Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Stocks
Stocks: DAL

Is Now a Good Time to Buy Airline Stocks?

By Money Morning Staff Reports, Money Morning • May 22, 2020

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Airlines were some of the hardest-hit stocks during the bear market brought about by the coronavirus. In fact, the Dow Jones U.S. Airline Index is still down 60% today from its Feb. 12 closing high. Even worse, last week's low was below the initial panic low in March.

In other words, the broad market's rebound happened without any help from airlines at all.

So is now a good time to buy airline stocks? Money Morning Chief Investment Strategist Shah Gilani says it's "up in the air" in a bad way.

The broad view is that most industries will recover, but not all. And we're going to show you why today. Then we'll show you an industry to buy instead as the economy recovers.

First, here's why there's no telling the fate of the airline sector...

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.

Airline Stocks Are Not What You Think

With such a disparity in performance, investors might see this as a buying opportunity. Airline stocks have nowhere to go but up, right?

The economy is starting to open. People are itching to get back to work and to move about like they used to.

COVID-19 lockdowns inspired a lifestyle change that's kicking a new billion-dollar market into high gear - and this stock is the best way to play it. Get the pick here - it's free...

Many businesses are learning to adapt to social distancing and facemasks. They are cleaning their restaurants and stores to prevent the spread of the virus. And they want to make customers feel safe and comfortable spending their money.

Why aren't airlines included here? They're taking every measure to keep customers and employees safe, after all. They're blocking middle seats and changing boarding procedures to help customers. They know people are still very leery of being cooped in a flying tube with strangers.

Airline stocks even offer some beefy dividend yields. For example, Delta Air Lines Inc. (NYSE: DAL) has a dividend yield of 6.96%. And price/earnings ratios are among the lowest. Delta's trailing p/e is 4.33.

So why then are people like Warren Buffett steering clear of the airline sector?

Here's what Shah has to say...

The Real Reason to Avoid Airline Stocks

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments


Latest News

June 7, 2023 • By Garrett Baldwin

(no title)

June 7, 2023 • By Garrett Baldwin

(no title)

June 7, 2023 • By Garrett Baldwin

A picture containing text, screenshot, font, line Description automatically generated
Postcards: This Value Strategy is Great for Finding Breakouts
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz