Core Viewpoint - Allegiant's efforts to expand its global reach and boost its top line are commendable, leading to impressive share performance, making it a timely investment opportunity [1] Factors Favoring ALGT Stock - The company's shares have surged 91.6% over the past six months, significantly outperforming the industry's 39.2% decline [2] Earnings Estimates and Rankings - The Zacks Consensus Estimate for earnings per share has been revised upward by 185.3% for Q4 2024, with increases of 138.5% and 11.3% for 2024 and 2025 respectively, indicating strong broker confidence [3] - ALGT currently holds a Zacks Rank 2 (Buy), reflecting its positive outlook [3] Industry Performance - Allegiant's industry has a Zacks Industry Rank of 26 out of 250, placing it in the top 10% of Zacks Industries, which is crucial as stock price movements are often tied to industry performance [4] Earnings Surprise History - Allegiant has a strong earnings surprise history, exceeding the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 57.4% [5] Growth Factors - The company is expanding with 44 new nonstop routes to meet the demand for affordable air travel, targeting popular vacation destinations and underserved markets [6] - Offering one-way fares as low as $39 aligns with its strategy to attract budget-conscious travelers, particularly during peak leisure periods [7] Revenue Initiatives - Allegiant's third bundled product offering has returned to pre-Navitaire take rates, generating an additional $1 in ancillary revenue per passenger [8] - The company is retrofitting over 50 aircraft with the Allegiant Extra premium product, expected to add $3 in ancillary revenue per passenger [10] - The Allegiant Allways Visa card is projected to exceed $140 million in total bank remuneration in 2024, with continued growth anticipated in 2025 [10]

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Has Allegiant Travel (ALGT) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.Allegiant Travel is a member of the Transportation sector. This group includes 131 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank consid ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Earnings and Financial Performance - Earnings per share (EPS) for the airline is anticipated to be in the $2.50-$3.00 range, up from the prior view of $0.50-$1.50 [2] - Fourth-quarter consolidated EPS, excluding special items, is expected to be in the range of $1.75-$2.25, an improvement from the prior expectation of breakeven to $1.00 per share [2] - The Zacks Consensus Estimate for EPS is currently pegged at $1.06 [2] - Total system ASM is projected to gain 1.9% year-over-year, up from the prior view of 1.5% [12] - Operating margin is expected to increase to the 13-14% range, up from the prior forecast of 6-8% [12] - Total revenues for 2024 are forecasted to decline in the range of 3.5-4.5%, an improvement from the prior view of a 4-5% decline [13] Air-Travel Demand and Revenue - Fourth-quarter revenue per available seat mile (RASM) is expected to increase 5.5%-7% year-over-year, up from the previous forecast of 3.5%-5.5% [7] - Upbeat air-travel demand is contributing to the company's top line [10] - Southwest Airlines (LUV), American Airlines (AAL), and JetBlue Airways (JBLU) have also provided encouraging fourth-quarter 2024 guidance due to upbeat holiday travel demand [17] - AAL lifted its fourth-quarter 2024 adjusted EPS guidance due to favorable pricing and revenue environment [23] - JBLU anticipates its fourth-quarter revenues to decline in the range of 2%-5% year-over-year [23] Fleet and Capacity - The company took delivery of two incremental 737-MAX aircraft in November and anticipates ending 2024 with four MAX aircraft in service, up from the prior expectation of one [18] - ALGT aims to expand its fleet size to 125 by the end of 2024, up from the prior view of 122 [18] - Fourth-quarter capacity (measured in available seat miles) for scheduled service is expected to increase 1.8% year-over-year, up from the prior expectation of 1.5% [22] Valuation and Stock Performance - ALGT is trading at a discount compared to the industry based on its forward 12-month price-to-sales ratio, which is also below its median over the last five years [9] - The company has a Value Score of A [9] - Shares of ALGT have improved in double-digits over the past 90 days, outperforming its industry [21] Costs and Expenses - Total operating expenses rose 10.2% year-over-year during the first nine months of 2024, following a 3.6% increase in 2023 [15] - The fuel cost per gallon is suggested to be $2.50, with the average fuel cost per gallon for November 2024 estimated at $2.52 [24] - Fourth-quarter CASM, excluding fuel and special charges, is anticipated to decline 3.5% year-over-year [8] Liquidity and Debt - ALGT's total unrestricted cash and investments were $804.6 million at the end of the third quarter of 2024, significantly lower than its long-term debt and finance lease obligations of $1.77 billion [5] Other Financial Activities - ALGT executed the sale of its underutilized CFM engines in the fourth quarter for $15 million [8]

Allegiant Travel Company (ALGT) has unveiled encouraging fourth-quarter 2024 guidance. ALGT now anticipates its fourth-quarter capacity (measured in available seat miles) for scheduled service to increase 1.8% on a year-over-year basis. This marks an improvement from the prior expectation of 1.5%.Total system ASM is now projected to gain 1.9% on a year-over-year basis (prior view: up 1.5%).Operating margin is now expected to increase in the 13-14% range, which marks an improvement over the prior forecast of ...

LAS VEGAS, Dec. 12, 2024 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for November 2024."Booking trends following the election continue to outpace our initial expectations," stated Drew Wells, Chief Commercial Officer of Allegiant Travel Company. "Demand recovery to hurricane-impacted destinations has been faster than expected, with demand to most impacted regions returning to normal. Additionally, close-in holiday demand during November exceed ...

A month has gone by since the last earnings report for Allegiant Travel (ALGT) . Shares have added about 24.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Allegiant Travel due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Allegiant Incurs Loss in Q3Allegiant repor ...

Investors in Allegiant Travel Company (ALGT) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $100.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It co ...

The Airline Offers New Low-Cost Travel Options to Popular Destinations in 51 CitiesLAS VEGAS, Nov. 19, 2024 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today announced 44 new nonstop routes, including eleven routes to three new cities: Gulf Shores, Alabama, Colorado Springs, Colorado and Columbia, South Carolina. To celebrate this significant expansion, the company is offering one-way fares on the new routes as low as $39.*The flights, starting in February, will expand the airline's network opti ...

Allegiant Travel Company (ALGT) recently reported disappointing traffic numbers for October 2024. Scheduled traffic (measured in revenue passenger miles) fell 15.7% from the October 2023 levels. Capacity (measured in available seat miles) for scheduled service fell 10.2% year over year. As traffic decline was more than capacity, the load factor (percentage of seats filled by passengers) in October 2024 declined to 78.5% from 83.7% a year ago.Total departures (scheduled services) fell 10.7% in October 2024 f ...