VLRS Stock Trades Lower Than Its Industry at 0.29X P/S:Time to Buy?

Zacks11-19

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris,is one of the cheapest stocks in the broader Zacks Transportation - Airline industry with a Value Score of A. ...

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VLRS, popularly known as Volaris,is one of the cheapest stocks in the broader Zacks Transportation - Airline industry with a Value Score of A.\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/vlrs-stock-trades-lower-industry-165900225.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>VLRS Stock Trades Lower Than Its Industry at 0.29X P/S:Time to Buy?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nVLRS Stock Trades Lower Than Its Industry at 0.29X P/S:Time to Buy?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-19 00:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/vlrs-stock-trades-lower-industry-165900225.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris,is one of the cheapest stocks in the broader Zacks Transportation - Airline industry with a Value Score of A.\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/vlrs-stock-trades-lower-industry-165900225.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4539","symbol_name":"次新股","start_time":0,"source_url":"https://finance.yahoo.com/news/vlrs-stock-trades-lower-industry-165900225.html","article_id":"2484602102","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/fQdAvaW92mX2nsT7hmgaNA--~B/aD01MDg7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/bdd59e6db25ac43e6109a4e27ccf3b72"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484602102","pubTimestamp":1731949140,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The VLRS stock is trading at a discount with a forward 12-month price-to-sales (P/S) of 0.29X compared with the industry’s 1.14X.Volaris, based in Mexico, is an ultra-low-cost carrier. VLRS shares are cheaper than those of the United States-based ultra-low-cost carrier Frontier Group ULCC. VLRS’s cheap valuation is attractive for investors. However, is it worth buying at current prices?Last month, Volaris, which serves Mexico, the United States, and Central and South America, reported better-than-expected earnings per share and revenues, in the third quarter of 2024,driven by strong air travel demand across all markets during the summer season.Volaris is gaining well from the immense opportunity to switch bus passengers to air travel. VLRS has converted millions of bus passengers into first-time air travelers. The long-distance bus network in Mexico is seen by VLRS as an ideal growth opportunity to attract passengers.Recently, Volaris announced a non-stop service to Zacatecas. This wil","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4539":"次新股","BK4500":"航空公司","VLRS":"Volaris航空","SAVE":"Spirit Airlines","ULCC":"Frontier Group Holdings, Inc.","BK4008":"航空公司"},"translate_title":"VLRS股票的市盈率为0.29倍，低于其行业：是时候买入了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAVE":1,"ULCC":1,"VLRS":1},"content_text":"Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris,is one of the cheapest stocks in the broader Zacks Transportation - Airline industry with a Value Score of A.\nThe VLRS stock is trading at a discount with a forward 12-month price-to-sales (P/S) of 0.29X compared with the industry’s 1.14X.\nImage Source: Zacks Investment Research\nVolaris, based in Mexico, is an ultra-low-cost carrier. VLRS shares are cheaper than those of the United States-based ultra-low-cost carrier Frontier Group  ULCC. VLRS’s cheap valuation is attractive for investors. However, is it worth buying at current prices? Let us dig deeper to find out.\nStrong Q3 Results From VLRS Despite Capacity Reduction\nLast month, Volaris, which serves Mexico, the United States, and Central and South America, reported better-than-expected earnings per share and revenues, in the third quarter of 2024,driven by strong air travel demand across all markets during the summer season.\nVLRS’ third-quarter 2024 earnings of 32 cents per share handsomely beat the Zacks Consensus Estimate of 19 cents. The bottom line skyrocketed 197% year over year, reflecting the Mexican carrier’s prudent cost-control efforts. Average economic fuel costs declined 16.6% year over year, supporting the bottom line. Total revenues of $813 million surpassed the Zacks Consensus Estimate of $795.9 million. Revenues were aided by increased base fares and ancillary revenues per passenger.\nThe load factor (percentage of seats filled by passengers) was a healthy 87.4% despite the 14.4% reduction in available seat miles (a measure of capacity). As considerable part of its Pratt & Whitney-powered narrowbody fleet was out of service, it led to a substantial capacity reduction.\nEven though a sizeable portion of VLRS’s fleet is expected to stay grounded till the end of 2024 (capacity for the year is expected to decline 13% from 2023 actual), the Mexican airline expects total revenues for 2024 to be close to 2023. This reflects the Mexican carrier’s prudent approach toward capacity management. Capital expenditure for 2024 is expected to be $400 million.\nFactors Supporting VLRS’s Growth\nVolaris is gaining well from the immense opportunity to switch bus passengers to air travel. VLRS has converted millions of bus passengers into first-time air travelers. The long-distance bus network in Mexico is seen by VLRS as an ideal growth opportunity to attract passengers.\nAs a result of the restoration of Mexico's safety rating by the United States, capacity rationalization has emerged in Mexico's domestic market. This has created opportunities for Volaris in the transborder market.\nRecently, Volaris announced a non-stop service to Zacatecas. This will be VLRS’s eighth destination from Oakland International Airport or OAK in California. Zacatecas is the capital of the Mexican state of Zacatecas, joining Monterrey and Los Cabos. This expansion move increases the number of new, non-stop routes between OAK and popular Mexican destinations to three. The flights will operate Wednesday, Friday and Sunday from July 2, 2025. Flights on the Monterry-OAK route have started operations thrice a week. Flights on the Los Cabos-OAK route will operate thrice a week from March 20, 2025.\nFavorable Readings for VLRS Stock\nDriven by the tailwinds, VLRS shares have performed better than its industry and U.S. ultra-low-cost carrier Spirit Airlines SAVE over the past three months.\nThree-Month Price Comparison\nImage Source: Zacks Investment Research\nDue to the tailwinds, earnings estimates have moved northward over the past 60 days.\nImage Source: Zacks Investment Research\nTechnical indicators suggest a continued strong performance for VLRS. The stock is trading above its 50-day and 200-day moving averages, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in VLRS’s financial health and prospects.\nImage Source: Zacks Investment Research\n \nFinal Verdict\nGiven the positives surrounding the VLRS stock, as highlighted throughout the write-up, we believe it is prudent for investors to add the stock to their portfolios for healthy returns. The Zacks Rank #1 (Strong Buy) currently flaunted by Volaris supports our conclusion that investors should bet on the stock right now.\nYou can see the complete list of today’s Zacks #1 Rank stocks here. \nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nSpirit Airlines, Inc. (SAVE) : Free Stock Analysis Report\nControladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report\nFrontier Group Holdings, Inc. (ULCC) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484602102"}