Five Airline Stocks That Have Soared to New Heights

Last August Stocks on Wall Street wrote a piece ‘Five Airline Stocks Ready to Pop!‘ To date it has been one of our top-performing sectors with all five stocks rising and three of them becoming big-time winners. Below is a recap of how the five airline stocks have faired and what to expect going forward.

Allegiant Travel (ALGT) ⇧78.31

Allegiant Travel has been one of the top performing stocks over the past year and a surprise to everyone. While many investors liked Allegiant and thought it was a well-run company and a solid stock, no one could have expected quite a jump like this. Going forward there is still room to grow as they continue to expand their business and acquire new loyal customers, Deutsche Bank agrees recently upgrading the stock to a Buy. While this is great and all, some of you out there might want to consider taking a conservative approach and sell off some of your shares, take your profits, and play with the house’s money. Analysts across the street are taking a similar approach as the breakdown of all 16 analysts currently covering ALGT is: 5 Strong Buy, 5 Buy, 5 Hold, & 1 Underperform. The surprise factor is no longer there but that’s not to stop Allegiant from once again beating the street’s expectations as they continue to pump out great earnings and higher revenue numbers.

 In our previous article we wrote:

“Allegiant runs a passenger airlines geared to leisure travel and currently flies to 64 smaller cities across the U.S. that major airlines tend to ignore. It’s the same strategy that Wal-Mart originally implemented, concentrating on markets that other retailers ignored. Over the course of the past five years earnings have grown at a rate of 38%, an impressive number when you factor that most of the industry is losing money. Look for ALGT to surprise everyone with upbeat earnings and investor outlook sending the stock price higher.”

Boeing (BA) ⇧15.66

Boeing has been safe and steady stock to own throughout 2011 and 2012. Soaring over 40% in 2010 and 2011, Boeing has slowed down a little but nevertheless been a steady riser gaining close to 16% over the course of the past year. Going forward we like Boeing and expect the stock to continue to steadily rise with a strong outlook ahead, bullish analyst coverage and upbeat expectations. We originally pegged it to rise to $95 and we’re sticking with that price target. With more huge contracts to come, a solid book of business top to bottom, no cash flow problems, and a great business overall the future looks great for Boeing.

In our previous article we wrote:

“Boeing is an aerospace and defense company that has soared 40%+ the past year. Don’t expect this trend to stop anytime soon as pegged against its PEG ratio the stock is relatively cheap. With huge contracts on the way, strong book, and excellent cash flow all bodes well for Boeing expect it to rise to $95.”

Delta Air Lines (DAL)  ⇧56.27 

Delta is a stock we like a lot and like Allegiant its been one of our biggest winners and surprises over the past year. They are one of the great success stories making such a strong comeback after their shaky past history dealing with bankruptcy and restructuring problems and failing to become relevant. Well they are relevant now! Don’t expect the stock to duplicate it’s amazing past performance nevertheless we’re still confident investors will see nice steady gains. The business from top to bottom is solid, holding a PEG Ratio of 0.12 and they have a lot of great things going for them paving the way to a great 2012 2nd half performance.

 In our previous article we wrote:

“Delate Air Lines provide air transportation for both passengers and cargo. Despite it’s shaky history the stock has successful exited bankruptcy and become relevant once again. The stock is relatively cheap compared to the rest of the sector making it a good potential investment.”

Southwest Airlines (LUV) ⇧6.56

Southwest Airlines has been one of the biggest surprises for not the reasons we had expected. Of these five stocks, we expected LUV to be the top performer however that has failed to be the case. If you currently own the stock we recommend you to hold onto it but new investors don’t be jumping out to buy this one, there are better airline stocks to own.

In our previous article we wrote:

“Southwest is a proven winner, year in and year out. They are the leading discount airline across the U.S. and have been a revenue machine which has translated to strong overall stock performance. While analysts expect this trend to continue there is one potential downside to watch out for. Southwest’s success historically has been the result of a fuel hedging strategy. It was a great idea when fuel price was originally skyrocketing, but now that prices are stabilizing and getting cheaper it may result in an overpayment which is something to watch out for. Nevertheless LUV is a great company top to bottom.”

UAL Corp (UAL)  ⇧42.26

UAL Corp has been an outstanding investment, better than anything we could have imagined. Like Delta Airlines, they were another stock working through some bankruptcy restructuring issues and having troubles with becoming relevant in the industry. They have done a fabulous job reinventing themselves and become relevant again. With the worst of their problems behind them and strong analyst coverage along with upbeat expectations expect UAL to continue to perform well throughout this year and into next.

In our previous article we wrote:

“UAL Corp owns United Air Lines. This stock to has emerged again after enduring a bankruptcy restructuring. The stock has soared recently though expect this trend to continue as projected earnings ratio is very favorable.”

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  1. Siya Technocrat says:

    I
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