LTM Stock Surges 14% With A 7-day Winning Spree On Zacks ‘Strong-Buy’ Upgrade
LATAM Airlines (LTM) – a passenger and cargo air transportation service provider – hit 7-day winning streak, with cumulative gains over this period amounting to a 14%. The company market cap has surged by about $2.3 Bil over the last 7 days, and currently stands at $19 Bil.
The stock has YTD (year-to-date) return of 19.4% compared to 1.5% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Zacks Upgrade To ‘Strong-Buy’
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- Rating Lifted From ‘Hold’ To ‘Strong-Buy’
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- Impact: Rally To New 52-Week High, Sustained Positive Momentum
Opportunity or Trap?
Below is our take on valuation.
There is a near-equal mix of good and bad in LTM stock given its overall Moderate operating performance and financial condition. Considering stock’s Low valuation we think it is Attractive (For details, see Buy or Sell LTM).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for LTM stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | LTM | S&P 500 |
|---|---|---|
| 1D | 1.4% | 0.5% |
| 7D (Current Streak) | 13.9% | 0.3% |
| 1M (21D) | 19.2% | 0.6% |
| 3M (63D) | 47.1% | 3.1% |
| YTD 2026 | 19.4% | 1.5% |
| 2025 | 108.3% | 16.4% |
| 2024 | 4577.3% | 23.3% |
| 2023 | 21.6% | 24.2% |
However, big gains can follow sharp reversals – but how has LTM behaved after prior drops? See LTM Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 65 S&P constituents with 3 days or more of consecutive gains and 42 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 17 | 37 |
| 4D | 35 | 0 |
| 5D | 9 | 4 |
| 6D | 3 | 0 |
| 7D or more | 1 | 1 |
| Total >=3 D | 65 | 42 |
Key Financials for LATAM Airlines (LTM)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $11.6 Bil | $12.8 Bil |
| Operating Income | $1.2 Bil | $1.6 Bil |
| Net Income | $581.8 Mil | $977.0 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $3.3 Bil | $3.8 Bil |
| Operating Income | $422.8 Mil | $691.2 Mil |
| Net Income | $282.7 Mil | $378.8 Mil |
While LTM stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.