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Pharmaceutical industry

Airlines Stocks React to Terror Threat and Oil Prices

Strategic Insights

— 1 min read

The announcement of a terrorist threat in the air travel sector has prompted a mixed reaction in airline stocks, with some experiencing losses and others gaining. According to Zacks.com's Analyst Blog, United Airlines (Nasdaq:UAUA) was flat, while Pinnacle Airlines (Nasdaq:PNCL) fell 2.7%. In contrast, ExpressJet (NYSE:XJT) and Frontier Airlines (Nasdaq:FRNT) rose 5.4% and 4.6%, respectively. The analysis suggests that the decrease in oil prices has mitigated the impact of the terrorist threat, which is less severe than the one experienced on 9-11. The stocks are in a stronger position than they were then, and analysts predict that the effects of the threat will be less severe.

Key Takeaways:

  • United Airlines (Nasdaq:UAUA) was flat in midday trading, while Pinnacle Airlines (Nasdaq:PNCL) fell 2.7% in response to the terrorist threat.
  • ExpressJet (NYSE:XJT) and Frontier Airlines (Nasdaq:FRNT) rose 5.4% and 4.6%, respectively, as the decrease in oil prices offset the negative impact of the threat.
  • The stocks are in a stronger position than they were on 9-11, and the effects of the threat are expected to be less severe.
  • Analysts at Zacks.com maintain a Buy rating for ACADIA Pharmaceuticals, Inc. (Nasdaq:ACAD), with a price target of $16.
  • The company's mid-stage products ACP-103 and ACP-104 are expected to be catalysts for growth in the next few months.
  • ACADIA has five drug programs in clinical and preclinical development, targeting large unmet medical needs and major commercial markets.

Statistics:

  • The Zacks Equity Research system provides continuous coverage of 1,150 publicly traded stocks.
  • The system has a six-month time horizon for stock recommendations and target prices.
  • The Zacks Rank has outperformed the market by nearly a 3 to 1 margin since its inception.
  • ExpressJet (NYSE:XJT) rose 5.4% in midday trading.
  • Frontier Airlines (Nasdaq:FRNT) rose 4.6% in midday trading.

Sources:

  • Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
  • About Zacks Equity Research, see: http://www.zacks.com/corporate/about/zacks-equity-research.
  • Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks.
  • See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2673.

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