Boeing delivered a record number of jets last year. Meanwhile, more consumers are taking to the skies as a booming economy helps increase discretionary spending and fuel more opportunities to travel.
On the upcoming webcast, An Airline Sector Strategy Including Boeing, American, United, Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors, will identify strong tailwinds in the global airline industry and help advisors consider ways to enhance a portfolio through the growth opportunity in the transportation segment.
Specifically, investors can look to the U.S. Global Jets ETF (NYSEArca: JETS), the lone ETF dedicated to airline stocks, to access the growth opportunity.
There are encouraging fundamental factors that supporting the airlines, including low oil prices – fuel is the largest input cost for airlines. The improving U.S. economy could also encourage more business and leisure travel and airlines are generating impressive amounts of cash.
Along with lower oil prices, airline stocks look attractive in their own right. For instance, income-oriented investors may notice that airline stocks have seen improved dividend-yield growth. The sector also shows relatively cheap valuations.