Skip to main content

How to Profit From the Upcoming Earnings Season?


Before the start of the last earnings season, I put forward three stocks for investors to buy namely JetBlue (JBLU), Volaris (VLRS) and Virgin America (VA). While JetBlue has underperformed in the reference time period, both Volaris and Virgin America have proven to be winners. For the upcoming earnings season, I have shortlisted my three best picks from the aviation industry. Let’s take a look at the stocks.

JetBlue and Volaris 

Despite recommending them for the last earnings season, I think both JetBlue and Volaris deserve a mention.


Shares of JetBlue have pulled back following the carrier’s failed bid to acquire Virgin America. However, I think investors should use the recent pullback to load onto the stock as it is undervalued.

With JetBlue yet to completely roll out its Mint program and with air fares moving higher, I think the stock is cheap and has about 15% upside potential.

As for Volaris, although I recently recommended investors to take some profits off the table, I think the stock can still move higher due to its strong expansion. While investors are worried about overcapacity in the U.S. market, Volaris has seen its capacity grow at a rapid pace. Unlike other carriers, Volaris has increased its capacity in the Mexican aviation market, which has seen strong growth in demand. The company plans to sustain its double-digit growth in the Mexican market and due to the growing middle class, I expect these initiatives to lead to more profits.

Spirit Airlines 

I have often touted Spirit Airlines (SAVE) as my best long idea for 2016 and I still think the stock has a lot more upside to offer. Under the leadership of new CEO, Spirit Airlines plans to cut back on its capacity growth and focus on customer relations. Spirit has established itself as the most hated airline, however focusing on improving customer satisfaction can help the company improve its long-term prospects.

In addition, with crude oil moving higher, Spirit is also regaining its competitive edge. When crude oil was around $30, the likes of American Airlines could afford to compete against Spirit on price. However, with crude oil now moving higher, other carriers will find it very difficult to undercut Spirit as the carrier has the lowest unit cost. Given the cheap valuation, I think Spirit has a lot of upsides to offer, making it one of my best picks for the earnings season.

Comments

Readers Choice

Lead Your Team Into a Post-Pandemic World

During the Covid-19 crisis, I’ve spoken with many CEOs who have shared that a key priority for them, naturally, has been the safety and well-being of their employees. And there are many examples of inspiring actions taken by CEOs and companies in support of their employees. But as we’ve come to recognize that this crisis will last more than a few short weeks, companies are now defining their approach for the long haul. I’ve seen two crucial ideas take hold with corporate leaders. One: Given the magnitude of the shock and the challenges that this crisis represents, companies must consider the full breadth of their employees’ needs as people. Safety is essential, of course, but it’s also important to address higher-level needs such as the want for truth, stability, authentic connections, self-esteem, growth, and meaning in the context of the crisis. Two: Many CEOs have begun thinking about this crisis in three phases. They may assign different names or specific lengths to t

4 Ways Google Search Can Help You Achieve Your Marketing Goals

Google Ads Google Ad extensions are a great way to add key descriptive text without taking up space in your actual ad and improve your quality score for even better results. It’s a win-win right? Google Maps Is your business discoverable on Google Maps? For small businesses, adding detailed information and the use of strategic keywords can be helpful for a better location optimization. Google Ranks SEO is vital for moving up in Google rankings. To climb up the ladder, incorporate top keywords in page titles, meta tags and focus on consistently delivering relevant content. Backlinking If SEO is the the only strategy you have, it is the right time to change that. Start adding backlinks to your content. Quality backlinks can further increase your brand authority. 

Twenty Smart Business Buzzwords

Some words may grate on your nerves, but business leaders are still using "disrupt," "synergy" and "ideate." You should too. Spend any amount of time in a corporate environment and you'll likely notice there are some words that seem to come up on a daily basis. Certain verbiage becomes part of the  corporate culture  and soon, you may feel as if you need to use it to fit in. While they can change from one day to the next, most corporate buzzwords have a positive meaning. They're used to boost morale and motivate everyone involved in the conversation. Here are 20 of the top business buzzwords that you should make an effort to work into your vocabulary. 1. Impact Impact is a powerful word that has become a favorite of business professionals.  Grammarians argue  that the word is being used improperly, urging you to use "affect" instead, but businesses love it. 2. Corporate Synergy Half of the people who use this term likely