5 Best Airline Stocks to Invest In Right Now

In this article, we will take a look at the 5 best airline stocks to invest in right now. To see more such companies, go directly to 11 Best Airline Stocks to Invest In Right Now.

5. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 46

General Dynamics Corporation (NYSE:GD) is a global company specializing in aerospace and defense. It has four segments: Aerospace, which makes business jets and provides services; Marine Systems, which builds submarines and ships; Combat Systems, which produces armored vehicles and weapons; and Technologies, which offers IT and communication solutions.

A total of 46 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in General Dynamics Corporation (NYSE:GD). The biggest stakeholder of General Dynamics Corporation (NYSE:GD) during this period was James A. Star’s Longview Asset Management, which owns a $6.09 billion stake in the company.

On July 28, Wells Fargo & Company increased its target price on General Dynamics Corporation (NYSE:GD) from $244 to $258 and assigned it an “Overweight” rating.

4. Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders: 56

Delta Air Lines, Inc. (NYSE:DAL) is an airline company that flies passengers and cargo in the U.S. and abroad. It has two segments: Airline and Refinery. It has hubs in 14 cities across the world and sells tickets through various channels. It also offers aircraft maintenance, vacation packages, charters, and programs. It has about 1,250 planes.

As of the end of the second quarter of 2023, 56 hedge funds out of the 910 funds in Insider Monkey’s database had stakes in Delta Air Lines, Inc. (NYSE:DAL). Thomas E. Claugus’ GMT Capital is the largest stakeholder of the company, with 6.34 million shares worth $301.47 million. On September 18, Citi analyst Stephen Trent reduced the price target on Delta Air Lines, Inc. (NYSE:DAL)to $64 from $67, all while upholding a ‘Buy’ rating.

Here is what Miller Value Partners specifically said about Delta Air Lines, Inc. (NYSE:DAL) in its Q3 2022 investor letter:

“Delta Air Lines, Inc. (NYSE:DAL) ($29.42) is a high-quality airline (yes, there really is such a thing!). It didn’t issue any equity in the pandemic. It focuses on delivering a superb customer experience and has brand loyalty (including a stable revenue stream from partner American Express, growing at 20%/ year). Maybe the best evidence: it’s managed to outperform the S&P 500 over the past decade despite a horrible pandemic ending point (+13.2% vs. 11.7%1 ). It trades for 4x 2024 earnings! If it eventually trades at Southwest’s historical valuation, it implies this stock should double as well.”

3. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders: 57

Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that operates in the U.S. and abroad. It has different brands that offer various travel services, such as flights, booking hotels, cars, cruises, and vacation rentals. Its brands include Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, and trivago.

Insider Monkey’s database of 910 hedge funds shows that 57 hedge funds out of the 910 funds had stakes in Expedia Group, Inc. (NASDAQ:EXPE). The biggest stakeholder of Expedia Group, Inc. (NASDAQ:EXPE) during this period was Paul Reeder And Edward Shapiro’s

PAR Capital Management, which owned a $371.93 million stake in the company.

2. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 57

The Boeing Company (NYSE:BA) is a global company that makes and sells various aerospace products. It produces commercial planes, military aircraft, satellites, missile defense, and space systems. On August 28, TD Cowen analyst Cai von Rumohr increased his price target on The Boeing Company (NYSE:BA) to $260 from $255 while maintaining an ‘Outperform’ rating on the stock.

Insider Monkey’s database of 910 hedge funds shows that 57 hedge funds had stakes in The Boeing Company (NYSE:BA). The biggest stakeholder of The Boeing Company (NYSE:BA) was Adage Capital Management, which had a $438.60 million stake in the company.

1. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 78

Booking Holdings Inc. (NASDAQ:BKNG) offers online services for travel and restaurant reservations worldwide. It runs Booking.com, Rentalcars.com, and Priceline, which lets customers book accommodations, cars, flights, cruises, and more.

As of the end of the second quarter of 2023, 78 hedge funds in Insider Monkey’s database of hedge funds had stakes in Booking Holdings Inc. (NASDAQ:BKNG). Guardian Capital’s GuardCap Asset Management is the most significant shareholder of the company, with $849.67 million stake in the company.

Ivan Feinseth, an analyst at Tigress Financial, increased the price target on Booking Holdings Inc. (NASDAQ:BKNG) by 12.4% on August 17, 2023, raising it from $3,430 to $3,855. The analyst also reaffirmed their ‘Strong Buy’ rating for the stock.

Here is what L1 Capital International Fund said about Booking Holdings Inc. (NASDAQ:BKNG) in its first quarter 2023 investor letter:

“Booking Holdings Inc. (NASDAQ:BKNG) was the largest positive contributor to the March 2023 quarterly performance. We meaningfully added to our investment in Booking in the middle of 2022 when the market was overly focused on disruptions to travel in Europe caused by airport understaffing and other COVID-19 induced inefficiencies, as well as concerns that an economic downturn would materially reduce discretionary travel. Since then, the travel environment has continued to normalise, with China being the last major market to open travel borders post COVID-19. People the world over have demonstrated their ongoing desire to travel, an industry that has historically grown significantly faster than GDP growth. Management has continued to execute a well-planned strategy to increase connections with customers booking accommodation, including offering flights, on ground transport, activities and payment options. After increasing over 20% in the December 2022 quarter, Booking’s share price increased a further 30%+ during the March 2023 quarter. Booking is now trading within our assessed view of fair value. We retain confidence that management will continue to deliver returns to shareholders and Booking remains one of the Fund’s largest holdings.”

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