Five Airline Operators to Own Now

#3 United Continental Holdings Inc (NYSE:UAL)

– Number of Hedge Fund Holders (as of September 30): 70
– Total Value of Hedge Fund Holdings (as of September 30): $2.97 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 14.80%

The sell side is pretty bullish on United Continental Holdings Inc (NYSE:UAL), as 15 analysts have ‘Buy’ ratings, two have ‘Strong Buy’ ratings, and two have ‘Hold’ ratings. No analyst has a ‘Sell’ rating. Overall, the 19 analysts have an average target price of $78.92 among them, giving United Continental more than 36% upside. Among the 70 elite funds that are long the stock include Cliff Asness’ AQR Capital Management, which increased its position by 22% to 4.1 million shares at the end of the third quarter, and Leon Cooperman’s Omega Advisors which trimmed its holding by just 1% to 2.79 million shares during the third quarter.

#2 American Airlines Group Inc (NASDAQ:AAL)

– Number of Hedge Fund Holders (as of September 30): 77
– Total Value of Hedge Fund Holdings (as of September 30): $1.82 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 7.00%

American Airlines Group Inc (NASDAQ:AAL) reported record profits for its third quarter, earning $2.77 per share and exceeding analyst estimates by $0.05 per share. Given that American Airlines is one of the few big airlines that doesn’t hedge, it will remain one of the primary beneficiaries of the ‘lower for longer’ crude prices. Shareholders will benefit as well because management is using the company’s profits to buy back shares. American Airlines repurchased $1.56 billion worth of stock in the third quarter and the board has authorized a new $2 billion repurchase program to be completed by the end of 2016. George Soros’ Soros Fund Management was long 1.92 million shares at the end of the third quarter.