A resistance level has formed in the chart of Atlas Air Worldwide Holdings Inc (AAWW). If this level is crossed, a breakout could occur.
AAWW is a leading global provider of outsourced aircraft and aviation operating services. The company owns a fleet of freighters and passenger aircraft and leases additional aircraft and engines.
The company recently strengthened and diversified its business and fleet with a focus on serving express and e-commerce, which has positioned it well to handle the increased demand in online orders and the future distribution of vaccines. In the third quarter, management saw strong demand for their long-haul wide-body services. The company anticipates solid volumes in the fourth quarter, driven by continued e-commerce growth.
AAWW saw strong earnings and revenue growth in the third quarter with earnings up 667.6% year over year and revenue up 24.9%. The stock is trading at a low valuation with a Price to Sales ratio of 0.5 and a Price to Book ratio of 0.7.
The company’s cash position for the third quarter was $718 million, up from $72 million in the same quarter last year. Though that is considerably lower than its long-term debt of $2.4 Billion. AAWW has shown strong long-term momentum, but is down over the short-term. This has led to a “Neutral” rating in our POWR Ratings service.
Take a look at the 1-year chart of AAWW below with the added notations:
AAWW has formed an important level to watch at the $57.50 (blue) mark. That level was supported back in September and October, and now it has become resistance after the stock fell below it. Although it appears the stock might be headed lower, a break back above $57.50 likely means higher prices for AAWW.
Therefore a trader could enter a long position on a break above the resistance level with a protective stop placed under it.
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AAWW shares were trading at $54.38 per share on Thursday morning, up $0.11 (+0.20%). Year-to-date, AAWW has gained 97.24%, versus a 15.68% rise in the benchmark S&P 500 index during the same period.
About the Author: christian
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...
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| Ticker | POWR Rating | Industry Rank | Rank in Industry |
| AAWW | Get Rating | Get Rating | Get Rating |
