In this article, we discuss the 5 best airline stocks to buy today. If you want to read our detailed analysis of these companies, go directly to the 10 Best Airline Stocks To Buy Today.
5. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 39
Chicago-based air transport company United Airlines Holdings, Inc. (NASDAQ:UAL) ranks fifth on the list of 10 best airline stocks to buy today. United Airlines Holdings, Inc. (NASDAQ:UAL) provides domestic and international air transportation services for passengers and cargo.
Airlines stocks are flying higher as the sector reopens following COVID-19, and institutional investors are becoming more bullish on United Airlines Holdings, Inc. (NASDAQ:UAL). Israel Englander of Millennium Management is one of the major stakeholders of the Chicago-based airline company, owning 1.28 million shares worth $56.7 million. Overall, 39 funds of the 873 elite funds tracked by Insider Monkey reported owning stakes in United Airlines Holdings, Inc. (NASDAQ:UAL) at the end of June 2021.
United Airlines Holdings, Inc. (NASDAQ:UAL) saw its stock rise 1.60% in premarket trading on October 7 after the airline revealed that it would provide over 3,500 daily domestic flights in December, up 91% from 2019, for the holiday season.
The company’s revenue in the second quarter of 2021 was $5.47 billion, beating revenue estimates by $116.02 million. With the improvement on travel restrictions, United Airlines Holdings, Inc. (NASDAQ:UAL) reported a year-over-year increase of 541.1% in consolidated passenger revenue in the second quarter to $4.36 billion.
On September 14, Morgan Stanley analysts kept an Equal-weight rating on United Airlines Holdings, Inc. (NASDAQ:UAL) with a price target of $64 per share. The stock gained 16.12%, year to date.
4. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 49
Ranking fourth on the list of 10 best airline stocks to buy today is Delta Air Lines, Inc. (NYSE:DAL). The Atlanta-based airline company is operating a fleet of 1,100 aircraft. Delta Air Lines, Inc. (NYSE:DAL) provides air transport for cargo and passenger clients in the US and internationally.
After halting expansion projects in Boston in 2020 owing to COVID-19, Delta Air Lines, Inc. (NYSE:DAL) has resumed its pre-pandemic growth strategy. On October 3, the airline announced new routes to Baltimore, Athens, Tel-Aviv, Denver, and San Diego in summer 2022. By next summer, the company plans to operate up to 160 daily departures from Boston, representing a 20% increase in capacity since pre-pandemic levels in October 2019. Shares of Delta Air Lines, Inc. (NYSE:DAL) climbed 9.48%, year to date.
As of the end of the second quarter, 49 hedge funds tracked by Insider Monkey reported owning stakes in Delta Air Lines, Inc. (NYSE:DAL). The total worth of these stakes is $1.22 billion.
On October 14, Morgan Stanley analyst Ravi Shanker maintained an Overweight rating on United Airlines Holdings, Inc. (NASDAQ:UAL) with a price target of $62 per share. The airline recently announced its third-quarter revenue of $9.15 billion, beating revenue estimates by $689.4 million.
3. Southwest Airlines Co. (NYSE:LUV)
Number of Hedge Fund Holders: 49
Southwest Airlines Co. (NYSE:LUV) operates a fleet of 736 Boeing 737 aircraft and it ranks third on the list of 10 best airline stocks to buy today.
Southwest Airlines Co. (NYSE:LUV) stock jumped 1.90% in premarket trading on October 4 after Barclays analyst Brandon Oglenski upgraded the airline stock to Overweight from Equal-Weight and raised his price target for the stock to $75 from $64.
The company’s revenue in the second quarter came in at $4 billion, an increase of 297.6% year over year, and it outperformed revenue estimates by $69.46 million, owing primarily to increases in leisure passenger traffic and fares. Southwest Airlines Co. (NYSE:LUV) had 736 Boeing 737 aircraft, including 68 MAX 8 aircraft at the end of the second quarter of 2021. The stock gained 38.3% in the past twelve months and 15.7%, year to date.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $926 million in Southwest Airlines Co. (NYSE:LUV), down from 52 in the previous quarter worth $747 million.
In its Q1 2021 investor letter, ClearBridge Investments mentioned Southwest Airlines Co. (NYSE:LUV) and shared their insights on the company. Here is what the fund said:
“One of our goals as we constantly monitor the portfolio is to see if we can better deploy capital by lowering the probability of being wrong. This motivation drove our swap of Delta Airlines into Southwest Airlines during the quarter. We expect a huge rebound in airline traffic as COVID-19 concerns abate, but we are much more comfortable that it will be led by leisure travel. Conversely, we are more uncertain of the ultimate level and timing of business travel demand. Southwest, with its simple fare strategy and high leisure travel exposure, is better positioned to capture the ongoing traffic rebound without having to answer the business travel demand question on which Delta is more dependent. As a result, we expect Southwest to play serious offense as it gains share in the rebounding travel market and can fully leverage the massive pent-up demand for travel that we expect. In addition, the U.S. lead in vaccination over Europe favors Southwest over Delta, given the domestic focus of Southwest. COVID-19 has changed many things, but humans by their very nature like to move, and many of them will do it on Southwest.”
2. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 59
The Boeing Company (NYSE:BA) is a Chicago-based aerospace company that ranks second on the list of 10 best airline stocks to buy today. The Boeing Company (NYSE:BA) manufactures commercial jets as well as military aircraft. In September, the US Army granted the aerospace and defense firm a $391 million deal for up to five CH-47F renew planes.
Shares of The Boeing Company (NYSE:BA) climbed 4.2% on July 28 after the aviation company reported solid Q2 results bagging a revenue of $17 billion, an increase of 44% year over year.
In the second quarter, revenue from its commercial aviation unit increased by 268% year over year to $6.02 billion. The stock gained 35% in the past twelve months.
Of the 873 elite funds tracked by Insider Monkey, 59 were long The Boeing Company (NYSE:BA) at the end of June. New York-based hedge fund Beech Hill Partners increased its stake in The Boeing Company (NYSE:BA) by 1% to 5,612 shares worth $1.23 million.
On September 29, Bernstein analyst Douglas Harned upgraded The Boeing Company (NYSE:BA) to Outperform from Market Perform and increased his price target for the stock to $279 from $252, citing a positive outlook about the company’s position in the market as global travel resumes.
1. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 87
Expedia Group, Inc. (NASDAQ:EXPE) tops the list of 10 best airline stocks to buy today. Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that provides airline booking services to clients all over the world. The company has over 500 airline partners globally. In addition, the travel company provides online booking for hotel accommodations, tours, and restaurants.
On September 13, Goldman Sachs analyst Eric Sheridan initiated a Buy rating on Expedia Group, Inc. (NASDAQ:EXPE) with a price target of $185 per share.
The company’s second-quarter revenue was $2.11 billion, up 273% year over year, and beat revenue estimates by $128 million. Air revenue accounted for 4% of overall revenue in the second quarter and the segment revenue grew mostly due to the increase in tickets sold as air travel demand improved.
Expedia Group, Inc. (NASDAQ:EXPE) stock gained 2.2% on September 24 after CEO Peter Kern revealed that the company had just merged its loyalty rewards programs into one system. In addition, Expedia Group, Inc. (NASDAQ:EXPE) also invested in standardizing group data and algorithms to enhance traffic in its travel booking app and website, which has already starting to pay off with more testing and user information. The stock gained 28.4%, year to date.
At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $5.92 billion in Expedia Group, Inc. (NASDAQ:EXPE), up from 86 in the previous quarter worth $6.16 billion.
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