PowerShares Dynamic Large Cap Value ETF

In the last week of June 2017, Qatar Airways’ CEO, Akbar Al Baker, disclosed the carrier’s interest in buying a 10% stake worth $808 million in American Airlines through the open market.

Archer Daniels Midland (ADM) is slated to report its 2Q16 results on August 2 before the market opens. The stock has gained 12% since its last quarter results.

Around 77% of the analysts rate Archer Daniels Midland a “hold” and 23% gave it a “buy” rating. No analysts rated it as a “sell.”

Analysts’ “hold” ratings on American Airlines stock have risen significantly. Nine analysts, a total of 56.3%, now have “hold” ratings on the stock.

With respect to the price-to-earnings ratio, larger players Marathon Petroleum (MPC), Tesoro (TSO), and Phillips 66 (PSX) trade higher than the average valuations.

Berkshire Hathaway’s (BRK.B) November 2016 13F filing attracted considerable interest for airline investors. The 13F revealed Warren Buffett’s new investments in the airline sector—a sector he had written off during the past decade.

Current valuation Southwest Airlines (LUV) has a forward EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] multiple of 7.1x. This is the highest multiple among the major airline carriers and is higher than its average valuation of 6.3x since September 2008. Peer comparisons American Airlines (AAL) is trading at a similar valuation […]

TK

For August 2017, AAL’s international traffic increased 6.9% year-over-year. Year-to-date, its international traffic has increased 5.5% YoY.

American Airlines’ (AAL) capacity grew 3.2% year-over-year in August, significantly higher than its 0.4% year-over-year growth reported in the previous seven months.

AAL has paid little attention to its total debt, which rose from $20.8 billion at the end of 2015 to $24.3 billion at the end of 2016 and $24.5 billion at the end of 1Q17.

United Continental’s (UAL) EBITDA is expected to fall 10% to $1.8 billion.

At the start of the year, United announced its plan to grow its capacity by 0%–1%, in line with GDP growth expectations.

The global revenues from Merck’s Animal Health business totaled $939 million during 1Q17—13% growth over 1Q16.

AAL’s utilization rose 0.3% YoY (year-over-year) in February, then by 1.8% YoY in April and 0.2% YoY in May.

For May 2017, American Airlines (AAL) reported a 2.3% YoY (year-over-year) growth in capacity—its highest growth so far in 2017.

Currently, American Airlines (AAL) is valued at 6.6x its forward EV-to-EBITDA ratio (enterprise value to earnings before interest, tax, depreciation, and amortization).

As opposed to most other airlines that have been reducing their debts, American Airlines’ (AAL) debt has risen, partly due to its focus on completing its integration with US Airways.

For 2016 overall, United Continental (UAL) has generated $5.5 billion in operating cash flow and $1.9 billion in free cash flow.

Airlines have long been known as capital destroyers. In times of profitability (such as now), they increase capacity to an extent that can’t be filled.

The Gardasil franchise is Merck’s (MRK) leading vaccines franchise.

Delta Air Lines started paying dividends only in 2013, and it’s one of the few airlines that pay dividends.

Until 3Q16, Delta Air Lines (DAL) had managed to keep its costs flat if not decreasing. However…

United expects to add $800 million to profits by increasing seats from 105 per departure to 121 per departure in 2018.

For 4Q16, analysts are expecting United Continental’s (UAL) EBITDA to fall 26% to $1.4 billion.

For November 2016, American Airlines’s (AAL) load factor fell 0.3% and year-to-date 2016, its load factor fell 1.3%.

In November 2016, American Airlines’s (AAL) traffic fell 0.2% year-over-year, slightly lagging its capacity growth in the same period. Year-to-date, AAL’s traffic has increased 0.3%.

American Airlines’s (AAL) capacity grew 0.1% year-over-year in November 2016, similar to the growth seen during most of 2016. Year-to-date, AAL’s capacity has grown 1.9%.

Refiners such as PSX, MPC, VLO, and TSO are now focusing on diversifying their earnings models to shield themselves from the volatile refining environment.

Since the end of June, Marathon Petroleum’s (MPC) stock has risen by 28%. MPC has crossed over its 50-day and its 200-day moving averages during this period.

The analysts’ survey shows that six out of the 11 companies surveyed rated HollyFrontier (HFC) as “neutral” or “market perform.”

Nine out of ten companies surveyed rated Valero (VLO) a “buy,” “overweight,” or “outperform.”

Valero Energy (VLO) announced its results on July 26, 2016, before the market opened.

Since mid-February 2016, Phillips 66 (PSX) has witnessed an 18% fall in its short interest.

Wall Street analysts expect HollyFrontier to post EPS of $0.35, which is 76% lower than its 2Q15 adjusted EPS.

Western Refining (WNR) recorded a fall in gross refining margins, from $16.80 per barrel in 1Q15 to $10.80 per barrel in 1Q16.

Suncor Energy (SU) has witnessed a 34% rise in its short interest since April 2016.

In 1Q16, PBF Energy’s revenues surpassed Wall Street analyst estimates by 12%. PBF’s 1Q16 adjusted EPS was -$0.65, as compared to the estimated -$0.47.

Between July 2014 and November 2015, Marathon Petroleum (MPC) stock rose 51%. But after that, the stock fell until early 2016.

Total SA (TOT) is expected to post its 2Q16 results on July 28, 2016. In 1Q16, TOT’s revenues of $27.5 billion surpassed Wall Street estimates.

Valero’s diesel crack indicators have been rising in 2Q16 compared to 1Q16. The US West Coast, where VLO has 0.3 MMbpd refining capacity, saw the largest rise of $3.20 per barrel.

ExxonMobil’s price-to-earnings (or PE) ratio has generally shown an uptrend in the past two years. In 1Q16, the stock traded at a PE of 26.4x.

Amid stock price volatility, Valero rose 20% from February 8–March 28, 2016, and crossed over its 50-day and 200-day moving averages.