Which are the best airline stocks to buy right now? In this video, I talk about my 3 favorite airline stocks to buy right now due to lower prices and positive news in regards to the CARES Act bailout.
The CARES Act was signed into law by President Trump and ensures the airlines will be able to stay afloat, keep their employees and save a lot of money on taxes. These stocks have been rallying ever since the bill came into law with Southwest Airlines (LUV) showing these most bullish strength.
Here's my list of the best Airline stocks to buy right now:
1. Southwest AIrlines (LUV)
LUV stock is probably the best overall airlines in terms of profitability and customer satisifaction. The company has produced a profit for 47 consecutive years and has a stronger balance sheet than most airlines. The stock has already recovered much of the losses since the COVID-19 outbreak and is the safest choice to survive a domestic & international flight hiatus. In times like these, I lean towards quality because LUV has a reputation of surviving hard times like 911 & the 2008 financial collapse.
2. Delta AIrlines (DAL)
Delta airlines is a stock I personally hold in my IRA retirement account because I fly with them all the time. While they aren't as strong as Southwest, they are one of the more profitable airlines and should survive this mess. DAL stock has taken the biggest beaten out of my 3 recommendations, trading around 44% off its 1 -month high. I'm actively buying Delta stock now because I plan to hold the shares for 20+ years.
3. United Airlines (UAL)
United is losing $100 million a day due to the Coronavirus but they hold the most comprehensive fleet in the world. The company has done a lot of things to survive the crisis and should be okay. I prefer LUV or DAL but UAL is my 3rd best choice.
Let'se wait and see how things shake out for the airline industry. I'm going with quality when it comes to airline that will survive the Coronavirus crisis.
Consider adding any of these stocks to your portfolio since they are well off their 52 week highs.
Disclosure: I own shares of Delta Airlines (DAL)