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Air Canada (ACDVF) Increases Despite Market Slip: Here's What You Need to Know

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Air Canada (ACDVF - Free Report) closed at $11.93 in the latest trading session, marking a +1.53% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.18% for the day. Meanwhile, the Dow experienced a drop of 0.76%, and the technology-dominated Nasdaq saw a decrease of 1.76%.

Heading into today, shares of the company had lost 15.77% over the past month, lagging the Transportation sector's loss of 7.47% and the S&P 500's loss of 3.35% in that time.

Market participants will be closely following the financial results of Air Canada in its upcoming release. The company plans to announce its earnings on October 30, 2023.

Investors should also take note of any recent adjustments to analyst estimates for Air Canada. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 41.18% upward. Right now, Air Canada possesses a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Air Canada currently has a Forward P/E ratio of 4.45. This indicates a discount in contrast to its industry's Forward P/E of 6.44.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 235, this industry ranks in the bottom 7% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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