Qatar Wants To Buy Airline Stocks; Should You? Investing Action Plan – Investor's Business Daily

Here’s your Investing Action Plan for Friday: what you need to know as an investor for the coming day.

XAutoplay: On | OffAmerican Airlines‘ (AAL) disclosure that Qatar Airways is seeking to buy a 10% stake sent airline stocks in motion early Thursday. The dust has since settled, and shares have backed off earlier intraday highs, as regulatory and political factors weigh on prospects for such a big stake. But the picture is still clear: many top airline stocks remain in or near buy zones, including Southwest (LUV), United Airlines (UAL) and JetBlue (JBLU).

Stocks To Watch

Shares of American were up 1.2% at 48.99 in afternoon trading on the stock market today, back in buying territory after surging as high as 4.4% earlier, shooting beyond the zone.

United dipped 0.4% to 77.30, reversing an intraday gain of 1.7%, but still above its 76.90 entry.

Southwest edged up 0.2% to 61.17, retreating from a record intraday high of 62.29 but still squarely in buy range from a 58.83 entry.

JetBlue eased 0.6% to 22.41, reversing from a 1.5% rally, but shares are still in a buy zone.

Delta Air Lines (DAL) was down less than 0.1% at 52.24, dropping back below a 52.86 buy point cleared earlier in the day.

Airlines stocks have been choppy since the start of the year, marked by periodic panics such as signs of higher labor costs and a customer revolt over poor service, highlighted by United’s infamous dragging incident.

But the larger trend shows key metrics like unit revenue continuing to improve, and oil prices remain low three years after they began their slump, helping offset richer labor contracts and allowing management to return more capital to shareholders.

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