Air Canada is above is 50 and 200 day moving average, can it continue?
About Air Canada
Air Canada, headquartered in Saint-Laurent, Canada, is the country’s largest airline and a global leader in air transportation. With a comprehensive network, Air Canada provides domestic, U.S. transborder, and international flights, connecting passengers to over 200 destinations worldwide. Key highlights of the company’s operations include:
Fleet Modernization:
- Air Canada operates a fleet of 203 aircraft under its main brand, including Airbus narrow-body and wide-body aircraft, alongside a regional fleet of Embraer and De Havilland aircraft through Air Canada Express.
Cargo and Logistics:
- Offering air cargo services to approximately 50 countries, the airline plays a pivotal role in global logistics and e-commerce.
Vacation Packages:
- Through its Air Canada Vacations division, the company offers curated travel experiences across the Caribbean, Europe, and beyond, catering to both leisure and cruise travelers.
Loyalty Programs:
- The Aeroplan loyalty program has been a significant driver of customer retention, offering rewards and partnerships with airlines, retailers, and financial institutions.
As one of the oldest airlines in the world, Air Canada continues to innovate and expand its services to meet the demands of the modern traveler.
Key Products and Services
Air Canada provides a wide array of services across multiple segments:
Passenger Flights:
- Domestic, transborder, and international passenger services with multiple fare options.
Air Cargo Solutions:
- Specialized cargo offerings, including e-commerce logistics and perishables transport.
Travel Packages:
- Vacation packages covering destinations across the Caribbean, Europe, and the South Pacific.
Business Solutions:
- Customized travel and logistics solutions for corporate clients.
Air Canada (TSX: AC): Above Key Moving Averages
In recent months, Air Canada’s stock has gained significant momentum, moving above both its 50-day and 200-day Simple Moving Averages (SMA). This technical indicator signals bullish market sentiment and investor confidence in the airline’s recovery trajectory.
Why This Matters:
- Bullish Technical Signal:
- Breaking above these moving averages suggests sustained buying interest and a potential for continued upward price movement.
- Improved Operational Efficiency:
- With EPS growth of 37% year-over-year in Q3 2024, Air Canada has demonstrated its ability to manage costs effectively amid rising travel demand.
- Strategic Investments:
- Fleet upgrades and enhanced services have positioned Air Canada to capitalize on long-term growth trends in aviation.
Stock Performance Analysis
Air Canada’s stock has experienced a resurgence, reflecting optimism about the airline’s recovery post-pandemic.
Performance Highlights:
- 1-Year Growth: The stock price has risen significantly, fueled by strong operational and financial results.
- Above Key Moving Averages: Trading above the 50- and 200-day SMA, the stock signals bullish momentum.
- Revenue Growth: Driven by increased passenger and cargo volumes, the company’s financial results underscore its operational strength.
| Code | Name | GicSector | Beta | 52WeekHigh | 52WeekLow | 50DayMA | 200DayMA | SharesShort | SharesShortPriorMonth | ShortRatio | ShortPercent |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AC | Air Canada | Industrials | 2.407 | 26.18 | 14.47 | 23.21 | 18.89 | 11,380,061 | 7,973,070 | 2.80 | 0.033 |
Peer Comparison
| Code | Name | GIC Sector | Market Cap | Beta | 52-Week High | 52-Week Low | 50-Day MA | 200-Day MA | Shares Short | Short Ratio | Short Percent |
|---|---|---|---|---|---|---|---|---|---|---|---|
| TRI | Thomson Reuters Corp | Industrials | 103,849,844,736 | 0.394 | 243.42 | 189.31 | 232.43 | 226.64 | 1,067,796 | 3.27 | 0.008 |
| CP | Canadian Pacific Railway Ltd | Industrials | 99,671,916,544 | 0.789 | 122.76 | 101.46 | 106.53 | 110.82 | 3,304,475 | 2.10 | 0.0035 |
| CNR | Canadian National Railway Co | Industrials | 93,175,578,624 | 0.648 | 178.49 | 143.72 | 151.77 | 161.78 | 2,453,851 | 1.72 | 0.0098 |
| WCN | Waste Connections Inc | Industrials | 63,625,269,248 | 0.72 | 273.51 | 193.84 | 256.89 | 242.83 | 855,848 | 3.39 | 0.0037 |
| WSP | WSP Global Inc | Industrials | 32,971,819,008 | 0.824 | 259.21 | 179.68 | 248.50 | 227.68 | 672,028 | 2.62 | 0.0042 |
| GFL | GFL Environmental Holdings Inc | Industrials | 25,146,337,280 | 1.032 | 68.43 | 41.88 | 62.63 | 53.87 | 2,132,087 | 8.39 | 0.0116 |
| RBA | Ritchie Bros Auctioneers | Industrials | 24,564,078,592 | 0.917 | 139.19 | 81.35 | 129.87 | 112.65 | 552,517 | 2.64 | 0.0034 |
| TFII | TFI International Inc | Industrials | 16,351,442,944 | 1.375 | 219.49 | 171.80 | 202.81 | 198.64 | 393,696 | 5.69 | 0.0074 |
| STN | Stantec Inc | Industrials | 12,864,476,160 | 0.817 | 123.69 | 103.09 | 116.85 | 113.57 | 796,384 | 3.19 | 0.0083 |
| EFN | Element Fleet Management Corp | Industrials | 11,842,465,792 | 0.914 | 30.35 | 20.92 | 29.04 | 26.18 | 3,386,758 | 6.64 | 0.022 |
This table provides a comparison of Air Canada’s key peers in the Industrials sector, highlighting their market capitalization, stock performance metrics, and short interest data. Thomson Reuters leads in market cap, while TFI International exhibits a high beta, indicating greater market sensitivity.
Valuation Metrics
| Metric | Current | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 |
|---|---|---|---|---|---|---|
| Market Cap | 8.01B | 5.88B | 6.42B | 7.03B | 6.70B | 6.95B |
| Enterprise Value | 11.99B | 10.22B | 10.99B | 12.34B | 12.78B | 13.19B |
| Trailing P/E | 3.35 | 3.66 | 3.10 | 3.29 | 3.10 | 13.84 |
| Forward P/E | 9.04 | 5.81 | 5.61 | 6.65 | 5.93 | 5.62 |
| PEG Ratio (5yr expected) | — | — | — | — | — | — |
| Price/Sales | 0.38 | 0.28 | 0.30 | 0.34 | 0.33 | 0.34 |
| Price/Book | 2.59 | 5.04 | 9.10 | 8.83 | 12.18 | — |
| Enterprise Value/Revenue | 0.54 | 0.46 | 0.50 | 0.57 | 0.60 | 0.65 |
| Enterprise Value/EBITDA | 3.07 | 2.34 | 2.30 | 2.55 | 2.63 | 4.34 |
This valuation metrics table highlights Air Canada’s financial trends over the past quarters. The current Enterprise Value/EBITDA ratio of 3.07 and a Trailing P/E of 3.35 underscore its competitive valuation. The data reflects improvements in efficiency and market capitalization over recent periods.
TL;DR Summary
Stock Performance: Air Canada’s stock is trading above its 50- and 200-day SMA, reflecting bullish market sentiment.
Key Drivers: Fleet modernization, strong loyalty programs, and rising travel demand are boosting financial performance.
Market Position: Air Canada’s diversified revenue streams and strong operational management position it as a leading global airline.