ALK, Best of top 5 airlines to buy based on fundamental study.
So, not looking so much at the short term but looking at a longer term outlook... I decided to compare every single airline stock currently listed on the NYSE and came to the conclusion that Alaska Airlines, in my opinion, by in the best position as per future recovery and is also, in my opinion , undervalued at this time.
Why is this you may ask ?
Well, I essential compared every single airline on the NYSE and isolated the best 5 airlines by simply looking at debt , and EPS and Book per share . The airlines below were the best 5 . After separating them from the others, I took the time to compare some other fundamental metrics too . I couldn't include the original source formatting from excel so it may seem a bit jumbled but I think it's still usable for you guys.
SAVE______$10.56_____P/E -2.16_____Debt/Eq- -0.98_____ EPS This- 114%_____EPS NEXT- 142%_____Cash/share -13.87_____total shares-78mil_____P/C- 0.76_____Book/share- 33.03_____P/B-0.32
LUV_____ $ 27.2 _____ P/E- 8.16_____Debt/Eq--0.56_____EPS This----2%_____ EPS NEXT - 161%_____Cash/share-10.19_____total shares-544mil_____P/C- 2.76_____Book/share-17.62_____P/B-1.54
JBLU _____ $9.09______ P/E-4.73_____Debt/Eq--0.49_____ EPS This- 272%_____EPS NEXT-139%______Cash/share -4.56_____total shares-291.24mil____P/C-1.99_____Book/share-17.77_____P/B-0.54
HA_____$12.91________P/E-2.74_____Debt/Eq---0.71_____EPS This-6.2_____EPS NEXT-118.5%______Cash/share-12.13_____total shares-51m________P/C 1.06_____ Book/share-23.32_____P/B- 0.55
ALK_____$ 30_________P/B-4.85_____Debt/Eq----0.35_____EPS This-75%_____EPS NEXT-197%______Cash/share-11.49_____total shares-132mil_______P/C-2.61_____Book/share-35.18____P-/B-0.85
,
ALK, In my opinion , is the best long term hold. Decent P/E and the lowest debt/equity in the entire industry!! Also, low short float and the highest Book/share of the 5.
LUV did make it on the list and it does have good debt metrics for the industry but its EPS is too high in comparison and it has a considerably lower book/share and its p/c is the highest of the 5.
JBLUE is Good but cash per share is considerably lower than its peers. Other than that, not bad at all .
This leaves SAVE and HA . They are both good bets too but are much more dependent on some cash as their debt levels are both pretty high . Having said that they both have REALLY good P/E and SAVE's book per share is very high , they could definitely prove to provide huge returns but for these last two they are more dependent on market conditions improving sooner rather than later .
All pretty good picks but in my opinion ALK is the best of the bunch . That's not to say we wont see another new bottom in the airline industry in the coming months . But as for the company that will fare the best , I think it is ALK. ALK would not be my only buy out of these 5 but these 5 airlines would be the only ones I would consider buying at this time.
One last thing , I did actually find a small south american based airline (sorry I forget the ticker) with little to no debt but it was very expensive and also had a very very small market cap and I didn't think it was relevant in this study nor did it seem like a good buy, so I omitted.
Best of luck ..
Why is this you may ask ?
Well, I essential compared every single airline on the NYSE and isolated the best 5 airlines by simply looking at debt , and EPS and Book per share . The airlines below were the best 5 . After separating them from the others, I took the time to compare some other fundamental metrics too . I couldn't include the original source formatting from excel so it may seem a bit jumbled but I think it's still usable for you guys.
SAVE______$10.56_____P/E -2.16_____Debt/Eq- -0.98_____ EPS This- 114%_____EPS NEXT- 142%_____Cash/share -13.87_____total shares-78mil_____P/C- 0.76_____Book/share- 33.03_____P/B-0.32
LUV_____ $ 27.2 _____ P/E- 8.16_____Debt/Eq--0.56_____EPS This----2%_____ EPS NEXT - 161%_____Cash/share-10.19_____total shares-544mil_____P/C- 2.76_____Book/share-17.62_____P/B-1.54
JBLU _____ $9.09______ P/E-4.73_____Debt/Eq--0.49_____ EPS This- 272%_____EPS NEXT-139%______Cash/share -4.56_____total shares-291.24mil____P/C-1.99_____Book/share-17.77_____P/B-0.54
HA_____$12.91________P/E-2.74_____Debt/Eq---0.71_____EPS This-6.2_____EPS NEXT-118.5%______Cash/share-12.13_____total shares-51m________P/C 1.06_____ Book/share-23.32_____P/B- 0.55
ALK_____$ 30_________P/B-4.85_____Debt/Eq----0.35_____EPS This-75%_____EPS NEXT-197%______Cash/share-11.49_____total shares-132mil_______P/C-2.61_____Book/share-35.18____P-/B-0.85
,
ALK, In my opinion , is the best long term hold. Decent P/E and the lowest debt/equity in the entire industry!! Also, low short float and the highest Book/share of the 5.
LUV did make it on the list and it does have good debt metrics for the industry but its EPS is too high in comparison and it has a considerably lower book/share and its p/c is the highest of the 5.
JBLUE is Good but cash per share is considerably lower than its peers. Other than that, not bad at all .
This leaves SAVE and HA . They are both good bets too but are much more dependent on some cash as their debt levels are both pretty high . Having said that they both have REALLY good P/E and SAVE's book per share is very high , they could definitely prove to provide huge returns but for these last two they are more dependent on market conditions improving sooner rather than later .
All pretty good picks but in my opinion ALK is the best of the bunch . That's not to say we wont see another new bottom in the airline industry in the coming months . But as for the company that will fare the best , I think it is ALK. ALK would not be my only buy out of these 5 but these 5 airlines would be the only ones I would consider buying at this time.
One last thing , I did actually find a small south american based airline (sorry I forget the ticker) with little to no debt but it was very expensive and also had a very very small market cap and I didn't think it was relevant in this study nor did it seem like a good buy, so I omitted.
Best of luck ..
艾力克~