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Six High Fliers

Sunday marked the official beginning of spring, and for many people—especially ones who have a spring break—this also marked the start of the vacation season. Now, I know that most people’s trips won’t happen until the summer, but there’s something about extra daylight and warmer weather that makes people start to think about (and plan!) vacations.

So this week, I thought we’d take a look at some travel-related stocks. We’ll start today with airlines, both regional and major, which have strong results across the board.

Ticker Fundamental Score
(out of 100)
Technical Score
(out of 100)
Total Score
(out of 200)
Alaska Air Group, Inc. (ALK) 68 97 165
Ryanair Holdings plc (RYAAY) 70 91 161
Southwest Airlines Co. (LUV) 64 97 161
Spirit Airlines, Inc. (SAVE) 71 82 153
American Airlines Group, Inc. (AAL) 70 82 152
Delta Air Lines, Inc. (DAL) 66 82 148

Some of you may remember that I wrote a blog post about airlines just before Thanksgiving last year, and back then, regional airlines (ALK, RYAAY and LUV) were doing much better than major airlines (SAVE, AAL and DAL). Now, both segments are doing very well.

So what changed? Mostly, the price of oil. As oil prices dropped lower and lower, airlines profited more and more. Just like average consumers profited at the pump as gas prices fell, airlines significantly reduced their expenses when fuel prices dropped.

This price change had a quick and noticeable effect on the companies. Currently, all six of the airlines in the chart above receive full marks in the Turner Analytics database for quarter-over-quarter and year-over-year earnings growth. And investors picked up on this trend quickly.

The explosions in Brussels, Belgium, this morning did have a negative impact on a number of airline stocks, including RYAAY, but I expect this to be a short-term set back. Each of the airline stocks we’ve looked at has an excellent stock price and return on equity. They are also all in bullish trading zones, and given their fundamental and technical scores, I expect that trend to continue in the near-term.

So if you’re looking for a Strong Buy to add to your portfolio, I suggest looking into these airline stocks.

To stay on top of my latest stock rankings, consider subscribing to my Turner Analytics database. If you would like a more managed portfolio of stocks, consider subscribing to Signal Investor. Or if you are looking for shorter-term trades, Perfect 10 Trader may be the right service for you.

Sincerely,

Signature

Mike Turner 
Turner Trends

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