12 Best Aviation Stocks to Buy According to Hedge Funds

2. United Airlines Holdings Inc. (NASDAQ:UAL)

Number of Hedge Fund Investors: 54              

Major US network carrier United Airlines Holdings Inc. (NASDAQ:UAL) has hubs in New York/Newark, Los Angeles, Chicago, Houston, Denver, San Francisco, and Washington, D.C. United’s hub-and-spoke system is more geared toward long-haul and international travel than its major US competitors.

United Airlines Holdings Inc. (NASDAQ:UAL) has seen a significant YTD increase of over 133%, making it one of the best airline stocks.

Revenue in the third quarter of 2024 increased by 2.48% annually. United Airlines Holdings Inc. (NASDAQ:UAL)’s Q3 revenue growth was fueled by strong corporate demand, resilience in the premium and basic economy categories, and industry-wide capacity adjustments. The company surpassed profitability projections despite the CrowdStrike outage and unrest in the Middle East, which resulted in a 16% increase in the stock price and the approval of a $1.5 billion share repurchase program.

Deutsche Bank maintained its Buy recommendation on United Airlines Holdings Inc. (NASDAQ:UAL) shares and increased the price objective from $80 to $125. For 2025, the business suggests owning the airline sector leaders—American, Delta, and United—which account for the majority of the industry’s profits. As the airline company aims for profit accretion and margin expansion in the first year, “an outcome that is unheard of in any airline merger,” the analyst advised investors in a research note that they should also familiarize themselves with the Alaska merger tale in 2025. Additionally, Deutsche favored a number of “niche ideas” with small and mid-cap stocks, including JetBlue, SkyWest, and Sun Country. Deutsche Bank argues that although airline stocks are “beginning to get a bid,” values are still appealing, even for companies that have seen exceptionally high share price increases in 2024.

Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 5.79 million shares worth $330.15 million as of Q3.