- Blue Line Futures Bill Baruch sees an opportunity for airline investors to take advantage of the seasonal upward swing in oil prices.
- "That's because crude oil peaks in September, October and over the last 20 years has averaged from peak to trough about an 8% sell-off, and this brings a good support to airlines. So, I’m not saying the top in crude oil is here right now, but we could see crude oil top around $65 to $66 [per barrel], and that again is going to be supportive to airlines," he notes.
- United Airlines (NASDAQ:UAL) and Southwest Airlines (NYSE:LUV) are two names in the sector seen trending by the research firm in the right direction.
- Several other Wall Street analysts are out with notes today calling the sell-off in airline stocks a likely overreaction with Saudi oil production seen recovering nicely.
- American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest and United are all up between 0.50% and 0.85% in premarket action.