5 Best Airline Stocks To Buy Now

3. United Airlines Holdings, Inc. (NASDAQ:UAL)

Number of Hedge Fund Holders: 31

United Airlines Holdings, Inc. (NASDAQ:UAL) is a Chicago, Illinois-based holding company for United Airlines.

In a report issued on July 25, Stephen Trent at Citi gave United Airlines Holdings, Inc. (NASDAQ:UAL) stock a target price of $56 and a Buy rating. The analyst thinks that the market is confused about whether the momentum in travel would be able to withstand economic uncertainty. Trent added that economic weakness would cause crude oil prices to decline, and capacity can be expected to recover to a point where United Airlines Holdings, Inc. (NASDAQ:UAL) could enjoy a dilution in seat mile cost without diluting the total revenue per available seat mile (TRASM) significantly. Earlier in August, United Airlines Holdings, Inc. (NASDAQ:UAL) deposited $10 million for the development and delivery of 100 electric flying taxis by Archer Aviation Inc. (NYSE:ACHR).

Miller Value Partners shared its bullish stance on United Airlines Holdings, Inc. (NASDAQ:UAL) in its Q2 2022 investor letter. Here’s what the firm said:

“United (NASDAQ:UAL) trades at a similarly depressed multiple, 3.6x. Outside of two months prior to the pandemic, it’s also only been below 4x in Jun 2016 as well. It rose ~80% over the next year. Travel company stock prices seem to be caught in the vortex of simple rules that drive many systematic and macro discretionary strategies. Recession equals sell consumer discretionary. High oil prices mean sell transportation. The facts don’t matter, at least in the short term. We believe they absolutely will in the long term, which is why we’ve added to our exposure.”