In this article, we will be taking a look at 5 airline stocks to buy now. To read our detailed analysis of these stocks and the airline industry, you can go directly to see the 10 Best Airline Stocks to Buy Now.
5. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 30
American Airlines Group Inc. (NASDAQ:AAL) operates as a network air carrier. It is based in Fort Worth, Texas.
Melius Research’s Conor Cunningham has a Hold rating on American Airlines Group Inc. (NASDAQ:AAL) shares as of August 15. The analyst also placed a $16 price target on the stock.
This September, the Biden administration approved more flights from the US to Cuba, to the benefit of companies like American Airlines Group Inc. (NASDAQ:AAL). The Transportation Department added 13 weekly flights to the company’s schedule. The year-over-year revenue growth rate for the company is 117.9%.
Out of 895 hedge funds tracked in the second quarter, 30 funds were long American Airlines Group Inc. (NASDAQ:AAL). Their total stake value was $497 million.
4. United Airlines Holdings, Inc. (NYSE:UAL)
Number of Hedge Fund Holders: 35
United Airlines Holdings, Inc. (NYSE:UAL) is a provider of air transportation services. The company operates in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America.
Conor Cunningham at Melius Research initiated coverage of United Airlines Holdings, Inc. (NYSE:UAL) shares with a Buy rating on August 15. The analyst placed a $47 price target on the stock.
United Airlines Holdings, Inc. (NYSE:UAL) has a year-over-year revenue growth rate of 144.09%. The company’s EPS in the second quarter was $1.43, beating the previous quarter’s -$4.24 EPS. Its revenue was $12.11 billion, beating estimates by $5.7 million.
United Airlines Holdings, Inc. (NYSE:UAL) was found among the 13F holdings of 35 hedge funds in the second quarter, with a total stake value of $647 million. In comparison, 31 hedge funds were long the stock in the previous quarter, with a total stake value of $510 million.
3. Southwest Airlines Co. (NYSE:LUV)
Number of Hedge Fund Holders: 46
Southwest Airlines Co. (NYSE:LUV) is a passenger airline company providing scheduled air transportation services. It operates in the US and near-international markets.
A Buy rating was placed on Southwest Airlines Co. (NYSE:LUV) shares on August 15 by Conor Cunningham at Melius Research, alongside a $47 price target.
Over the next three to five years, Southwest Airlines Co.’s (NYSE:LUV) EPS is expected to rise by 43%. It has a year-over-year working capital growth rate of 14.5%, and a year-over-year revenue growth rate of 114.39%.
There were 46 hedge funds long Southwest Airlines Co. (NYSE:LUV) in the second quarter, with a total stake value of $740 million.
2. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 49
Delta Air Lines, Inc. (NYSE:DAL) is a provider of scheduled air transportation for passengers and cargo. The company operates in the US and internationally.
Melius Research holds a Buy rating on Delta Air Lines, Inc. (NYSE:DAL) as of August 15, alongside a price target of $41.
This September, the CFO of Delta Air Lines, Inc. (NYSE:DAL), Dan Janki, mentioned in an interview with the Wall Street Journal that leisure travel demand remains strong. Janki also added that the company is planning on reducing its net debt to $15 billion by 2024, versus the $23 billion figure on the books at present.
Delta Air Lines, Inc. (NYSE:DAL) had 49 hedge funds long its stock in the second quarter, and 55 funds long its stock in the previous quarter. Their total stake values were $887 million and $1.3 billion, respectively.
1. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 51
The Boeing Company (NYSE:BA) designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, and more. The company is based in Chicago, Illinois.
An Overweight rating was reiterated on The Boeing Company (NYSE:BA) by Kristine Liwag, an analyst at Morgan Stanley, on September 27. The analyst also has a $233 price target on the stock.
This September, The Boeing Company (NYSE:BA) reported 35 airplane deliveries in August. This represented a rise from a five-month low of 26 aircraft deliveries in July.
In the second quarter, 51 hedge funds were long The Boeing Company (NYSE:BA). Their total stake value was $1.5 billion.
Meridian Funds, managed by ArrowMark Partners, mentioned The Boeing Company (NYSE:BA) in its second quarter 2022 investor letter. Here’s what it said:
“We similarly remained invested in largely out-of-favor The Boeing Company (NYSE:BA), a global leader in developing and producing commercial jet aircraft. Due to some self-inflicted wounds and a bit of bad luck, as well as dramatic declines in air travel early in the pandemic, investor sentiment for this company has simply been awful. As part of our contrarian thinking, however, we view the business as critical to global transportation needs and see multiple catalysts to improve sentiment. In addition to the current surge in air travel worldwide, ramped up production of the 737 MAX aircraft and the pending restart of 787 Dreamliner deliveries should help turn broader sentiment. Additionally, we anticipate a meaningful inflection in cash flow as Boeing starts delivering aircraft currently in storage as well as the eventual expansion of its production in both core platforms.”
See also 5 Countries That Have The Most Debt Per Capita and 10 Best Cryptocurrency Exchanges in 2020.
