- LATAM Airlines (LTM) recently set a new 52-week high.
- The stock is up 110% over the past year.
- LTM maintains a 100% technical “Buy” opinion from Barchart.
- Wall Street sentiment is positive with 5 “Strong Buy” and 1 “Moderate Buy” ratings, and price targets ranging from $56 to $80.
Today’s Featured Stock
Valued at $19.60 billion, LATAM Airlines (LTM) is a leading airline group based in Santiago, Chile, providing passenger and cargo air transportation services across the Americas, Europe, and Oceania.
Founded in 1929, the company underwent significant expansion, notably merging with Brazil’s TAM Airlines in 2012 to form the LATAM Airlines Group. LATAM serves 151 destinations in 27 countries with a fleet of 347 aircraft. The group’s main markets include Brazil, Chile, Peru, Colombia, and Ecuador, with operations extending to the United States, Europe, and beyond.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. LTM checks those boxes. Since the Trend Seeker issued a new “Buy” on Nov. 19, shares are up 35.19%.
Barchart Technical Indicators for LATAM Airlines
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
LATAM Airlines scored a 52-week high of $70.42 on Feb. 3.
- LTM has a Weighted Alpha of +116.
- LATAM has a 100% “Buy” opinion from Barchart.
- The stock has gained 109.74% over the past 52 weeks.
- LTM has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $65.97 with a 50-day moving average of $57.08.
- LATAM has made 12 new highs and is up 12.53% over the past month.
- Relative Strength Index (RSI) is at 65.61.
- There’s a technical support level around $64.20.
Don’t Forget the Fundamentals
- $19.60 billion market capitalization.
- 12.93x trailing price-earnings ratio.
- 2.15% dividend yield.
- Revenue is predicted to grow 8.87% this year and another 6.93% next year.
- Earnings are estimated to increase 3.28% this year and an additional 12.96% next year.
Analyst and Investor Sentiment on LATAM Airlines
- The Wall Street analysts followed by Barchart give the stock 5 “Strong Buy” and 1 “Moderate Buy” opinion with price targets between $56 and $80.
- Value Line and CFRA’s MarketScope do not normally rate ADRs.
- Morningstar thinks the stock is fairly valued.
- 7,440 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- Short interest is 0.92% of the float with 2.89 days to cover the float.
The Bottom Line on LATAM Airlines
LATAM’s growth metrics are robust, with year-over-year (YoY) EPS growth at 53%, far exceeding the sector’s 7%. Additionally, LTM’s forward revenue growth is projected to be 9%, significantly higher than the sector’s 6%. This indicates strong expansion and financial performance.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
