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LATAM AIRLINES GROUP S.A.(LTM)
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Here's Why LATAM (LTM) is a Great Momentum Stock to Buy
ZACKS· 2025-08-18 17:01
Core Viewpoint - LATAM (LTM) is identified as a strong momentum stock with a Zacks Rank of 1 (Strong Buy) and a Momentum Style Score of A, indicating potential for significant near-term gains [3][11]. Company Performance - LATAM shares have increased by 1.05% over the past week, while the Zacks Transportation - Airline industry has risen by 5.04% during the same period [5]. - Over the last quarter, LATAM shares have risen by 16.84%, and over the past year, they have surged by 83.88%, significantly outperforming the S&P 500, which has moved 9.33% and 17.71% respectively [6]. - The average 20-day trading volume for LATAM is 682,709 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, two earnings estimates for LATAM have been revised upwards, while none have been lowered, resulting in an increase in the consensus estimate from $4.12 to $4.68 [9]. - For the next fiscal year, two estimates have also moved upwards with no downward revisions, indicating a positive earnings outlook [9][8].
Is the Options Market Predicting a Spike in LATAM Airlines Stock?
ZACKS· 2025-08-18 13:36
Group 1 - LATAM Airlines Group S.A. (LTM) is experiencing significant activity in the options market, particularly with the Sep 19, 2025 $55 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - LATAM Airlines holds a Zacks Rank 1 (Strong Buy) in the Transportation - Airline industry, which is in the top 38% of the Zacks Industry Rank, although recent earnings estimates have slightly decreased from $1.30 to $1.26 per share [3] Group 2 - The high implied volatility for LATAM Airlines may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]
LATAM Airlines July 2025 Traffic Improves Year Over Year
ZACKS· 2025-08-15 15:21
Company Performance - LATAM Airlines Group reported a year-over-year increase in revenue passenger-kilometers (RPK) of 10.4% for July 2025, indicating strong demand for air travel [2][9] - The company achieved a 10% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK), driven by a 12.2% increase in international operations and an 11.8% increase in domestic operations in Brazil [1][9] - LATAM Airlines transported almost 8 million passengers in July 2025, reflecting a 7.9% year-over-year increase, with a year-to-date total of 49.5 million passengers [3][9] Load Factor and Capacity - The consolidated load factor for LATAM Airlines increased by 0.4 percentage points to 86.7% in July 2025, as traffic growth outpaced capacity expansion [2][9] - The increase in load factor indicates healthy demand across all business segments of the airline [2] Industry Context - Other airlines, such as Ryanair and Volaris, also reported traffic increases in July 2025, with Ryanair transporting 20.7 million passengers (up 3% year-over-year) and Volaris transporting 2.76 million passengers (up 3% year-over-year) [5][10] - Ryanair's load factor remained flat at 96%, while Volaris experienced a decrease in load factor by 4.9 percentage points to 84.9% due to capacity expansion outpacing traffic growth [7][10]
Why LATAM (LTM) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-08-15 14:51
Company Overview - LATAM Airlines, headquartered in Santiago, Chile, is the leading airline in Latin America. The company filed for Chapter 11 bankruptcy on May 26, 2020, and successfully emerged from bankruptcy on November 3, 2022, as part of a financial restructuring aimed at reducing debt and adapting to challenges posed by the COVID-19 pandemic [11]. Financial Restructuring - LATAM emerged from bankruptcy with approximately $2.2 billion in liquidity and a 35% reduction in debt, alongside a more resilient operational structure [11]. Investment Potential - LATAM is currently rated as a 1 (Strong Buy) on the Zacks Rank, with a VGM Score of A, indicating strong investment potential [12]. - The company has a Momentum Style Score of B, with shares up 2.7% over the past four weeks [12]. - For fiscal 2025, two analysts have revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.56 to $4.68 per share [12]. - LATAM boasts an average earnings surprise of +4%, further enhancing its attractiveness to investors [12]. - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LATAM should be on investors' short lists [13].
Banco Santander and LATAM Pass renew their historic alliance, reaffirming the leadership of the loyalty program in Chile
Globenewswire· 2025-08-11 16:45
Core Viewpoint - Banco Santander Chile and LATAM Airlines Group have renewed their strategic alliance for another five years, continuing a partnership that has lasted over three decades and has significantly impacted the Chilean loyalty program market [1][3]. Group 1: Alliance Overview - The alliance has consistently received high customer appreciation, with an average of around 2 million airline tickets redeemed each year through miles accumulated via the bank's products, equivalent to operating 3,415 A320 aircraft exclusively with alliance passengers [2][7]. - The LATAM Pass program has over 51 million members worldwide and has grown by 40% since 2019, making it the fourth-largest loyalty program in the Americas and the seventh-largest globally [4]. Group 2: Strategic Importance - The renewal of the alliance is a strategic decision aimed at strengthening the value proposition for customers, which has proven to be relevant and widely appreciated [3]. - The Santander LATAM Pass alliance currently has more than 688,000 customers, making it the most established and valued loyalty program in Chile [4]. Group 3: Financial Overview of Banco Santander Chile - As of June 30, 2025, Banco Santander Chile had total assets of Ch$66,188,442 million (US$69,371 million), total gross loans of Ch$40,942,542 million (US$42,911 million), total deposits of Ch$29,614,613 million (US$31,039 million), and shareholders' equity of Ch$4,514,322 million (US$4,731 million) [8]. - The BIS capital ratio was 17.0%, with a core capital ratio of 10.9%, and the bank employed 8,660 people with 231 branches throughout Chile [8].
Is Cathay Pacific Airways (CPCAY) Outperforming Other Transportation Stocks This Year?
ZACKS· 2025-08-08 14:40
Group 1 - Cathay Pacific Airways Ltd. (CPCAY) has shown a year-to-date performance increase of approximately 8%, outperforming the average loss of 6.5% in the Transportation sector [4] - The Zacks Rank for Cathay Pacific Airways Ltd. is currently 2 (Buy), indicating a positive analyst sentiment with a 7.7% increase in the consensus estimate for full-year earnings over the past 90 days [3] - The Transportation - Airline industry, which includes Cathay Pacific Airways Ltd., has seen a collective gain of about 3.6% this year, further highlighting CPCAY's strong performance relative to its peers [6] Group 2 - LATAM (LTM) has also outperformed the Transportation sector with a return of 57.1% since the beginning of the year, and its current year EPS consensus estimate has increased by 13.7% over the past three months [4][5] - Both Cathay Pacific Airways Ltd. and LATAM are positioned well within the Transportation sector, suggesting potential for continued strong performance [7]
Why LATAM (LTM) is a Top Value Stock for the Long-Term
ZACKS· 2025-08-08 14:40
Company Overview - LATAM Airlines is the leading airline in Latin America, headquartered in Santiago, Chile [11] - The company filed for Chapter 11 bankruptcy on May 26, 2020, and successfully emerged from bankruptcy on November 3, 2022, as part of a financial restructuring to reduce debt and adapt to challenges from the COVID-19 pandemic [11] - Post-restructuring, LATAM emerged with approximately $2.2 billion in liquidity and a 35% reduction in debt, alongside a more resilient operational structure [11] Investment Ratings - LATAM Airlines holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong investment potential [12] - The company has a VGM Score of A, reflecting its overall attractiveness based on value, growth, and momentum [12] Valuation Metrics - LATAM's Value Style Score is A, supported by attractive valuation metrics such as a forward P/E ratio of 9.26, making it appealing to value investors [12] - For fiscal 2025, two analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.56 to $4.68 per share [12] - LATAM has an average earnings surprise of +4%, indicating a positive trend in earnings performance [12] Conclusion - With a solid Zacks Rank and top-tier Value and VGM Style Scores, LATAM Airlines is recommended for investors' consideration [13]
Is Cathay Pacific Airways (CPCAY) Stock Undervalued Right Now?
ZACKS· 2025-08-08 14:40
Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, particularly Cathay Pacific Airways and LATAM Airlines Group, as strong value opportunities based on their financial metrics. Company Analysis - Cathay Pacific Airways (CPCAY) has a Zacks Rank of 2 (Buy) and a Value grade of A, with a current P/E ratio of 8.84 compared to the industry average of 11.51. Over the past year, CPCAY's Forward P/E has ranged from 5.56 to 9.84, with a median of 7.65 [4] - CPCAY's P/B ratio is 1.36, significantly lower than the industry average of 3.66. Its P/B has fluctuated between 0.81 and 1.51 over the past year, with a median of 1.16 [5] - LATAM Airlines Group (LTM) holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, with a Forward P/E ratio of 8.43 and a PEG ratio of 0.38, both favorable compared to the industry averages [6] - LTM's Forward P/E has varied from 6.73 to 9.37, with a median of 8.43. Its PEG ratio has ranged from 0.38 to 0.85, with a median of 0.59 [7] - LTM's P/B ratio is 14.37, which is higher than the industry average of 3.66. The P/B has been between 8.79 and 15.24 over the past year, with a median of 12.18 [7] Investment Opportunity - Both Cathay Pacific Airways and LATAM Airlines Group are identified as likely undervalued stocks, supported by their strong earnings outlook and favorable valuation metrics [8]
What Makes LATAM (LTM) a New Strong Buy Stock
ZACKS· 2025-08-01 17:00
LATAM (LTM) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.S ...
Why LATAM (LTM) is a Top Growth Stock for the Long-Term
ZACKS· 2025-07-31 14:46
Company Overview - LATAM Airlines is the leading airline in Latin America, headquartered in Santiago, Chile [11] - The company filed for Chapter 11 bankruptcy on May 26, 2020, and successfully emerged from bankruptcy on November 3, 2022, as part of a financial restructuring to reduce debt and adapt to challenges from the COVID-19 pandemic [11] - Post-bankruptcy, LATAM emerged with approximately $2.2 billion in liquidity and a 35% reduction in debt, alongside a more resilient operational structure [11] Investment Potential - LATAM Airlines holds a 2 (Buy) rating on the Zacks Rank, with a VGM Score of A, indicating strong investment potential [12] - The company is particularly appealing to growth investors, with a Growth Style Score of A, forecasting year-over-year earnings growth of 29.1% for the current fiscal year [12] - An analyst has revised their earnings estimate upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.05 to $4.17 per share [12] - LATAM has an average earnings surprise of +4%, further enhancing its attractiveness to investors [12] Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, LATAM Airlines is recommended for investors' consideration [13]