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

Zacks Equity Research
Waste Management (WM) closed the most recent trading day at $118.19, moving +0.02% from the previous trading session.

Avianca Holdings S.A. (AVH) closed the most recent trading day at $3.89, moving -0.51% from the previous trading session. This change lagged the S&P 500's 0.11% gain on the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.19%.

Heading into today, shares of the company had lost 3.69% over the past month, lagging the Transportation sector's gain of 5.14% and the S&P 500's gain of 4.42% 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, our latest consensus estimate is calling for revenue of $1.28 billion, up 9.44% from the prior-year quarter.

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.

It is also important to note the recent changes to analyst estimates for AVH. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. AVH currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, AVH is currently trading at a Forward P/E ratio of 4.49. This valuation marks a discount compared to its industry's average Forward P/E of 12.9.

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

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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