International Consolidated Airlines Group (ICAGY) Soars 6.8%: Is Further Upside Left in the Stock?

International Consolidated Airlines Group SA (ICAGY) shares soared 6.8% in the last trading session to close at $9.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.7% loss over the past four weeks.

The undervalued stock, with a Value Score of A, has performed well over the past year, gaining 28.2%. The airline's margins have grown, driven by strong operational performance. Efforts to reward its shareholders also bode well. The company's earnings surprise history is excellent, having surpassed the Zacks Consensus Estimate in each of the past four quarters. The average beat exceeds 265%.

This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $8.38 billion, up 13.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For International Consolidated Airlines Group, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ICAGY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

International Consolidated Airlines Group is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, SkyWest (SKYW), finished the last trading session 3.8% higher at $91.19. SKYW has returned -14.9% over the past month.

SkyWest's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.19. Compared to the company's year-ago EPS, this represents a change of -9.5%. SkyWest currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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