'Ain't Been No Summer Vacation' For Airline Stocks

Jul. 21, 2021 4:36 PM ET, , , , , , , , , , , 10 Comments
John Gilluly
2.74K Followers

Summary

  • Low-cost airlines are down 25%-40% off their spring highs, approaching prices not seen since January 2021.
  • Yet the fundamentals underpinning the domestic carriers are steadily improving.
  • The article presents 3 airline stocks that have one-year consensus analyst targets of 50-70% above current prices.
  • Although market uncertainty and sector rotation have cast a summer pall over the airline stocks, the companies continue to recover and at these prices, present good values for investors.

airplane crash 3d concept
koya79/iStock via Getty Images

Travel and economic recovery stocks have had a surprisingly-difficult summer on Wall Street. A dramatic increase in the price of oil (the cost of transportation fuel), and the emergence of a new Covid Delta strain (infection rates) have raised anxieties about

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2.74K Followers
I have invested for 33 years. I only write articles for Seeking Alpha when I think that there is something timely to invest in. I look for opportunities in mispriced assets that are temporarily out of favor. These investments can be very short term to long term, depending on the primary trend of the market. ***Sentiment indicators factor significantly into my choices. I combine them with simple technical studies before I trade. The entry-point, its original trade date and time, has an enormous effect on the efficacy of an investment over time. ***I have found that determining and following the primary trend of the market (in all time frames) is the key to successful investing: to be bullish when it is time to be bullish, and bearish when it is time to be bearish. ***Fundamental analysis may be good training for the mind in assessing worthy companies, but it is not the primary reason that investors buy and sell stocks. ***Like captains who steer their boats across the waves of the sea, wise investors carefully observe the movements in the water beneath them. A favorable trend can literally pull you along.***In commenting on such timeliness, Shakespeare once wrote, "There is a tide in the affairs of men, Which (when) taken at the flood, leads on to fortune. Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves, or lose our ventures."

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