Travel Stocks to Buy: Southwest Airlines Co (LUV)
U.S. budget airline Southwest is another great buy in the travel industry, especially right now. The company’s shares have fallen nearly 6% over the last week as investors worried about the firm’s less-than-stellar forward guidance for the first quarter. However, when it comes to U.S. airlines, Southwest is top-notch.
The firm has been able to increase its profits despite the fact that its peers have been struggling to keep their heads above water. Now, with unemployment levels improving and a possible corporate tax reduction on the table, the airline industry could be poised to deliver impressive gains, LUV included.
However, if things don’t improve for the sector, it’s a good idea to be holding a stock that is equipped to thrive in difficult conditions, and LUV is definitely one of those companies. The firm’s debt ratio is impressively low and its focus on delivering value while still keeping its ticket prices down means it has become a popular choice for middle-class travelers.
As of this writing, Laura Hoy was long RYAAY.