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Bill Gunderson's Radio Play of the Day: Airline Stocks. Really

Did someone say 5.5 times forward earnings?

Data from Best Stocks Now App

I don't really believe the analysts consensus estimate of 65% growth per year over the next five years. If the company can grow their earnings by 6% or more, I would still be buying it at a discount to earnings.

When I perform my own math on the shares, I come up with a conservative five-year target price of $31. That is substantially higher than the current price of the stock.

No, I swore off airlines a long time ago. I am not going to give in!

When I take into consideration the performance and the valuation of the stock, I come up with a stock that ranks #17 out of the 3,293 stocks that I follow. It also earns a Gunderson Grade of "A."

Data from Best Stocks Now App

I refuse to buy a stock that does not have a good stock chart. I hate downtrends, and sideways trends are blah. Topping out trends that are rolling over really scare me. I like fresh new uptrends if I can find them (along with performance and value.)

I just know that there is no way that an airline stock could have a good stock trend, too.

Not a good chart, too! I will never buy another airline stock. I promised myself. I also swore off cheesecake in January. Just my luck, I stayed right next door to a Cheesecake Factory over the weekend. That slice of Peanut Butter Fudge sure was delicious!

You can also listen to my analysis of the stock on my radio show, Best Stocks Now, by clicking here.

At the time of publication aggressive/moderate growth clients of Gunderson Capital Management are currently long U.S. Airways.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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