Defense spending is surging while airline profits are under pressure. The choice between these two funds comes down to which story you believe in more.
Wall Street sent a coordinated bullish signal to the airline sector as Goldman Sachs analyst Catherine O'Brien and TD Cowen analyst Tom Fitzgerald raised their price targets across most major U.S.
Bank of America Securities (BofA) analyst Andrew G. Didora has adopted a more positive outlook on U.S. airlines ahead of second-quarter earnings, citing strong demand, stable fares, and lower fuel prices as key sector supports.
U.S. airlines' stocks are flying high as jet-fuel prices fall and Americans continue to take to the skies, with shares of United Airlines and Delta Air Lines zooming toward fresh records on Tuesday.
U.S. airline stocks rose 3% to 7% on Wednesday after crude prices fell to their lowest since before the Iran war, raising hopes that pressure on carriers' earnings could ease, though the benefits are unlikely to passed on to passengers immediately.