Mark Holder
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Airlines - Don't Let These Deals Fly By

In an interesting twist typical of Wall Street, the oil stocks are rallying and the airline stocks are down after the Doha meeting over the weekend failed to reach a oil production freeze. The ironic part though is oil is still down slightly for the day as the move was bearish for the commodity. Is the move today a headache?

Whether or not oil heads down back into the mid-$30s are irrelevant for the airlines. The news remains firmly planted that oil producers will pump full throttle as oil hits the mid-$40s and airlines will thrive in that pricing environment. Use any dips to buy airlines trading at insanely cheap multiples of 2017 earnings. 

American Airlines Group (AAL) - 6.4x 

Alaska Air Group (ALK) - 10.3x 

Delta Air Lines (DAL) - 6.6x

Spirit Airlines (SAVE) - 11.0x 

Use any dips to buy a legacy airline like American Airlines or Delta Air Lines trading at exceptionally low P/E multiples and a regional airline like Alaska Air or Spirit Airlines trading below growth rates. 

Disclosure: Long AAL