Big Things Could Be Just Over the Horizon
With travel demand dwindling as the summer months end, this company is one of a few with big catalysts ahead.
Of all of the industries to suffer under the lockdowns of 2020, airlines were one in which many investors expected a huge comeback this year.
This spring did offer some sizeable gains for those that bought into airlines during the lows of 2020, but most major airline stocks have been unable to maintain that momentum into the summer.
The U.S. Global Jets ETF (JETS) – which tracks the biggest airline companies in the world – gained more than 33% between February 1 and March15, 2021. But that rise has been followed by as much as 24.8% decline since then.
As the new surge in COVID-19 cases around the world curbs air travel demand – with many airlines reporting weaker booking numbers – many investors are left wondering if there are any good investments in the space right now.
Well, one piece of news from this week, combined with the new pandemic concerns, may be providing a great backdoor play on another air industry comeback.
Where’s the money?
With everything else that’s been going on for the last 18 months, one could be forgiven for not noticing the steady comeback that The Boeing Company (BA) has been making this year.
After two high-profile crashes in 2018 and 2019 tragically killed nearly 350 passengers, Boeing faced a $2.5 billion settlement and the grounding of all of its 737 MAX jets.
Coupled with the crash in air travel demand in early 2020, and you can understand why BA stock fell by as much as 68% from its high in February 2019 and its low mark in March 2020.
But since that time, Boeing has been making significant strides to resolve the issues in its 737 MAX jets and making them safe to fly.
And many aviation regulators from governments around the world have been giving the 737 MAX the green light to resume flights. Currently, the MAX has been recertified in 175 of 195 countries where it flies.
The U.S. Federal Aviation Administration already granted the MAX approval back in December 2020, but others have been slower to do so.
But Boeing got some great news this week, and there are indications that there are more positive catalysts to come…
How do I get some?
Yesterday, aviation regulators in India approved Boeings bid to once again allow the 737 MAX – giving Boeing yet another major country in which it can return its planes into service.
But despite the news, investor reaction has been somewhat muted. In fact, BA stock fell more than 2% yesterday.
That’s likely due to the overall negative investor sentiment right now in anything air travel related while the surge in the pandemic worsens.
But in my eyes, that simply offers investors a great chance to get in on what is still a discounted stock.
Boeing is still trading roughly 50% lower than its pre-pandemic highs.
The next big hurdle for the 737 MAX is China, where regulators have been testing the aircraft recently, but have not yet set a timeline for approval. Assuming Boeing can regain permission to fly in China, it would open up a massive new space in which to sell its aircraft.
So if you’re looking to put some money to work in a comeback play with huge profit potential, Boeing is a name to keep an eye on.
The Biggest Returns the Market Has to Offer Have Been “Blacklisted”
Wall Street has been “blacklisting” the investments they can’t make money from.
Case in point: crypto.
A single Bitcoin was trading for under $1,000 for nearly a decade with nearly zero interest from Wall Street. But once a few institutions started toying with the idea of digital currencies, Bitcoin shot from $6,000 to $60,000 in a year.
This “blacklisting” meant that you could be in before the institutions – if you knew where to look.
And that’s exactly what’s happening again today.
Shah Gilani is unveiling something that goes well beyond anything we’ve done in the past: a way to target stocks under $5 that have the potential to return 1,000% or more in a year.
In the Spotlight: This beauty company looks better every day…
It’s been a tough 18 months for so many of us.
All the stress the pandemic has created in our daily lives – not to mention staring at a computer screen more than we’re used to – has surely left a lot of us not looking our best.
But one company is launching a creative marketing campaign to fix that, and create more revenue in the process.
Ulta Beauty, Inc. (ULTA) has announced that it will be expanding its in-store services offerings to include facials.
The move is designed as a way to drive more customers through Ulta’s doors, where they will hopefully also indulge in Ulta’s beauty and makeup products while they’re there.
Traffic in malls and shopping centers is beginning to pick up, and Ulta is making smart strides to secure market share and customer loyalty during this crucial time.
Ulta has also struck a deal to open shops inside of Target stores as well – a clever move to acquire more customers in a store that already attracts Ulta’s key demographic.
With management making such shrewd decisions, and a share price that’s steadily been on the rise for the last year, Ulta is a name to watch.