Buffett’s Airline Bet and Four Picks

In anticipation of its Prime Day this month, Amazon prepared for an onslaught of orders by “getting its delivery ducks in a row, including a fleet of over 20 dedicated Prime Air Cargo planes,” writes Validea CEO John Reese in a recent article for Nasdaq.

Reese segued into Warren Buffett’s bet on major airlines and his general investment approach. Using stock screening models he created based on the methodology of Buffett and other market greats, he identified the following high-scoring airline stocks:

  • Delta Air Lines Inc. (DAL) provides scheduled air transportation for passengers and cargo throughout the United States and across the world, and scores well based on its ratio of price-earnings to growth in earnings-per-share as well as cash flow-per-share. See Full Guru Analysis here
  • Allegiant Travel Company (ALGT) is a leisure travel company that provides travel services and products to residents of under-served cities in the U.S., and earns high marks for earnings predictability and ten-year average return-on-equity. See Full Guru Analysis here
  • C.H. Robinson Worldwide Inc. (CHRW) is a provider of transportation services and logistics solutions that is favored for its earnings yield, earnings predictability and ability to pay off debt with earnings in under two years. See Full Guru Analysis here
  • United Parcel Service, Inc. (UPS) is a package delivery company that scores well due to its cash flow-per-share and trailing 12-month sales. See Full Guru Analysis here