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Avianca Holdings S.A. (AVH) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Avianca Holdings S.A. (AVH) closed at $4.10 in the latest trading session, marking a +0.92% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.78%.

Heading into today, shares of the company had lost 15.94% over the past month, lagging the Transportation sector's loss of 0.95% and the S&P 500's gain of 1.25% in that time.

Investors will be hoping for strength from AVH as it approaches its next earnings release. On that day, AVH is projected to report earnings of $0.09 per share, which would represent 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.

AVH's full-year Zacks Consensus Estimates are calling for earnings of $0.87 per share and revenue of $5.04 billion. These results would represent year-over-year changes of -4.4% and +3.02%, respectively.

Any recent changes to analyst estimates for AVH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.13% higher. AVH is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note AVH's current valuation metrics, including its Forward P/E ratio of 4.67. This valuation marks a discount compared to its industry's average Forward P/E of 12.17.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.

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


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