Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years. DLAKY currently has a forward P/E ratio of 6.60, while RYAAY has a forward P/E of 14.06. We also note that DLAKY has a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find s ...

Core Viewpoint - Lufthansa Airlines is set to launch its new Allegris first-class product on the Shanghai-Munich route starting March 30, 2025, enhancing passenger experience with innovative cabin features and services [1][3]. Product Launch - The Allegris cabin product has been well-received since its introduction on the Shanghai-Munich route in August 2023, with 90% of passengers expressing satisfaction with the new business class [1][3]. - The Allegris product encompasses various cabin classes, including economy, premium economy, business, and first class, with the business class winning the 2024 International Design Award and the 2025 German Design Award [1][3]. Aircraft and Sustainability - Lufthansa will utilize the Airbus A350 for the Frankfurt-Shanghai route, which is noted for its fuel efficiency, consuming approximately 30% less fuel than earlier models, averaging 2.5 liters of fuel per passenger per 100 kilometers [3][6]. - Starting in the summer of 2025, Lufthansa plans to operate three Airbus A350 aircraft daily on routes to China, including Beijing-Munich and Shanghai-Frankfurt [3][6]. Allegris First-Class Features - A highlight of the Allegris first-class offering is the "double suite," featuring a fully enclosed cabin with a large table and two nearly one-meter-wide seats, which can be converted into a double bed [5][6]. - The suite includes customizable temperature controls for seating, ample storage space, and the ability to connect personal devices to the in-flight entertainment system, providing a high-end dining experience [5][6]. Investment and Customer Experience - Lufthansa is investing in modernizing its fleet and enhancing customer experience through new cabin products, dining concepts, and digital initiatives tailored to local preferences [6]. - The airline has partnered with the Jing An Shangri-La Hotel to introduce a new in-flight menu and launched a WeChat mini-program to better serve Chinese travelers [6]. Flight Schedule - Lufthansa will operate a total of 46 direct flights weekly from Beijing, Shanghai, and Hong Kong to Frankfurt and Munich during the summer schedule of 2025 [9].

Group 1 - The company has been rebranded as "Lufthansa Group" to reflect its transformation [1] - The article suggests a positive outlook for Deutsche Lufthansa AG, indicating it is expected to "Fly Higher" [1] Group 2 - The analysis is aimed at buy-side hedge professionals focusing on fundamental, income-oriented, long-term analysis across sectors globally [1]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 6% to €37.6 billion, marking a new record [13] - Adjusted EBIT for the full year amounted to slightly more than €1.6 billion, a decline of around 40% compared to the prior year [26] - Net income for the full year was €1.4 billion, with a proposed dividend payment of €0.30 per share, resulting in a payout ratio of 26% [28] Business Line Data and Key Metrics Changes - Lufthansa Airlines experienced a loss of €94 million, significantly impacting the overall group's performance [15] - SWISS exceeded the adjusted EBIT mark of €800 million for the second time, while Eurowings achieved an adjusted EBIT of above €200 million [14] - Lufthansa Technik reported an adjusted EBIT of €635 million, slightly above the previous year's level [46] Market Data and Key Metrics Changes - The global aviation industry is expected to surpass $1 trillion in revenues for the first time, with over 5 billion passengers projected to travel by air [12] - The company expanded its capacity by 8.5% in 2024, although this was significantly lower than the 16% growth in 2023 [29] - The load factor remained stable, with peak values reaching above 90% during the record-breaking summer [13] Company Strategy and Development Direction - The company aims for further internationalization, highlighted by the acquisition of a 41% stake in ITA Airways, marking a significant milestone [7] - A turnaround program has been initiated to address the challenges faced by Lufthansa Airlines, focusing on operational stability and efficiency improvements [11][35] - The company plans to shift capacity growth to more efficient airlines and enhance operational efficiency through various measures [39][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a turnaround in the second half of 2024, with significant improvements in operational stability and customer satisfaction [9][10] - The company anticipates a moderate capacity growth of around 4% in 2025, supporting revenue growth and stabilizing operations [55] - Despite facing cost headwinds, management expects significant improvement in adjusted EBIT for 2025 compared to 2024 [56] Other Important Information - Irregularity costs increased substantially, amounting to over €840 million, driven by strikes and operational instability [26] - The company has hedged 79% of its fuel needs for 2025, which is expected to mitigate potential price escalations [54] - The company is committed to maintaining a full investment-grade rating and has issued a hybrid bond to strengthen its rating profile [52] Q&A Session Summary Question: Can you provide clarity on capacity and profitability expectations for 2025? - Management expects double-digit growth compared to 2024, with moderate capacity growth of around 4% [76][78] Question: What is the status of the ITA integration and potential acquisition of the remaining stake? - The company can call the remaining 49% stake as early as summer 2025, but no decision has been made yet [80] Question: What is the current status of the feeder contract with Condor and NPS trends? - The agreement with Condor was canceled, and the NPS has improved by 10 points over the winter [86][88] Question: How are discussions with crew regarding productivity progressing? - Talks are ongoing, but unions are insisting on restrictions that the company is not willing to accept [114][118] Question: What is the outlook for cargo profitability given potential market changes? - Management remains optimistic about cargo profitability, citing strong demand and the unpredictability of global supply chains [120][123]

Group 1 - The report titled "Enterprise Tech Ecosystem Series: Deutsche Lufthansa AG - 2024" provides insights into Lufthansa's technology activities, including digital transformation strategies, innovation programs, technology initiatives, investments, and acquisitions [1][4] - Lufthansa operates as a multinational aviation company with two main segments: passenger airlines and aviation services [2] - The passenger airlines segment includes various commercial airline brands such as Lufthansa Airlines, Brussels Airlines, SWISS, and others, while the aviation services segment encompasses logistics, maintenance repair and overhaul (MRO), and other business divisions [3] Group 2 - The report covers key topics such as digital transformation strategy, technology initiatives, investments, acquisitions, and partnerships [4][6] - Insights into Lufthansa's technology operations include details on estimated ICT budgets and major ICT contracts [6] - The report lists various companies involved in Lufthansa's technology initiatives, including Google Cloud, BMW, Airbus, and others [6][8]

Group 1 - Lufthansa has faced significant challenges over the past decade, particularly due to the COVID-19 crisis which severely impacted the airline industry [1] - The ongoing Ukraine war has further complicated matters for EU airlines, as it has resulted in the loss of access to Russian airspace [1]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Deutsche Lufthansa AG (DLAKY) Analysis - DLAKY has shown a price increase of 2.5% over the past four weeks, indicating growing investor interest [3] - The stock gained 11.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - DLAKY has a beta of 1.24, suggesting it moves 24% higher than the market in either direction [4] - The stock has a Momentum Score of A, indicating a favorable entry point for investors [5] - DLAKY has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - The stock is trading at a Price-to-Sales ratio of 0.21, meaning investors pay 21 cents for each dollar of sales, indicating a reasonable valuation [6] Group 3: Investment Opportunities - DLAKY is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting more investment opportunities [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]

Financial Data and Key Metrics Changes - The company achieved a revenue of €10.7 billion in Q3 2024, marking a 5% increase compared to the previous year, making it the strongest quarterly revenue in the company's history [14][39] - Adjusted EBIT for Q3 was €1.3 billion, reflecting a decrease of approximately 9% year-on-year [40] - Adjusted free cash flow was positive at €128 million, significantly lower than the previous year due to lower operating results and higher tax payments [59] Business Line Data and Key Metrics Changes - All passenger airlines within the group reported positive results, with Austrian, Brussels, and Eurowings achieving record results [18] - Lufthansa Airlines, however, faced challenges, posting an adjusted EBIT of approximately €400 million, a decrease of over 36% compared to the previous year [45][46] - Lufthansa Cargo profits increased significantly, driven by strong demand from Asia Pacific, with freight yields remaining over 40% above pre-crisis levels [53][54] Market Data and Key Metrics Changes - Capacity offered in the passenger airlines segment reached around 94% of pre-crisis levels, a 6 percentage point increase compared to the prior year [41] - Yields overall declined by 3.5%, with Asia Pacific yields down almost 14% due to strong competition from Chinese carriers [42][43] - The company observed a solid demand environment, with bookings for November up by 70% and December by 55% [81] Company Strategy and Development Direction - The company aims to strengthen its position as Europe's number one airline while addressing regulatory challenges [13] - A comprehensive turnaround program has been initiated for Lufthansa Airlines, targeting efficiency improvements and cost reductions, with an expected positive EBIT effect of up to €1.5 billion by 2026 [48][49] - The company is focused on fleet modernization, with 250 new aircraft on order, which will significantly reduce fuel consumption and CO2 emissions [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stable market outlook for the aviation industry, despite operational challenges and external factors affecting Lufthansa Airlines [9][12] - The company expects to achieve an adjusted EBIT guidance range of €1.4 billion to €1.8 billion for the full year 2024, with adjusted free cash flow expected to be significantly below €1 billion [67] - The management emphasized the importance of operational stability and customer satisfaction as key to future growth [33] Other Important Information - The company has recruited over 5,600 new employees in the last 18 months to stabilize operations post-COVID [24] - The Digital Hangar initiative has led to significant improvements in customer experience, with the airline app being named the best airline app in the world [27][29] - The company is optimistic about completing the acquisition of ITA, which will enhance its market presence in southern Europe [71] Q&A Session Summary Question: Demand environment for winter months - Management noted solid demand driven by leisure and premium classes, with Eurowings performing strongly [81] Question: Clarification on turnaround program figures - The €1.5 billion is a gross measure for 2026, with expectations for a ramp-up in 2025 [85] Question: Capacity outlook for Lufthansa Airlines - Lufthansa Airlines is expected to operate at 84% of pre-crisis capacity, with slower growth due to profitability concerns [86] Question: Cost pressures from suppliers - Frankfurt Airport has increased charges significantly, leading to slower growth at that hub [92] Question: Airfreight and tariff impacts - The company is shifting freighter capacity towards Asia, particularly China, due to strong e-commerce demand [96]

Q3 2024 Results Carsten Spohr, CEO Till Streichert, CFO Frankfurt, 29 October 2024 LUFTHANSA GROUP Q3 2024 Results Carsten Spohr, CEO Review Q3 Frankfurt, 29 October 2024 Disclaimer IMPORTANT: The following applies to this document and the oral presentation of the information in this document by Deutsche Lufthansa Aktiengesellschaft (the "Company", and together with its consolidated subsidiaries, the "Group") or any person on behalf of the Company, any question-and-answer session that follows the oral prese ...