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.
Here is how ANA Holdings Inc. (ALNPY) and Japan Airlines Ltd (JAPSY) have performed compared to their sector so far this year.
Here is how ANA Holdings Inc. (ALNPY) and Knot Offshore (KNOP) have performed compared to their sector so far this year.
Here is how ANA Holdings Inc. (ALNPY) and Corporacion America Airports S.A. (CAAP) have performed compared to their sector so far this year.
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.
Japan's ANA Holdings said on Tuesday it would spend about 2.1 trillion yen ($14 billion) to purchase at least 77 aircraft to replenish its fleet.
ANA Holdings' stock underperformed due to yen depreciation against the dollar, highlighting currency risk for investors in non-US dollar-exposed companies. Despite revenue growth across segments, ANA's costs, driven by maintenance and labor, outpaced revenues, causing a decline in EBITDA margins. Opportunities include strong unit revenues and low-cost operations expansion, but cost pressures like fuel and staff costs remain significant challenges.
ANA Holdings stock has lost 5.2% since my buy rating in September, showing sentiment can drive stock prices despite fundamental upside. Despite positive unit revenue trends, ANA's costs are outpacing revenue growth, squeezing margins and leading to a decline in EBITDA and operating margins. The stock remains undervalued with a 31% upside potential, but free cash flow will be pressured due to rising capital expenditures.
ANA Holdings' stock is significantly undervalued, presenting a speculative buy opportunity despite cost growth outpacing unit revenue strength. Passenger revenues increased by 12.1%, driven by strong demand in international and domestic services, while cargo revenues grew by 11.3%. Operating income declined 21%, with margins dropping due to rising fuel, maintenance, personnel, and other costs.
ANA Holdings Inc. earnings grew due to international passenger growth, offset by declining cargo revenues. The company is less positive on its earnings forecast for FY2024, citing rising expenses. The stock has an uncertain upside, with projections showing potential for a 75-90% upside but a more realistic target of 27%.