Ryanair embracing the BOSS meme and adding a new "Fee"This may be more viral than I realized...Ryanair (@Ryanair):https://t.co/CUT1x9OzdU ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, outperforming the S&P 500 [7] - There can be over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for optimal investment potential [9] - Stocks rated 4 (Sell) or 5 (Strong Sell) are less favorable, even if they have high Style Scores, due to declining earnings forecasts [10] Company Spotlight: Ryanair - Ryanair Holdings, incorporated in 1996 and headquartered in Swords, Ireland, is currently rated 3 (Hold) with a VGM Score of A [11] - The company has a Momentum Style Score of B, with shares increasing by 7.5% over the past four weeks [11] - For fiscal 2026, Ryanair's earnings estimate has been revised upwards by three analysts, with the consensus estimate rising by $0.45 to $4.52 per share, and an average earnings surprise of +61.2% [12]

Core Viewpoint - Ryanair has announced its decision to withdraw operations from three French airports due to the high ticket tax imposed by the French government, urging for adjustments to avoid shifting investments to other European countries [1]. Group 1: Business Operations - Ryanair will cease operations at airports in Brive, Bergerac, and Strasbourg, which currently serve routes to Portugal and Scotland [1]. - Earlier this year, Ryanair also withdrew from operations at Vittel airport in northeastern France [1]. Group 2: Financial Impact - The French government increased the ticket tax by 180% in March, leading Ryanair to reduce its winter capacity for 2025 by 13%, equating to the cancellation of 25 routes [1]. - Following the tax hike, the "ticket solidarity tax" for economy class passengers on domestic and European flights rose from €2.63 to €7.4 per person [1]. Group 3: Competitive Landscape - Ryanair highlighted that the increased tax could render many French routes unprofitable, particularly affecting regional airports and winter operations [1]. - The company criticized the tax as detrimental to France's competitiveness compared to other EU countries like Ireland, Spain, and Poland, which do not impose such taxes [1]. Group 4: Future Plans - Ryanair has indicated that if the French government cancels the tax, it would invest $2.5 billion and introduce 25 new aircraft, increasing its annual capacity to over 30 million passengers and creating 750 new jobs [1].

Company Performance - LATAM (LTM) has returned approximately 50.3% since the beginning of the calendar year, significantly outperforming the Transportation sector, which has returned an average of -2.7% year-to-date [4] - The Zacks Consensus Estimate for LATAM's full-year earnings has increased by 28.8% over the past 90 days, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Context - LATAM is part of the Transportation - Airline industry, which consists of 25 individual companies and currently ranks 87 in the Zacks Industry Rank. The average gain for stocks in this group is 6.1% this year, highlighting LATAM's superior performance [5] - Another notable performer in the Transportation sector is Ryanair (RYAAY), which has returned 41.6% year-to-date and has a consensus EPS estimate that has increased by 9.2% over the past three months [4][5] Sector Ranking - The Transportation sector, which includes LATAM, is ranked 9 in the Zacks Sector Rank, which evaluates the strength of 16 individual sector groups based on the average Zacks Rank of the stocks within those groups [2]

Group 1 - Ryanair has released strong earnings results, prompting a resumption of coverage and a fresh analysis of the outcomes and key takeaways [1] - The company's Buy rating is supported by its resilient traffic performance [1] Group 2 - The analysis is aimed at buy-side hedge professionals focusing on fundamental, income-oriented, long-term investment strategies across developed markets [1]

Group 1 - Ryanair is considering registering newly purchased Boeing aircraft in the UK to avoid potential tariffs from the US [1]

Revenue Growth - Scheduled revenues increased 26% to €2.94BN, with traffic growing 4% to 57.9M passengers and fares rising 21% to approximately €51[27] - Ancillary revenues rose 7% to €1.39BN, with discretionary spend increasing 3% to over €24 per passenger[28] - Total revenue increased 20% to €4.34BN[29] - For the quarter ended June 30, 2025, total revenue increased to €4,337.6 million, up from €3,626.1 million in the same quarter of 2024, representing a growth of 19.6%[79] - Scheduled revenues for Ryanair DAC reached €2,903.9 million, while ancillary revenues amounted to €1,393.8 million, contributing significantly to the overall revenue growth[75] Operating Expenses - Operating expenses for fuel and oil increased 2% to €1.46BN, despite favorable hedging and lower fuel burn[30] - Airport and handling charges rose 6% to €495M, driven by traffic growth and increased costs[31] - Staff costs increased 3% to €462M, influenced by pay increases and additional aircraft in the fleet[32] Profitability - Net profit for the quarter was €0.82BN, with gross cash at €4.4BN and net cash at €2.1BN[38][56] - The reportable segment profit after income tax for the Group was €819.9 million, compared to €360.0 million in the previous year, indicating a substantial increase of 128.5%[76] Shareholder Equity and Financial Position - Shareholders' equity increased by €0.4BN to €7.4BN, supported by net profit and offset by a decrease in derivatives[39] - The Group's total segment assets were reported at €18,077.0 million, while total segment liabilities stood at €10,675.2 million as of June 30, 2025[76] Fleet and Capital Expenditure - The Group's operating fleet consisted of 592 Boeing 737 and 26 Airbus A320 aircraft as of June 30, 2025, with plans to take delivery of additional aircraft before Summer 2026[72] - A new order for up to 300 Boeing 737-MAX-10 aircraft was placed in May 2023, with deliveries scheduled between 2027 and 2033, reflecting the Group's commitment to fleet expansion[72] - The Group's capital expenditure for the quarter was €415.8 million, primarily driven by aircraft deliveries and capitalized maintenance[76] Financial Risk Management - The Group's financial risk management policies remain unchanged, with exposures primarily related to commodity price, foreign exchange, and interest rate risks[84] Share Buyback Program - A share buyback program of €750 million was approved in May 2025, with approximately 2.8 million ordinary shares repurchased at a total cost of €58 million during the quarter[91] Fuel Hedging - The Group's fuel hedging position covers approximately 84% of FY26 and 36% of FY27 jet fuel requirements[56] Tax Rate - The effective tax rate for the quarter was just under 12%, compared to approximately 10% in the previous year[70] Ancillary Revenue Importance - Ancillary revenues, which include non-flight scheduled operations and inflight sales, accounted for a significant portion of total revenues, highlighting the importance of these services in the Group's business model[79]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth potential, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks and declining forecasts pose higher risks [11] Company Spotlight: Ryanair - Ryanair Holdings, incorporated in 1996, operates flights since 1985 and is headquartered in Swords, Ireland [12] - Ryanair holds a Zacks Rank of 2 (Buy) and a VGM Score of A, with a forward P/E ratio of 13.36 indicating strong value [12] - Recent upward revisions in earnings estimates for fiscal 2026 have increased the Zacks Consensus Estimate by $0.24 to $4.31 per share, with an average earnings surprise of +46.6% [13]

Core Viewpoint - Investors are increasingly seeking growth stocks, particularly in the financial sector, to achieve above-average returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Ryanair (RYAAY) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [4] - Ryanair's historical EPS growth rate is 44.3%, with projected EPS growth of 38% this year, significantly surpassing the industry average of 8.7% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, reflecting efficiency in generating sales [6] - Ryanair's S/TA ratio is 0.82, indicating it generates $0.82 in sales for every dollar in assets, compared to the industry average of 0.68 [6] Group 4: Sales Growth - Sales growth is another vital aspect, with Ryanair expected to achieve a sales growth of 18.3% this year, far exceeding the industry average of 0.1% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with near-term stock price movements, making them a valuable indicator [8] - Ryanair has seen a 5.8% upward revision in current-year earnings estimates over the past month, enhancing its attractiveness [9] Group 6: Overall Assessment - Ryanair has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as a solid choice for growth investors [10]

Core Insights - Ryanair Holdings (RYAAY) reported strong traffic numbers for June 2025, with 19.9 million passengers, a 3% year-over-year increase [1][8] - The airline has seen consistent traffic improvement over the past six months, with June traffic surpassing previous months [2] - The load factor for June remained steady at 95%, indicating strong and consistent passenger demand [3][8] - Despite over 800 flight cancellations due to the Middle East conflict, RYAAY operated over 109,000 flights in June 2025, marking its highest monthly count for the year [4][8] - RYAAY's share price has increased by 32.3% year-to-date, contrasting with a 5.5% decline in the Zacks Airline industry [5] Traffic and Operations - RYAAY's June passenger count of 19.9 million reflects a continuous upward trend, with improvements noted each month since January 2025 [2][8] - The airline's load factor of 95% in June was higher than previous months, indicating effective capacity management and demand [3] - The number of flights operated in June 2025 (over 109,000) shows a significant increase from earlier months, despite operational challenges [4] Market Position - RYAAY carried a total of 200.2 million passengers in its fiscal year ending March 2025, becoming the first European airline to achieve this milestone [9]