Corporacion America Stock (NYSE:CAAP), Trade Ideas

Corporacion America

Corporacion America Airports SA acquires, develops and operates airport concessions. Its operating segments are geographically divided into Argentina, Italy, Brazil, Uruguay, Ecuador and Armenia. The company generates a majority of its revenue from the Argentina segment. The firm's revenue is categorized into Aeronautical Revenue, Non-Aeronautical Revenue, Commercial Revenue, Construction Service Revenue, and Other Revenue.

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U.S. stock futures were lower this morning, with the Dow Jones futures falling around 50 points on Friday.

Franklin Covey Shares Fall After Q1 Results, Joins Theravance Biopharma, Voyager Therapeutics And Other Big Stocks Moving Lower In Friday&#39;s Pre-Market Session

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Telecom Argentina Stet - France Telecom S.A.

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U.S. stocks traded mostly lower, with the Dow Jones falling around 50 points on Monday.

Shares of Ituran Location and Control Ltd. (NASDAQ: ITRN) gained during Monday’s session after the company reported third-quarter financial results.

Ituran Location and Control Posts Q3 Results, Joins Crown Castle, Shopify And Other Big Stocks Moving Higher On Monday

Corporacion America Clocks 227.8% Growth In September Passenger Traffic

Corporacion America Airports SA Common Shares

Corporacion America Airports SA

Needham analyst Ami Fadia reiterates Sage Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAGE#NASDAQ">SAGE</a>) with a Hold.

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SAGE

Needham Reiterates Hold on Sage Therapeutics

Wedbush's Dan Ives praised Microsoft Corp.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) performance after the company reported its <a href="https://www.benzinga.com/news/earnings/24/04/38444199/microsoft-q3-earnings-revenue-beat-eps-beat-new-era-of-ai-transformation-and-more">March 2024 quarter earnings</a> and beat revenue and earnings per share (EPS) estimates.
What Happened: Ives praised Microsoft CEO Satya Nadella for the company&#8217;s performance in the AI and cloud computing space.
Ives compared Nadella to a &#8220;grandmaster chess player&#8221; and lauded Microsoft&#8217;s Azure cloud platform for its growth in the AI sector. He also referred to the current state of AI as a &#8220;1995 Moment,&#8221; indicating a significant turning point in the industry.
See Also: <a href="https://www.benzinga.com/news/earnings/24/04/38452338/microsoft-alphabet-and-3-stocks-to-watch-heading-into-friday">Microsoft, Alphabet And 3 Stocks To Watch Heading Into Friday</a>
&#8220;For Nadella the grandmaster chess player another Picasso-like performance for Microsoft as Azure is firing on all cylinders and the AI Revolution plays out in front of our eyes. Our #1 AI Draft pick Microsoft hitting its next gear of growth."
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">For Nadella the grandmaster chess player another Picasso-like performance for Microsoft as Azure is firing on all cylinders and the AI Revolution &#x1f525; plays out in front of our eyes. Our #1 AI Draft pick Microsoft hitting its next gear of growth. $500 PT &#x1f525;&#x1f3c6;&#x1f402;&#x1f37f;&#x1f576;&#xFE0F;. 1995 Moment &#x1f525;
&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1783767713984164164?ref_src=twsrc%5Etfw">April 26, 2024</a></blockquote>
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Ives reiterated a price target of $500 for Microsoft stock, which is currently up 4.25% in premarket trading on Friday, at $416, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
"Another historic night for Big Tech as the AI Revolution and this 1995 Moment is now here," Ives added.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Another historic night for Big Tech as the AI Revolution and this 1995 Moment is now here <a href="https://twitter.com/CNBCClosingBell?ref_src=twsrc%5Etfw">@CNBCClosingBell</a> &#x1f525;&#x1f447; <a href="https://t.co/rN1kF6p9ZF">https://t.co/rN1kF6p9ZF</a>
&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1783756944735371304?ref_src=twsrc%5Etfw">April 26, 2024</a></blockquote>
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Why It Matters: Ives&#8217; comments come in the wake of Microsoft&#8217;s strong performance in the AI and cloud computing sector. During the third-quarter earnings call, Nadella <a href="https://www.benzinga.com/news/24/04/38450786/satya-nadella-says-azure-search-also-used-by-chatgpt-is-one-of-the-fastest-growing-services-for-micr">highlighted the strong demand for Azure</a>, particularly in the field of AI, which has significantly contributed to acquiring new customers.
Microsoft&#8217;s third-quarter revenue increased 17% year-over-year to $61.9 billion, which beat the consensus estimate of $60.804 billion. The tech giant reported quarterly earnings of $2.94 per share, which beat analyst estimates of $2.82 per share.
During the post-earnings call, <a href="https://www.benzinga.com/general/gaming/24/04/38451061/microsoft-ceo-satya-nadella-highlights-record-breaking-gaming-performance-expansion-to-nintendo-sw">Nadella also revealed</a> that Microsoft had set new records for game streaming hours, console usage, and monthly active devices.
Price Action: Microsoft's shares were up 4.25% in premarket trading on Friday, after closing at $399.04 on the previous day, according to Benzinga Pro.
Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next: <a href="https://www.benzinga.com/news/24/04/38426370/mark-zuckerberg-says-tens-of-millions-users-have-already-tried-meta-ai-and-people-are-asking-us-to-r">Mark Zuckerberg Says &#8216;Tens Of Millions&#8217; Users Have Already Tried Meta AI, And People Are &#8216;Asking Us To Release&#8230;Wherever They Are&#8217;</a>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

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'Another Picasso-Like Performance:' Top Tech Analyst Praises Satya Nadella, Says Microsoft Is Top 'AI Draft Pick' With 20% Rally In Store

2024 Earnings&nbsp;Guidance
PGE is reaffirming its estimate for full-year 2024 adjusted earnings&nbsp;guidance&nbsp;of&nbsp;$2.98&nbsp;to&nbsp;$3.18&nbsp;per diluted share based on the following assumptions:
<ul>
<li>Exclusion of the impacts of the&nbsp;January 2024&nbsp;winter storm, including non-deferrable Reliability Contingency Event (RCE) costs and non-deferred incremental storm restoration costs;</li>
<li>An increase in energy deliveries of&nbsp;2%&nbsp;to&nbsp;3%, weather adjusted;</li>
<li>Normal temperatures in its utility service territory;</li>
<li>Hydro conditions for the year that reflect current estimates;</li>
<li>Wind generation based on five years of historical levels or forecast studies when historical data is not available;</li>
<li>Normal thermal plant operations;</li>
<li>Operating and maintenance expense between&nbsp;$815 million&nbsp;and&nbsp;$840 million&nbsp;which includes approximately&nbsp;$165 million&nbsp;of wildfire, vegetation management, deferral amortization and other expenses that are offset in other income statement lines;</li>
<li>Depreciation and amortization expense between&nbsp;$475 million&nbsp;and&nbsp;$525 million;</li>
<li>Effective tax rate of&nbsp;10%&nbsp;to&nbsp;15%;</li>
<li>Cash from operations of&nbsp;$700&nbsp;to&nbsp;$800 million;</li>
<li>Capital expenditures of&nbsp;$1,340&nbsp;million; and</li>
<li>Average construction work in progress balance of&nbsp;$795 million.</li>
</ul>

Earnings

Guidance

Portland General Electric Reaffirms Its 2024 Guidance: Sees Adjusted EPS Of $2.98-$3.18 Vs. $3.07 Consensus, And Cash From Operations Of $700M-$800M

Portland Gen Electric (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POR#NYSE">POR</a>) reported quarterly earnings of $1.21 per share which beat the analyst consensus estimate of $1.09 by 11.01 percent. This is a 51.25 percent increase over earnings of $0.80 per share from the same period last year. The company reported quarterly sales of $940.000 million which beat the analyst consensus estimate of $828.972 million by 13.39 percent. This is a 26.17 percent increase over sales of $745.000 million the same period last year.

Earnings Beats

Portland Gen Electric Q1 2024 Adj EPS $1.21 Beats $1.09 Estimate, Sales $940.000M Beat $828.972M Estimate

Eric Melis, VP of Global Brand Marketing, Carbonated Soft Drinks at PepsiCo,&nbsp;said: &quot;Jack is renowned worldwide for his incredible football skills and the enjoyment he takes from the game. We celebrate those who personify our attitude on and off the pitch and can&#39;t wait for him to support us in bringing more enjoyment to football fans around the world as part of the Pepsi family.&quot;

PepsiCo Signs Football Star Jack Grealish As Global Brand Ambassador In Multi-year Partnership

TotalEnergies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) reported quarterly earnings of $2.14 per share which beat the analyst consensus estimate of $2.06 by 3.88 percent. The company reported $56.278 in sales this quarter. This is a 100.00 percent decrease over sales of $62.603 billion the same period last year.

TotalEnergies Q1 2024 Adj EPS $2.14 Beats $2.06 Estimate, Sales $56.278 Down From $62.603B YoY

<div>Underlying sales growth excluding OPM1&nbsp;and Strategic Review2&nbsp;of&nbsp;3%.</div>
<div>Strong operational progress in all divisions and continued execution momentum across our 2024 strategic priorities.</div>
<div>Continuing to infuse our products with AI and on-track to include AI features in more than 40 Higher Education titles for the Fall semester.</div>
<div>Initial &pound;300m share buyback completed; the previously announced &pound;200m buyback extension has commenced.</div>

Pearson Says It Will See Q1 Underlying Sales Growth Excluding OPM And Strategic Review Of 3%; On Track To Achieve 2024 Guidance With Expected Momentum For 2H

Car rental company&nbsp;Hertz Global Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) is now looking to remove 30,000 electric vehicles from its fleet, significantly higher than the number announced earlier this year.
What Happened: Earlier this year, Hertz announced that it is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36606533/tesla-bulls-at-odds-after-hertzs-ev-selloff-blow-for-musks-company-or-black-eye-mom">looking to reduce its EV fleet by 20,000 units</a> through 2024, citing high repair costs as the driving factor. However, at the company&#8217;s first-quarter earnings call on Thursday, company COO Justin Keppy said that it has increased the EV disposal plan by another 10,000 units. 
As of the end of the first quarter, the company had already sold about 10,000 EVs, he said, on which it incurred vehicle depreciation costs of $195 million. 
&#8220;Upon completion, we anticipate that the remaining EV fleet will be better aligned with attractive demand for EVs with a priority on our rideshare business,&#8221; Keppy said.
See Also: <a href="https://www.benzinga.com/markets/equities/24/04/38107547/hertzs-mega-tesla-gamble-backfired-due-to-sky-high-repair-costs-unusually-high-accident-rates-an" target="_blank" rel="noreferrer noopener">Hertz&#8217;s Mega Tesla Gamble Backfired Due To Sky-High Repair Costs, Unusually High Accident Rates And Customers&#8217; Charging Anxiety</a> 
The decision to further reduce EVs within the fleet will help it align better with demand and lower operating costs, Keppy said. The company expects to see the benefits of reducing EVs from the fleet in the second half and for EVs deployed outside of rideshare to comprise just about 5% of its global fleet as of the end of 2024.
Why It Matters: <a href="https://www.benzinga.com/markets/equities/24/04/38434391/struggle-for-hertz-continues-as-stock-loses-23-heres-why">Hertz on Thursday reported</a> an adjusted loss of $1.28 per share, much higher than the analyst consensus estimate of a loss of 44 cents. 
"Fleet and direct operating costs weighed on this quarter's performance," said CEO Gil West. "We're tackling both issues – getting to the right supply of vehicles at an acceptable capital cost while at the same time driving productivity up and operating costs down."
Price Action: Hertz stock closed down 19.3% at $4.68 per share, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a> The stock is down 54.1% year-to-date. 
Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a target="_blank" href="https://www.benzinga.com/topic/mobility" rel="noreferrer noopener">following this link</a>.
Read More: <a href="https://www.benzinga.com/news/24/04/38452299/tesla-ceo-elon-musk-denies-human-rights-abuses-in-most-ev-battery-production-those-that-do-use-very">Tesla CEO Elon Musk Denies Human Rights Abuses In Most EV Battery Production: &#8216;Those That Do&#8230;Use Very Little&#8217;</a>
Photo by EQRoy on Shutterstock

Another Blow To Tesla? Hertz's EV Disposal Plan Jumps By 10K As Car-Rental Company Aims For 95% Gas-Powered Fleet By Year-End

The latest GDP and inflation figures have sparked concerns among investors, hinting at a potential economic downturn worse than a recession.
What Happened: The U.S. economy&#8217;s first-quarter growth, at an annualized rate of 1.6%, fell significantly short of the anticipated 2.5%, according to the&nbsp;<a href="https://www.bea.gov/data/gdp/gross-domestic-product" target="_blank" rel="noreferrer noopener">Bureau of Economic Analysis</a>. This is also a decline from the 3.4% increase in the fourth quarter, <a href="https://www.businessinsider.in/policy/economy/news/the-us-economy-may-be-barrelling-towards-stagflation-an-outcome-worse-than-recession/articleshow/109603356.cms">reported</a> Business Insider.
&#8220;This was a worst of both worlds report – slower than expected growth, higher than expected inflation,&#8221; wrote David Donabedian, chief investment officer of CIBC Private Wealth US.
Simultaneously, consumer prices experienced a more significant than expected surge, constraining the Federal Reserve&#8216;s ability to take action. This combination of sluggish growth and rising prices is a classic indicator of stagflation, a scenario that is notoriously challenging to combat.
The last time the U.S. faced stagflation was in the 1970s, a period characterized by geopolitical tensions leading to an OPEC oil embargo and a subsequent surge in energy prices. This, combined with high government spending and the dollar&#8217;s detachment from gold, resulted in double-digit inflation and a tumbling economy.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38434513/us-growth-slows-in-q1-yet-inflation-acceleration-signals-stagflation-the-worst-poss?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">US Growth Slows In Q1, Yet Inflation Acceleration Signals Stagflation: &#8216;The Worst Possible Outcome For The Fed&#8217;</a>
Analysts are wary of parallels to this period, with JPMorgan&#8216;s Jamie Dimon warning of a potential return to the <a href="https://www.benzinga.com/general/24/04/38432014/bank-of-america-thinks-2024-is-starting-to-look-like-2015-but-in-reverse-while-jamie-dimon-warns-202">stagflationary 1970s</a>. Despite the current market optimism, the U.S. may be heading towards a similar economic scenario, especially with the recent surge in fiscal spending and potential inflation drivers like green industrialization and global remilitarization.
However, the likelihood of stagflation remains uncertain. Despite persistent high inflation, the market is still pricing in at least one rate cut this year, and demand conditions remain strong. The upcoming personal consumption expenditures report will provide a clearer picture of inflation&#8217;s trajectory and the Fed&#8217;s potential policy adjustments, according to Donabedian.
Why It Matters: The U.S. economy&#8217;s potential descent into stagflation comes amid a series of concerning economic indicators. The Federal Reserve&#8217;s decision to maintain <a href="https://www.benzinga.com/news/24/04/38425604/feds-high-interest-rate-policy-spurs-debate-over-economic-impact-this-is-the-path-of-a-potential-pro">high interest rates</a> throughout 2024 due to persistent inflation has raised questions about its impact on the economy. 
This decision has also sparked concerns about <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38109673/top-economist-flags-warning-signs-of-possible-recession-in-us-economy-it-certainly-">a potential recession</a>, as indicated by the Economic Cycle Research Institute&#8217;s Leading Economic Index, which has been on a downward trend for the past year.
Despite these warning signs, the U.S. economy is predicted to grow at a robust <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/04/38405106/us-economy-expected-to-grow-2-5-in-q1-not-a-hard-landing-and-hardly-a-soft-one">2.5% growth rate</a> in the first quarter of 2024, following a 3.4% growth in the last quarter of 2023. 
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38429782/us-economy-grows-1-6-in-q1-slightly-below-expectations-as-price-pressures-weigh-o?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">US Economy Grows 1.6% In Q1, Slightly Below Expectations As Price Pressures Weigh On Spending</a>
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Economics

US Economy Faces 'Worst Of Both Worlds' As Stagflation Threat Looms Large

Tesla, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares extended their gains for the third consecutive session on Thursday, following the release of the electric vehicle maker&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38390883/tesla-q1-earnings-highlights-ev-giant-misses-wall-street-estimates-makes-cost-cuts-invests-in-ai-sp" rel="noreferrer noopener">quarterly results</a>.&nbsp;Gary Black&nbsp;of&nbsp;Future Fund&nbsp;shared his insights on the stock&#8217;s movement and the company&#8217;s future trajectory.
What Happened: According to Black, the 17.6% surge in Tesla&#8217;s stock post-earnings is attributed to the optimistic product outlook conveyed in the earnings report and confirmed by CEO&nbsp;Elon Musk&nbsp;during the earnings call.&nbsp;
&#8220;There is no other way to interpret this language than that TSLA is readying new more affordable models using both the&nbsp;next gen&nbsp;and existing manufacturing platforms for first production by 2025/1H,&#8221; the analyst said. This, according to the fund manager, is bullish since it points to the company expanding its total addressable market with more affordable compact vehicles to the mass segment by mid-2025.
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/money/everything-you-need-to-know-about-tesla-stock" rel="noreferrer noopener">Everything You Need To Know About Tesla Stock</a>
However, Black noted that Musk&#8217;s emphasis on Tesla&#8217;s commitment to autonomy has yet to resonate with institutional investors. The lack of discussion on the&nbsp;robotaxi&nbsp;opportunity since the earnings release suggests that investors remain cautious. 
Black pointed out that the minimal impact on Uber and Lyft shares indicates that investors may not perceive Tesla&#8217;s unsupervised ride-hailing as a significant threat to these companies.&nbsp;
But he did not rule out narrative change on Aug. 8, when Tesla is scheduled to unveil robotaxis. &#8220;So far TSLA's continued focus on more affordable&nbsp;non-robotaxi&nbsp;vehicles seems to be what's important,&#8221; he said.
Why It Matters:&nbsp;Despite the stock rally, skepticism remains among some analysts.&nbsp;GLJ Research&#8216;s&nbsp;Gordon Johnson&nbsp;interpreted Tesla&#8217;s product roadmap language as indicating a&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38398667/tesla-bulls-praise-musks-q1-earnings-call-see-ev-giant-on-collision-course-with-ube" rel="noreferrer noopener">potential abandonment of the sub-$30K car</a>, with a shift towards cost-reduction strategies for existing models.&nbsp;
Concerns persist regarding Tesla&#8217;s core auto gross margin and significant free cash flow depletion, prompting cautious outlooks from analysts like&nbsp;Wedbush&#8216;s&nbsp;Daniel Ives.
Tesla ended Thursday&#8217;s session up 4.97% to $170.18, according to<a target="_blank" href="https://benzinga.grsm.io/lxquj26b2sag" rel="noreferrer noopener">&nbsp;Benzinga Pro data.</a>
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="http://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38402856/tesla-bull-says-elon-musk-delivered-rip-the-band-aid-off-q1-but-cautions-this-could">Tesla Bull Says Elon Musk Delivered &#8216;Rip The Band-Aid Off&#8217; Q1 But Cautions This Could Derail Bullish Thesis</a>
Image generated using AI on Adobe Shutterstock

TSLA

Tesla's Robotaxi Plan Hasn't Excited Investors, But Fund Manager Gary Black Says This Is What Matters More: 'No Other Way To Interpret This...'

In a recent episode of CNBC&#8217;s &#8220;Mad Money,&#8221; host Jim Cramer lauded Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) for its ability to thrive despite a sluggish economy, attributing its success to its &#8220;self-help&#8221; strategy.
What Happened: Cramer, on Thursday, highlighted the performance of companies that can sustain growth despite economic challenges. He specifically pointed to Chipotle, commending its ability to improve and expand its operations, <a href="https://www.cnbc.com/2024/04/25/cramer-praises-chipotle-for-growing-despite-a-slowing-economy.html">reported</a> CNBC.
"When we're looking for reasons to buy a stock in this environment, we want companies that generate constant self-help. Chipotle does it by improving throughput — how many people that they can serve, say, every 15 minutes," he said. "It just keeps getting better and better and that's got nothing to do with GDP or inflation woes."
The fast-casual chain recently released its quarterly earnings, surpassing Wall Street&#8217;s expectations. Despite raising prices, Chipotle experienced a surge in both sales and foot traffic, leading to a more than 6% increase in its share price by Thursday&#8217;s close.
Cramer suggested that Chipotle&#8217;s success could be attributed to its ability to meet consumer demand by enhancing its service speed, a strategy that is independent of broader economic factors like inflation and GDP.
See Also: <a href="https://www.benzinga.com/markets/equities/24/04/38374423/elon-musk-reacts-as-ark-invest-analyst-says-its-going-to-be-very-hard-for-tesla-rivals-to-catch-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Reacts As ARK Invest Analyst Says &#8216;It&#8217;s Going To Be Very Hard&#8217; For Tesla Rivals &#8216;To Catch Up To</a>
He also noted that this kind of &#8220;self-help&#8221; approach could counteract the market&#8217;s current concerns, particularly in light of the ongoing challenges such as increased interest in the bond market.
"It takes a special kind of stock to do well when the economy's slowing while inflation just won't quit," he said.
Why It Matters: Chipotle&#8217;s recent financial performance has been impressive. The company&#8217;s first-quarter revenue increased by 14.1% year-over-year to $2.702 billion, <a href="https://www.benzinga.com/news/earnings/24/04/38417218/chipotle-mexican-grill-q1-earnings-revenue-beat-eps-beat-comparable-sales-up-7-and-more">beating the consensus estimate</a>. The company&#8217;s comparable restaurant sales also saw a 7% year-over-year increase, driven by higher transactions and a 1.6% rise in the average check.
Chipotle&#8217;s strong financial results led to a rise in its stock price, prompting analysts to <a href="https://www.benzinga.com/news/earnings/24/04/38430514/chipotle-mexican-grill-analysts-raise-their-forecasts-after-better-than-expected-earnings">raise their forecasts</a> for the company&#8217;s future performance. The company&#8217;s international expansion also reached a milestone with the <a href="https://www.benzinga.com/markets/equities/24/04/38360106/chipotle-to-spice-up-kuwait-city-new-location-marks-decade-long-international-expansion">opening of its first location</a> in Kuwait City, marking a decade of international growth.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/04/38399275/no-choice-elon-musk-reacts-as-x-user-reveals-main-reason-why-the-billionaire-is-re-organizing-te?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;No Choice:&#8217; Elon Musk Reacts As X User Reveals &#8216;Main Reason&#8217; Why The Billionaire Is &#8216;Re-Organizing&#8217; Tesla</a>
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Jim Cramer Praises Chipotle's 'Self-Help' Strategy Amid Economic Slowdown: 'Inflation Just Won't Quit'

GXO&#39;s partnership with Virgin Media O2 has helped remove 48 tonnes of single use plastic since 2021
GXO has driven a&nbsp;94%&nbsp;reduction in single use plastics across its logistics operation

GXO Drives Major Plastic Reduction For Virgin Media O2, Eliminating 48 Tonnes Since 2021

Ohio Valley Banc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OVBC#NASDAQ">OVBC</a>) reported quarterly earnings of $0.58 per share. This is a 29.27 percent decrease over earnings of $0.82 per share from the same period last year. The company reported $14.89 million in sales this quarter. This is a 3.89 percent decrease over sales of $15.49 million the same period last year.

OVBC

Ohio Valley Banc Q1 EPS $0.58 Down From $0.82 YoY, Sales $14.89M Down From $15.49M YoY

Gogoro And Nebula Energy Launch Battery Swapping Ecosystem And Gogoro Crossover Smartscooter In Nepal

BNR will change the ratio of its American depositary shares (the &quot;ADSs&quot;) to Class A ordinary shares from one (1) ADS representing one (1) Class A ordinary share to one (1) ADS representing ten (10) Class A ordinary shares (the &quot;ADS Ratio Change&quot;).

Burning Rock Biotech To Adjust ADS To Ordinary Share Ratio Effective May 15

~ Over the past 20 years, AOI has grown to be the largest cold pressing oil plant in the
APAC region, pressing strictly GMO free conventional and organic oilseeds ~

COOT

Reported Earlier, Australian Oilseeds Secures Contracts With Woolworths And Costco For Non-GMO Cold-Pressed Oils

Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), is undergoing its <a href="https://www.benzinga.com/news/24/04/38309742/laid-off-by-tesla-heres-what-you-get-and-cant-do-with-their-severance-offer">biggest workforce reduction</a> ever in a bid to combat slowing demand and falling margins. The company has decided to cut over 10% of its workforce or about 14,000 jobs. But where have the maximum slashings taken place? Benzinga examines using the data (as of April 2024) at hand.&nbsp;
<h3 class="wp-block-heading">United States</h3>
According to WARN notices filed with the states of Texas and California, Tesla will eliminate 3,332 jobs in California and 2,688 positions in Texas, totaling over 6,000 positions, starting June 14.&nbsp;
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Region</td>
<td>Number of Jobs Cut</td>
</tr>
<tr>
<td>California</td>
<td>3,332</td>
</tr>
<tr>
<td>Texas</td>
<td>2,688</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Germany</h3>
Tesla&#8217;s Giga Berlin plant in Germany, which currently employs around 12,500 workers, was initially reported to be losing about 3,000 heads. Tesla, however, denied this and said it was planning to cut only around 400 jobs, representing approximately 3% of the factory&#8217;s workforce, according to a Reuters report.&nbsp;
These layoffs come amidst a challenging sales market for electric cars in Europe, prompting Tesla to optimize production efficiency.
See Also:&nbsp;<a href="https://www.benzinga.com/money/everything-you-need-to-know-about-tesla-stock" target="_blank" rel="noreferrer noopener">Everything You Need to Know About Tesla Stock</a>
<h3 class="wp-block-heading">China</h3>
Chinese media <a href="https://en.tmtpost.com/post/7048616">reports</a> suggest that more than 20% of Tesla&#8217;s workforce in the country could be affected by the layoffs, with some departments losing as much as half of their staff.
Tesla China is reportedly offering severance packages ranging from N+1 to N+3 (one month's pay per year of service, plus additional months&#8217; wages).
Giga Shanghai, according to media reports, employs roughly 20,000 workers. An estimated 20% reduction would imply 4,000 job losses, a lot less than in the United States.&nbsp;
But when assuming that the known layoffs in other regions — totaling about 6,400 — are final, then Tesla's cuts in China would go up to 7,600, the most in any region.
However, it is important to note that corporate layoffs usually happen in several stages over a company's financial calendar year.
Overview of Tesla&#8217;s Global Workforce Reduction
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="683" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/26022508/Tesla-Layoffs-1024x683.jpg" alt="" class="wp-image-310039" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/26022508/Tesla-Layoffs-1024x683.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/26022508/Tesla-Layoffs-300x200.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/26022508/Tesla-Layoffs-768x512.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/26022508/Tesla-Layoffs-1536x1024.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/26022508/Tesla-Layoffs.jpg 1620w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Graphic by: Ramakrishnan M/Benzinga
Employee Count Back To 2022 Levels?
<figure class="wp-block-image"><img decoding="async" src="https://datawrapper.dwcdn.net/igHeT/full.png" alt="" /></figure>
Why It Matters: Tesla&#8217;s layoffs reflect the broader challenges facing the company, including declining sales, pricing pressures, and the need to optimize production efficiency. 
CEO Elon Musk, however, managed to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38402856/tesla-bull-says-elon-musk-delivered-rip-the-band-aid-off-q1-but-cautions-this-could">assuage some investor concerns</a> after a dismal quarterly earnings showing by promising to roll out cheaper EV models even as he doubles down on his "blindingly obvious" <a href="https://www.benzinga.com/news/24/04/38424183/tesla-is-betting-big-on-robotaxi-but-this-rival-thinks-elon-musks-vision-could-be-more-than-5-years">robotaxi vision</a> for the company.
Read Next:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38451359/tesla-investor-touts-ev-giants-billions-mile-leap-in-gathering-self-driving-data-ho" target="_blank" rel="noreferrer noopener">Tesla Investor Touts EV Giant&#8217;s Billions-Mile Leap In Gathering Self-Driving Data: &#8216;How Can Any Automaker Catch Up?&#8217;</a>
Photo via Shutterstock

Tesla's Biggest Layoffs Mapped: Where Has EV Giant Cut Most Jobs?

<ul>
<li>MAV Capital is an alternative asset manager focused on agribusiness with approximately&nbsp;R$550 million&nbsp;in assets under management in sector specific private credit funds, led by a best-in-class and highly seasoned team with extensive experience in the sector;</li>
<li>The transaction aims to consolidate Vinci&#39;s position across the agribusiness segment in&nbsp;Brazil, a substantially underserved segment by the investment industry;</li>
<li>Brazil&nbsp;exhibits numerous competitive advantages and is currently recognized as a key global player, while locally agribusiness and related activities are a meaningful contributor to the country&#39;s GDP;</li>
<li>The acquisition is aligned with Vinci&#39;s long-term growth plan, enabling Vinci to further expand its product offering by enhancing its credit segment and creating a dedicated vertical to the Agribusiness sector;</li>
</ul>

VINP

Reported Earlier, Vinci Partners To Acquire MAV Capital, Expanding Reach In Brazil's Agribusiness Sector

Belite Bio&nbsp;entered into a securities purchase agreement with an institutional investor, for the purchase and sale of up to an aggregate of 651,380 American Depositary Shares of the Company (&quot;ADSs&quot;), each ADS representing one ordinary share of the Company at a purchase price of&nbsp;$38.38&nbsp;per ADS, and the warrants to purchase up to an aggregate of 651,380 ADSs, which will have an initial exercise price equal to&nbsp;$44.14&nbsp;per ADS and will be immediately exercisable and expire on the five-year anniversary of the issuance, in a registered direct offering. The closing of the offering is expected to occur on or about April 30, 2024, subject to the satisfaction of customary closing conditions.

BLTE

Reported Earlier, Belite Bio Secures $25M In Registered Direct Offering With Institutional Investors

Heritage Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTBK#NASDAQ">HTBK</a>) reported quarterly earnings of $0.17 per share which missed the analyst consensus estimate of $0.18 by 5.56 percent. This is a 45.16 percent decrease over earnings of $0.31 per share from the same period last year. The company reported quarterly sales of $42.140 million which missed the analyst consensus estimate of $42.284 million by 0.34 percent. This is a 19.00 percent decrease over sales of $52.024 million the same period last year.

Earnings Misses

HTBK

Heritage Commerce Q1 2024 GAAP EPS $0.17 Misses $0.18 Estimate, Sales $42.140M Miss $42.284M Estimate

Corporacion America Airports (CAAP) has released an update. Aeropuertos Argentina 2000 S.A., a subsidiary of Corporacion America Airports, has pres...

Corporacion America Subsidiary Financials Dip

Soaring travel demand, stable jet fuel prices, and government support will likely contribute to the airline industry's success this year. Therefore, fundamentally strong airline stocks International Consolidated Airlines (ICAGY), Air Canada (ACDVF), and Corporación América (CAAP) could be worth adding to your portfolio. Read on... The airline industry's growth prospects appear promising thanks to robust travel demand trends. The solid demand for leisure travel and business travel recovery will contribute to the industry's growth.
Given the industry's bright prospects, fundamentally strong airline stocks International Consolidated Airlines Group S.A. (<a href="https://stocknews.com/stock/ICAGY/">ICAGY</a>), Air Canada (<a href="https://stocknews.com/stock/ACDVF/">ACDVF</a>), and Corporación América Airports S.A. (<a href="https://stocknews.com/stock/CAAP/">CAAP</a>) could be worth adding to your portfolio.
According to the International Air Transport Association (IATA), total demand, measured in revenue passenger kilometers (RPKs), in February 2024 <a href="https://www.iata.org/en/pressroom/2024-releases/2024-04-04-01/">increased 21.5% from February 2023</a>. Total capacity in February, measured in available seat kilometers (ASK), increased 18.7% year-over-year.
International demand in February rose 26.3% year-over-year, while capacity rose 2.5% year-over-year. IATA's Director General Willie Walsh said, "The strong start to 2024 continued in February with all markets except North America reporting double-digit growth in passenger traffic."
He added, "There is good reason to be optimistic about the industry's prospects in 2024 as airlines accelerate investments in decarbonization and passenger demand shows resilience in the face of geopolitical and economic uncertainties."
This year, IATA forecasts the airline industry's net profit to reach a record <a href="https://www.iata.org/en/pressroom/2023-releases/2023-12-06-01/">$25.7 billion (2.7% net profit margin)</a>, a slight improvement over 2023. The IATA forecasts that 4.7 billion people will travel in 2024, exceeding the pre-pandemic level of 4.5 billion in 2019.
The global airline market is expected to reach $1.10 trillion by 2030, growing at a <a href="https://finance.yahoo.com/news/global-market-airlines-2014-2030-150900398.html">CAGR of 7.6%</a>. This growth will be driven by increasing demand for air travel, especially in emerging markets. Investors' interest in airline stocks is evident from the U.S. Global Jets ETF's (<a href="https://stocknews.com/stock/JETS/">JETS</a>) 19.4% returns over the past six months.
With these favorable trends in mind, let's examine the fundamentals of the three best <a href="https://stocknews.com/category/airlines/">Airlines</a> stocks, beginning with the third choice.
Stock #3: International Consolidated Airlines Group S.A. (<a href="https://stocknews.com/stock/ICAGY/">ICAGY</a>)
Headquartered in Harmondsworth, United Kingdom, ICAGY provides passenger and cargo transportation services in the United Kingdom, Spain, the U.S., and the rest of the world. The company operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands.
ICAGY's trailing-12-month CAPEX / Sales of 12.03% is 300% higher than the 3.01% industry average. Its 9.01% trailing-12-month net income margin is 52% higher than the 5.93% industry average. Also, its 100.42% trailing-12-month Return on Common Equity is 739.2% higher than the 11.97% industry average.
For the fiscal fourth quarter that ended December 31, 2023, ICAGY's total revenue and <a href="https://www.investopedia.com/terms/o/operating_profit.asp">operating profit</a> increased 13.1% and 5.2% year-over-year to €7.22 billion ($7.82 billion) and €502 million ($543.98 million), respectively. Its profit after tax stood at €504 million ($546.15 million), up 117.2% from the prior-year quarter.
For the same period, its adjusted earnings per share before exceptional items increased 803.6% from the year-ago value to 50.60 cents.
Street expects ICAGY's revenue for the quarter ended March 31, 2024, to increase 7.3% year-over-year to $6.97 billion. Its revenue for fiscal 2024 is expected to increase 5.3% year-over-year to $33.53 billion. It surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 19.2% to close the last trading session at $4.35.
ICAGY's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
ICAGY has an A grade for Value and a B for Stability, Sentiment, and Quality. Within the <a href="https://stocknews.com/category/airlines/">Airlines</a> industry, it is ranked #4 out of 26 stocks. To see ICAGY's additional ratings for Growth and Momentum, <a href="https://stocknews.com/stock/ICAGY/">click here</a>.
Stock #2: Air Canada (<a href="https://stocknews.com/stock/ACDVF/">ACDVF</a>)
Headquartered in Saint-Laurent, Canada, ACDVF is a major airline offering domestic, U.S. transborder, and international services, including vacation travel packages and air cargo in about 50 countries. Operating under brands like Air Canada Vacations and Air Canada Rouge, the airline has a diverse fleet of 192 aircraft and manages travel loyalty programs.
ACDVF's trailing-12-month gross profit margin of 33.54% is 9.2% higher than the industry average of 30.72%. Its trailing-12-month EBITDA margin of 15.38% is 13.2% higher than the industry average of 13.58%. Its 9.37% trailing-12-month levered FCF margin is 44.9% higher than the 6.46% industry average.
In the fourth quarter, which ended December 31, 2023, ACDVF generated operating revenue of C$5.18 billion ($3.82 billion), up 10.6% year-over-year. The company reported adjusted EBITDA of C$521 million ($384.26 million), an increase of 33.9% from the prior year's quarter.
In addition, the company's net cash flows from operating activities and free cash flow grew 52.2% and 109.1% year-over-year to C$985 million ($726.48 million) and C$669 million ($493.42 million), respectively.
For the quarter ended March 31, 2024, ACDVF's revenue is expected to increase 6.2% year-over-year to $3.83 billion. For the fiscal year ending December 2025, its EPS is expected to increase 11.2% year-over-year to $3.01.
The company surpassed the Street EPS estimates in three of the trailing four quarters. Over the past month, the stock has gained 9.4% to close the last trading session at $14.58.
ACDVF's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to a Buy in our proprietary rating system.
It is ranked #3 in the same industry. It has an A grade for Value and a B for Quality. <a href="https://stocknews.com/stock/ACDVF/">Click here</a> to see ACDVF's Growth, Momentum, Stability, and Sentiment ratings.
Stock #1: Corporación América Airports S.A. (<a href="https://stocknews.com/stock/CAAP/">CAAP</a>)
Headquartered in Luxembourg City, Luxembourg, CAAP acquires, develops, and operates airport concessions. It operates 53 airports in Latin America, Europe, and Eurasia.
CAAP's trailing-12-month net income margin of 17.11% is 188.5% higher than the industry average of 5.93%. Its trailing-12-month EBIT margin of 29.73% is 199% higher than the industry average of 9.94%. Its 6.76% trailing-12-month Return on Total Assets is 40.9% higher than the 4.80% industry average.
During the fourth third quarter that ended December 31, 2023, CAAP's revenue came in at $365.04 million. Its gross profit increased 6.4% year-over-year to $115.38 million.
Moreover, its adjusted EBITDA stood at $303.40 million, up 146.6% from the year-ago quarter. The company's income for the period attributable to owners of the parent and EPS stood at $130.70 million and $0.81, up 977.3% and 976.7% year-over-year, respectively.
Analysts expect CAAP's EPS for the quarter ended March 31, 2024, to increase 55.4% year-over-year to $0.31. Its revenue for fiscal 2024 is expected to increase 13.5% year-over-year to $1.59 billion.
It surpassed the consensus EPS estimates in three of the trailing four quarters. Shares of CAAP have gained 68.4% over the past year to close the last trading session at $17.09.
It's no surprise that CAAP has an overall A rating, equating to a Strong Buy in our POWR Ratings system.
It has an A grade for Sentiment and a B for Momentum and Quality. It is ranked #2 in the Airlines industry. Beyond what is stated above, we've also rated CAAP for Growth, Value, and Stability. Get all CAAP ratings <a href="https://stocknews.com/stock/CAAP/">here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>
<hr />
ICAGY shares were trading at $4.30 per share on Friday morning, down $0.05 (-1.15%). Year-to-date, ICAGY has gained 10.82%, versus a 8.61% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/icagy-acdvf-caap-3-airline-stocks-to-supercharge-your-april-portfolio/>3 Airline Stocks to Supercharge Your April Portfolio</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Airline Stocks to Supercharge Your April Portfolio

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
It&rsquo;s a great time to be looking at stocks in the travel and hospitality industries.



The sector was temporarily beaten down due to the COVID-19 pandemic. However, tourism activity has come absolutely roaring back since the global economy reopened and travel restrictions were lifted. In addition, government stimulus and a sharp jump in consumer income have led to a surge in discretionary spending. In turn, much of that extra disposable income has gone to tourism and other experiences.



This has led the travel industry to enjoy record volumes, and in some cases record profits over the past year. The global economy is always a question mark. For now, though, the outlook remains highly favorable for these three&nbsp;<a target="_blank" href="https://investorplace.com/industries/consumer-discretionary/travel/">travel stocks</a>.



<h2>Grupo Aeroportuario del Sureste (ASR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/09/airline-stocks-300x169.jpg" alt="a jet takes off on a clear runway."><div>Source: m.photo / Shutterstock.com</div></div>Grupo Aeroportuario del Sureste&nbsp;(NYSE:<a target="_blank" href="https://investorplace.com/stock-quotes/asr-stock-quote/">ASR</a>), or Southeastern Airport Group in English, is a Mexican private airport operator.&nbsp;



It runs numerous airports in Mexico, including its flagship Cancun property. In addition, it controls six airports in Colombia, including Medellin&rsquo;s international airport. Sureste also operates the San Juan, Puerto Rico airport.&nbsp;&nbsp;



Mexico has enjoyed a tourism boom thanks to its proximity to the U.S. and Canada along with relatively low prices for hotels and other amenities. Cancun has seen&nbsp;<a target="_blank" href="https://airserviceone.com/cancun-passes-30-million-passengers-in-2022-new-records-for-both-domestic-and-international-traffic/">passenger volumes</a>&nbsp;explode over the past decade. Sureste&rsquo;s other airports in Mexico such as Merida should benefit from both the stronger domestic economy and increasing tourism volumes.&nbsp;



Sureste&rsquo;s Colombian airports should also show sharply stronger growth in 2024. Last year, two Colombian discount airlines went bankrupt and shut down, causing traffic to fall by double digits year-over-year. As those bad comps roll off, Sureste will report excellent results from its Colombia airports this year.&nbsp;



Shares continue to trade at a relatively low valuation of 13.5 times forward earnings, which is remarkable given that the firm has grown earnings at a double digit compounded rate since the company went public.



As Mexico and the U.S. continue to form stronger cultural and demographic ties, Sureste should continue to enjoy rising tourism flows and increasing profitability. In January, ASR stock scored a rare&nbsp;<a target="_blank" href="https://seekingalpha.com/news/4059121-mexican-airports-upgraded-at-goldman-sachs">double upgrade</a>&nbsp;from Goldman Sachs. Goldman raised its outlook on Sureste shares from &ldquo;sell&rdquo; to &ldquo;buy&rdquo; citing strong growth and an undemanding valuation.



<h2>Corporacion America Airports (CAAP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/08/shutterstock_403443151-300x169.jpg" alt="two women carrying luggage in an airport"><div>Source: Shine Nucha / Shutterstock</div></div>Turning to South America,&nbsp;Corporacion America Airports&nbsp;(NYSE:<a target="_blank" href="https://investorplace.com/stock-quotes/caap-stock-quote/">CAAP</a>) is one of the world&rsquo;s largest private airport operators with&nbsp;<a target="_blank" href="https://www.caap.aero/about.php">52 properties</a>&nbsp;which serve more than 80 million passengers annually. It controls most of the commercial airports in the nation of Argentina, including the various Buenos Aires airports. In addition, CAAP has airports in Brazil, Italy, Armenia, Ecuador, and Uruguay.



The firm&rsquo;s stock crashed as much as 90% between its 2018 IPO and when it ultimately bottomed during the pandemic. Investors had been concerned about a liquidity squeeze, but the airport operator was able to negotiate aid and contract extensions from various government entities as relief for the pandemic-related losses. The airport operator also slashed costs during that time.



As such, Corporacion America Airports is now several times more profitable today than it was prior to the pandemic. Regardless, shares are still only trading around the firm&rsquo;s original 2018 IPO price.&nbsp;



That discrepancy has left shares sitting at just&nbsp;<a target="_blank" href="https://seekingalpha.com/symbol/CAAP/earnings/estimates">8 times</a>&nbsp;estimated fiscal year 2025 earnings and just seven times enterprise value to EBITDA, which is far lower than comparable publicly-traded airport groups. And that&rsquo;s with the firm expected to grow earnings at a rapid clip in future years.&nbsp;



Shares are dramatically undervalued and should continue to rally and hit fresh all-time highs. That&rsquo;s doubly true as investors have grown more optimistic about Argentina thanks to that country&rsquo;s new and staunchly pro-business government.



<h2>Sabre (SABR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/09/sabr-stock-1-300x169.jpg" alt="The logo for Sabre Corporation (SABR) is displayed on a smartphone screen."><div>Source: IgorGolovniov / Shutterstock.com</div></div>Sabre&nbsp;(NYSE:<a target="_blank" href="https://investorplace.com/stock-quotes/sabr-stock-quote/">SABR</a>) operates a&nbsp;<a target="_blank" href="https://www.siteminder.com/r/global-distribution-system/">global distribution system</a>. These are the platforms that airlines, passenger railroads, cruise operators, hotels, and other travel companies use to distribute tickets and reservations to travel agencies and other customers.&nbsp;



GDS operators serve as a marketplace; the airlines and other providers list all of their available itineraries and then travel agencies, online booking sites, and so on can sort through the GDS inventory and purchase through that platform. The GDS operator collects a fee for the purchase.&nbsp;



For obvious reasons, the GDS operators including Sabre saw their profits collapse during the pandemic. Sabre was caught in a particular bind, since it had invested heavily to modernize its previously outdated IT system.&nbsp;



Unfortunately, the debt related to that expense piled up and the firm hasn&rsquo;t been able to recoup on that investment quickly enough thanks to the travel stoppage. This explains why Sabre remains at a depressed valuation despite the ensuing travel recovery.&nbsp;



However, the company expects major&nbsp;<a target="_blank" href="https://seekingalpha.com/article/4670727-sabre-corporation-sabr-q4-2023-earnings-call-transcript">cost savings</a>&nbsp;in 2024 and 2025 and has a path to positive earnings. Sabre is in a race against the clock to reach profitability and deal with its interest expenses and flimsy balance sheet. But if the firm can successfully roll over its nearer-term obligations, the stock could be a multi-bagger from current levels.&nbsp;



Sabre stock has tremendous torque for higher international travel and tourism volumes making it a great pick for travel stock bulls. SABR stock is the riskiest on this list, but if general economic conditions permit, the stock could have tremendous upside from current levels.



On the date of publication, Ian Bezek held a long position in ASR and CAAP stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a target="_blank" href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/wall-street-favorites-3-travel-stocks-with-strong-buy-ratings-for-april-2024/">Wall Street Favorites: 3 Travel Stocks With Strong Buy Ratings for April 2024 </a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

Wall Street Favorites: 3 Travel Stocks With Strong Buy Ratings for April 2024

The airline market has emerged resilient over the years and is poised for significant growth owing to increasing air travel demand and the incorporation of new innovative ideas to bolster the market. Given this backdrop, let's assess the prospects of airline stocks Copa Holdings, S.A. (CPA), Corporación América Airports S.A. (CAAP), and Cathay Pacific Airways (CPCAY) to determine the best investment opportunity in this space for now. Read on… With more people and cargo taking to the skies, coupled with technological advancements, the airline industry's prospects are promising. Given the industry tailwinds, investors could consider buying airline stocks Corporación América Airports S.A. (<a href="https://stocknews.com/stock/CAAP/">CAAP</a>) and Cathay Pacific Airways Limited (<a href="https://stocknews.com/stock/CPCAY/">CPCAY</a>), positioned for potential gains, while it would be wise to watch Copa Holdings, S.A. (<a href="https://stocknews.com/stock/CPA/">CPA</a>) now.
According to the International Air Transport Association (IATA), <a href="https://www.iata.org/en/pressroom/2024-releases/2024-04-04-01/">global passenger demand</a> for February 2024, calculated in revenue passenger kilometers (RPKs), grew by 21.5% year-over-year, while the total capacity measured in available seat kilometers (ASK) increased by 18.7% annually.
The <a href="https://www.iata.org/en/pressroom/2024-releases/2024-04-03-01/">air cargo total demand</a>, measured in cargo tonne-kilometers (CTKs), increased by 11.9% compared to February 2023 levels, marking the third consecutive month of double-digit year-on-year demand growth.
The airline industry is expected to showcase extraordinary growth this year and expect further growth in 2025. The IATA forecasts total revenues to grow by 7.6% year over year to <a href="https://www.iata.org/en/pressroom/2023-releases/2023-12-06-01/">$964 billion in 2024</a>.
The industry is coming up with <a href="https://www.publicissapient.com/insights/airline-industry-trends-2024">new innovative technologies</a>, like the usage of global weather data, historical flight operations data, and more, with the help of artificial intelligence (AI) algorithms to avoid flight delays and cancellations, enhance customer experience, employee efficiency, and help in cutting costs. 
The U.S. Aviation Market is estimated to grow at a <a href="https://www.mordorintelligence.com/industry-reports/us-aviation-market">CAGR of 4.5%</a>, reaching $105 billion by 2030.
In light of these encouraging trends, let's look at the fundamentals of the three <a href="https://stocknews.com/category/airlines/">Airlines</a> stocks, starting with the weakest from the investment point of view.
Stock #3: Copa Holdings, S.A. (<a href="https://stocknews.com/stock/CPA/">CPA</a>)
Headquartered in Panama City, Panama, CPA provides airline passenger and cargo services. The Company operates through air transportation segment. It offers approximately 327 daily scheduled flights to 78 destinations in 32 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub.
On April 11, CPA announced its March 2024 figures in which CPA's capacity (ASMs) increased by 12.3%, while system-wide passenger traffic (RPMs) also increased by 11.5% year-over-year. 
On March 15, CPA paid its shareholders the first quarterly dividend of $1.61 per share. Its annualized dividend rate of $6.44 per share translates to a dividend yield of 6.69% on the current share price. Its four-year average yield is 1.32%. Over the past five years, CPA's dividend payments have grown at an 8.5% CAGR.
CPA's trailing-12-month EBITDA and levered FCF margins of 32.29% and 21.53% are 135.8% and 225.7% higher than the industry averages of 13.69% and 6.61%, respectively. However, the stock's <a href="https://www.investopedia.com/terms/a/assetturnover.asp">asset turnover ratio</a> of 0.70x is 11.4% lower than the industry average of 0.79x.
Over the past three and five years, its revenue grew at CAGRs of 62.9% and 5.3%, respectively, while its total assets grew at 10.5% and 3.2% CAGRs over the same periods.
During the fiscal fourth quarter that ended December 31, 2023, CPA's total operating revenue and total operating expense increased 3% and 4% year-over-year to $916.93 million and $698.06 million, respectively.
For the same quarter, the company's adjusted net profit increased 6% from the year-ago quarter, while adjusted basic earnings per share declined marginally from the prior-year quarter to $4.47.
Street expects CPA's revenue for the fiscal year ending December 2024 to increase 7.6% year-over-year to $3.72 billion. The company's EPS is expected to decline 1.6% year-over-year to $16.52 for the same period. The company surpassed consensus EPS estimates in each of the trailing four quarters, which is impressive.
The stock has declined 14.8% over the past nine months but gained 14.2% over the past six months to close the last trading session at $96.25.
CPA's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall C rating, equating to Neutral in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has a C grade for Growth, Value, Momentum, and Stability. Within the <a href="https://stocknews.com/category/airlines/">Airlines</a> industry, it is ranked #10 out of 26 stocks.
To see additional POWR Ratings for Sentiment and Quality for CPA, <a href="https://stocknews.com/stock/CPA/">click here</a>.
Stock #2: Corporación América Airports S.A. (<a href="https://stocknews.com/stock/CAAP/">CAAP</a>)
Headquartered in Luxembourg City, Luxembourg, CAAP acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia.
On March 19, CAAP reported a 5.4% year-over-year increase in passenger traffic in February 2024, reaching 92.80% of February 2019 levels. Additionally, it reported its international passenger traffic to be 4.2% above pre-pandemic levels.
CAAP's trailing-12-month cash from operations of $356.42 million is 18.4% higher than the industry average of $300.97 million. Its trailing-12-month EBITDA and levered FCF margins of 40.33% and 16.67% are 194.6% and 152.3% higher than the industry averages of 13.69% and 6.61%, respectively.
Over the past three and five years, its EBITDA grew at CAGRs of 123.8% and 3.4%, respectively, while its net income grew at a 102% CAGR over the past five years.
For the fiscal fourth quarter that ended December 31, 2023, CAAP's revenue stood at $365.04 million, while gross profit increased 6.4% year-over-year to $115.38 million. Moreover, its adjusted EBITDA stood at 303.40 million, up 146.6% from the year-ago quarter.
For the same quarter, its income for the period attributable to owners of the parent and EPS stood at $130.75 million and $0.81, up 977.2% and 976.7% from the prior-year quarter, respectively.
Street expects CAAP's revenue for the fiscal year ending December 2024 to increase 13.5% year-over-year to $1.59 billion. Its EPS is expected to be $1.18 for the same period. The company surpassed consensus EPS estimates in three of the trailing four quarters.
The stock has gained 59.6% over the past year to close the last trading session at $16.45. Over the past six months, it has gained 36%.
CAAP's POWR Ratings reflect this promising outlook. It has an overall rating of B, which translates to a Buy in our proprietary rating system.
CAAP has an A grade for Sentiment and a B for Momentum and Quality. Within the same industry, it is ranked #2.
For CAAP's other ratings (Growth, Value, and Stability), <a href="https://stocknews.com/stock/CAAP/">click here</a>.
Stock #1: Cathay Pacific Airways Limited (<a href="https://stocknews.com/stock/CPCAY/">CPCAY</a>)
Headquartered in Lantau Island, Hong Kong, CPCAY offers international passenger and air cargo transportation services. The company operates business through its four operating segments: Cathay Pacific and Cathay Dragon; Air Hong Kong; HK Express; and Airline Services.
On March 21, CPCAY February 2024 figures showed strong travel demand throughout the month, in particular during the Chinese New Year holiday period. On February 18, CPCAY achieved a significant milestone by carrying over 70,000 passengers and operating 272 passenger flight sectors, the most on a single day since the start of the pandemic. CPCAY carried 1,801,174 passengers in February 2024, an increase of 61.6% year-over-year.
On March 13, CPCAY announced the distribution of an interim dividend for the year ended December 31, 2023, of HKD0.43 per share, payable to shareholders on May 2. Its annualized dividend rate of $0.55 per share translates to a dividend yield of 10.72% on the current share price. Its four-year average yield is 0.28%. Over the past five years, CPCAY's dividend payments have grown at a 23.5% CAGR.
CPCAY's trailing-12-month cash from operations of $3.38 billion is significantly higher than the industry average of $300.97 million. Its trailing-12-month EBITDA and levered FCF margins of 21.66% and 20.86% are 58.2% and 215.6% higher than the industry averages of 13.69% and 6.61%, respectively.
Over the past three years, its revenue grew at a 26.3% CAGR, while its net income grew at a 33.1% CAGR over the past five years.
For the fiscal year that ended December 31, 2023, CPCAY's total revenue and operating profit stood at $12.11 billion and $1.94 billion, up 85.1% and 335.7% year-over-year, respectively.
For the same year, its underlying profit attributable to shareholders of CPCAY and earnings per ordinary share came to $982 million and 16.10 cents, compared to underlying loss attributable to shareholders of CPCAY and loss per ordinary share of $849 million and 14.40 cents in the previous year, respectively.
Street expects CPCAY's revenue for the fiscal year ending December 2024 to increase 18.6% year-over-year to $14.32 billion.
The stock has gained 5.5% over the past six months to close the last trading session at $5.13. Over the past year, it has gained 4.2%.
CPCAY's robust prospects are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
CPCAY has an A grade for Quality and a B for Growth, Value, and Stability. It is ranked first within the same industry.
<a href="https://stocknews.com/stock/CPCAY/">Click here</a> for the additional POWR Ratings for CPCAY (Momentum and Sentiment).
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CPCAY shares were unchanged in premarket trading Tuesday. Year-to-date, CPCAY has gained 3.47%, versus a 6.46% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Neha Panjwani</h2> <img src='https:/wp-content/uploads/2024/01/Neha-Panjwani_Headshot-1.jpeg' style="float:left; padding:5px;width:125px;">From her school days, Neha harbored a profound fascination for finance, a passion that steered her toward a career as an investment analyst following the completion of her bachelor's degree in commerce. Currently enrolled in the CFA program, Neha is dedicated to further enriching her comprehension of investment fundamentals.

Neha's primary objective is to aid retail investors in discerning optimal investment opportunities by diligently evaluating crucial aspects of financial instruments, with a primary focus on stocks and ETFs. Her commitment lies in empowering individuals to make informed and strategic investment decisions in the dynamic world of finance.<a href="https://stocknews.com/authors/?author=neha-panjwani">More...</a>The post <a href=https://stocknews.com/news/cpcay-cpa-caap-top-3-airline-stocks-positioned-for-potential-gains-buy/>Top 3 Airline Stocks Positioned for Potential Gains - Buy or Hold?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Top 3 Airline Stocks Positioned for Potential Gains - Buy or Hold?

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