Barron’s notes that United Continental (UAL), Delta Air Lines (DAL), and American Airlines (AAL), three of the four largest holdings in JETS, trade at price-to-earnings ratios in the single digits. That is a deep discount to the broader industrial sector and the S&P 500.

JETS has also been rising along with oil prices, a rare scenario for airline securities.

The ability of JETS and its holdings to rise in the face of rising oil prices, usually a major headwind, is undoubtedly impressive. It is also encouraging because some market observers believe oil prices can continue climbing.

SEE MORE: Airline ETF Flying High

OPEC plans to diminish output to a range of 32.5 to 33.0 million barrels per day from its current estimated output of 33.24 million barrels per day. While Saudi Arabia, OPEC’s biggest producer, has agreed to reduce output, Iran, Libya and Nigeria might not follow suit.

“Overstating the obvious: revenue momentum should unlock multiples – Given the current pace of RASM recovery combined with pending initiatives such as Basic Economy at American & United, we expect flattish industry RASM trends in 1H, positive in 2H, with industry consolidated revenue expected to climb 3.7% in 2017, the first increase since 2014,” adds JPMorgan in the note posted by Barron’s.

For more information on airline ETFs, visit our Airline category.

U.S. Global Jets ETF (NYSEArca: JETS)