Have you been paying attention to shares of International Consolidated Airlines Group SA (ICAGY) ? Shares have been on the move with the stock up 5.5% over the past month. The stock hit a new 52-week high of $11.01 in the previous session. International Consolidated Airlines Group has gained 44.4% since the start of the year compared to the -4.7% gain for the Zacks Transportation sector and the 6% return for the Zacks Transportation - Airline industry.What's Driving the Outperformance?The stock has an impre ...

Core Insights - Three stocks with strong value characteristics and a buy rank are highlighted for investors: International Consolidated Airlines Group S.A. (ICAGY), ScanSource, Inc. (SCSC), and Urban Outfitters, Inc. (URBN) [1][2][3] Company Summaries - **International Consolidated Airlines Group S.A. (ICAGY)**: - Zacks Rank: 1 - Earnings estimate increased by 11.8% over the last 60 days - Price-to-earnings (P/E) ratio: 6.81, compared to the industry average of 8.80 - Value Score: A [1][2] - **ScanSource, Inc. (SCSC)**: - Zacks Rank: 1 - Earnings estimate increased by 7.9% over the last 60 days - Price-to-earnings (P/E) ratio: 11.11, compared to S&P 500 average of 24.73 - Value Score: A [1][3] - **Urban Outfitters, Inc. (URBN)**: - Zacks Rank: 1 - Earnings estimate increased by 5.4% over the last 60 days - Price-to-earnings (P/E) ratio: 13.91, compared to the industry average of 20.90 - Value Score: A [1][3]

Core Insights - Three stocks are highlighted with a buy rank and strong income characteristics for investors to consider on October 7th [1] Group 1: MGIC Investment Corporation (MTG) - MGIC Investment Corporation is a mortgage insurance company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 10.1% over the last 60 days [1] - The company offers a dividend yield of 3.2%, significantly higher than the industry average of 0.0% [1] Group 2: Phibro Animal Health Corporation (PAHC) - Phibro Animal Health Corporation operates in animal health and mineral nutrition with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has risen by 10% over the last 60 days [2] - The company has a dividend yield of 1.3%, compared to the industry average of 0.0% [2] Group 3: International Consolidated Airlines Group S.A. (ICAGY) - International Consolidated Airlines Group S.A. provides passenger and cargo transportation services and holds a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 11.8% over the last 60 days [3] - The company has a dividend yield of 1.1%, which is lower than the industry average of 2.8% [3]

Company Performance - International Consolidated Airlines Group (ICAGY) shares have increased by 5.8% over the past month and reached a 52-week high of $10.67, with a year-to-date gain of 40.8% compared to -2% for the Zacks Transportation sector and 12.3% for the Zacks Transportation - Airline industry [1] - The company has consistently beaten earnings estimates, reporting EPS of $1.29 against a consensus estimate of $0.5 in its last earnings report on August 1, 2025, although it missed the revenue estimate by 2.37% [2] - For the current fiscal year, ICAGY is expected to post earnings of $1.44 per share on revenues of $38.39 billion, reflecting a 17.07% change in EPS and a 10.49% change in revenues [3] Valuation Metrics - ICAGY has a Value Score of A, a Growth Score of A, and a Momentum Score of D, resulting in a VGM Score of A, indicating strong value potential [6] - The stock trades at 7.4X current fiscal year EPS estimates, below the peer industry average of 10.3X, and has a trailing cash flow multiple of 4.5X compared to the peer group's average of 4.7X, with a PEG ratio of 0.88 [7] Zacks Rank - ICAGY holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, making it a favorable choice for investors [8][9] Industry Context - The Transportation - Airline industry is positioned in the top 34% of all industries, suggesting favorable conditions for both ICAGY and its peers [12]

Group 1 - The article discusses the role of buy-side hedge professionals who conduct fundamental, income-oriented, long-term analysis across various sectors in developed markets globally [1] - It emphasizes the importance of engaging in discussions about investment ideas and strategies among professionals in the hedge fund industry [1] Group 2 - The article includes a disclosure stating that the author has no stock, option, or similar derivative positions in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [2] - It clarifies that the opinions expressed are solely those of the author and not influenced by any business relationships with the companies mentioned [2]

Core Viewpoint - International Consolidated Airlines Group SA (ICAGY) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, which reflects the changing earnings picture of a company [2]. - The Zacks rating upgrade for International Consolidated Airlines Group signifies an improvement in the company's earnings outlook, likely leading to a favorable impact on its stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5][7]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, which can lead to significant stock price movements based on their buying or selling actions [5]. Performance of Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of International Consolidated Airlines Group to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11]. Earnings Estimate for International Consolidated Airlines Group - For the fiscal year ending December 2025, International Consolidated Airlines Group is expected to earn $1.36 per share, with a 3.1% increase in the Zacks Consensus Estimate over the past three months [9].

Group 1 - International Consolidated Airlines Group SA (ICAGY) is a notable stock within the Transportation group, which consists of 122 companies, currently ranked 13 in the Zacks Sector Rank [2] - The Zacks Rank system indicates that ICAGY has a ranking of 2 (Buy), suggesting a favorable outlook for the stock based on earnings estimate revisions [3] - The Zacks Consensus Estimate for ICAGY's full-year earnings has increased by 3.1% over the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4] Group 2 - ICAGY has achieved a year-to-date return of approximately 33.1%, significantly outperforming the Transportation sector, which has an average return of -2.5% [4] - Within the Transportation - Airline industry, which includes 25 companies, ICAGY is performing better than the industry average return of 5.6% year-to-date [6] - Grupo Aeroportuario del Centro Norte (OMAB), another stock in the Transportation sector, has a year-to-date return of 56.6% and a Zacks Rank of 1 (Strong Buy), indicating strong performance in the sector [5][7]

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: International Consolidated Airlines Group SA (ICAGY) - ICAGY has shown a four-week price change of 13%, indicating growing investor interest [3] - Over the past 12 weeks, ICAGY's stock has gained 41.5%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 2.12, suggesting it moves 112% higher than the market in either direction, indicating fast-paced momentum [4] - ICAGY has a Momentum Score of B, suggesting it is an opportune time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ICAGY is trading at a Price-to-Sales ratio of 0.66, indicating it is reasonably valued at 66 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides ICAGY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in stock selection [8]

Group 1 - The article discusses the analysis of the passenger airline market over the last three months, focusing on trends and statistics provided by IATA to identify potential investment opportunities in airline stocks [1] - The analysis emphasizes the importance of financial modeling and competitive financial analysis in determining target prices and ratings for airline stocks, considering factors such as risk and market fluctuations [1] - The author regularly reviews airline performance based on IATA reports, tracking efficiency through passenger and cargo trends alongside financial reports [1] Group 2 - The author holds a beneficial long position in the shares of ICAGY, indicating a positive outlook on this particular airline stock [2] - The article expresses the author's personal opinions and insights without any external compensation, ensuring an independent analysis of the airline market [2]

Group 1: Company Performance - International Consolidated Airlines Group SA (ICAGY) has seen a stock increase of 17% over the past month, reaching a new 52-week high of $10 [1] - The company has gained 31.6% since the start of the year, outperforming the Zacks Transportation sector, which declined by 2.4%, and the Zacks Transportation - Airline industry, which returned 2.4% [1] - The stock has consistently beaten earnings estimates, reporting EPS of $0.05 against a consensus estimate of -$0.01 in its last earnings report [2] Group 2: Earnings and Revenue Projections - For the current fiscal year, ICAGY is expected to post earnings of $1.33 per share on revenues of $38.54 billion, reflecting an 8.13% change in EPS and a 10.92% change in revenues [3] - For the next fiscal year, the company is projected to earn $1.43 per share on revenues of $40.13 billion, indicating year-over-year changes of 7.52% and 4.12%, respectively [3] Group 3: Valuation Metrics - ICAGY trades at 7.5X current fiscal year EPS estimates, below the peer industry average of 10.4X, and at 4.2X trailing cash flow compared to the peer group's average of 4.5X [7] - The stock has a PEG ratio of 0.89, positioning it favorably among value investors [7] Group 4: Zacks Rank and Style Scores - ICAGY holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend [8] - The company has a Value Score of A, a Growth Score of D, and a Momentum Score of C, resulting in a VGM Score of B [6] Group 5: Industry Comparison - SkyWest, Inc. (SKYW) is a notable peer with a Zacks Rank of 2 (Buy) and strong earnings performance, expected to post earnings of $9.36 per share on revenues of $3.91 billion [10][11] - The Transportation - Airline industry is positioned in the top 35% of all industries, suggesting favorable conditions for both ICAGY and SKYW [12]