Markets
News
Analysis
User
24/7
Economic Calendar
Education
Data
- Names
- Latest
- Prev
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
No matching data
Latest Views
Latest Views
Trending Topics
To quickly learn market dynamics and follow market focuses in 15 min.
In the world of mankind, there will not be a statement without any position, nor a remark without any purpose.
Inflation, exchange rates, and the economy shape the policy decisions of central banks; the attitudes and words of central bank officials also influence the actions of market traders.
Money makes the world go round and currency is a permanent commodity. The forex market is full of surprises and expectations.
Top Columnists
Enjoy exciting activities, right here at FastBull.
The latest breaking news and the global financial events.
I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.
BeingTrader chief Trading Coach & Speaker, 8+ years of experience in the forex market trading mainly XAUUSD, EUR/USD, GBP/USD, USD/JPY, and Crude Oil. A confident trader and analyst who aims to explore various opportunities and guide investors in the market. As an analyst I am looking to enhance the trader’s experience by supporting them with sufficient data and signals.
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
View All
No data
Not Logged In
Log in to access more features
FastBull Membership
Not yet
Purchase
Log In
Sign Up
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider American Airlines?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. American Airlines (AAL) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.32 a share 30 days away from its upcoming earnings release on October 17, 2024.
By taking the percentage difference between the $0.32 Most Accurate Estimate and the $0.04 Zacks Consensus Estimate, American Airlines has an Earnings ESP of +674.82%. Investors should also know that AAL is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AAL is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is Copa Holdings (CPA).
Copa Holdings is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 20, 2024. CPA's Most Accurate Estimate sits at $3.50 a share 64 days from its next earnings release.
For Copa Holdings, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $3.43 is +1.9%.
AAL and CPA's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Zacks Investment Research
Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund launched on 04/30/2015.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1 billion, making it one of the average sized ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airlines Co (LUV) accounts for about 10.48% of total assets, followed by American Airlines Group Inc (AAL) and United Airlines Holdings Inc (UAL).
The top 10 holdings account for about 56.12% of total assets under management.
Performance and Risk
The ETF has added roughly 1.31% and it's up approximately 7.65% so far this year and in the past one year (as of 09/16/2024), respectively. JETS has traded between $14.74 and $21.18 during this last 52-week period.
The ETF has a beta of 1.43 and standard deviation of 31% for the trailing three-year period, making it a high risk choice in the space. With about 57 holdings, it effectively diversifies company-specific risk.
Alternatives
U.S. Global Jets ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JETS is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $199.54 million in assets, iShares U.S. Transportation ETF has $613.82 million. XTN has an expense ratio of 0.35% and IYT charges 0.40%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Investment Research
Shares of Copa Holdings, S.A. (CPA) have not had a good time on the bourses of late, declining in double-digits year to date. The disappointing price performance resulted in CPA underperforming its industry in the said time frame. Additionally, CPA’s price performance compares unfavorably with that of fellow U.S. airline operators United Airlines UAL and Alaska Air Group, Inc. ALK in the same time frame.
YTD Price Comparison
Given the significant pullback in CPA’s shares currently, investors might be tempted to snap up the stock. But is this the right time to buy CPA? Let’s find out.
Factors Weighing on CPA Stock
Copa Holdings is currently mired in multiple headwinds, which, we believe, have led to its unimpressive price performance.
Escalating operating expenses are hurting Copa Holdings’ bottom line. In the first half of 2024, total operating expenses increased 3.8% year over year, owing to higher capacity. Expenses on wages, salaries and benefits rose 10% year over year in first-half 2024 due to an increase in operational staff to support current capacity and cost of living salary adjustments. High fuel costs (up 2.4% in first-half 2024) are pushing up operating costs as well.
The Cargo segment’s performance is disappointing. In 2023, cargo and mail revenues declined 4.6% year over year due to lower cargo volumes and yields. In first-half 2024, cargo and mail revenues fell 0.2% year over year due to lower cargo yields.
A decline in passenger yield is a concern as it results in reduced unit revenues. Passenger yield declined 6.3% year over year in first-half 2024, leading to a 6.1% reduction in total revenue per available seat miles (a measure of unit revenues). This decrease was due to a revision of the unredeemed ticket revenue provision for tickets sold so far in the current year.
Given the headwinds surrounding the stock, earnings estimates have been southbound, as shown below.
Upbeat Air Travel Demand: A Major Tailwind
Upbeat air travel demand has been aiding Copa Holdings' revenues. As a reflection of this, in 2023, total operating revenues increased 16.7% year over year, driven by a 17.5% uptick in passenger revenues. With more people taking to the skies in the post-pandemic scenario, CPA's passenger revenues (which accounted for most of the top line) increased 2% in first-half 2024 despite low yield. Driven by high passenger traffic, management expects the current-year load factor (percentage of seats filled by passengers) to be 86.5%.
From a valuation perspective, CPA is trading at a discount compared to the industry, going by its forward 12-month price-to-sales ratio. The reading is also below its median over the last five years. The company has a Value Score of A.
To Conclude
It is understood that CPA stock is attractively valued and upbeat passenger revenues are contributing to CPA’s top line. However, given the abovementioned headwinds, we believe that it is not at all advisable to buy the dip in this Zacks Rank #3 (Hold) stock until the company demonstrates substantial improvement in its performance.
We believe investors should monitor the company’s developments closely for an appropriate entry point. For those who already own the stock, it will be prudent to stay invested. The stock’s Zacks Rank supports our thesis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Investment Research
American Airlines’ AAL efforts to expand and enhance its global network are commendable. The company’s proactive initiative to create 500 new aviation jobs is serving well for the company and the economy. However, AAL has been grappling with soft market conditions and increased operating costs.
Factors Favoring AAL
American Airlines' initiative to create nearly 500 new aviation maintenance jobs and expand heavy check maintenance work at its bases in Charlotte, NC; Pittsburgh, PA, and Tulsa, OK, represents a significant boost to both the company and the local economies. The addition of more than 385 licensed aviation maintenance technician positions highlights the airline’s commitment to enhancing its maintenance capabilities and infrastructure. This expansion will not only strengthen AAL’s maintenance operations but also contribute to job growth in these regions, offering high-paying, skilled positions.
The company’s efforts to expand its network are encouraging. In August 2024, American Airlines announced five new routes to Europe, including nonstop flights to Edinburgh, Scotland, for the first time since 2019. This expansion underscores AAL’s commitment to growing its extensive global network, providing customers with more diverse travel options and unique connections.
American Airlines: Risks to Watch
The northward movement in operating expenses is hurting AAL’s bottom line, challenging its financial stability. The surge in operating expenses was caused by a rise in fuel and labor costs. In the second quarter of 2024, total operating expenses rose by 9% compared to the second-quarter 2023 actuals.
Labor costs, accounting for 30.5% of the total operating expenses, rose 8.8% year over year, whereas fuel expenses jumped by 12.4% year over year.
Soft economic conditions continue to adversely impact AAL’s prospects. The company’s high level of debt limits its financial flexibility.
Shares of American Airlines have declined 18% year over year against its industry’s 25.4% growth.
Zacks Rank
AAL currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks for investors’ consideration in the Zacks Transportation sector include C.H. Robinson Worldwide CHRW and Westinghouse Air Brake Technologies WAB.
C.H. Robinson Worldwide currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. CHRW has an expected earnings growth rate of 25.2% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 10.6% in the past year.
WAB carries a Zacks Rank #2 (Buy) at present andhas an expected earnings growth rate of 26% for the current year.
The company has a discouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The average beat is 11.8%. Shares of WAB have climbed 55.3% in the past year.
Zacks Investment Research
Sept 13 (Reuters) - Boeing's BA.N West Coast factory workers walked off the job early on Friday after they unanimously rejected a contract, halting production of the company's best-selling 737 MAX jet.
The planemaker has more than 4,700 of the jets on order, with Southwest Airlines LUV.N, United Airlines UAL.O, and Lion Air the top three customers awaiting deliveries, according to aviation data provider Cirium.
Below is a rundown of some of the biggest known customers waiting for their MAX jets, as per Cirium data.
Airline | Number of 737 MAX jets on order (all variants included) |
Southwest Airlines LUV.N | 472 |
United AirlinesUAL.O | 327 |
Lion Air | 229 |
Akasa Air | 203 |
Ryanair RYA.I | 190 |
Air India & Air India Express | 156 |
American AirlinesAAL.O | 152 |
SpiceJet SPJT.BO | 144 |
FlyDubai | 127 |
Avolon | 107 |
(Compiled by Shivansh Tiwary in Bengaluru; Editing by Sriraj Kalluvila)
(( Shivansh.Tiwary@thomsonreuters.com ; +91 9708363192; X: @Shivansh_19_;))
Keywords: BOEING-LABOR/ORDERS (FACTBOX)
While Warren Buffett has been selling down his position in stocks like Apple and Bank of America , the latest regulatory filing showed that he added a position in excess of 1 million shares in Heico .
Heico is a company I told you about last November. It's a technology-driven aerospace, industrial, defense and electronics company. According to its website, its products are found on large commercial aircraft, regional, business and military aircraft, as well as on a large variety of industrial turbines, targeting systems, missiles and electro-optical devices.
The aircraft industry today is in an interesting spot. Faced with ongoing, lengthy delays on new jet deliveries, long waits at repair shops, and rising maintenance costs, airlines are increasingly turning to another option: generic replacement parts for their aircraft.
The Aircraft Parts Market
The Federal Aviation Administration (FAA) has a process that dates back to the 1950s for third parties to apply to design and produce replacement aircraft parts. To get Parts Manufacturer Approval (PMA), the components have to be identical to the originals in form, fit and function.
But not in price.
Generic aircraft replacement parts were often sold at a discount of about 30% to the brand-name parts. But that has been climbing like a jet taking off, as original parts manufacturers take advantage of the current mismatch in supply and demand to push their prices skyward.
That’s why maintenance costs at Southwest Airlines jumped 29% in the second quarter from the period a year ago, and American Airlines Group reported an 18% rise in repair-related costs. United Airlines Holdings noted an only 4.4% increase in maintenance expenses in the second quarter — but that was on top of the more than 30% leap in the same period last year.
Not surprisingly, the market for generic commercial aircraft parts is forecast to grow to about $14 billion in 2030, up from $10.7 billion in 2022. And this may be too conservative of an estimate.
For engines in particular, PMA providers are becoming increasingly important. Production constraints are forcing the manufacturers to prioritize newer engine models and wait times for older components are stretching to nearly a year.
All of this is great news for Heico, which is the largest independent provider of off-brand aircraft components.
Heico’s Booming Parts Business
Founded in 1957, the company operates in two business segments: Flight Support Group (60% of revenues in 2023) and Electronic Technologies Group (40% of revenues).
Heico offered almost 20,000 individual components to customers with a PMA stamp, as of the end of fiscal year 2023. That number has grown, thanks to acquisitions, the biggest of which was last year’s $2 billion purchase of replacement jet parts manufacturer Wencor Group.
New entrants into the sector are limited by both the regulatory hurdle, and the difficulty and cost of reverse engineering aerospace components. However, Heico enjoys a long track record of successful PMA approvals and safe deployment of its parts.
Note that this is the juiciest market segment in aerospace, with a fraction of the research and development costs faced by the original equipment manufacturers (OEMs).
CEO Eric Mendelson said in December that the company will enjoy a record year in terms of PMA generation and the number of parts that it comes out with. The company plans to expand its offerings - adding around 500 new, highly engineered parts to its PMA portfolio each year going forward.
Buy HEI Stock
Tufan Erginbilgic, CEO of the UK engine maker Rolls-Royce Holdings PLC , recently warned that the industry’s supply-chain woes could last at least another 18 months, calling it the “worst possible” environment. That tells me it will stretch longer than 18 months, which is good for Heico.
As is the company's acquisition of Wencor, which has expanded its capabilities for its aerospace customers. This will allow Heico to grow its market share. It should also grow Heico’s operating margins. Wencor’s margins were about 130 basis points higher than the company’s organic businesses in the fourth quarter of the 2023 fiscal year.
Heico has increased operating income at a 21% compound annual growth rate since 1990 - that’s how long current management has been involved. That’s indicative that it is well-run. Sales increased at a 15% CAGR since 1990, as well. No wonder Buffett was attracted to it.
Looking ahead, the company will likely grow significantly faster than the overall commercial aftermarket due to even more acquisitions. Morningstar forecasts a 7.1% organic compound annual growth rate over the next five years in the company’s commercial aftermarket business, reflecting the post-pandemic rebound, as well as acquisitions. It sees this business achieving 12.5% compound growth through 2028.
I believe PMAs will be long-term winners in a post-COVID world where airlines are facing higher maintenance costs and parts shortages. Keep in mind that without spare parts for key components like engines, aircraft can’t fly. And, if aircraft can’t fly, airlines will have to reduce capacity, which could result in both job losses and higher costs for the flying public.
That’s a scenario everyone wants to avoid, and it's what makes HEI stock a buy. As does its track record - since 1990, an investment in Heico stock produced a compounded annual growth rate of approximately 22% for its shareholders.
The company has Class A shares with only one-tenth the voting rights of its regular common shares under the listing HEI.A. The company uses these shares to pay for some acquisitions and in some of its compensation plans. I think investors should go with the regular voting shares - HEI - in their portfolios.
When I first recommended the stock, it was trading at $162. It is up 57% since then, and closed Thursday's session at $256. HEI remains a buy below $266.
On the date of publication, Tony Daltorio had a position in: HEI . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
White Label
Data API
Web Plug-ins
Poster Maker
Affiliate Program
The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.
Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.