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Avianca Holdings S.A. (AVH) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Avianca Holdings S.A. (AVH) closed at $4.05, marking a +1.25% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Prior to today's trading, shares of the company had lost 9.09% over the past month. This has lagged the Transportation sector's gain of 3% and the S&P 500's gain of 3.16% in that time.

Wall Street will be looking for positivity from AVH as it approaches its next earnings report date. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $1.28 billion, up 9.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.87 per share and revenue of $5.04 billion. These totals would mark changes of -4.4% and +3.02%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AVH. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVH currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note AVH's current valuation metrics, including its Forward P/E ratio of 4.6. Its industry sports an average Forward P/E of 13.97, so we one might conclude that AVH is trading at a discount comparatively.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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