The Boeing Company (BA), Atlas Air Worldwide Holdings, Inc. (AAWW), Air Transport Services Group Inc. (ATSG): Could These Air Cargo Companies Soar?

With the air freighters added to its DHL customer, Air Transport Services Group Inc. (NASDAQ:ATSG) stands to improve its revenues, which slipped in the 2013 first quarter by 1.5% to $143.3 million year over year. Net earnings for the quarter came in at $8.5 million, or $0.13 a share fully diluted, up 27.6% from a year earlier. Due to its robust fundamentals, the company’s shares rate either a buy or strong buy among Wall Street analysts polled by Zacks. With a 9.21 price-to-earnings ratio and a 14.82% return on equity, Air Transport Services Group Inc. (NASDAQ:ATSG) indeed looks inviting.

Guidance up for Atlas Air

Riding on the wings of Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) can likewise be attractive as the company reported a net income of $5.9 million or $0.22 earnings per share for the first quarter of 2013. Revenue rose 5% to $377.3 million and operating income rose 10% to $22.6 million for the period. The company has also raised its expected adjusted 2013 earnings to $4.80 per share from $4.65, following the implementation of its $36.5 million share repurchase program this April. Its price-to-earnings ratio of 8.87 and 11.51% return on equity should also look lustrous, particularly to value investors.

Strong industry fundamentals

Summing it up, taking up positions on Air Transport Services Group Inc. (NASDAQ:ATSG) and Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) is warranted not only by their sound metrics but also by the air freight industry’s strong fundamentals. Air cargo will remain as indispensable as surface transport with the many industries requiring efficient delivery of perishable goods and time-critical items. Industry growth drivers can likewise be expected from projections of stable oil and jet-fuel prices and an average 3.2% growth in the world economy in the next 20 years.

The article Could These Air Cargo Companies Soar? originally appeared on Fool.com and is written by Arturo Cuevas.

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