vuela is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, JetBlue Airways (JBLU - Free Report) , finished the last trading session 7.2% higher at $5.39. JBLU has returned -14.3% over the past month.
For JetBlue, the consensus EPS estimate for the upcoming report has changed -5.5% over the past month to -$0.42. This represents a change of -7.7% from what the company reported a year ago. JetBlue currently has a Zacks Rank of #3 (Hold).