10 Best Airline Stocks to Buy For 2024

2. United Airlines Holdings Inc (NASDAQ:UAL)

Number of Hedge Fund Investors: 46

United Airlines Holdings Inc (NASDAQ:UAL) is one of the best airline stocks to buy for 2024 according to hedge funds. The stock is up about 29% so far this year. Last month, Jefferies analyst Sheila Kahyaoglu gave a Buy rating to the stock, saying the stock presents a wealth creation opportunity.  The analyst, who has a $65 price target on the stock, highlighted United Airlines Holdings Inc’s (NASDAQ:UAL) shareholder returns, free cash flow potential, and international margin upside. United Airlines Holdings Inc (NASDAQ:UAL) in April surprised the Wall Street with its strong Q1 results despite the Boeing 737 MAX 9-related impact earlier this year. United Airlines Holdings Inc’s (NASDAQ:UAL) Q2 expectations are also upbeat. It expects EPS in the range of $3.75 and $4.25, compared to the Wall Street estimates of $4.  Based on Wall Street’s EPS estimate for United Airlines Holdings Inc (NASDAQ:UAL), United Airlines Holdings Inc’s (NASDAQ:UAL) EPS growth next year is expected to come in at around 17%. Over the next five years, United Airlines Holdings Inc (NASDAQ:UAL) growth is forecasted to remain at around 29% on an annual basis.  In this backdrop, United Airlines’ P/E of 6.5 makes the stock look undervalued. The industry median P/E is 18.7.

A total of 46 hedge funds tracked by Insider Monkey reported owning stakes in United Airlines Holdings Inc (NASDAQ:UAL) as of the end of the first quarter.

ClearBridge Value Equity Strategy stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its fourth quarter 2023 investor letter:

“Our industrials stocks faced headwinds early in the quarter due to fears of a recession, which weighed on some of our more cyclical industrials such as United Airlines Holdings, Inc. (NASDAQ:UAL). Additionally, the Fed’s pivot and the prospect of rate cuts in 2024 helped fuel a rally in lower-quality industrials that we did not hold, further dampening the performance of our high-quality holdings.”