If you think about how cargo moves from one place to another, you can imagine railroads, semi-trucks or even ships.
But the leading way to move cargo soon it’s air.
E-commerce giant Amazon uses air transport to move goods over long distances.
In this chart you can see the amount of cargo that the US will carry until 2025.
53.2 billion tons of cargo transported by air over a kilometer in 2020, in just five years increased by 42.1%.!!
In 2018, the market value was $ 1.1 billion. Analysts expect this by 2026 double up to $ 2 billion.
Today’s Power Stock is an air freight company that works with Amazon: Air Transport Services Group Inc. (Nasdaq: ATSG).
Air Transport leases aircraft and transports cargo to the United States and abroad.
It provides aircraft, crews, maintenance, fuel and more.
Its headquarters in Wilmington, Ohio, is just 65 miles from the Amazon air cargo hub in Cincinnati.
ATSG shares got a “strong bull” 98 of 100 in our stock power rating system and we expect it to outperform the broader market 3 times over the next 12 months.
ATSG shares: excellent growth + solid value
Examining the stocks of air transport, I came across two items:
- The company reported last year total revenue of $ 1.93 billion – company record.
- In 2015, he began a relationship with Amazon.com Inc. (Nasdaq: AMZN) by providing five cargo planes for Prime Air. Since then, ATSG has expanded Amazon’s fleet to 35.
At ATSG we have exceptional stock growth with a solid price and a strong rising momentum record.
The company earnings per share increased by 466.6% from 2020 to 2021.
Its quarterly sales jumped 29.2% in the first quarter of 2022.
Such performance brings ATSG rating 97 according to our quality metric – in the first 3% of all stocks we value!!
ATSG trade ratios correspond to or lower than its trucking counterparts. Shares are trading at a value-to-cash ratio of 4.6 – better than the industry average of 6.5.
In July 2021, ATSG shares reached a 52-week low of $ 21.62.
In March, it reached a 52-week high of $ 34.15 – the share price rose 58% in just seven months!!
While the wider sell-off affected ATSG, shares remain 19.6% higher than a year ago. It continues to undermine the industry of freight and infrastructure services, which grew by only 0.1%.
Shares of Air Transport Services Group Inc 98 in total in our patented stock power rating system.
That means we are “strong bullish” and expect it to win the broad market at least three times over the next 12 months.
As supply chain problems continue to plague the global economy, moving goods from one place to another becomes even more important.
The excellent growth and value of ATSG make it a promising energy reserve for your portfolio!
Follow the news: Energy manufacturers ’rates in Texas are 96 overall
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Follow the news in the next issue where I will tell you all the details about the wonderful energy company that serves 6 million people in Lone Star State.
Matt Clark, CMSA®
Analyst-researcher, money and markets
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