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Avianca Holdings S.A. (AVH) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Avianca Holdings S.A. (AVH) closed at $3.99, marking a +0.25% move from the previous day. The stock lagged the S&P 500's daily gain of 0.88%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 1.32%.

Prior to today's trading, shares of the company had lost 0.25% over the past month. This has lagged the Transportation sector's gain of 7.46% and the S&P 500's gain of 3.96% in that time.

Investors will be hoping for strength from AVH as it approaches its next earnings release. In that report, analysts expect AVH to post earnings of $0.09 per share. This would mark a year-over-year decline of 59.09%. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 9.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.87 per share and revenue of $5.04 billion, which would represent changes of -4.4% and +3.02%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AVH. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AVH is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that AVH has a Forward P/E ratio of 4.57 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.73.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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