Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Core Viewpoint - Brazilian airline Azul has successfully exited Chapter 11 bankruptcy proceedings, achieving key restructuring goals including improved capital structure, increased liquidity, and reduced debt levels [1]. Financial Restructuring - Azul has reduced its debt and lease obligations by approximately $2.5 billion during the restructuring process [1]. - The company raised nearly $1.4 billion through debt financing and $950 million in equity investments as part of its restructuring efforts [1]. Industry Context - Azul filed for Chapter 11 in May 2025, joining a trend of Latin American airlines seeking bankruptcy protection due to the adverse effects of COVID-19 on the aviation sector [1]. - Competitors such as Aeromexico, Avianca, Gol, and LATAM Airlines have also filed for bankruptcy since early 2020, highlighting the challenges faced by the industry [1].

Core Insights - Air India and Lufthansa are collaborating to increase passenger traffic between India and Europe, leveraging the recent India-EU free trade agreement [1] - The initial focus will be on enhancing traffic between India and Lufthansa's key markets, including Germany, Austria, Belgium, Italy, and Switzerland, with plans to expand to the rest of Europe and the Indian subcontinent [1] - The partnership will involve codesharing on 145 routes across 15 Indian cities and 29 European cities, covering 20 countries [1] - A comprehensive joint business agreement will be established, pending regulatory approvals [1] - Air India has also entered a cooperation framework with Singapore Airlines to enhance route offerings and collaboration [1]

Core Insights - Airbnb indicates strong demand from premium travelers, contrasting with budget-conscious customers pulling back, reflecting a K-shaped economy in the U.S. [1] - The company forecasts first-quarter revenue exceeding Wall Street estimates, leading to a 6% increase in share price in after-market trading [2] Revenue and Financial Performance - Airbnb projects revenue between $2.59 billion and $2.63 billion for the upcoming quarter, surpassing analysts' average estimate of $2.53 billion [5] - The company reported earnings per share of 56 cents in the fourth quarter, down from 73 cents a year earlier, with quarterly revenue of $2.78 billion, exceeding expectations of $2.71 billion [6] Strategic Initiatives - Airbnb launched a new segment in May 2025, allowing customers to book additional services like private chefs, enhancing competition with hotels [3] - The company is expanding its offerings by partnering with boutique and independent hotels in cities with limited rental supply, aiming to increase its total addressable market [4] Future Outlook - Airbnb anticipates revenue growth of "at least low double-digits" for 2026, aligning with analysts' estimates of approximately 10.24% [5] - The firm does not expect growth in adjusted core profit margins this year due to ongoing reinvestments in marketing, product, and technology [5]

Financial Data and Key Metrics Changes - The company reported a net profit of $172.6 million for Q4 2025, representing a 5.3% increase in earnings per share compared to Q4 2024, with earnings per share at $4.18 [13] - Operating profit for the quarter was $209.6 million, resulting in an operating margin of 21.8% [13] - For the full year 2025, the net profit reached $671.6 million, or $16.28 per share, an 11.9% year-over-year increase [17] - Operating income for the full year was $819 million, an 8.8% increase year-over-year, with operating margins at 22.6% [17] Business Line Data and Key Metrics Changes - Capacity increased by 9.9% year-over-year in Q4, while passenger traffic rose by 10.1%, leading to a load factor increase of 0.2 percentage points to 86.4% [7] - For the full year, capacity in ASMs grew by 7.8%, and passenger traffic measured in RPMs increased by 8.6%, resulting in a load factor increase of 0.7 percentage points to 87% [8] Market Data and Key Metrics Changes - The company has resumed flights to Venezuela, operating twice daily to Caracas and almost daily to Maracaibo, with plans to gradually add capacity to other cities [23] - The demand environment remains strong across the company's networks, supported by healthy travel activity throughout the region [10] Company Strategy and Development Direction - The company aims to grow capacity by 11%-13% in 2026, with approximately half of this growth attributed to the full-year impact of capacity added in 2025 [10] - The company continues to focus on expanding its network, adding frequencies and new cities to its Hub of the Americas, reinforcing its competitive position [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth plan, citing strong demand trends and a disciplined approach to cost execution [5] - The company anticipates an operating margin within the range of 22%-24% for 2026, based on a load factor of approximately 87% and unit revenues of approximately 11.2 cents [20] Other Important Information - The company has a total cash, short-term, and long-term investments of $1.6 billion, representing 44% of last 12-month revenues [18] - A quarterly dividend payment of $1.71 per share has been approved for 2026, with the first payment scheduled for March 13 [19] Q&A Session Summary Question: Impact of developments in Venezuela on demand - Management confirmed that they have resumed flights to Venezuela and expect to gradually add capacity throughout 2026 [23] Question: Wi-Fi service provider details - Management stated that a provider has been chosen and will be announced in April, with confidence in meeting customer expectations [25] Question: Effects of stronger local currencies on demand - Management noted improved demand and better yields due to stronger currencies in South America [28] Question: Guidance on unit revenue - Management indicated that while they are guiding for flat unit revenue, the first quarter is typically strong, and they are seeing stronger numbers [29] Question: CASM ex-fuel guidance - Management explained that the guidance reflects a combination of initiatives and cost control measures, with expectations for a CASM ex-fuel of approximately 5.7 cents [37] Question: Buyback program status - Management confirmed that approximately half of the $200 million buyback program has been executed, with no end dates in place for the remaining amount [91] Question: Impact of Brazilian law on liabilities - Management acknowledged that the suspension of law 400 in Brazil would lead to cost savings, as a significant portion of consumer lawsuits originate from Brazil [96]

Core Viewpoint - Lufthansa, Germany's largest airline group, has criticized unions for a planned walkout, stating that its core airline lacks the financial flexibility to meet the unions' demands [1] Company Summary - Lufthansa's core airline is facing financial constraints that prevent it from accommodating the demands made by the unions [1]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [3] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating based on value, growth, and momentum characteristics [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [9] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still present risks due to downward earnings forecasts [11] Company Spotlight: United Airlines (UAL) - United Airlines Holdings, a 3 (Hold) on the Zacks Rank, has a VGM Score of A and a Momentum Style Score of A, with shares up 0.8% over the past four weeks [12] - Recent analyst revisions have increased UAL's earnings estimate for fiscal 2026 by $0.42 to $13.34 per share, with an average earnings surprise of +7.7% [13]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Southwest Airlines (LUV) - Southwest Airlines currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Price Performance - Over the past week, LUV shares have increased by 13.28%, while the Zacks Transportation - Airline industry has remained flat [6] - In the last month, LUV's price has risen by 22.34%, significantly outperforming the industry's 0.09% [6] - Over the past quarter, LUV shares have risen by 58.93%, and over the last year, they have increased by 68.9%, compared to the S&P 500's 0.3% and 13.4% respectively [7] Trading Volume - LUV's average 20-day trading volume is 10,427,790 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 7 earnings estimates for LUV have been revised upwards, with no downward revisions, boosting the consensus estimate from $2.77 to $4.13 [10] - For the next fiscal year, 4 estimates have also moved upwards, indicating positive sentiment [10] Conclusion - Given the strong performance metrics and positive earnings outlook, LUV is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment opportunity [12]

Core Insights - Sun Country Airlines Holdings, Inc. reported a revenue of $280.96 million for the quarter ended December 2025, marking a year-over-year increase of 7.9% and exceeding the Zacks Consensus Estimate by 2.71% [1] - The earnings per share (EPS) for the same period was $0.17, down from $0.27 a year ago, but it surpassed the consensus EPS estimate of $0.13 by 36% [1] Financial Performance Metrics - The company’s shares have returned +26.2% over the past month, significantly outperforming the Zacks S&P 500 composite, which changed by +0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Operational Statistics - Fuel cost per gallon was reported at $2.56, slightly above the average estimate of $2.55 [4] - Available seat miles (ASMs) for scheduled service were 1.45 million, below the average estimate of 1.47 million [4] - Total ASMs were 1.85 billion, exceeding the average estimate of 1.83 billion [4] - Revenue passenger miles for scheduled service were 1.22 billion, slightly below the estimated 1.23 billion [4] - Load factor was reported at 84.4%, above the estimated 83.8% [4] - Fuel gallons consumed were 19.48 million, marginally above the estimate of 19.47 million [4] - Adjusted cost per available seat mile (CASM) was 8.78 cents, better than the average estimate of 9.39 cents [4] - Operating revenues from passenger services were $221.48 million, exceeding the estimate of $213.07 million and reflecting a +2.9% change year-over-year [4] - Operating revenues from other services were $11.44 million, below the estimate of $12.4 million, representing a -30.8% change year-over-year [4] - Operating revenues from cargo services were $48.05 million, slightly below the estimate of $48.21 million, but showing a significant +67.9% change year-over-year [4]

Core Insights - Canadian National Railway Company (CNI) reported strong fourth-quarter 2025 results, with earnings and revenues exceeding expectations, leading to a 2.8% stock price increase since the earnings release on January 30 [2][8]. Financial Performance - Earnings per share were $1.49 (C$2.03), surpassing the Zacks Consensus Estimate by 4.2% and reflecting a 14.6% year-over-year increase [3]. - Revenues reached $3.20 billion (C$4.46 billion), exceeding the Zacks Consensus Estimate by 0.5% and rising 2.8% year over year [3]. - Revenue ton-miles (RTMs) increased by 4% year over year, while carloads rose by 2.9% [3][8]. - Operating expenses remained flat at $2.73 billion year over year, attributed to effective cost-cutting measures [4]. - Operating income grew by 6% compared to the fourth quarter of 2024, with the operating ratio improving by 140 basis points to 61.2% [4][8]. Segment Performance - Freight revenues, which accounted for 97% of total revenues, increased by 3% year over year [5]. - Specific freight revenue growth included petroleum and chemicals (4%), grain and fertilizers (6%), intermodal (10%), and automotive (4%), while metals and minerals, forest products, and coal saw declines of 4%, 8%, and 1%, respectively [5][6]. Liquidity and Capital Management - CNI ended Q4 2025 with cash and cash equivalents of C$350 million, down from C$389 million at the end of Q4 2024 [7]. - Long-term debt increased to C$20.3 billion from C$19.7 billion year over year [7]. - CNI generated C$2.23 billion from operating activities, with free cash flow reported at C$995 million [7]. Dividend and Share Buyback - The board approved a 3% increase in the 2026 dividend, raising it to C$0.9150 per share, marking the 30th consecutive year of dividend increases [8]. - A new normal course issuer bid was approved, allowing the purchase of up to 24 million common shares for cancellation between February 4, 2026, and February 3, 2027 [9]. Outlook - For full-year 2026, CNI expects adjusted earnings per share growth to slightly exceed volume growth, with planned capital investments of approximately C$2.8 billion [10]. - Volume growth in terms of RTMs is anticipated to remain flat [10].