Core Insights - LATAM Airlines Group (LTM) reported a year-over-year increase in revenue passenger-kilometers (RPK) for December 2025, indicating solid air traffic growth across its network [1][8]. Capacity and Operations - LATAM Airlines experienced a 10.9% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK), driven by a 13.9% increase in international operations and an 11.9% growth in domestic capacity in Brazil [2]. - The airline launched 10 new routes in December, including two long-haul international routes: Santiago–Buenos Aires (Ezeiza)–Miami and Guayaquil–New York [2]. Traffic and Passenger Metrics - Consolidated traffic, measured in RPK, increased by 10.5% year-over-year in December, with LATAM Airlines Brazil's domestic market reporting a 12.4% growth [3]. - LATAM Airlines transported 7.9 million passengers in December 2025, reflecting a 7.6% year-over-year increase, and a total of 87.4 million passengers across its network in 2025, marking a 6.6% increase year-over-year [4][8]. Market Presence - In 2025, LATAM Airlines launched eight new destinations, bringing its total to 160 passenger destinations across 27 countries [5]. - The five routes with the highest number of daily flights included Cusco–Lima and Sao Paulo (Congonhas)–Rio de Janeiro (Santos Dumont) [5]. Financial Performance - LATAM Airlines holds a Zacks Rank 1 (Strong Buy), with shares gaining 38.8% in the past six months, outperforming the Zacks Airline industry, which increased by 22.8% [6].

Core Viewpoint - LATAM (LTM) is identified as a promising momentum stock, currently holding a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy) [3][4][12] Price Performance - Over the past week, LTM shares have increased by 4.21%, outperforming the Zacks Transportation - Airline industry, which rose by 1.79% [6] - In a longer time frame, LTM's monthly price change is 5.51%, compared to the industry's 5.15% [6] - Over the past quarter, LTM shares have risen by 27.59%, and over the last year, they have increased by 113.27%, while the S&P 500 has only moved 3.7% and 19.07% respectively [7] Trading Volume - LTM's average 20-day trading volume is 605,016 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for LTM have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $4.73 to $4.93 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions [10] Conclusion - Given the positive price performance, trading volume, and earnings outlook, LTM is positioned as a strong buy and a solid momentum pick for investors [12]

Group 1 - Dollar General Corporation (DG) has seen a 5.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 1.7%, compared to the industry average of 0.9% [1] - LATAM Airlines Group S.A. (LTM) has experienced a 4.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 1.6%, compared to the industry average of 0.0% [2] - The Estée Lauder Companies Inc. (EL) has seen a 1.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Company Performance - JB Hunt (JBHT) has returned 5.8% year-to-date, outperforming the average return of 4.4% for Transportation companies [4] - The Zacks Consensus Estimate for JBHT's full-year earnings has increased by 4.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] Industry Comparison - JB Hunt is part of the Transportation - Truck industry, which includes 12 companies and is currently ranked 184 in the Zacks Industry Rank. The average return for this group is -0.3% year-to-date, showing JBHT's superior performance [6] - LATAM (LTM), another Transportation stock, has returned 4.7% year-to-date and belongs to the Transportation - Airline industry, which has seen a return of +20.1% this year [5][6] Zacks Rank - JB Hunt holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings prospects [3] - LATAM also has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 4.5% over the past three months [5]

Core Insights - LATAM Airlines Group (LTM) shares have surged 28.8% over the past three months, outperforming the Zacks Transportation sector's 19.3% rise [1][9] Growth Strategy - LTM targets 8-10% passenger capacity growth for 2026 while maintaining operating margins of 15-17% [3][9] - The company emphasizes expansion in faster-growing international markets and selective domestic increases while controlling unit costs [3] Financial Performance - LTM aims to lift adjusted EBITDA to $4.2-4.6 billion and generate over $1.7 billion in levered free cash flow, keeping net leverage at or below 1.4x [4] - The company maintains ample liquidity above US$5 billion and continues to invest in technology and customer experience for long-term growth [4] Fleet Expansion - LATAM Airlines plans to expand its fleet from 363 aircraft at the end of 2025 to 371 in 2026, with a focus on narrow-body aircraft growth [5] - The narrow-body fleet is expected to increase from 284 to 291, 329, and 343 aircraft, driven by an increase in Airbus Neo aircraft [5] - Wide-body capacity will expand more selectively, while the cargo fleet remains stable at 20 aircraft [6] Earnings Estimates - The Zacks Consensus Estimate for Q4 2025, full-year 2025, and full-year 2026 has been revised upward by 3.05%, 4.23%, and 4.5% respectively over the past 60 days [10]

Core Viewpoint - LATAM Airlines Group S.A. (NYSE:LTM) is recognized as a promising investment opportunity with strong earnings growth projected for 2026, supported by positive performance metrics and favorable analyst ratings [1][4]. Group 1: Performance Metrics - In November 2025, LATAM Airlines transported 7.4 million passengers, marking a 4.9% year-over-year increase, and a total of 79.6 million passengers from January to November [1]. - The company expanded its consolidated capacity by 4.6% year-over-year, driven by an 11.4% increase in domestic capacity in LATAM Airlines Brazil and a 4.0% growth in international operations [2]. - Consolidated traffic, measured in revenue passenger-kilometers (RPK), grew by 3.6% in November, with LATAM Airlines Brazil's domestic market showing a significant 12.1% year-over-year increase, resulting in a load factor of 85.4% [3]. Group 2: Analyst Ratings and Price Targets - Barclays reaffirmed a Buy rating for LATAM Airlines and set a price target of $60.00 on December 10, following the positive monthly statistics [1]. - Goldman Sachs raised its price target for LATAM Airlines to $58.50 from $50.90 on December 5, maintaining a Buy rating and indicating potential for a 14% dividend yield in 2026 [4].

Core Insights - The transportation sector in 2025 has faced challenges due to tariff issues, supply-chain crises, and low freight demand, compounded by geopolitical tensions and a prolonged U.S. government shutdown. However, declining oil prices and cost-cutting measures have positively impacted profitability [1]. Industry Overview - Oil prices are expected to remain low in 2026, benefiting transportation stocks as fuel costs are a significant expense for these companies. The average price of West Texas Intermediate crude is projected at $65.32 per barrel in 2026, down from $76.60 in 2025. Jet fuel costs are also expected to decrease to $88 per barrel in 2026 from $90 in 2025, with the total fuel bill anticipated to be $252 billion in 2026 [2][3]. Macroeconomic Factors - The macroeconomic environment is showing signs of improvement as inflation in the U.S. is declining, despite remaining above the Federal Reserve's 2% target. The Fed has implemented three rate cuts in 2025, which may support the transportation sector [4]. Shipping Industry Insights - The shipping industry is expected to benefit from a supportive macro backdrop, with capsize bulk carriers positioned well due to strong demand for iron ore and bauxite. The recent increase in dry bulk rates is likely to continue into the next year [5]. Cost Control and E-commerce - Ongoing cost-control efforts amid soft freight demand are expected to enhance profitability. The strength of e-commerce continues to be a significant tailwind for the sector, while steady air travel demand is encouraging for airlines despite economic headwinds [6]. Stock Recommendations - Three transportation stocks are highlighted for potential investment: Expeditors International of Washington (EXPD), Global Ship Lease (GSL), and LATAM Airlines (LTM). These stocks carry Zacks Rank 1 (Strong Buy) or 2 (Buy) and are expected to deliver healthy returns [6]. Company Performance - Expeditors is benefiting from cost cuts and e-commerce strength, with a 7.6% EPS estimate increase for 2026. The company has a strong earnings surprise history, with an average surprise of 13.9% over the last four quarters [9][11]. - Global Ship Lease has a diversified fleet and has consistently outperformed earnings estimates, with a 16.8% average earnings beat and a 3.1% upward revision to its 2026 EPS view [9][12]. - LATAM Airlines is experiencing growth due to its lean cost structure and improved air travel demand, with a 4.5% upward revision to its 2026 EPS estimates and an average earnings surprise of 29.8% over the last four quarters [9][14].

Core Insights - LATAM Airlines Group (LTM) has transformed significantly post-pandemic and Chapter 11, emerging as a structurally different entity compared to its previous state [1] Group 1: Company Transformation - The company has risen from the challenges faced during the pandemic and bankruptcy, indicating a strong recovery and restructuring [1] Group 2: Market Position - LTM is positioned as a unique player in the market, suggesting potential investment opportunities as it adapts to the new market conditions [1]

Core Viewpoint - The article discusses seven affordable stocks with strong earnings growth potential for 2026, highlighting the importance of macroeconomic factors and market dynamics in shaping investment strategies for the upcoming year [2][4][5]. Economic Outlook - Jeremy Siegel, a finance professor, indicates potential challenges in January 2026, including Supreme Court decisions on tariffs and a possible government shutdown, but remains optimistic about the overall market outlook for the year [2]. - Tony Pasquariello from Goldman Sachs emphasizes favorable conditions for risk-taking, with expected S&P earnings growth of 12% in 2026 following an 11% increase in 2025, suggesting a bullish market trend [4]. Stock Selection Methodology - The article outlines a methodology for selecting undervalued stocks with a forward P/E below 15 and strong earnings growth expectations for 2026, based on hedge fund sentiment data [7][8]. Company Highlights Barclays PLC (NYSE:BCS) - Barclays PLC shows a year-over-year EPS diluted growth of 45.84% and a forward EPS growth of 28.17%, with a forward P/E of 11.12 and 28 hedge fund holders [10]. - The company is collaborating with ExpectAI to enhance profitability for SMEs through AI-driven sustainability insights, with testing of the platform set to begin in early 2026 [10][11]. - Barclays received multiple buy ratings from firms like Kepler Capital and UBS, with price targets set at p460.00 and p515 respectively [12]. LATAM Airlines Group S.A. (NYSE:LTM) - LATAM Airlines Group reports a year-over-year EPS diluted growth of 60.40% and a forward EPS growth of 30.69%, with a forward P/E of 11.38 and 30 hedge fund holders [14]. - The company transported 7.4 million passengers in November 2025, reflecting a 4.9% year-over-year growth, and expanded its capacity by 4.6% [14][15]. - Goldman Sachs raised the price target for LATAM Airlines to $58.50, indicating potential for a 14% dividend yield in 2026 [17].

Core Viewpoint - LATAM Airlines Group (LTM) has shown strong performance over the past year and is expected to maintain this momentum in the future, making it an attractive investment opportunity [1]. Performance Overview - LATAM Airlines shares have increased by 34.5% over the past six months, outperforming the Zacks Airline industry's growth of 28.2% [2][8]. - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [6]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter 2025 earnings has increased by 3.05% in the last 60 days, while the current year's earnings estimate has been revised upward by 4.23% [7][9]. - Earnings for fourth-quarter 2025 are projected to grow by 50% year over year, with expected improvements of 52.63% and 17.77% for 2025 and 2026, respectively [12][13]. Earnings Surprise History - LATAM Airlines has consistently surpassed earnings estimates, achieving an average earnings surprise of 29.84% over the last four quarters [11][12]. Growth Factors - The company benefits from a lean cost structure, expanding operations, and strategic partnerships, which enhance operational efficiency and competitive pricing [13]. - The normalization of air travel demand post-pandemic is expected to positively impact LATAM's revenue growth and profit margins [13].