If the airlines show they can withstand the next downturn, Miller says, it could «lead to a significant re-rating» in which investors price
airline stocks more like industrial stocks — in other words, at twice the price where they currently trade.
Not exact matches
United
Airlines» plan to grow aggressively over the next several years was aimed at getting investors even
more jazzed about its
stock, which was already rallying
more than its peers» this year.
Gerstner said he thinks United
Airlines stock is worth double or triple its current share price of about $ 75, or even
more, with his target price at as much as $ 235 a share.
Spirit
Airlines — Spirit received a double upgrade to «overweight» from «underweight» at JPMorgan Chase, which noted the battering in Spirit's
stock price this year and a
more favorable overall cost structure amid rising fuel prices.
What's
more, U.S.
airline stocks as a group have risen almost 90 % since the beginning of 2014.
Perhaps
more surprising is Buffett's second - best pick over the past year, as it has recently been known
more for controversy than outperformance: United
Airlines stock, up almost 44 % since the investor bought it in the third quarter of 2016.
These are the
stocks posting the largest moves after the bell on Monday, including: American
Airlines, Delta Air Lines, United
Airlines and
more.
Southwest
Airlines reported ambitious growth plans this week, and the promise of
more competition led to a selloff of
airline stocks Wednesday.
Shares of companies in the industry, including Southwest, United Continental and American
Airlines fell
more than 9 %, while Delta saw its
stock tumble by over 5 %.
Since announcing the decision in April 2015, American
Airlines stock has risen
more than 55 percent as of January 10.
There are large
stock market companies like Procter & Gamble, which has had meaningful employee share ownership along with profit - sharing for
more than a century, and Southwest
Airlines, which has both employee share ownership and an annual cash profit sharing plan that in 2015 paid $ 620 million in profits to all employees, adding 15 % on top of their wages and salaries.4 Divisions of
stock market companies are sometimes spun off and sold to workers through ESOPs: the 100 % employee - owned Scot Forge in Clinton, Wisconsin, and the 100 % employee - owned Houchens in Bowling Green, Kentucky, are examples.
Global
airline stocks are currently soaring as a result of low oil prices, increased seat capacity and
more fuel - efficient aircraft.
What's
more, if you choose
stocks that have a low or inverse correlation with one another - an oil producer and an
airline, for example - you further reduce the volatility in your portfolio, because the
stocks react in different ways to the same events (a change in oil prices, for instance).
The authors examine why investors refuse to sell their losing
stocks, how you can make an audience pay
more than $ 20 for a $ 20 bill, and what makes an experienced
airline pilot disregard safety regulations and take off in a fog.
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Stocks Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer,
airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
For example, if you had a portfolio with a lot of oil
stocks, the optimizer would choose to add
airline stocks instead of adding
more oil
stocks, even if the historic return of oil
stocks is higher than
airline stocks.
Retailers that
stock Cycle Dog products, for example, should know that all of their collars feature a Latchlock
airline - style metal buckle, which is
more than 400 percent stronger than standard plastic buckles.
But we can see why
airline CEOs want
more transparency in this lucrative business: some, like Doug Parker of American
Airlines, get paid completely in company
stock.
«Some have suggested that new technologies should make buying a home
more like buying an
airline ticket or a
stock certificate, but they're missing the point.
No one can accurately predict where airfares are heading, any
more than we can predict the
stock market, because we have no idea when the economy will improve, or how much
airlines will cut back capacity, or when the next flu epidemic will hit or where fuel prices are going.