Here’s Why You Should Keep Airline Services (ATSG) Now

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Airline Services Group, Inc. ATSG has an impressive growth score of B. This style score condenses all the essential measures of the company’s financial statements to get a real idea of ​​the quality and sustainability of its growth. For 2022, profits are expected to grow at a rate of 9.5% year over year.

– Zack

The stock has risen 6.1% in the past year, compared to a 19.8% growth in the industry to which it belongs.

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Image source: Zacks Investment Research

Main growth drivers

Amid the coronavirus pandemic, e-commerce has gained momentum due to social distancing protocols, quarantines and lockdowns. The demand for home delivery of essentials during this crisis has increased. Despite the coronavirus-induced disruption, the company’s flight operations have been strong in 2020. The same is expected to continue through 2021. Thanks to optimistic demand for its cargo planes, the company expects Adjusted EBITDA for 2021 is at least $ 525 million. The figure indicates a 6% improvement over the figure reported in 2020.

The Cargo Aircraft Management segment has performed well in recent quarters. Segment revenues increased 11.2%, 12.2% and 18% in the fourth quarter of 2020, the first and second quarters of 2021, respectively.

Main concern

The increase in capital expenditure limits the growth in results. In 2020, capital spending increased 11.1% to $ 510.4 million. The amount included $ 353.4 million for the purchase of 11 Boeing 767-300s. The metric stood at $ 300.2 million, up 12.9% in the first half of 2021. The amount included $ 200.1 million for the acquisition and modification of passenger aircraft for conversion to cargo. In August, management raised the investment outlook for 2021 from $ 50 million to $ 550 million. The increase in forecast was driven by the company’s commitment to acquire five more passenger planes (four Boeing 767-300s and one Airbus A321-200) for conversion.

Rank of Zacks and actions to consider

Air Transport Services currently carries a Zacks Rank # 3 (Hold).

Some top-ranked stocks in the larger Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. KNX, Landstar System, Inc. LSTR and Herc Holdings Inc. HRI. Knight-Swift and Landstar carry a Zacks Rank # 2 (buy), while Herc Holdings sport a Zacks Rank # 1 (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

The expected long-term growth rate of earnings per share (three to five years) for Knight-Swift, Landstar and Herc Holdings is set at 15%, 12% and 49.2%, respectively.

5 actions in the process of doubling

Each has been handpicked by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations have climbed + 143.0%, + 175.9%, +498 , 3% and + 673.0%.

Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.

Today, discover these 5 potential circuits >>

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KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report

Air Transport Services Group, Inc (ATSG): Free Inventory Analysis Report

Landstar System, Inc. (LSTR): Free Inventory Analysis Report

Herc Holdings Inc. (HRI): Free share analysis report

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