Report
Shelley Moen
EUR 231.76 For Business Accounts Only

Insights: Bullish Airline Stocks

Many methods exist to identify demand for a stock. One, which is just as rare--fortunately--as it is telling, occurs when a company physically drags a customer off their property, assembles an unrepentant apology about “re-accommodating” passengers, only to have their stock briefly dip lower then bid up to multi-month highs. Such, as we know, was the case for UAL.

But even more telling of strong demand is when most stocks in a industry simultaneously exhibit bullish inflections. This is currently the case for airlines, both in the U.S. and abroad, developed and emerging. As seen below, our global airline index--88 stocks in total--is swiftly inflecting higher, with relative strength rebounding off a 16-year trendline--add exposure.

In today's report we highlight the following charts -- all buy recommendations:

• U.S.: AAL, ALK, DAL, HA, JBLU, LUV, SKYW, UAL

• Developed Int'l: Air Canada (AC-CA), ANA Holdings (9202-JP), Deutsche Lufthansa (LHA-DE), easyJet (EZJ-GB), Finnair (FIA1S-FI), IAG (IAG-GB), Quantas Airways (QAN-AU), Ryanair (RYAAY)

• Emerging Market: AirAsia (5099-MY), Air China (753-HK), Cebu Air (CEB-PH), HANJIN KAL (180640-KR), Jet Airways (532617-IN), SpiceJet (500285-IN)

For a trial to Vermilion Research, visit our website at www.vermilioncap.com or contact our sales team at (612) 315-4082.
Underlying
Air Canada

Air Canada is a domestic and international airline Company. Co. is engaged in the provision of scheduled passenger services in the Canadian market, the Canada-United States transborder market and in the international market to and from Canada. Through its subsidiaries, Co. also operates in low-cost carriers segment, providing service to customers in lower density markets and also in higher density markets at off-peak times throughout Canada and the United States. Co. also provides air cargo services on domestic and the U.S. transborder flights; tour operator services which operate in the outgoing leisure travel market; and ground handling services.

Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Shelley Moen

Other Reports on these Companies
Other Reports from Vermilion Research

ResearchPool Subscriptions

Get the most out of your insights

Get in touch