Here's Why You Should Retain Gol Linhas (GOL) Stock Now
Gol Linhas Aéreas Inteligentes S.A. GOL has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
GOL’s shares have had a decent run on the bourses over the past three months, gaining 41.6% against a 2.6% loss of the industry.
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Factors That Auger Well
Air-travel demand is steadily improving in Brazil owing to the increased roll-out of vaccines by Brazil's National Program for Immunization. This is boosting Gol Linhas’ top line. Net operating revenues of $523.7 million surged significantly year over year in fourth-quarter 2021. Passenger revenues (contributing 96.1% to total revenues) surged 63.3%, thanks to the continued recovery in air-travel demand in Brazil as vaccination rates increase. The airline expects its capacity for 2022 to increase in the range of 65-75%.
With air-travel demand improving, the impending acquisition of domestic airline MAP Transportes Aéreos Ltd, a Brazilian domestic airline, for R$28 million is a prudent move. The acquisition, is likely to boost the company's top line by attracting additional traffic.
Some Risks
At the end of the fourth quarter of 2021, the current ratio was pegged at 0.24, lower than the current ratio of 0.25 reported at the end of the September quarter. A current ratio of less than 1 (current liabilities exceeding current assets) is not desirable as it indicates that the company might have problems meeting its short-term obligations.
Zacks Rank & Stocks to Consider
Gol Linhas currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Expeditors International of Washington, Inc. EXPD, Old Dominion Freight Line, Inc. ODFL and Triton International Limited TRTN.
Expeditors has a trailing four-quarter earnings surprise of 34.2%, on average. The company’s bottom line surpassed the Zacks Consensus Estimate in all the last four quarters. The results have contributed to the carrier’s airfreight revenues. We are optimistic about EXPD’s buyout of the Fleet Logistics’ Digital Platform. The acquisition boosted its online LTL shipping platform Koho. The move is in line with its focus on Digital Solutions.
EXPD currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (EPS) (three-to-five years) growth rate for Old Dominion is pegged at 16%. ODFL is benefiting from the strong performance of its LTL segment owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has increased 12.7% in the past year. ODFL currently carries a Zacks Rank #2 (Buy).
The long-term expected EPS (three-to-five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for TRTN. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third and the fourth quarter of 2020 as well as in each of the four quarters of 2021.
Driven by these positives, the stock has rallied 19.6% in the past year. TRTN currently carries a Zacks Rank of 2.
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Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
Triton International Limited (TRTN) : Free Stock Analysis Report
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