6 Reasons Why You Should Add LATAM Airlines Stock to Your Portfolio

LATAM Airlines Group (LTM performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes LATAM Airlines an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of LATAM Airlines have gained 34.5% over the past six months, outperforming the 28.2% increase of the Zacks Airline industry.

LTM Stock Six-Month Price Comparison

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Solid Rank & VGM Score: LATAM Airlines has a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for fourth-quarter 2025 earnings has moved 3.05% north in the past 60 days. For the current year, the consensus mark for earnings has been revised to 4.23% upward in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

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Positive Earnings Surprise History: LATAM Airlines has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 29.84%.

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Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2025, LTM’s earnings are expected to grow 50% year over year. For 2025 and 2026, LTM’s earnings are expected to improve 52.63% and 17.77% year over year, respectively.

Growth Factors:LATAM Airlines is benefiting from its lean cost structure, expanding operations and strategic partnerships. Owing to its improved operational efficiency, LATAM can offer competitive pricing without compromising on profit margins. Improvement in air travel demand following the end of the pandemic and normalization of economic activities bodes well for LATAM's top line. Its focus on premium traffic presents significant opportunities for revenue growth and margin expansion. Shareholder-friendly moves boost investor confidence and positively impact the company's bottom line.

Other Stocks to Consider

Investors interested in the Transportation sector can consider Expeditors International of Washington, Inc. (EXPD) and ZTO Express Cayman ZTO. Each stock presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Expeditors has an expected earnings growth rate of 3.50% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%. The Zacks Consensus Estimate for EXPD’s 2025 earnings has moved 7.63% north in the past 60 days. Shares of Expeditors have gained 31.8% over the past six months.

ZTO Express is bolstered by its robust operational efficiency. The company’s strong liquidity is also encouraging. Parcel volume growth is a big tailwind for ZTO Express. The Zacks Consensus Estimate for ZTO Express’ 2025 earnings has moved 9.80% north in the past 60 days. Shares of ZTO Express have gained 19.7% over the past six months.

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This article originally published on Zacks Investment Research (zacks.com).

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