AC Outlook

To add to this, Air Canada appears in the Top 20 because analysts are expecting large growth in 2021 compared to 2020, which can be expected. It can't get much worse for the company than 2020.

So as a result, with forward earnings looking to grow and sales expected to rise dramatically, our screener is looking at Air Canada as a value play. However, if we understand that Air Canada's revenue collapsed in 2020 by nearly 70%, a 70% rise in sales (what analysts expect for Air Canada in 2021) doesn't seem as flashy.

But, our screener also doesn't understand that there is a virus right now that is severely limiting travel. As such, it's important we always dig a little deeper into our screener picks. Although it's been very accurate at identifying undervalued options over the mid-term, nothing is ever 100%.

To add to this, Air Canada appears in the Top 20 because analysts are expecting large growth in 2021 compared to 2020, which can be expected. It can't get much worse for the company than 2020.

So as a result, with forward earnings looking to grow and sales expected to rise dramatically, our screener is looking at Air Canada as a value play. However, if we understand that Air Canada's revenue collapsed in 2020 by nearly 70%, a 70% rise in sales (what analysts expect for Air Canada in 2021) doesn't seem as flashy.

But, our screener also doesn't understand that there is a virus right now that is severely limiting travel. As such, it's important we always dig a little deeper into our screener picks. Although it's been very accurate at identifying undervalued options over the mid-term, nothing is ever 100%.

Hi there,

The Weekly Top 20 is based on a numerical formula and it does not account for the macro environment. This is why it is important to still do your due diligence on stocks before buying.

AC may look attractive, but it is so for a reason - there are still many headwinds that are facing this company. Although it makes for an excellent rebound candidate, it is not one I'd be interested here as there is still too much uncertainty surrounding the company. True, the vaccine rollout should help the economy re-open but we are still a very long ways away from reaching pre-pandemic travel levels. In fact, at one point earlier this year AC mentioned it does not expect 2019 level traffic until at least 2023.

Mat

Hi there,

The Weekly Top 20 is based on a numerical formula and it does not account for the macro environment. This is why it is important to still do your due diligence on stocks before buying.

AC may look attractive, but it is so for a reason - there are still many headwinds that are facing this company. Although it makes for an excellent rebound candidate, it is not one I'd be interested here as there is still too much uncertainty surrounding the company. True, the vaccine rollout should help the economy re-open but we are still a very long ways away from reaching pre-pandemic travel levels. In fact, at one point earlier this year AC mentioned it does not expect 2019 level traffic until at least 2023.

Mat