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GOL Linhas (GOL) Benefits From Multiple Tailwinds: Buy Now

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GOL Linhas (GOL) Benefits From Multiple Tailwinds: Buy Now

GOL Linhas (GOL) benefits from strong demand for air travel. The company's efforts to modernize fleet and reduce debt levels are impressive.

We have issued an updated research report on GOL Linhas Aereas Inteligentes S.A. GOL on Sep 18.

The company benefits from multiple tailwinds and is an attractive investment option at the moment.

Let’s delve into the factors that are driving GOL Linhas.

The Sao Paulo, Brazil-based airline company posted impressive first-half unit revenues owing to focus on capacity discipline and revenue management. In fact, passenger unit revenue (PRASK) climbed 10% while unit revenue (RASK) rose 8.9% in the period. Passenger revenues improved 13% on a year-over-year basis in the first half of 2018 on the back of strong demand for air travel.

Moreover, we are impressed about the steps taken by GOL Linhas to combat headwinds. Consistent efforts to modernize fleet and reduce debt levels also raise optimism in the stock. Notably, the Zacks Consensus Estimate has been revised 38.5% upward in the past 60 days for current-year earnings. The favorable estimate revision reflects brokers’ confidence in the stock.

Considering the wealth of information at their disposal, it is in the best interest of investors to be guided by broker advice and the direction of their estimate revisions. This is because the direction of estimate revisions serves as an important pointer when it comes to the price of a stock.

Gol Linhas Aereas Inteligentes S.A. Price

 

Gol Linhas Aereas Inteligentes S.A. Price | Gol Linhas Aereas Inteligentes S.A. Quote

 

Further, the company, which carries a Zacks Rank #2 (Buy), flaunts an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of all three scores. Our research shows that stocks with VGM Scores of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 make solid investment choice.

In light of the above tailwinds, we believe investors should add GOL Linhas to their portfolio now.

Other Stocks to Consider

Investors interested in the broader Transportation Sector may consider Trinity Industries, Inc. TRN, Matson, Inc. MATX and ArcBest Corporation ARCB, each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Trinity, Matson and ArcBest have gained 12.2%, 25.7% and 31% in the past six months, respectively.

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Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
 
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
 
Matson, Inc. (MATX) : Free Stock Analysis Report
 
ArcBest Corporation (ARCB) : Free Stock Analysis Report
 
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