Add to your watch lists for September 14: UAL,AMR,U,DAL,CAIB (related to earnings season)
An article in Barron's September 14, thinks the airlines are in pretty good shape citing the cost cutting by having greatly increased their ability to fill planes in both good times and bad by offering fares that will stimulate tourist demand.
Airline shares are trading for about seven to eight times this year's earnings per share. That's a level far below where they were trading at the last cycle peak in 1989, and it's far below the currentP/E multiple for the overall stock market, which is 25 times earnings.
Delta, UAL, AMR, and other cited as being undervalued by many Fund Managers. speaking of UAL: stock was on blue-light special. It was six times earnings, just too cheap..
...others say.. airlines are in a extended high profit cycle that will continue for the next year or two. ...I like them, they're cheap. the sell off of a few months ago was pretty excessive given the fundamentals of the story.. another analyst expects Delta's earnings to surge to $13 a share this year, from $11.30 a share last year. If investors were to accord Delta the higher price-to-earnings ratio he thinks it deserves, the airline's share price could leap to somewhere between 160-170 a share...
It's a very in-depth and comprehensive feature..
These are the very last words ....FAR sighted investors, now looks like the time to buy. |
