Markets

Insider Trading

Hedge Funds

Retirement

Opinion

11 Best Aviation Stocks To Buy According To Analysts

In this article, we discuss 11 best aviation stocks to buy according to analysts. If you want to skip our discussion on the aviation industry, head over to 5 Best Aviation Stocks To Buy According To Analysts

The International Air Transport Association (IATA) released its outlook for the airline industry in December last year, projecting a higher profitability trajectory for full-year 2023 with further stabilization anticipated in 2024. The overall aviation landscape in 2024 is expected to witness a notable increase in revenues, which will outweigh expenses. Industry revenues are forecasted to reach a historic high of $964 billion, fueled by a growth rate of 7.6%, while expenses are projected to rise at a slightly slower pace of 6.9%. This positive trajectory is expected to strengthen the profitability of the airline sector. Passenger revenues are a significant driver of this growth, anticipated to reach $717 billion in 2024, marking a 12% increase from the previous year.

On the cargo front, revenues are projected to decline to $111 billion in 2024. This decrease is attributed to the impact of increased belly capacity on the passenger side of the business, coupled with stagnation in international trade. IATA listed down several factors that pose both positive and negative risks to the fragile profitability of the aviation industry. Global economic developments, including inflation, low unemployment rates, and demand for travel, are considered positive factors. However, economic strains in regions like China, if not managed properly, could impact global business cycles. Additionally, ongoing conflicts, such as the Ukraine war and the Israel-Hamas war, have operational and cost implications for the industry, particularly in terms of oil prices.

Willie Walsh, IATA’s Director General, commented

“Considering the major losses of recent years, the $25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience. People love to travel and that has helped airlines to come roaring back to pre-pandemic levels of connectivity. The speed of the recovery has been extraordinary; yet it also appears that the pandemic has cost aviation about four years of growth. From 2024 the outlook indicates that we can expect more normal growth patterns for both passenger and cargo. Industry profits must be put into proper perspective. While the recovery is impressive, a net profit margin of 2.7% is far below what investors in almost any other industry would accept. Of course, many airlines are doing better than that average, and many are struggling. But there is something to be learned from the fact that, on average airlines will retain just $5.45 for every passenger carried. That’s about enough to buy a basic ‘grande latte’ at a London Starbucks. But it is far too little to build a future that is resilient to shocks for a critical global industry on which 3.5% of GDP depends and from which 3.05 million people directly earn their livelihoods. Airlines will always compete ferociously for their customers, but they remain far too burdened by onerous regulation, fragmentation, high infrastructure costs and a supply chain populated with oligopolies.”

Fitch Ratings has a Neutral outlook for the global airline sector in 2024. Despite global traffic approaching pre-pandemic levels, it still lags behind historical trends. Fitch also observed Chinese international traffic is notably below 2019 levels but has potential for growth. Business travel, which faced challenges in 2023, is displaying signs of recovery. Additionally, full-service carriers are expected to sustain positive trends in premium products, experiencing notable growth post-pandemic. 

The airline industry has been experiencing waves of M&A activity recently. Airline consolidation is a common and essential strategy for growth and competitiveness, as demonstrated by Alaska Airlines’ announcement to acquire Hawaiian Airlines for $1.9 billion back in December 2023. This move is not just a business transaction but a strategic positioning for future growth in the highly competitive and concentrated airline sector. Upon completion of the deal, the combined market share of Alaska and Hawaiian will be around 8.2%, making them the fifth-largest U.S. airline, unless JetBlue Airways successfully acquires Spirit Airlines. 

Some of the best airline stocks to buy in order to benefit from the growth potential in the aviation industry include Delta Air Lines, Inc. (NYSE:DAL), United Airlines Holdings, Inc. (NASDAQ:UAL), and American Airlines Group Inc. (NASDAQ:AAL).

Our Methodology

We shortlisted the top airline stocks by considering their upside potential, relying on analyst price targets as of March 3. The price targets were taken from Yahoo Finance. We have assessed the hedge fund sentiment from Insider Monkey’s database of 933 elite hedge funds tracked as of the end of the fourth quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). 

Pixabay/Public Domain

Best Aviation Stocks To Buy According To Analysts

11. Frontier Group Holdings, Inc. (NASDAQ:ULCC)

Number of Hedge Fund Holders: 12

Average Upside Potential: 11.90%

Average Analyst Price Target: $10.8

Frontier Group Holdings, Inc. (NASDAQ:ULCC) offers affordable air travel services to leisure travelers in the United States and Latin America. The company was founded in 1994 and is based in Denver, Colorado. In 2024, Frontier Group Holdings, Inc. (NASDAQ:ULCC) anticipates a 12% to 15% growth in capacity compared to 2023. Fuel costs are projected to range from $2.70 to $2.80 per gallon based on the blended fuel curve as of February 2, 2024. Pre-delivery deposits, net of refunds, are estimated to be between $20 and $50 million, and other capital expenditures are forecasted to be in the range of $160 to $180 million.

According to Insider Monkey’s fourth quarter database, 12 hedge funds were bullish on Frontier Group Holdings, Inc. (NASDAQ:ULCC), compared to 13 funds in the last quarter. Quincy Lee’s Ancient Art (Teton Capital) is the largest stakeholder of the company, with 8.6 million shares worth $47.3 million. 

Like Delta Air Lines, Inc. (NYSE:DAL), United Airlines Holdings, Inc. (NASDAQ:UAL), and American Airlines Group Inc. (NASDAQ:AAL), Frontier Group Holdings, Inc. (NASDAQ:ULCC) is one of the best airline stocks to invest in. 

10. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS)

Number of Hedge Fund Holders: 12

Average Upside Potential: 56.81%

Average Analyst Price Target: $12.82

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS) provides air transportation services for passengers, cargo, and mail in Mexico, the United States, Central America, and South America. On February 26, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS) reported a Q4 EPADS of $0.97 and a revenue of $899 million, up 9.6% year-over-year and beating Wall Street estimates by $17.76 million. Controladora is one of the best airline stocks to invest in. 

According to Insider Monkey’s fourth quarter database, 12 hedge funds were long Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS), compared to 14 funds in the earlier quarter. Michael Moriarty’s Teewinot Capital Advisers is the biggest stakeholder of the company, with 3.2 million shares valued at $30.2 million. 

9. Azul S.A. (NYSE:AZUL)

Number of Hedge Fund Holders: 13

Average Upside Potential: 102.16% 

Average Analyst Price Target: $15.14

Azul S.A. (NYSE:AZUL) ranks 9th on our list of the best airline stocks to buy. Azul S.A. (NYSE:AZUL) offers scheduled air transportation services in Brazil, operating around 1,000 daily departures to 158 destinations. Azul is engaged in cargo transportation, loyalty programs, travel packages, funding, logistics solutions, and aircraft financing. On January 25, Azul S.A. (NYSE:AZUL) announced that it has initiated a codeshare agreement with Silver Airways in the United States. This collaboration allows customers to purchase tickets for Silver Airways flights in the United States directly through Azul’s sales channels. The agreement enables seamless connectivity for customers traveling from Brazil to Azul’s Fort Lauderdale and Orlando destinations, providing access to major tourism and business centers.

According to Insider Monkey’s fourth quarter database, 13 hedge funds were bullish on Azul S.A. (NYSE:AZUL), same as the prior quarter. Howard Marks’ Oaktree Capital Management is the largest stakeholder of the company, with 1.58 million shares worth $15.3 million. 

8. Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY)

Number of Hedge Fund Holders: 15

Average Upside Potential: 28.87%

Average Analyst Price Target: $20.14

Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) is an air carrier company operating scheduled passenger, air cargo, and charter air transportation services in the United States, Latin America, and internationally. It is one of the best airline stocks to consider buying. 

On February 26, Morgan Stanley upgraded Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) stock from Equal Weight to Overweight, expressing a positive outlook on the airline’s three segments – Passenger, Amazon Cargo, and Charter. Morgan Stanley considers Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) to be the most defensively positioned ultra-low-cost carrier in the sector, citing significant upside potential. Morgan Stanley set a price target of $21 for the shares.

According to Insider Monkey’s fourth quarter database, 15 hedge funds were bullish on Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY), compared to 16 funds in the last quarter. Paul Reeder and Edward Shapiro’s PAR Capital Management is the leading stakeholder of the company, with 2.76 million shares worth $43.5 million. 

7. Allegiant Travel Company (NASDAQ:ALGT)

Number of Hedge Fund Holders: 17

Average Upside Potential: 19.78%

Average Analyst Price Target: $86.10

Allegiant Travel Company (NASDAQ:ALGT) ranks 7th on our list of the best airline stocks. It is a leisure travel company based in Las Vegas, specializing in providing travel services and products to residents of under-served cities in the United States. The company focuses on scheduled air transportation with limited-frequency, nonstop flights between under-served cities and popular leisure destinations. On February 5, Allegiant Travel Company (NASDAQ:ALGT) reported a Q4 non-GAAP EPS of $0.11 and a revenue of $611 million, outperforming Wall Street estimates by $0.31 and $16.37 million, respectively. 

According to Insider Monkey’s fourth quarter database, 17 hedge funds were bullish on Allegiant Travel Company (NASDAQ:ALGT), compared to 19 funds in the earlier quarter. Ric Dillon’s Diamond Hill Capital is the largest stakeholder of the company, with 847,167 shares valued at $70 million. 

Diamond Hill Small Cap Fund made the following comment about Allegiant Travel Company (NASDAQ:ALGT) in its Q3 2023 investor letter:

“Other bottom contributors in Q3 included Rimini Street, Lancaster Colony Corporation and Allegiant Travel Company (NASDAQ:ALGT). Packaged food products manufacturer Lancaster Colony and regional airline Allegiant Travel underperformed in Q3 against a weakening consumer backdrop as well as, for Allegiant, an unfavorable pricing environment.”

6. Air Transport Services Group, Inc. (NASDAQ:ATSG)

Number of Hedge Fund Holders: 19

Average Upside Potential: 45.13%

Average Analyst Price Target: $20.17

Air Transport Services Group, Inc. (NASDAQ:ATSG) operates in the aircraft leasing and air cargo transportation sectors, providing services both in the United States and internationally. On February 27, Air Transport Services Group, Inc. (NASDAQ:ATSG) reported a Q4 non-GAAP EPS of $0.18, falling short of Wall Street estimates by $0.14. The revenue came in at $517.04 million, beating market consensus by $9.04 million. Capital spending in 2024 is estimated at $410 million, down $380 million from 2023.

According to Insider Monkey’s fourth quarter database, 19 hedge funds were bullish on Air Transport Services Group, Inc. (NASDAQ:ATSG), same as the prior quarter. D E Shaw is the largest stakeholder of the company, with 1.3 million shares worth $23.5 million. 

Like Delta Air Lines, Inc. (NYSE:DAL), United Airlines Holdings, Inc. (NASDAQ:UAL), and American Airlines Group Inc. (NASDAQ:AAL), Air Transport Services Group, Inc. (NASDAQ:ATSG) is one of the best airline stocks to consider. It ranks 6th on our list. 

Bernzott Capital Advisors made the following comment about Air Transport Services Group, Inc. (NASDAQ:ATSG) in its second quarter 2023 investor letter:

“Air Transport Services Group, Inc. (NASDAQ:ATSG): The company’s elevated capital spending plans through next year extend its heavy capex cycle and will impede a free cash flow recovery. As a result, we exited the position.”

Click to continue reading and see 5 Best Aviation Stocks To Buy According To Analysts

Suggested articles:

Disclosure: None. 11 Best Aviation Stocks To Buy According To Analysts is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…