Airlines experienced a resurgence in recent years as investors flocked to these once hated stocks. After the September 11th, 2001 attacks the ARCA Airline dropped from $180 to $120. It barely peaked above $60 before tanking to $15 with the rest of the market in 2009. Since then the index increased 8x through 2017.
Delta Airlines (NYSE: NYSE:DAL) exited bankruptcy in 2007. Shares dropped from an open at $19.10 per share down below $4 a share in 2009. Yet, the stock took off to over $60 a share through 2017. Their current share prices reflect modest growth but a low P/E and good value.
American Airlines Group (NASDAQ:AAL) saw a high of $62 a share in 2007 to crash down below $2 a share in 2009. Yet, in 2018 the stock hit a high of $58 a share, 29x it’s low. With a rock-bottom P/E of 6.06x and a great PEG ratio, why wouldn’t you want to own AAL?