|Bid||18.70 x 3200|
|Ask||19.07 x 800|
|Day's Range||18.91 - 19.40|
|52 Week Range||15.19 - 20.14|
|Beta (3Y Monthly)||1.33|
|PE Ratio (TTM)||41.74|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||21.24|
The U.S. Department of Transportation (DOT) on Friday granted American Airlines Group Inc and Qantas Airways Ltd final approval to operate a joint venture after a prior effort was rejected in 2016. U.S. Transportation Secretary Elaine Chao announced the approval on Friday afternoon, noting it was the first completed review of an airline joint venture proposal during the Trump administration. An application for a joint venture covering the United States, Australia and New Zealand was rejected in November 2016 by former President Barack Obama's DOT.
American Airlines' (AAL) second-quarter 2019 results are likely to be driven by an uptick in passenger revenues. However, non-fuel unit costs are expected to increase, limiting bottom-line growth.
There was a time when the transports were the hot sector to watch on Wall Street. They served as a great barometer to the whole market. But they have long lost their leadership role except for sporadic stints. Airliner Southwest Airlines (NYSE:LUV) stock tracks the iShares Transportation Average ETF (BATS:IYT) very tightly. And it now sits in the middle of the six-month range.Source: Shutterstock This is important to note because LUV is going to deliver earnings next week. This week United Airlines (NASDAQ:UAL) stock rallied off its earnings report, so there is definitely an opportunity for LUV stock price to do the same next week.But I am most interested in the support below, and this will become clear at the end.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe short-term reactions to earnings are always binary, so this adds a bit of gambling flair to the trade. Even if management gives us the results ahead of time, we cannot guess how investors will react to them. Handling UAL Stock Into EarningsIt's all about managing expectations and we all know how things can go bad like what happened to Netflix (NASDAQ:NFLX) yesterday. The estimates create uncertainty, because if management misses them, investors sell the news even if the results are actually good in absolute terms. * 10 Tech Stocks That Are Still Worth Your Time (And Money) But it is important to note that this binary effect is temporary. The fundamentals and the technicals will retake the reins of the Southwest stock price once the event headlines abate.Last year, the transports fell 25% into Christmas but has recovered well since then. Like LUV, the IYT also now sits in the middle of the six month range.So what does this mean for LUV stock price at these levels? The bulls are in control and will continue to buy the dips. After all we now know that the Fed cast its safety net back out.So, if I'm long the stock already, then I have no reason to leave it because the fundamentals that got me into LUV have not changed. Airlines have developed a new way of doing business in the U.S. that has almost erased the old stigma of shoddy operations.I am flying today and I can assure you that I paid for many extra fees that didn't exist just a couple years ago. Critics point out that they lack overall pricing power but they are making up for it with additional fees from every angle.This is all to say that the Southwest team is executing on plans well enough to warrant the current valuation.Technically speaking, LUV stock has been setting higher lows while knocking at the $54 per share neckline. It has also bounced off of $48-per-share support zone four times, with the exception of a deeper dip into the Christmas market-wide debacle.So the bulls have the benefit of solid support below while attacking a resistance level. Often times the bears get tired of defending the resistance and the bulls overshoot higher. In this case, the outside target would be $58 per share with resistance at $56.Some investors prefer to hold stocks for the very long term. And for those, the $58 resistance won't matter. For the faster traders, $58 is a target area to exit the trade, or at least book some profit.However, if the bulls are able to break through that resistance then it becomes the next upside opportunity to extend the rally and set new all-time highs. There would obviously be resistance at $64 in that scenario. The Bottom Line on Southwest StockWhile owning shares of LUV is a legitimate trade opportunity, I prefer to use options in my trading. So in this case, since we noted that that there is solid support below, I prefer selling downside puts into what others fear. This way I can create income without any money out of pocket.For example, I can sell the Dec $45 put and collect $1 for it. All I need to profit is for the LUV stock price to stay above that level. Otherwise I own the shares at $45 and break even at $44 per share.Compare this with owning shares now and risking my money with no margin for error. By selling the puts I create a 13% moat around my risk. And I don't even need a rally to win.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Free Profit Opportunity in Southwest Stock appeared first on InvestorPlace.
Depending on the metric used, several different carriers could be considered the largest airline in the U.S.
A U.S. airline industry group said it had a "productive" meeting on Thursday with President Donald Trump, who "shares our concerns" about accusations that subsidies by Qatar and the United Arab Emirates are costing jobs in the United States. "We had a productive meeting with President Trump today to talk about the importance of American jobs and not letting foreign governments break their agreements with the United States," Scott Reed of the Partnership for Open & Fair Skies said in a statement. "The president shares our concerns and instructed us to keep working with the U.S. Department of Transportation, which we plan to do," he said.
Norfolk Sothern's (NSC) second-quarter 2019 results are likely to be hurt by the bleak freight scenario. However, cost-control efforts might drive the bottom line.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Delta Air Lines is on track to surpass 150 peak-day departures in Boston this fall, and it hopes to reach 200 peak-day departures there at some point in 2021.
JetBlue (JBLU) today announced the appointment of Teri P. McClure to its board of directors. The independent director appointment is effective immediately, following unanimous approval by the company’s board of directors. An aviation industry veteran, McClure most recently served as chief human resources officer and senior vice president of labor at United Parcel Service, Inc. (UPS), whose 481,000-strong workforce serves more than 220 countries with a fleet of 500 UPS and chartered aircraft.
Delta's (DAL) solid second-quarter 2019 earnings report and American Airlines' (AAL) favorable second-quarter unit revenue projection contribute to the sector tracker's increase.
Zacks.com featured highlights include: Carlisle, Northrop Grumman, ResMed, T. Rowe Price and JetBlue Airways
JetBlue (JBLU) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Union Pacific's (UNP) second-quarter 2019 results are likely to be hurt by sluggish freight volumes. However, cost-cutting efforts might boost the bottom line.
JetBlue and Spirit Airlines weren't able to beat their unit revenue forecasts in the second quarter, but they are still set to report stellar earnings growth.
Rise in JetBlue's (JBLU) June traffic and an upbeat unit revenue view for the second quarter, indicates the growing demand for the carrier's services.
JetBlue (JBLU) today announced the airline is celebrating Bastille Day with seats now on sale to Guadeloupe in the French Caribbean. JetBlue will expand the airline’s leadership position in the Caribbean and Latin America with new service between New York’s John F. Kennedy International Airport (JFK) and Guadeloupe’s Pointe-à-Pitre International Airport (PTP) (a).
Of the issues air travelers regularly face when trying to reach their final destination, customers' luggage ending up misplaced, damaged or delayed happens far too often. A new report from the U.S. Department of Transportation uncovers U.S. airline passenger reports of mishandled baggage in March 2019. This report highlights the top offending airlines, including airline giants such as American Airlines and Delta Air Lines.
JetBlue (JBLU), New York’s Hometown Airline®, today launched its ninth annual Soar with Reading initiative in its hometown, marking the first time its innovative free book vending machines have touched down in New York City. Soar with Reading, an award-winning literacy initiative, tackles the issue of book availability in underserved communities, where access to age-appropriate books for children is often limited.
The Zacks Analyst Blog Highlights: Canadian Pacific, JetBlue, MarketAxess, Tempur Sealy and Arcosa
JetBlue Airways Corp. reported Thursday June load factor that slipped to 86.9% from 87.0%, as an increase in seat supply outpaced growth in demand. The air carrier said capacity rose 4.8% to 5.30 billion available seat miles, while traffic grew 4.7% to 4.61 billion revenue passenger miles. The company said it expects second-quarter revenue per available seat mile (RASM) to increase 3.1% from a year ago, which is within its guidance range of 2.0% to 4.0%. The stock, which was still inactive in premarket trading, has rallied 17.9% year to date, while the NYSE Arca Airline Index has advanced 16.2% and the S&P 500 has hiked up 19.4%.
JetBlue Airways Corporation reported its preliminary traffic results for June 2019. Traffic in June increased 4.7 percent from June 2018, on a capacity increase of 4.8 percent.
JetBlue Airways' June load factor - a key metric used in the airline industry to measure passenger-carrying capacity - increased to 86.9%, up from 86% in May though a slight dip from a year ago.