One Just Filed for Bankruptcy, But Others Are Flying I’m glad to be staying home for Thanksgiving. I’ve done the travel thing in years past, and as much as I usually enjoy traveling, I can’t say that was true in the days before and after Thanksgiving. And today, an airline that flew 44 million passengers in 2023 filed for bankruptcy. Spirit Airlines (SAVE) has had a tough year. The Justice Department successfully sued to block a planned merger with JetBlue (JBLU), and it has also lost money and encountered engine problems that grounded some of its planes. If you happen to be flying Spirit for Thanksgiving, you should be fine. The airline isn’t going anywhere at the moment, and most flights should stay on the schedule. Investors who happen to own the stock aren’t feeling as good. It now trades for a little over $1 after topping $17 last December – before the JetBlue merger fell apart. If you follow my quantum methodology of investing in stocks with superior fundamentals, strong technical, and Big Money flowing in, you probably don’t own SAVE. Its Quantum Score of 15.5 is about as low as I’ve ever seen, and the fundamentals and technicals rate just as low. Source: TradeSmith Finance Its potential partner, JetBlue (JBLU), looks comparatively better. Its Technical Score of 70.6 is actually quite good, but that low fundamental rating of 37.5 drags the Quantum Score well under my target buy zone. Source: TradeSmith Finance SAVE and JBLU are tales of two stocks, but they aren’t the tale of the airlines industry. The US Global Jets (ETF) includes more than just airline stocks, but it has surged more than 40% since early August. I love to use ETFs as sources of ideas for stocks. I prefer to zoom in on the best stocks rather than own the whole fund, which includes lower-rated stocks. In this case, we definitely find some buy ratings, and we find that bigger is better. Delta Air Lines (DAL), the largest airline by revenue the last 12 months, rates the highest in the fund with a Quantum Score firmly in the buy zone at 79.3. Source: TradeSmith Finance DAL’s Fundamental Score is solid at 66.7, and it’s the best among airline stocks. That Technical Score is excellent, but approaching overheated as shares have taken off since August, flying more than 70% higher. The top stock by weight in JETS is United Airlines (UAL), which ranks right behind Delta in revenue the last 12 months. It constitutes a sizable 14.4% of the JETS, and UAL is also squarely in the buy zone with its 77.6 Quantum Score. Source: MAPsignals.com Notice UAL’s Technical Score is the same as Delta’s, and it has more than doubled since August. The fundamentals are a little lower, but I see a lot more Big Money buy signals in my system for UAL – 15 in the last three months versus 7 for DAL. It’s difficult to pick one over the other. Both stocks merit consideration, and the data on both points to future upside. If you’re traveling for Thanksgiving, I wish you safe and stress-free travel – or as stress free as possible anyway. And if you’re investing, I also wish you safe and stress-free investing. That’s what my Quantum Edge system is designed to do – take out the worry and replace it with predictive data. And fly you to your destination, whether it’s home for the holidays or a wealthier future. Talk soon, Jason Bodner Editor, Jason Bodner's Power Trends |
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