In The News

Are Airlines Stocks a Bargain?

from Barron's

In an article from Barron’s, “Airline Stocks Top the List of Barron’s 500 Bargains,” the publication looks at the cheapest stocks among the Barron’s 500 based on low price/earnings ratios. According to the article, “P/E ratios depend on analysts’ sometimes too-rosy forecasts, and don’t measure leverage, but can be a useful guide to spotting undervalued situations.”

This year, American Airlines and United Continental Holdings top the list of 20 companies with the lowest P/E ratios. Looking back, the stocks that topped last year’s list rose an average of 20.7 percent.

Article summary written by U.S. Global Investors.