Atlas Air Worldwide Holdings (AAWW) Ready to Breakout?

A resistance level has formed in the chart of Atlas Air Worldwide Holdings Inc (AAWW).  If this level is crossed, a breakout could occur…

Atlas Air Worldwide Holdings Inc (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…

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