Tag: UAL

Stock Earnings Calendar for July

by Fred Fuld III

We are now entering into earnings season, a time when companies will be reporting and the stocks of those companies may experience more volatility than usual.

If you are interested in doing some earnings plays, the next few weeks will be the time to look for opportunities.

The following are some of the major companies that will be announcing their earnings.

July 14, 2021 before open

BAC, C, DAL, WFC

July 15, 2021 before open

MS, USB

July 20, 2021 after close

CMG, UAL

July 21, 2021 before open

JNJ, KO, VZ

July 22, 2021 before open

AA, LUV, T

July 23, 2021 before open

AXP, SLB

July 27, 2021 before open

GE, UPS

July 27, 2021 after close

AAPL, V

July 28, 2021 before open

MCD, PFE

July 28, 2021 after close

FB, PYPL

Of course, there are many other companies reporting for the month or July, and these dates and times may be subject to change.

Happy Trading and Investing!!!

Top Airline Short Squeeze Stocks

by Fred Fuld III

Many airline stocks have taken a hit over the last month, and even the last couple trading days. Several of these airline stocks are heavily shorted.  When stocks rise quickly in price for whatever reason, short sellers scramble to cover their positions by buying shares, and causing the price of the stocks to increase even more.

Traders and investors can make money on the long side from short squeezes. One technique that stock traders utilize is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of  short squeezes.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short selling can be profitable, but sometimes when the stock moves against the short sellers, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

Here is one example from the list below.  American Airlines (AAL) is a stock that is heavily shorted. As a matter fo fact, 30% of the float is shorted. (The float is the number of shares of the company that are freely tradeable.) Plus, the number of shares shorted has increased by 5% over last month.

So what airline stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that often some stocks are heavily shorted for a reason. All these stocks have significant short metrics.

Possibly a short squeeze will cause a few of these to fly higher.

Stock Symbol % of Float Days to Cover
American Airlines AAL 30% 1.5
Allegiant ALGT 15% 5.8
Spirit Airlines SAVE 23% 0.8
United Airlines UAL 11% 0.5

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Airline Stocks for Summer Travel

by Nkem Iregbulem

This summer is the 10th consecutive summer to see an increase in the number of passengers flying. Airline for America (A4A) expects the number of passengers to rise 3.4% from 248.8 million travelers last summer to 257.4 million travelers this summer. Low airfares, higher household net worth, and a strong U.S. economy could all be driving this record high air travel. In response to this growing demand, airlines have added more seats to existing planes and increased the capacity of new ones.

Airline stocks may benefit from this busy travel season. These include Alaska Air (ALK), American (AAL), Delta (DAL), SkyWest (SKYW), Spirit (SAVE), Southwest (LUV), and United Continental (UAL). The ALK, DAL, LUV, and SAVE stocks are traded on the New York Stock Exchange, and the SKYW, UAL, and AAL stocks are traded on the NASDAQ exchange.

Alaska Airlines is the fifth largest airline in the U.S. when measured by fleet size, passengers carried, and destinations served. With its fleet size of 334, Alaska Airlines flies to over 100 domestic and international destinations. The airline is headquartered in Washington and was founded in 1932. Alaska Air has a market cap of $8.01 billion and pays a dividend yield of 2.16%. The stock trades at 14.34 times trailing earnings and at 11.10 times forward earnings. It has an excellent price-to-sales ratio of 0.95 and a price-to-book ratio of 2.02. The company boasts a 3-year revenue growth rate of 13.86% and a 5-year revenue growth rate of 9.89%.

American Airlines is the world’s largest airline when measured by number of passengers carried, fleet size, revenue, and destinations served. Founded in 1926 and based in Texas, the airline serves 350 destinations in over 50 countries. It has a market cap of $14.09 billion and pays a dividend yield of 1.26%. The stock trades at 8.26 times trailing earnings and at 6.03 times forward earnings. It has an excellent price-to-sales ratio of 0.33 and a price-to-book ratio of 1.25. The company enjoys a 3-year revenue growth rate of 2.81% and an even better 5-year revenue growth rate of 10.74%.

Delta Airlines is ranked the world’s second largest airline when measured by the number of passengers carried and fleet size. Headquartered in Georgia and founded in 1924, it serves 325 destinations across 52 countries. Delta has a market cap of $40.46 billion and pays a dividend yield of 2.59%. The stock trades at 9.86 times trailing earnings and at 8.85 times forward earnings. It has an excellent price-to-sales ratio of 0.92 and a price-to-book ratio of 2.90. With its revenue increasing each fiscal year since 2016, Delta enjoys a 3-year revenue growth rate of 2.97% and a slightly better 5-year revenue growth rate of 3.30%.

SkyWest is the largest regional airline in North America when measured by fleet size, number of passengers, and destinations served. Based in Utah and founded in 1972, it flies to over 250 destinations across in the United States, Canada, Mexico, and the Bahamas. SkyWest has a market cap of $3.11 billion and pays a dividend yield of 0.79%. The stock trades at 9.99 times trailing earnings and at 10.12 times forward earnings. It has a normal price-to-sales ratio of 1.02 and a price-to-book ratio of 1.56. SkyWest’s revenue has increased each fiscal year since 2015, giving it a 3-year revenue growth rate of 1.34% but a 5-year revenue growth rate of -0.47%.

Spirit Airlines is an ultra-low-cost carrier and the seventh largest airline in the United States. Based in Florida and founded in 1983, it serves 76 destinations across Central America, South America, and the United States. Spirit Airlines has a market cap of $2.88 billion and does not pay a dividend yield. Spirit has a fleet size of 75 and flies to 76 domestic and international destinations. The stock trades at 10.27 times trailing earnings and at 7.15 times forward earnings. It has an excellent price-to-sales ratio of 0.79 and a price-to-book ratio of 1.37. Spirit Airlines boasts a 3-year revenue growth rate of 15.77% and a 5-year revenue growth rate of 14.97%.

Southwest Airlines is the world’s largest low-cost carrier. The airline carries more domestic passengers than any other United States airline. Based in Texas and founded in 1971, it serves just over 100 destinations within the United States and 10 other countries. Southwest has a market cap of $29.82 billion and pays a dividend yield of 1.31%. The stock trades at 13.06 times trailing earnings and at 11.95 times forward earnings. It has a normal price-to-sales ratio of 1.40 and a price-to-book ratio of 3.05. Southwest enjoys a 3-year revenue growth rate of 3.48% and a slightly better 5-year revenue growth rate of 4.41%.

United Airlines is another large airline. Founded in 1926 and headquartered in Illinois, it serves over 200 domestic destinations and over 300 destinations in total across five continents. United Continental has a market cap of $24.13 billion and does not pay a dividend yield. The stock trades at 8.63 times trailing earnings and at 8.07 times forward earnings. It has an excellent price-to-sales ratio of 0.59 and a price-to-book ratio of 2.34. With its revenue increasing each fiscal year since 2016, United has a 3-year revenue growth rate of 2.94% and a 5-year revenue growth rate of 1.53%.

Maybe some of these airline stocks will be flying high.

What Warren Buffett has been Buying

Warren Buffett, the Chairman & CEO of Berkshire Hathaway (BRKA), is probably the most well known investor in the world. Many investors like to piggyback off of his investments, in order to match his great returns.

Well, it’s that time of year when Berkshire Hathaway reports its holdings on Form 13F to the Securities & Exchange Commission. The company filed its form today, dated February 14, 2017.

The most interesting part of the filing are the stocks that Buffett has added to the Berkshire portfolio.

First, one of his new positions is Southwest Airlines (LUV), acquiring 43,195,053 shares.

Buffett also added to his positions in other airlines, such as Delta Air Lines (DAL), increasing the position almost ten fold  from 6,333,923 to 60,025,995.

Another airline he likes is United Continental (UAL) where holdings have gone up by 24,418,340 shares, from 4,533,013 to 28,951,353.

In the tech area, Buffett likes Apple (AAPL). The Berkshire holdings went up from 15,227,702 shares to 57,359,652 shares.

Holdings also rose in American Express (AXP) and Bank of New York (BK).

You have to admit that Warren Buffett has an outstanding track record. Following in his footsteps may be a strategy worth considering.

Disclosure: Author owns AAPL.

 

How to Invest in the Olympics

The 2016 Summer Olympics in Rio de Janeiro had its opening ceremony yesterday, August 5, 2016, and will run until August 21. There will be over 207 nations participating with more than 10,000 athletes. The United States has already received its first gold medal for the women’s 10-meter air rifle event.

In 2008, the Summer Olympics had the largest global viewership, and the highest peak viewer share in the world of any television broadcast. With that track record, if 2016 comes even close to that, it will been a boon to the companies connected with the Olympics.

Investors that are looking for a way to play the Olympics have several companies that they can choose from.

First, you have the airlines. United (UAL) is the official airline of the Olympics. LATAM Airlines (LFL ) serves the South American market and will be bringing a large number of passengers to Rio.

In terms of clothing and apparel, there is Ralph Lauren (RL) which made the Olympic outfits. Nike (NKE) is a proud sponsor, and we will be seeing many Nike shoes in several events. Under Armour (UA) is not an official sponsor but has made the uniforms for the US gymnastics teams, and should benefit from the publicity. Finally, there is Dick’s Sporting Goods (DKS), which markets various types of athletic apparel and exercise equipment. It is an official sponsor.

Next there is the media. The Olympics are being broadcast on the NBC television network, which is owned by Comcast (CMCSA). Media General (MEG) will have the Olympics aired on 13 of its NBC affiliates.

Last but not least is Visa (V), an official sponsor, which is handling the Olympic payment system.

Hopefully, some of these stocks can provide a gold medal for your portfolio.

You can see an investment motif of Olympics Stocks at motifinvesting.com. If you like interesting stock lists like this, you should check out many of the free stock lists at WallStreetNewsNetwork.com.

Disclosure: Author didn’t own any of the above at the time the article was written.

By Stockerblog.com