Finally, after a long summer of increasing numbers of cases of the Delta variant, experts think that the rate of new cases should continue to decline drastically by the end of September. That’s extremely good news for an economy and society that has been dealing with this health crisis for almost two years. It has been well documented who are the winners and the losers across Wall Street during this time, and one industry that has had its shares of trouble and has been on a roller-coaster ride looks poised to rebound big over the fourth quarter and in 2022.
The airline industry at one point in 2020 looked doomed, as air travel ground to a near halt. While there was a strong rebound as 2021 started, things have reversed some due to the surge in Delta variant cases. The good news from the medical prognosticators like Dr. Scott Gottlieb is that the former FDA chief said the peak of the Delta surge in the United States likely will be in late September, hitting northern states after rates slow in the South.
We screened our 24/7 Wall St. research universe looking for airline stocks that were rated Buy across Wall Street and are offering investors a great entry point. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This company has big west coast exposure and continues to rank high on Wall Street as consumers return to the sky for business and holiday travel. Alaska Air Group Inc. (NYSE: ALK) is the parent company of Alaska Airlines, which serves more than 100 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. Despite recent challenges by other carriers for superiority in the Northwest, the company has strong customer loyalty, which has contributed to outstanding earnings and revenue growth.
Alaska Air focuses on point-to-point traffic in the Pacific Northwest. However, about 20% of its traffic connects over its hubs in Anchorage, Seattle, and to a lesser extent Portland. By developing transcontinental markets, and more recently Hawaii, the company has transformed from a largely north-south directional carrier to one with a more balanced network.
BofA Securities has an $80 price target on Alaska Air stock. The Wall Street consensus target is even higher at $81.71, but shares traded at $57.80 early Wednesday.
Delta Air Lines
This stock consistently has ranked high with Wall Street and, after a stiff reversal, looks like a great bargain now. Delta Air Lines Inc. (NYSE: DAL) provides scheduled air transportation for passengers and cargo in the United States and internationally.
Its domestic network is centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK and Seattle. Its international network is centered on hubs and market presence in Amsterdam, London-Heathrow, Mexico City, Paris-Charles de Gaulle and Seoul-Incheon.
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