Here's Why You Should Avoid Air Transport Services (ATSG) Now

Company Overview - Air Transport Services Group, Inc. (ATSG) is currently facing multiple challenges that have rendered it an unimpressive investment option [1] Earnings Estimates - The Zacks Consensus Estimate for ATSG's current-quarter earnings has been revised downward to 29 cents per share from 32 cents over the past 60 days [1] - For the current year, the consensus mark for earnings has decreased by 6.6% in the same timeframe, indicating a lack of confidence from brokers [1] Zacks Rank - ATSG currently holds a Zacks Rank of 5 (Strong Sell), reflecting its unfavorable position in the market [1] Price Performance - ATSG's stock has declined by 20% over the past three months, contrasting sharply with its industry's growth of 1.2% [1] Operating Costs - Operating costs for ATSG surged by 24.8% in 2022, with fuel expenses increasing by 58.7% [2] - Operating expenses rose by 6.9% in the first nine months of 2023, further straining the company's financials [2] Liquidity Position - As of the end of the third quarter of 2023, ATSG's current ratio was 0.92, indicating insufficient capital to cover short-term debts [2] Industry Rank - ATSG belongs to an industry with a Zacks Industry Rank of 232 out of over 250 groups, placing it in the bottom 6% of the Zacks industries [3] - The performance of ATSG's stock is significantly influenced by the overall performance of its industry group [3] Alternative Investment Options - Investors in the Zacks Transportation sector may consider better-ranked stocks such as Ryanair Holdings (RYAAY) and SkyWest (SKYW) [4] - RYAAY has a Zacks Rank of 2 (Buy) and reported a profit after tax of €2.18 billion in the first half of fiscal 2024, up 59% year over year [4] - SkyWest holds a Zacks Rank of 1 (Strong Buy) with a 3.5% increase in the consensus estimate for 2024 earnings over the past 60 days [4]