This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Delta, Spirit and Alaska Are Up 35% This Year as Airlines Soar

A March 6 recommendation from Jim Cramer on "Mad Money" has benefited the carrier, up 8% since the show aired. Cramer hadn't recommended an airline stock in years, but noted: "I hated the industry before but look at the last airline mergers -- I mean wow." He said the U.S. Justice Department is evaluating the US Airways/American merger just as it evaluated the US Airways/America West merger in 2005. "Once the waiting period ended and it turned out that the justice department was fine with that transaction in late June of that year, America West surged an astounding 54% over the following three months," Cramer said. "I want you in something like that."

As for Alaska, Wolfe Trahan analyst Hunter Keay on March 1 labeled it (along with Delta) a "best idea" and noted that "the airline underappreciated by investors despite the recent run in the stock, as evidenced by its oddly discounted multiple(s) to peers." Alaska has risen 7% since the recommendation two weeks ago.

Spirit is benefiting from a Cramer recommendation on "Mad Money" on Wednesday. Spirit is trading at 11 times earnings, Cramer said, noting: "I think it has more room to run." During the show, Spirit CEO Ben Baldanza told Cramer: "It's unfortunate that in the airline industry we have to remind people that we are a business."

Evidently, this time investors are not dismissing those reminders.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
ALK $75.75 0.00%
DAL $44.34 0.00%
SAVE $59.82 0.00%
UAL $56.39 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs