Seeking Alpha

Deutsche Bank: Airline stocks still have room for growth

  • Perhaps a surprise, but it's Allegiant Travel (ALGT +1%) that is the airline stock which has generated the best return on invested capital over the last year, according to Deutschce Bank.
  • The industry (AAL, LUV, DAL, UAL) as a whole is still realizing plenty of merger benefits and capacity gains.
  • Though the investment firm is still bullish on most of the group, JetBlue (JBLU -0.1%) and Republic Airways (RJET +0.8%) might present the most upside, reasons DB.
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Comments (7)
  • Mongoose7916
    , contributor
    Comments (232) | Send Message
     
    Lies Deutschce Bank Lies! If you want to pump ALGT fine but don't tell untruths to further your agenda. LCC/AAL has returned far more than ALGT this year. And if you want to count AAMRQ/AAL it isnt even close.
    18 Jun 2014, 03:22 PM Reply Like
  • ChuckKrew
    , contributor
    Comments (74) | Send Message
     
    They are not talking about stock market returns.
    18 Jun 2014, 04:32 PM Reply Like
  • Vaughn Cordle, CFA
    , contributor
    Comments (65) | Send Message
     
    Deutschce Bank does not lie.

     

    Return on capital is a different return than GAAP earnings or stock price returns. Those that don't understand the difference need to do their research before they accuse someone of not telling the truth.

     

    18 Jun 2014, 04:43 PM Reply Like
  • aportn
    , contributor
    Comment (1) | Send Message
     
    Maybe mongoose is right. Mongoose, can you show us your ROIC calculations?
    18 Jun 2014, 08:41 PM Reply Like
  • markcc
    , contributor
    Comments (1583) | Send Message
     
    Have you seen the price increases? The newly consolidated industry is raising fares and putting in more restrictions. Since Boeing and Airbus production lines are running at capacity, no new airline can just jump in and compete. A strong buy indication for the whole industry.
    19 Jun 2014, 12:28 PM Reply Like
  • User 9084411
    , contributor
    Comment (1) | Send Message
     
    Am I reading the UAL 10K (June 20) correctly and three top execs just go released?
    24 Jun 2014, 12:39 PM Reply Like
  • markcc
    , contributor
    Comments (1583) | Send Message
     
    user 9084411, Great Find! you beat the papers. United has not posted it on their site yet, which they should have. It was an 8k filing that identified three key execs departing: James E. Compton, UAL’s Vice Chairman and Chief Revenue Officer; Jeffrey T. Foland, UAL’s Executive Vice President – Marketing, Technology and Strategy; and John D. Rainey, UAL’s Executive Vice President and Chief Financial Officer.

     

    I see this as bullish for the stock that they are cleaning house.

     

    The text: http://1.usa.gov/VjLdTc

     

    Their contracts are not being terminated as a result of the $600 million dollar loss in the first quarter, so they get their payouts.. Hmmmm..
    24 Jun 2014, 02:23 PM Reply Like
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