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The Zacks Analyst Blog Highlights: Southwest Airlines, Air France-KLM SA, United Continental Holdings, International Consolidated Airlines Group SA And Deutsche Lufthansa AG

Published 06/20/2017, 09:30 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – June 21, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Southwest Airlines Company (NYSE:LUV) (NYSE: LUV Free Report ), Air France-KLM SA (OTCMKTS: AFLYY Free Report ), United Continental Holdings Inc. (NYSE: UAL Free Report ), International Consolidated Airlines Group (LON:ICAG) SA (OTCMKTS: ICAGY Free Report ) and Deutsche Lufthansa (DE:LHAG) AG (OTCMKTS: DLAKY Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Tuesday’s Analyst Blog:

5 Airline Stocks Ready to Take Off

At Zacks, we want our customers to profit from certain stocks and industries that are currently surging. The transportation sector, specifically the airline industry, has been soaring high recently. We believe that the profitability of this industry could continue to increase in the near future.

The airline industry currently ranks in the top 22% on the Zacks Industry Rank. Overall, this industry has returned more than 14% on the year, which outpaces the S&P 500 and puts it among the top performers on Wall Street so far.

Basically, the airline industry is one of the stronger sectors on today’s market and possesses strong value, as well as growth potential for shareholders.

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Check out these 5 buy-ranked airline stocks today:

1. Southwest Airlines Company (NYSE: LUV Free Report )

Over the past six months, LUV has appreciated 19.70% compared to the industry’s gain of 14.34%. This has helped Southwest Airlines receive an “A” grade for Momentum in our Style Scores system, which means the stock could be a good pick for momentum-focused investors looking for shares that are moving higher. Additionally, stock has an “A” grade for Growth, which means sales and profits should be on the rise. Also, Southwest Airlines makes an effort to enhance shareholders’ wealth in a variety of ways. In the first quarter of 2017, the company returned $673 million to shareholders through a combination of dividends and share buybacks. Southwest Airlines currently has a Zacks Rank #2 (Buy).

2. Air France-KLM SA (OTCMKTS: AFLYY Free Report )

First of all, Air France’s beta rating is 0.55, which means the investment could be much less volatile than a typical security. However, the stock received an “A” Style Score for Value and “B” for Momentum. This means that the stock possesses strong value-based metrics and is expected to continue growing in the future. Air France features a RoE of 83.30% compared to an industry average of 16.49%, and, in the past 60 days, its full-year EPS estimates have increased by 24.49% to $1.83. Air France currently sports a Zacks Rank #1 (Strong Buy).

3. United Continental Holdings Inc. (NYSE: UAL Free Report )

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In the first quarter of 2017, United Continental bought back $313 billion of its common stock and topped their earnings projection for the fourth straight quarter. This type of commitment to shareholder value is important. Not to mention, the stock sports an “A” grade for Value, which indicates that some of its key value-based metrics are strong. Furthermore, over the past 12 weeks, the stock price has increased by 15.01%, and that’s on top of an 81.18% return over the past year. We expect the stock to continue rewarding its shareholders and expanding its profitability in the future. United Continental holds a Zacks Rank #2 (Buy).

4. International Consolidated Airlines Group SA (OTCMKTS: ICAGY Free Report )

International Consolidated Airlines Group is the main holding company for British Airways and Iberia. The company scored an “A” grade for Value, partly because of its strong 1.69% dividend, but also because of the overall strength we’ve seen in its valuation metrics. The stock currently boasts a net margin of 8.44% and a P/E ratio of 7.45, both of which compare favorably to the rest of the industry. As of 60 days ago, the stock’s full-year EPS estimates increased by 26.25%. The stock’s EPS has grown at a rate of 69.38% over the past 3-5 years, and we expect its growth to continue. International Consolidated Airlines Group is currently a Zacks Rank #1 (Strong Buy).

5. Deutsche Lufthansa AG (OTCMKTS: DLAKY Free Report )

Deutsche Lufthansa holds a beta rating of 0.57, which means it could be an investment that poses less volatility. However, this company pays a large dividend of 1.90% and sports a strong EV/EBITDA ratio of 2.46. In the past 4 weeks, the stock’s price has increased by 13.67%, while in the past 60 days, full-year EPS estimates have increased by 49.48% to $2.87. This stock is expected to continue increasing its earnings while supporting its “A” grade for Value in our Style Scores system. Deutsche Lufthansa is now a Zacks Rank #1 (Strong Buy).

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Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



Southwest Airlines Company (LUV): Free Stock Analysis Report

Air France-KLM SA (AFLYY): Free Stock Analysis Report

United Continental Holdings, Inc. (UAL): Free Stock Analysis Report

International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report

Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report

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