Investment Manager Reveals Top Airline Stocks to Buy on the Dip in 2024
In the aftermath of the Covid-19 crisis, savvy investors seized the opportunity to scoop up airline stocks at bargain prices. While that window of opportunity may have closed, the strategy of investing in undervalued air travel assets remains relevant. In fact, we could be on the cusp of a similar opportunity.
The trend of revenge travel, where people sought out new experiences post-pandemic, may have subsided. However, a new trend of travel prioritization has emerged. Despite economic challenges like inflation and high borrowing costs, households continue to allocate funds for vacations and leisure activities.
The catalyst driving this shift is unclear, but it could be a realization that life is short. With that in mind, here are some airline stocks worth considering for investment:
Delta Air Lines (DAL):
Delta Air Lines suffered a setback due to a software update outage, leading to a significant loss in market value. However, with strong travel demand and anticipated revenue growth, DAL stock presents an opportunity for investors.
Southwest Airlines (LUV):
Specializing in the discount segment, Southwest Airlines has seen a decline in market value recently. Despite this, the company is well-positioned to benefit from the trend of prioritizing travel experiences.
United Airlines (UAL):
As a major player in the industry, United Airlines offers a range of domestic and international flights. With a strong performance record and attractive valuation, UAL stock is worth considering for investment.
Overall, the current landscape presents an opportunity for investors to capitalize on undervalued airline stocks. By understanding the trends shaping consumer behavior and economic factors, investors can make informed decisions to potentially benefit from the recovery of the airline industry.