Airline Stocks Look Cheap Enough to Buy for U.S. Global: Chartby
U.S. airline stocks are so inexpensive that they offer “many attractive buying opportunities,” Frank Holmes, chief executive officer of U.S. Global Investors Inc., wrote two days ago in a blog posting. The S&P 500 Airlines Index’s price-earnings ratio relative to the S&P 500 fell to its lowest level in more than 20 years on June 27 and is just above that low, according to data compiled by Bloomberg. American Airlines Group Inc. and United Continental Holdings Inc. trade at less than five times earnings -- and only one other stock in the benchmark index, Transocean Ltd., is below that threshold.