JetBlue Airways Corporation (JBLU), Hawaiian Holdings, Inc. (HA): 3 Undervalued Airline Stocks

3. Delta Air Lines, Inc. (NYSE:DAL) was founded in 1924 and operates in several international locations apart from the US. Delta Air Lines, Inc. (NYSE:DAL) is known for its on-arrival time rate, which is an impressive 85%. Due to this, it was named the most admired airline for the year 2013. The stock has provided an over 50% return since last December. Currently trading at $18, Delta has the potential to go up further. The EPS forecast is quite high for Delta, similar to Hawaiian Holdings, Inc. (NASDAQ:HA) and JetBlue. The fact that the stock is undervalued can be seen from the low PEG ratio of 0.27 and the forward P/E ratio of 6. Delta is carrying a low debt and relatively high cash, which makes it suitable for expansion. This is in contrast to the airline industry, which is generally capital intensive and carries high debt.

The takeaway

All the above three stocks provide great value to investors. If you want to include one airline stock in your portfolio, you can pick up any one of these to diversify your holdings. And for a value investor, I suggest you include all three.

Tanya Kanodia has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Undervalued Airline Stocks originally appeared on Fool.com and is written by Tanya Kanodia.

Tanya is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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