Like most stocks, airlines are down Friday, in reaction to the surprise Brexit vote.
However, at this stage its hard to handicap how the ramifications of Brexit will play out says Raymond Jamess Savanthi Syth, who writes that at least near-term earnings shouldnt be too greatly affected, given the forward nature of ticket sales and fuel price pressures. Nonetheless, falling fuel costs are a double-edged sword, she warns, as it is likely to push out the unit revenue recovery needed for improving investor sentiment.
Here are the stocks with the greatest exposure, she writes:
Brexit comes as a surprise to the market and there is likely to be a rush to safety and away from cyclical stocks such as airlines. Among our coverage universe, Ryanair (RYAAY) and the U.S. Legacy airlines American Airlines (AAL), Delta (DAL), and United (UAL) are the most exposed. Also, the Latin American Airlines Copa (CPA), Gol (GOL), and Latam (LFL) are negatively exposed to potential strengthening of the U.S. dollar (USD).
Best Wireless Telecom Stocks To Own For 2016: Frontier Communications Corporation(FTR)
Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. The company offers residential services, such as fiber-to-the-home and fiber-to-the-node broadband, video, and voice over Internet protocol products, as well as traditional copper-based broadband products; and commercial services, including Ethernet, dedicated Internet, multiprotocol label switching, time division multiplexing, data transport services, and optical transport services. It also provides Frontier Secure suite of products for computer security, cloud backup and sharing, identity protection, equipment insurance, and technical support; unified messaging services comprising call forwarding, conference calling, caller identification, voicemail, and call waiting services; long distance network services; and packages of co mmunications services. In addition, the company offers switched access services that facilitate other carriers to use the companys facilities to originate and terminate their local and long distance voice traffic; satellite TV video services; a range of third-party communications equipment to small, medium, and enterprise business customers; and directories. As of December 31, 2014, it had approximately 3,214,800 residential customers; approximately 304,700 business customers; 2,373,900 broadband subscribers; and 586,600 video subscribers. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was founded in 1927 and is based in Norwalk, Connecticut.
- [By WilliamBriat]
Frontier Communications Corporation (NASDAQ: FTR) provides phone, Internet, and satellite TV (through a partnership with DISH Network) services to more than 25 states. The company provides an annual dividend of 9.3% and reaffirmed its full-year guidance.
Best Wireless Telecom Stocks To Own For 2016: Cal-Maine Foods, Inc.(CALM)
Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. It offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Lands Best, Land O Lake, Farmhouse, and 4-Grain brand names, as well as under private labels. The company sells its products to various customers, including national and regional grocery store chains, club stores, foodservice distributors, and egg product consumers primarily in the southeastern, southwestern, mid-western, and mid-Atlantic regions of the United States. Cal-Maine Foods, Inc. was founded in 1969 and is based in Jackson, Mississippi.
- [By Manikandan Raman]
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Related Articles (CALM)
Hot Electric Utility Companies To Invest In Right Now: Profire Energy, Inc.(PFIE)
Profire Energy, Inc. designs, assembles, installs, sells, and services oilfield combustion management technologies for the oil and gas industry. Its products and services aid oil and gas producers in the production and transportation of oil and natural gas. The company offers burner-management systems that monitor and manage burners, as well as related products, such as flare stack igniter and nozzles, valves and fuel train components, secondary air plates, valve actuators, and solar packages. It also provides chemical-management systems to monitor and manage chemical-injection process to ensure that optimal levels of chemicals are injected. Profire Energy, Inc. sells and installs its systems in Western Canada, the United States, France, Italy, Russia, Ukraine, India, Nigeria, the Middle East, Australia, and Brazil. The company is headquartered in Lindon, Utah. Profire Energy, Inc. is a subsidiary of The Flooring Zone, Inc.
- [By Monica Gerson]
Profire Energy, Inc. (NASDAQ: PFIE) is estimated to post its quarterly earnings at $0.00 per share on revenue of $6.74 million.
Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets
Best Wireless Telecom Stocks To Own For 2016: Ctrip.com International, Ltd.(CTRP)
Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, transportation ticketing services, packaged tours, and corporate travel management in the Peoples Republic of China. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours, and private tours or packaged tours with various transportation arrangements, such as cruise, bus, or self-driving. In addition, the company provides integrated transportation and accommodation services; various value-added services, including transportation at destinations and tickets, insurance, visa services, and tour guides; supplier management and customer relationship management services; and car rental services. Further, it offers Internet-related advertising, aviation and train insurance selling, air-ticket delivery, online check-in, and online seat selection and flight dyna mics services; and sells Property Management System, a hotel information software, as well as provides related maintenance services. Ctrip.com International, Ltd. was founded in 1999 and is headquartered in Shanghai, the Peoples Republic of China.
- [By Monica Gerson]
Ctrip.com International, Ltd. (ADR) (NASDAQ: CTRP) is estimated to post a quarterly loss at $0.09 per share on revenue of $2.81 billion.
Cheetah Mobile Inc (ADR) (NYSE: CMCM) is expected to report its quarterly earnings at $0.87 per share on revenue of $1.14 billion.
- [By Monica Gerson]
Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Friday's regular session.
Caterpillar Inc. (NYSE: CAT) Jan17 77.5 Calls Sweep: 1022 @ ASK $4.45: 1066 traded vs 2466 OI: Earnings 7/28 $75.88 Ref Anacor Pharmaceuticals Inc (NASDAQ: ANAC) Jan17 110 Calls: 500 @ Above Ask! $0.40: 509 traded vs 1860 OI: $99.22 Ref Ctrip.com International, Ltd. (ADR) (NASDAQ: CTRP) Jun16 41.25 Calls Sweep: 577 @ ASK $1.75: 649 traded vs 1927 OI: Earnings 6/15 After Close $40.54 Ref Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) Jun16 65.0 Calls Sweep: 749 @ ASK $1.85: 813 traded vs 370 OI: $63.08 Ref WhiteWave Foods Co (NYSE: WWAV) Oct16 50.0 Calls: 600 @ ASK $1.60: 601 traded vs 430 OI: $45.16 Ref
Posted-In: Unusual Put OptionsNews Options Markets