In this article, we will take a look at the 5 best airline stocks to buy according to analysts. To read our analysis of the recent market activity, you can go to the 11 Best Airline Stocks to Buy According to Analysts.
5. United Airlines Holdings, Inc. (NYSE:UAL)
Average Analyst Price Target as of February 20: $63.35
Upside Potential as of February 20: 45.77%
Number of Hedge Fund Holders: 43
Chicago, Illinois-based United Airlines Holdings, Inc. (NYSE:UAL) is a leading airline that transports people and cargo throughout North America and destinations in Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. It provides freight and mail services to commercial businesses, freight forwarder and logistic firms as well as the United States Postal Service.
On November 15, United Airlines Holdings, Inc. (NYSE:UAL) and the Houston Airport System announced an investment in United’s hub at George Bush Intercontinental Airport (IAH) with United’s Terminal B Transformation Program. The program encompasses the construction of 40 new gates for both domestic and international travel, with $1.9 billion expected to be invested by the airline and $624 expected to be funded by the City of Houston.
On January 22, United Airlines Holdings, Inc. (NYSE:UAL) released its financial results for Q4 2023 which surpassed consensus estimates with operating revenues of $13.6 billion, up 10% y-o-y, and a net income of $0.6 billion. Its normalized EPS of $2.00 surpassed consensus estimates by $0.30.
4. Copa Holdings, S.A. (NYSE:CPA)
Average Analyst Price Target as of February 20: $159.00
Upside Potential as of February 20: 60.90%
Number of Hedge Fund Holders: 27
Panama City, Panama-based Copa Holdings, S.A. (NYSE:CPA) is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Wingo. Copa Airlines operates from the Republic of Panama, and Wingo operates a low-cost business model within Colombia and various cities in the region.
On February 7, Copa Holdings, S.A. (NYSE:CPA) released its financial results for Q4 2023. Its revenue increased by 3% y-o-y to $917 million while net income increased by 117% y-o-y to $192 million. Its normalized EPS of $4.39 surpassed consensus estimates by $0.57.
The board of directors of Copa Holdings, S.A. (NYSE:CPA) also approved a quarterly dividend of $1.61 per share which translates to a dividend yield of 6.52% based on the share price on February 20.
3. Air Transport Services Group, Inc. (NASDAQ:ATSG)
Average Analyst Price Target as of February 20: $23.29
Upside Potential as of February 20: 65.06%
Number of Hedge Fund Holders: 19
Wilmington, Ohio-based Air Transport Services Group, Inc. (NASDAQ:ATSG) is a leading provider of aircraft leasing and cargo and passenger air transportation and related services to domestic and foreign air carriers and other companies that outsource their cargo and passenger airlift requirements.
On November 6, Air Transport Services Group, Inc. (NASDAQ:ATSG) released its financial results for the three months ended September 30, 2023. It generated total revenues of $523 million and a net income of $17 million. It generated a normalized EPS of $0.32 for the quarter which missed the consensus estimate by $0.17.
As of Q4 2023, Air Transport Services Group, Inc. (NASDAQ:ATSG) shares were owned by 19 hedge funds with the total shares held by them valued at $106 million. D E Shaw was the lead hedge fund shareholder with ownership of 1.3 million shares valued at $24 million.
Like other stocks such as American Airlines Group Inc. (NASDAQ:AAL), United Airlines Holdings, Inc. (NYSE:UAL), and Delta Air Lines, Inc. (NYSE:DAL), the shares of Air Transport Services Group, Inc. (NASDAQ:ATSG) are among the 11 best airline stocks to buy according to analysts.
2. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS)
Average Analyst Price Target as of February 20: $13.79
Upside Potential as of February 20: 80.73%
Number of Hedge Fund Holders: 12
Mexico City, Mexico-based Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS) is an ultra-low-cost carrier, with point-to-point operations, serving Mexico, the United States, Central and South America.
On January 26, Goldman Sachs analyst Bruno Amorim lowered the price target for Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS) shares to $11.1 from $12.4 and maintained a ‘Buy’ rating for its shares.
As of Q4 2023, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS) shares were owned by 12 of the 933 hedge funds tracked by Insider Monkey. Michael Moriarty’s Teewinot Capital Advisers was at the top of this list with ownership of 3.2 million shares valued at $30 million.
1. Azul S.A. (NYSE:AZUL)
Average Analyst Price Target as of February 20: $14.59
Upside Potential as of February 20: 94.02%
Number of Hedge Fund Holders: 13
Sao Paulo, Brazil-based Azul S.A. (NYSE:AZUL) is the largest airline in Brazil by number of flight departures and cities served. It offers around 1,000 daily flights to over 160 destinations with an operating fleet of over 180 aircraft.
On December 7, Azul S.A. (NYSE:AZUL) released its financial results for Q3 2023. Its total operating revenue increased by 12% y-o-y to R$4.9 billion, while net loss decreased by 35% y-o-y to R$1.1 billion.
As of Q4 2023, 13 prominent hedge funds tracked by Insider Monkey held shares of Azul S.A. (NYSE:AZUL), valued at $54 million. Howard Marks’ Oaktree Capital Management was the lead hedge fund shareholder with ownership of 1.6 million shares valued at $15 million.
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