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28 July 2021
18:12 hour

Is now the right time to buy easyJet shares?

The Motley Fool UK

21/07/2021 - 16:05

easyJet shares have fallen by a huge amount over the past month. This Fool looks at whether she should buy the stock right now. The post Is now the right time to buy easyJet shares? appeared first on The Motley Fool UK.


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  1. I was right about the easyJet share price. Here’s what I’d do next (27/04/2021 - The Motley Fool UK)
    easyJet (LSE: EZJ) has had a wild ride in the past year. When I wrote about it last year at around this time, the easyJet share price was at 620p. It fluctuated a lot during 2020 as uncertainty about the coronavirus crisis prevailed.  It has, however, made more consistent gains since vaccines were developed and the stock market rally started in November last year. It’s up by more than 65% compared to a year ago.  I had anticipated firm recovery in the easyJet share price, which is why I wrote last April that I would consider buying it. And that’s exactly what I did. Is easyJet a buy for me now? The point I’m wondering about now is whether easyJet is a buy at the current share price as well. This is for three reasons.  One, for all its gains in the past year, the easyJet share price is still less than half that of its pre-crisis highs of early 2020. Other coronavirus-affected stocks have managed to get past these levels. In fact, they’ve even surpassed them. Perhaps there’s hope for easyJet too? Two, investor bullishness is back. And I think it will stick around for a while. Forecasts for the economy are robust and the system is flush with liquidity. Unless there are any fresh shocks, I would think that stock markets would stay elevated.  Three, I reckon that travel stocks in particular are set to gain further as they resume operations. As (hopefully) improved passenger numbers trickle in and revenues rise, investor confidence should get a further boost.  Can the easyJet share price go back to pre-crisis highs? But whether the easyJet share price can go back to its pre-crash highs is another question altogether. The company’s financials are nowhere near where they used to be last year. The combination of limited revenues and high fixed costs has meant losses and indebtedness for the once-financially-healthy company.  It’s widely expected that air travel will take around a couple of years before it goes back to 2019 levels. Until then, easyJet may see improvements. But I don’t think it will regain its earlier financial health in a hurry. What I would do next On balance though, I think the easyJet share price can rise from here. Compared to other low-cost airlines, the stock is relatively cheap, with a price-to-sales (P/S) ratio of 1.5 times. The number stands at 6.6 times for Ryanair and 4.6 times for Wizz Air.  Also, Ryanair is close to multi-year highs right now and Wizzair has just come off all-time highs. I think that these stocks could lose some of their lustre as they start looking pricey. Investors could rotate into beaten down stocks like easyJet as a result. I’m less sure if easyJet will go back to its pre-crash highs any time soon though. To really benefit from this stock purchase, I would buy and hold it for at least the next few years, if not more. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why easyJet stock could now soar after H1 results 3 reasons I’d buy easyJet shares today The easyJet share price is flying. Should I buy the stock now? Why I like the easyJet, IAG, and Wizz Air shares now 2 reopening shares I’d buy in my ISA as UK lockdown measures ease Manika Premsingh owns shares of easyJet. The Motley Fool UK has recommended Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I was right about the easyJet share price. Here’s what I’d do next appeared first on The Motley Fool UK.
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  2. The easyJet share price has taken-off. Would I buy the stock now? (23/02/2021 - The Motley Fool UK)
    Actually, I’ve already bought easyJet (LSE: EZJ) shares. It was one of my pandemic purchases, because its price was too low for me to ignore. But the sharp increase in the easyJet share price raises the question – would I buy the EZJ share (again) now? Why’s the easyJet share price rising? There are mounting reasons to buy the EZJ share. A clear end in sight for the lockdown by June is the most recent one.  It’s no coincidence that the easyJet share price is a big gainer in today’s trading. Britons are making holiday bookings at speed and EZJ’s flight bookings from the UK have risen by 300% since the lockdown relaxation schedule was announced.  As I write, its share price is up 8% from yesterday’s close.  But even before that, the easyJet share price had been on the rise since the vaccines were developed. It’s share price is up 60% since then. There have been hiccups along the way, but broadly the share price trajectory has been upwards.  Will it continue to rise? I think there’s a good chance that the easyJet share price can continue to increase from here. There are two reasons for this. One, its share price is acutely sensitive to developments in the broader environment and at the company itself. This showed up both in the dramatic drop when the market crash happened in March last year, and the sharp pickup on hopes of recovery since November.  However, this sensitivity is a drawback only as long as good news is followed by bad news and so on. Considering that we are unlikely to go into lockdown again, I think we will see more positive news than negative print for the company. As a result, I think upward momentum for the easyJet share price is possible now. And this is especially because it’s a news-sensitive stock. What can go wrong? But the risks to the easyJet share price are just too big to ignore, too. The company’s financial position has been shaken severely and it’s under increased debt now as well. It could take a few years for it to get back to its pre-pandemic levels. I think shaky financials are always an investing red flag. They can also explain indifferent share price trends.  Moreover, while the initial signs look good, we’ll know the economic slowdown’s impact on travel only later in the year. If there’s a big slump, travel’s likely to suffer. It may suffer less than in 2020, but feel the impact nevertheless. Also, some business travel could be replaced by video-conferencing for good.  Takeaway for the easyJet share price I see the upside to easyJet as stronger than the risks to it at present. I think its share price will continue to rise for now. But the easyJet share price could hit a plateau after some time, maybe the next few months, as it starts looking more expensive. It’s one I’ll hold for the long term. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Cineworld and easyJet shares: should I buy the reopening trade? Should I buy airline stocks today? Here’s my view on the struggling sector What I’d do about the easyJet share price right now Here’s why I’m avoiding the easyJet share price in 2021 EasyJet share price: 4 reasons why I’m staying well away Manika Premsingh owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The easyJet share price has taken-off. Would I buy the stock now? appeared first on The Motley Fool UK.
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  3. The easyJet share price is surging. Should I buy the stock now? (09/03/2021 - The Motley Fool UK)
    easyJet (LSE: EZJ) shares have had a spectacular run in recent months. Since 9 November – when Pfizer announced it had developed a Covid-19 vaccine – easyJet’s share price jumped from around 530p to 1,030p – a gain of almost 100%. Over a 12-month horizon, EZJ is now back in positive territory, up about 2%. Is easyJet a stock I should consider for my own portfolio? Let’s take a look at the investment case. Should I buy easyJet shares? I can see why the airline’s shares are popular right now. In short, the stock is a ‘reopening’ play. After the UK laid out plans for international travel to resume in late February, easyJet said flight bookings jumped over 300% and holiday bookings surged by more than 600% week-on-week. Clearly, there’s a lot of pent-up demand to travel. It’s worth noting that City analysts expect easyJet’s revenues to more than double next financial year (its financial year ends 30 September) to £5.4bn, up from around £2.4bn this year. That’s certainly a big jump. However, £5.4bn would still be about 16% below 2019 revenues of £6.4bn. Analysts expect the company to return to profit next year too. Currently, the net profit estimate for FY2022 is £286m, compared to an expected loss of £592m this year. Is easyJet’s share price a bargain? However, what concerns me about easyJet shares is that they look fully valued right now. Currently, the consensus earnings per share forecast for FY2022 is 53.2p which puts easyJet shares on a forward-looking price-to-earnings (P/E) ratio of about 19. That valuation looks quite high, in my view, considering the risks. While easyJet’s share price is still around 33% lower than it was pre-Covid-19, it’s important to remember that a lot has changed over the last 12 months. For starters, it has more debt on its balance sheet than it did a year ago. Recently, the company raised another €1.2bn from a seven-year bond sale. This extra debt adds more risk to the investment case. Secondly, there’s a lot of uncertainty in relation to the prospects for the travel industry in the short term. The UK government has said the earliest date Britons will be able to travel abroad for a holiday is 17 May. However, it’s not just a matter of the UK lifting travel restrictions. Foreign governments also need to agree that Britons can visit without the need for quarantine. Currently, France and Spain have shut their borders to the UK due to the new variants of Covid-19. More variants, or new travel restrictions all pose a threat to easyJet. My view on EZJ shares Putting this all together, I don’t see much investment appeal in easyJet shares at present. To my mind, there’s a lot of good news priced into the stock at the moment. Trading on a forward-looking P/E ratio of 19, EZJ shares look quite expensive, in my view. All things considered, I think there are better stocks I could buy for my portfolio today. Like this one… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 of the best stocks to buy now with £1,000 TUI and easyJet share prices are taking off. Here’s what I would do about it The easyJet share price is taking off. Is now the time to buy? My best airline shares to buy The easyJet share price has taken-off. Would I buy the stock now? Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The easyJet share price is surging. Should I buy the stock now? appeared first on The Motley Fool UK.
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  4. Why the easyJet share price doesn’t tempt me (01/04/2021 - The Motley Fool UK)
    It’s been a turbulent year for easyJet (LSE: EZJ), to say the least. In March 2020, easyJet shares lost over two-thirds of their value thanks to lockdown measures in response to the Covid-19 pandemic. Although many of these measures remain in place, the easyJet share price has since doubled. At the time of writing, the share price stands at 946p, still over 50% below its pre-pandemic price. This has prompted many to wonder whether easyJet shares are a buy as the economy starts to recover from the pandemic. The bull case The investment case for easyJet is simple. As the effects of the pandemic subside and economies begin to open up, air travel will boom and airlines such as easyJet will cash in. Although the exact timing of such a recovery is uncertain, the acceleration of vaccine rollouts across the world make a return to normal in the relatively near term more and more likely. easyJet also has a decent balance sheet. True the company has more than tripled its net debt position to £1.1bn over the last year. But at just 2.4 times 2019 operating income it is still by no stretch unmanageable.   Another thing easyJet has going for it is its strong competitive position. Currently, the company is the number one or two airline brand in the UK, France, and Switzerland and has the number one or  two position at 56 primary airports. Combined, these factors should help the company weather the current storm and allow it to emerge from the pandemic in a strong position, potentially even taking market share away from competitors. If such a scenario does play out, the easyJet share price is likely to do very well. I still won’t be investing Despite the compelling investment case above, I won’t be buying easyJet shares any time soon. The reason is that I am a long-term investor looking to hold companies for the next decade and maybe longer. This means that I want to own companies that aren’t just going to do well over the next two years. I want them to have the strength and quality to keep performing under “normal” economic conditions. Does easyJet fit this criteria? I don’t think so. Firstly, the airline industry is highly competitive. Although easyJet has a strong position in the market right now, the high number of competitors and fairly fickle customer base means it isn’t clear whether the company will be able to maintain this position in the long run. This difficult competitive environment has resulted in historically mediocre operating margins and returns on capital employed. These averaged just 9.8% and 13.2% respectively in the five years before the pandemic. Both have also been trending downwards, which does not bode well for the future. The second reason why I am not tempted by the easyJet share price is that the company’s free cash flow is too unpredictable. The mark of any good investment is its ability to generate free cash flow. easyJet has been very inconsistent in doing this. It generated significant negative free cash flow in two of the five years preceding the pandemic. Such inconsistency makes it very difficult to predict the company’s future cash flows. This makes easyJet shares uninvestable for me. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Here’s what I’m doing about the easyJet share price right now 2 top UK shares I might buy for the new bull market Why I think the easyJet share price is a long-term buy The easyJet share price is surging. Should I buy the stock now? 2 of the best stocks to buy now with £1,000 Ollie Henry has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why the easyJet share price doesn’t tempt me appeared first on The Motley Fool UK.
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  5. The easyJet share price is flying. Should I buy the stock now? (14/04/2021 - The Motley Fool UK)
    The easyJet (LSE: EZJ) share price has really taken off. Anyone holding this reopening stock has seen the value of their shares rise by 24% this year and by more than 40% over the last 12 months. The airline is now planning to add more flights from May, in the hope that the vaccinations will rescue the summer holiday season. However, despite recent gains, easyJet’s share price is still 30% below its pre-pandemic level. I reckon the airline is well positioned for a recovery, so should I buy the shares today? Here’s what I think. Better than expected easyJet says its performance during the six months to 31 March was “slightly better than expectations”, due to a lower cash spend than expected. Although the company only flew 14% of 2019 capacity during the first half of the year, management is planning for a return to more normal levels of flying in May. These optimistic comments have lifted easyJet’s share price by 3% at the time of writing. Of course, the half-year may have been better than expected, but easyJet is still burning through cash. The airline generated just £235m of revenue during the six-month period, but faced operating costs of £845m. Even if flying resumes as hoped next month, City analysts still expect easyJet to report a loss of £635m this year. Well prepared for reopening When the pandemic struck last year and airlines were grounded, I thought there was a risk that some might run short of cash. No airline has ever faced such a prolonged period without being able to fly normally. As it’s turned out, airlines like easyJet have not had any difficulty raising the funds they’ve needed. easyJet has raised a total of £5.5bn since the start of the pandemic. That’s more than the group’s current market cap of £4.2bn. Although much of this money has been spent, easyJet still had access to £2.9bn at the end of March. As a result, I’m confident the airline should be able to return to normal operation without needing any further financial support. easyJet share price: what I’m doing Although I think easyJet’s financial situation is safe, this has come at a cost. I expect financing costs to be higher in the future, due to higher lease costs and interest payments. Shareholders also face dilution. easyJet raised £419m by selling new shares in June last year. This increased the total number of easyJet shares from 397m to 456m. As a result, future profits will be split among a larger number of shares, reducing earnings per share. For example, the airline’s 2019 profit of £349m resulted in earnings of 88p per share. According to my sums, the same profit today would give earnings of about 76p per share. This dilution could limit the future recovery of easyJet’s share price. For this reason, I don’t expect the shares to return to the 1,500p level seen in 2019 for the foreseeable future. Broker consensus forecasts for 2021/22 suggest easyJet will report earnings of about 55p per share. Based on a share price of 950p, that values the airline at more than 17 times forecast earnings. I think easyJet looks quite fully valued already. I don’t see the current share price as an attractive entry point, so I won’t be buying the shares today. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Why I like the easyJet, IAG, and Wizz Air shares now 2 reopening shares I’d buy in my ISA as UK lockdown measures ease Can the easyJet share price recover in 2021? Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks Why the easyJet share price doesn’t tempt me Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The easyJet share price is flying. Should I buy the stock now? appeared first on The Motley Fool UK.
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  6. What I’d do about the easyJet share price right now (09/02/2021 - The Motley Fool UK)
    It’s been a funny old year for the stock market. For many of us, the Covid-19 pandemic could well be the biggest global event of our lives. The turbulence felt in the market in the last 12 months has echoed that. The initial crash that followed the arrival of the pandemic is now making way for a new market rally. But there are many sceptics who think that stocks are currently overvalued. They worry we could be in for another crash in the months ahead. Of course, much of that depends on the course of the pandemic, and success or otherwise of vaccine programmes around the world. During difficult times, I like to see where the opportunities lie in the market. That’s why I bought shares in FTSE 250-listed airline easyJet (LSE:EZJ) last year. Now, the share price is currently around 825p, only slightly higher than when I bought in June 2020. So, do I now buy more, hold, or sell? Here’s what I’m planning to do. Why did I buy easyJet shares? A global pandemic and a massive, worldwide reduction in international travel for both business and leisure — terrible time to buy shares in an airline, right? By the end of March 2020, easyJet’s market capitalisation had lost two-thirds of its value. Investors must have been wondering if the airline and the industry would survive. However, I was sure that, at some point in the near(ish) future, we would return to a normal way of life. It might not look exactly the same, but international travel would once again become part of our work and leisure lives.  With that said — I also assumed that easyJet would be able to weather the storm and be there when demand for flights restarts. Whether that restart is in three months, three years, or 10 years. How do I feel about EZJ now? The easyJet share price has recovered 44% of its value in the last six months. Even so, it still trades well below the 1,500p price tag it had pre-Covid-19. As a fellow Fool has pointed out, there does seem to be a little confusion about new CEO Johan Lundgren’s strategy of heading a little more upmarket to compete with the likes of British Airways, owned by International Consolidated Airlines Group (LSE:IAG). Given the current climate, it might be wiser for the company to stick to the budget brand it is known for. It may take longer that I’d thought to see generous returns on my investment, but I still believe the shares are worth more than I paid for them.  I expect there will be a boom for the business when travel restrictions are lifted. People will be keen to spend their spare cash on holidays, I think, once the doom and gloom has been put in the rear-view mirror. As a result I’m still optimistic about the easyJet share price, and I’d still add the stock to my portfolio or Stocks and Shares ISA. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Here’s why I’m avoiding the easyJet share price in 2021 EasyJet share price: 4 reasons why I’m staying well away Is the easyJet share price too cheap at current levels? The easyJet share price is rising! Is this a bargain growth stock I should buy? IAG and easyJet shares: should I buy for 2021? conorcoyle owns shares of easyJet (LSE:EZJ). The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What I’d do about the easyJet share price right now appeared first on The Motley Fool UK.
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  7. Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded (30/04/2021 - The Motley Fool UK)
    According to new data, easyJet, BP and Rolls-Royce shares have been some of the most popular stocks traded in the UK so far this year. We take a look at this recent activity to find out what traders have been interested in and why these companies have been market movers and shakers. [top_pitch] What do trading figures show about UK shares such as easyJet? Data from Saxo Markets reveals that certain shares were heavily bought and sold in the UK during Q1 this year. The bulk of trading has been in international markets, but this was no surprise. There were some obvious inclusions like GameStop and Tesla in their findings. Although many believe the American stock market is expensive right now, that hasn’t stopped interest from investors. However, only a handful of UK options were included in the top 20 and can be found on the London Stock Exchange (LSE). What UK stocks are people trading? Only three companies on the LSE made into Saxo’s top 20 most-traded shares during Q1. Let’s take a look at who made the cut. 1. Rolls-Royce Holdings Plc shares Just missing out on the top 10 and making it to number 11 was Rolls-Royce. Their shares made up 0.52% of all trades on the platform so far this year. Many know the business as a luxury car-maker. But it is also a big player in building engines for other vehicles like aeroplanes. The company was hard hit by the coronavirus pandemic and some investors saw a bargain opportunity. But all the questions marks around transport and travel has given traders mixed views about the shares. [middle_pitch] 2. easyJet shares Shares in the UK’s top budget airline have had a turbulent time for obvious reasons. There has been a lot of uncertainty around travel. Rules and dates have been changing frequently. As a result, investors have been both hopeful and gloomy about easyJet shares at different times over the last few months. The airline made it to number 14 in the top-traded shares list, accounting for 0.47% of total activity. 3. BP Plc shares Along with the travel industry, energy companies have also had a tough time over the last year. There did appear to be a recent transition where investors were moving away from high-growth tech stocks and into more value and cyclical shares such as BP. This change in sentiment has helped BP progress steadily. After a poor 2020, the company seems to be growing in strength. Recent Q1 profits, partly due to higher oil prices, have investors excited again. BP reached number 16 on the list, making up 0.46% of trades. Can I buy easyJet shares and others in the UK? There is still a lot of uncertainty for a lot of companies and industries. If you look hard enough, buying opportunities can always be found somewhere. Rolls-Royce, BP and easyJet shares are available on most share dealing platforms. If you’re curious about businesses abroad, make sure you have a trading account that provides access to international markets. As we saw with the GameStop saga, just because certain shares are trading heavily doesn’t always mean they are a great investment. Prices can still swing both ways. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Saga share price is up 69%! I still think the stock’s cheap 3 UK reopening stocks I’d buy and look to hold for 10 years ISA investing: this is what I’m doing about the Next share price right now! These UK share prices are soaring! Should I buy these stocks in my ISA in May? State Pension worries? I’m buying UK shares in an ISA to try to retire comfortably The post Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded appeared first on The Motley Fool UK.
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  8. Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded (30/04/2021 - The Motley Fool UK)
    According to new data, easyJet, BP and Rolls-Royce shares have been some of the most popular stocks traded in the UK so far this year. We take a look at this recent activity to find out what traders have been interested in and why these companies have been market movers and shakers. [top_pitch] What do trading figures show about UK shares such as easyJet? Data from Saxo Markets reveals that certain shares were heavily bought and sold in the UK during Q1 this year. The bulk of trading has been in international markets, but this was no surprise. There were some obvious inclusions like GameStop and Tesla in their findings. Although many believe the American stock market is expensive right now, that hasn’t stopped interest from investors. However, only a handful of UK options were included in the top 20 and can be found on the London Stock Exchange (LSE). What UK stocks are people trading? Only three companies on the LSE made into Saxo’s top 20 most-traded shares during Q1. Let’s take a look at who made the cut. 1. Rolls-Royce Holdings Plc shares Just missing out on the top 10 and making it to number 11 was Rolls-Royce. Their shares made up 0.52% of all trades on the platform so far this year. Many know the business as a luxury car-maker. But it is also a big player in building engines for other vehicles like aeroplanes. The company was hard hit by the coronavirus pandemic and some investors saw a bargain opportunity. But all the questions marks around transport and travel has given traders mixed views about the shares. [middle_pitch] 2. easyJet shares Shares in the UK’s top budget airline have had a turbulent time for obvious reasons. There has been a lot of uncertainty around travel. Rules and dates have been changing frequently. As a result, investors have been both hopeful and gloomy about easyJet shares at different times over the last few months. The airline made it to number 14 in the top-traded shares list, accounting for 0.47% of total activity. 3. BP Plc shares Along with the travel industry, energy companies have also had a tough time over the last year. There did appear to be a recent transition where investors were moving away from high-growth tech stocks and into more value and cyclical shares such as BP. This change in sentiment has helped BP progress steadily. After a poor 2020, the company seems to be growing in strength. Recent Q1 profits, partly due to higher oil prices, have investors excited again. BP reached number 16 on the list, making up 0.46% of trades. Can I buy easyJet shares and others in the UK? There is still a lot of uncertainty for a lot of companies and industries. If you look hard enough, buying opportunities can always be found somewhere. Rolls-Royce, BP and easyJet shares are available on most share dealing platforms. If you’re curious about businesses abroad, make sure you have a trading account that provides access to international markets. As we saw with the GameStop saga, just because certain shares are trading heavily doesn’t always mean they are a great investment. Prices can still swing both ways. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Saga share price is up 69%! I still think the stock’s cheap 3 UK reopening stocks I’d buy and look to hold for 10 years ISA investing: this is what I’m doing about the Next share price right now! These UK share prices are soaring! Should I buy these stocks in my ISA in May? State Pension worries? I’m buying UK shares in an ISA to try to retire comfortably The post Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded appeared first on The Motley Fool UK.
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  9. Will the easyJet share price bounce back? (09/06/2021 - The Motley Fool UK)
    Last week’s decision to put Portugal on the amber list for UK travellers was a big disappointment for easyJet (LSE: EZJ). But markets had already turned cautious on airlines — the easyJet share price fell steadily for most of May. The airline’s shares have fallen by nearly 10% over the last month, trimming the stock’s 12-month gain to 15%. Travel restrictions may continue a while longer, but easyJet has plenty of cash on hand to survive short-term setbacks — is now the right time for me to buy the stock? Three good things Let’s start with the good news. easyJet has completed its “largest ever” restructuring and cost-cutting program over the last six months. This has included redundancies, pay cuts, and changes to working hours for flight crew. Assuming that air travel returns to normal later this year, I think easyJet’s profitability could recover quite quickly. This could support a higher share price, despite the dilution from new share issues. The next few months seem likely to be difficult, but easyJet still has plenty of cash on hand. The airline reported £2.9bn of cash and unused debt at the end of March. CEO Johan Lundgren does not expect to need more financing unless the 2022 summer season is disrupted. Finally, I think that easyJet’s low-cost structure, large size, and short-haul focus mean that it could take market share from higher-cost flag carrier airlines when air travel recovers. This could help easyJet recover more quickly than some rivals. The bad news? It’s not all good news. Airline industry body the IATA estimates that passenger numbers in Western Europe won’t return to 2019 levels until the end of 2023. This worries me because many of the costs involved in running an airline are fixed. They don’t change when passenger numbers fall. What this means is that while easyJet is flying at reduced capacities, its costs per seat are much higher. This makes it harder to fly profitably. I think this could put pressure on easyJet’s share price for some time yet. Some of these increased costs should fall away quickly when travel restrictions are lifted. But some won’t. One area that concerns me is easyJet’s aircraft finance costs. These have risen sharply due to higher debt levels and an increase in the number of leased aircraft in easyJet’s fleet. These changes helped the airline to raise funds last year, but this money must now be repaid. easyJet share price: my decision My sums suggest that at a share price of 1,000p, easyJet shares are valued at around 12 times historic peak earnings. This suggests to me that the market has already priced in a strong recovery in air travel. I’m also worried that it may take longer than expected for easyJet’s profit margins to fully recover. Although some operating costs should be lower, I think these savings may be offset by higher finance costs. On balance, I think easyJet’s share price is probably high enough at the moment. I don’t see any good reason for a higher valuation, but I can see some potential risks. I’m not interested in buying at this level, but I do think that easyJet will remain one of the better airline stocks. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The easyJet share price is falling: should I buy now? Here’s why I’d buy the dip in the easyJet share price The easyJet share price rise is falling back. Is this a chance to buy? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the easyJet share price bounce back? appeared first on The Motley Fool UK.
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  10. 3 reasons I’d buy easyJet shares today (14/04/2021 - The Motley Fool UK)
    EasyJet (LSE: EZJ) is arguably one of the worst impacted stocks from the pandemic. But I have been bullish on it for a long time.  And I continue to be so, despite its trading update released earlier today. As expected, the company reported weak numbers and even refrained from providing any guidance, citing short-term uncertainty.  Here are three reasons I still like easyJet today: #1. Improving environment  From vaccinations to the economy, things are looking up. Continental Europe has so far been a laggard as far as vaccination progress goes, but it is expected to pick up the pace in the near future. The UK has made fast progress in vaccinations already.  As the pandemic comes under control and the lockdowns end, the economy will come back on track too. Forecasts for this year and the next are positive. And if the long queues outside non-essential retail stores as they opened up on Monday are anything to go by, we should expect a pick up in demand. And that includes travel demand.  #2. Bargain buy Air-travel demand is widely expected to come back to 2019 levels only in a couple of years or so. But signs of growth will be back soon. In anticipation of this, share prices of peers like Wizz Air touched all-time highs last month. The easyJet share price has picked up in the last six months too, but it is still far from its all-time highs.  As a result, if I compare the two in terms of price-to-sales (P/S), easyJet clearly looks like a better buy right now. In fact, even outside its aviation peers, easyJet is something of a bargain buy. The stock market rally that started in November last year has pushed up share prices across the board. Many stocks have long surpassed their pre-market crash levels. Not easyJet, however. #3. Quick potential bounce back But I reckon that once travel resumes to a significant degree, easyJet’s share price could rally. It is a low-cost airline, which I think is more likely to see demand come back quickly than full-service airlines. The company saw a sharp pick up in bookings as soon as the phased end to the lockdown in the UK was announced.  I reckon that the cost advantage of no-frills airlines like Ryanair and Wizz Air has added to their appeal. And taken the sheen off British Airways owner International Consolidated Airlines Group. I think easyJet is more likely go the way of its low-cost peers too. What can go wrong Of course if there are any more delays in ending the lockdown, it could be a negative for the easyJet share price. If post-lockdown, we find ourselves in a recession rather than the long-promised growth come back, that will impact travel demand too. But to assess what will happen next, we have to work with the most probable outcomes. And for now, it appears that things are on the mend. Which to me, means that the easyJet share price can rise more.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The easyJet share price is flying. Should I buy the stock now? Why I like the easyJet, IAG, and Wizz Air shares now 2 reopening shares I’d buy in my ISA as UK lockdown measures ease Can the easyJet share price recover in 2021? Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks Manika Premsingh owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 reasons I’d buy easyJet shares today appeared first on The Motley Fool UK.
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  11. Why I like the easyJet, IAG, and Wizz Air shares now (13/04/2021 - The Motley Fool UK)
    Aviation has been through a tumultuous 2020, as we know. Yet, share prices of airline stocks have moved very differently from one another. Consider easyJet (LSE: EZJ), International Consolidated Airlines Group (LSE: IAG), and Wizz Air (LSE: WIZZ). Among these, the IAG share price has performed the worst. Its share price is actually down compared to the same time last year. Wizz Air shares on the other hand, hit all-time highs last month. EasyJet is somewhere in between. Its share price has recovered by 46% over the year.  So which one has the highest growth potential now?  Wizz Air shares are flying high First, let us consider the Hungary headquartered low-cost airline, Wizz Air. Being a low-cost airline could be an advantage at a time when consumers are more likely to be cost conscious than before.  Its load factor, which is the proportion of passengers carried to capacity is also improving. For February it was at almost 70%, which is higher than the rolling 12 month average of 67%.  There are negatives here, too. Its financials were weak as per the last update, which is to be expected. And its price-to-sales (P/S), a valuation measure that helps in comparing it to peers, is at 4.4 times compared to 1.4 times of easyJet.  easyJet shows recovery  And this is when easyJet’s load factor is not that much different from that of Wizz Air. For the quarter ending 31 December 2020, it was 66%. And it expects demand to improve over the coming months as the lockdown eases in the UK. This bodes well for the airline.  It has had to raise funds to meet its costs, though. Just in February, it raised bonds with a seven-year maturity period, which were encouragingly oversubscribed. But I am not sure if this is a sustainable solution if the pandemic (and lockdown) manages to drag on because coronavirus variants, for example.  IAG’s battling challenges Arguably, such a scenario would be worse for the British Airways owner IAG, whose share price is already down and out. It has also recently availed of a $1.75bn revolving credit facility with banks and issued bonds as well.  Companies can issue bonds as routine business related operations too, but at present debt raising needs to be flagged because it is it is to stay afloat.  Yet, I am not entirely pessimistic about IAG. The contrary, in fact. It is a huge airline group, whose demand will take time to come back for a fact. But unless there is any sign yet that it can go under, I think this may actually be a good time to consider buying the stock. It is way below its pre-crash levels and should recover as more travel starts happening.  The takeaway There is a risk to buying all aviation stocks right now. But if I am willing to take the risk, I would buy IAG for the long term. I already hold easyJet, and Wizz Air shares could be attractive on a dip too.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 reopening shares I’d buy in my ISA as UK lockdown measures ease As the IAG share price continues to rise, here’s why I’d invest £3k in the airline Why I’d ignore the Cineworld share price and buy this UK reopening stock The International Airlines Group (IAG) share price has been rising. Should I buy the stock now? Can the easyJet share price recover in 2021? Manika Premsingh owns shares of easyJet. The Motley Fool UK has recommended Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I like the easyJet, IAG, and Wizz Air shares now appeared first on The Motley Fool UK.
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  12. The easyJet share price rise is falling back. Is this a chance to buy? (18/05/2021 - The Motley Fool UK)
    As we’ve looked forward to the next phase of lockdown easing for the past few months, easyJet (LSE: EZJ) has been gaining. The budget airline’s share price had been rising gradually from the beginning of the year. But now we’ve actually moved into the next phase of opening up, it’s fallen back a bit. After reaching a high of 1,095p on 7 May, the shares have shed 10% and ended Monday at 986p. We’re looking at a fall of only 4% for easyJet over the past two years, so didn’t the pandemic have much of an effect then? Well, yes it did. And easyJet shares fell nearly 70% in the first month-or-so of the crash. Buy they had been soaring in the first few months of 2020, so much of the fall was just giving up those gains. Still, easyJet has recovered from the pandemic crash very strongly. Looking back over five years, its share price is down 33%. And it’s been very volatile over that period too. To me, that tells me not to invest in airlines — and I think easyJet is one of the best around. By comparison, International Consolidated Airlines is down 62% over the same five years. Beating the easyJet share price And as for Ryanair Holdings (LSE: RYA), well… oh, it’s up 26%. And 26% over five years is a decent return. Hmm, let’s look back further. Over the past decade, the easyJet share price has risen 125%, ahead of the Footsie. But Ryanair has beaten it hands down with a 390% climb. So have I misjudged airlines? In particular, have I misjudged Ryanair? And why do I keep getting drawn to a sector that I keep thinking I should never invest in? It’s partly because I’ve flown with both these budget airlines a few times. As a customer, I like easyJet, and I don’t like Ryanair. When I fly with the former, I just turn up and go. But with the latter, there always seems to be an extra hoop to jump through to avoid paying some extra charge or other. And Ryanair consistently comes bottom of customer satisfaction surveys. Ryanair share price strength So why has the Ryanair share price been convincingly beating the easyJet share price? I’d always fly with easyJet, given the choice, and I think that’s the nub of it. Due to the way routes and landing slots are managed, I don’t think I’ve ever had a direct choice between one or the other. Either one flies there, or the other does. And when we have mini-monopolies over routes, maybe the penny-pinching, poor customer service, business model is superior. I mean, what is there to lose? So, will I finally turn and invest in one of these airlines? I keep thinking maybe I will, and maybe my aversion to airline shares is losing me some potential profits. But then I remember that airlines are hostages to fuel prices, and offer little in the way of competitive choice other than price (at least, where there’s competition on routes). So no, the weakening easyJet share price still doesn’t tempt me, and nor does the strong Ryanair share price. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Would I buy the Ryanair share on dip? Can the Ryanair share price continue to grow in 2021? 2 of the best penny stocks to buy with £10k and 10 years to wait I was right about the easyJet share price. Here’s what I’d do next 2 penny stocks to buy in a Stocks and Shares ISA today Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The easyJet share price rise is falling back. Is this a chance to buy? appeared first on The Motley Fool UK.
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  13. Cineworld and easyJet shares: should I buy the reopening trade? (23/02/2021 - The Motley Fool UK)
    Prime Minister Boris Johnson has promised us an “incomparably better” summer than 2020. Even nightclubs might be able to reopen by July. So, I’m not surprised to see the Cineworld (LSE: CINE) and easyJet (LSE: EZJ) share prices up by as much as 10% this morning. Airlines and cinemas are among those that have been hardest hit by coronavirus. I’ve been wondering whether it’s the right time to buy into these stocks, as a trade on reopening the economy. easyJet shares: well supported During the final three months of 2020, easyJet flew 23,428 flights, compared to around 130,000 during the same period in 2019. I suspect traffic has fallen since December, although the airline hasn’t yet provided any update on this. However, easyJet’s financial position actually looks fairly safe to me. The airline has raised £4.5bn since the start of the pandemic, through a mix of loans, aircraft sales and by selling new shares. As of 25 January, the company still had access to £2.5bn of unused funding. Management says that cash costs have been reduced to £40m per week with all aircraft grounded. That suggests the airline could stay afloat for at least a year without needing to raise additional funds. Fortunately, I don’t think that’ll be necessary. Assuming a gradual return to normal flying this summer, I don’t expect easyJet to need any further funding. What would I pay? easyJet’s share price has been fairly volatile over the last year. The stock’s 52-week low of 410p is 70% below its 52-week high of 1,377p. The price, as I write, is 937p — roughly in the middle of this range. However, easyJet issued new shares in June, increasing its share count by 15%. That means a share price of 940p today is equivalent to around 1,100p before the fundraising. In addition to this, easyJet has more debt than it did a year ago — debt that will need servicing or repaying at some point. Consensus forecasts suggest the stock is trading on around 15 times 2022 earnings and about nine times 2023 earnings. For me, that’s high enough for an airline stock at this time. I don’t think easyJet shares look especially cheap and won’t be buying at current levels. What about Cineworld shares? I’ve written about Cineworld (LSE: CINE) in these pages a few times before. The founding Greidinger brothers have built the world’s second-largest cinema chain, with 787 cinemas and 9,500 screens. I admire Cineworld’s scale and success. But I think that the group’s $8bn net debt is probably unsustainable. I expect the company will need an equity refinancing at some point, which could cause heavy dilution for existing shareholders. The Greidingers control around 20% of Cineworld’s stock, so they have an interest in refinancing the business without wiping out shareholders. My guess is they plan to delay a full refinancing until cinemas are open again. This would probably justify a higher share price, reducing any dilution. Cineworld shares currently trade on around 10 times 2022 forecast earnings. That’s a lower multiple than for easyJet shares, but I think the situation is quite different. Whereas easyJet’s borrowings look manageable to me, I think Cineworld’s debt looks problematic. For that reason, I’ve ruled out Cineworld as a potential buy. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading I’d ignore the Cineworld share price and buy this US stock for my ISA instead Should I buy airline stocks today? Here’s my view on the struggling sector Why I’d ignore the Cineworld share price rally and buy these UK shares for my ISA Why I’d avoid the Cineworld share price and buy this leisure stock instead Rolls-Royce and Cineworld: are these UK shares too risky to buy now? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld and easyJet shares: should I buy the reopening trade? appeared first on The Motley Fool UK.
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  14. Here’s what I’m doing about the easyJet share price right now (27/03/2021 - The Motley Fool UK)
    I’ve been watching the easyJet (LSE: EZJ) share price like a hawk. The stock has been rising on the back of the success of the vaccine roll-out and the hopes of returning to some kind of normality. But I’m still holding off buying the shares in my portfolio. I reckon the easyJet share price could experience some further volatility and here’s why. Foreign holidays Reports earlier this week suggest that people could face a £5,000 fine if they go on holiday abroad without a reasonable excuse. Also a potential third Covid-19 wave across Europe is worrying. I don’t think this bodes well for the easyJet share price. I know the current government restrictions means that there isn’t much travelling happening, but a hefty fine and more coronavirus outbreaks could put people off further. I don’t think this completely rules out holidays for this summer just yet. Let me be frank and say things can change very quickly. But I reckon most people may think twice about booking a trip to their favourite destination abroad. I think it’s worth highlighting that travel demand is highly dependent on the easing of lockdown restrictions. This in turn is relies on the government’s assessment of the coronavirus data. For now, this uncertainty makes me uncomfortable so I’ll just watch the easyJet share price. The bright side Let me focus on the bright side. For now, easyJet is operating at 20% of its 2019 capacity. Although revenue is significantly down, the good thing is it hasn’t come to a complete stop. The budget airliner has enough liquidity for now to weather the coronavirus storm. EasyJet has raised money through a rights issue, cut costs, and suspended its dividend to preserve cash. For me, it’s pleasing to see that it has taken the right steps. I think easyJet has a strong brand and a value offering. The company operates short-haul flights to Europe. I reckon, when people are allowed to travel, they are likely book a short trip first. This means that easyJet should be in a good position to capitalise on this trend. Most people haven’t been on a holiday for a while. I think there’s pent-up demand to travel, which should work out well for easyJet once travel restrictions are lifted. What next for the easyJet share price? Let me be honest and say that the longer the pandemic and travel restrictions drag out, it could get worse for easyJet. The vaccine roll-out across the UK has been successful to date. But an economic downturn could slow down the air travel recovery. A rise in unemployment could mean that people may put off their holidays in order to save money. In terms of the easyJet share price, I’m adopting a wait-and-see approach. I’ll hold fire on buying the stock for now. I think the news on the pandemic is changing at a rapid rate that we may even be given the green light to travel abroad in the next month. It’s probably wishful thinking but I guess I’ll have to wait and see. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 top UK shares I might buy for the new bull market Why I think the easyJet share price is a long-term buy The easyJet share price is surging. Should I buy the stock now? 2 of the best stocks to buy now with £1,000 TUI and easyJet share prices are taking off. Here’s what I would do about it Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s what I’m doing about the easyJet share price right now appeared first on The Motley Fool UK.
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  15. The easyJet share price is taking off. Is now the time to buy? (03/03/2021 - The Motley Fool UK)
    The airline industry has been one of the worst-performing sectors over the last year. The pandemic grounded most flights, bringing the majority of airline stocks to their knees. But the UK government has made an announcement that might put planes back in the skies. And so the easyJet (LSE:EZJ) share price has soared by nearly 30% since the start of 2021. What was this announcement? And should I be adding easyJet shares to my growth portfolio? Let’s take a look. Why is the easyJet share price on the rise? Last month, Boris Johnson announced a four-stage plan to ease the lockdown restrictions in the UK. Under the outlined roadmap to normality, international holiday travel from the UK is expected to return as of May 17 – just in time for the summer holiday season. Since the announcement was made, easyJet reported that flights, as well as package holiday bookings, have skyrocketed by 337% and 630%, respectively. Needless to say, it looks like there is quite a lot of pent-up demand to go on holiday after being confined for a year. This is undoubtedly fantastic news for the airline stock. But even though the easyJet share price has gone up, it’s still 30% lower than its pre-pandemic levels.  This suggests there is plenty more room for recovery growth. But, as always, there are some risks to consider. The pandemic caused some damage 2020 was a devastating year for easyJet and its share price. Since the company’s fleet was grounded, it has had virtually no source of revenue flowing into the business. But operating costs didn’t disappear. After all, while fuel expenses could be avoided, there are still airport fees, staff salaries, and maintenance costs to worry about. As a result, the business has reported its first loss in 25 years and has had to raise an additional €1.2bn of capital through seven-year bonds to remain afloat. Naturally, this has impacted its financial health and will likely extend its Covid-recovery time. Another risk to consider is the easing of lockdown restrictions themselves. Suppose Covid-19 infection rates begin to rise as easing occurs. In that case, travel restrictions will likely remain in place for a while longer. Depending on the delay, the firm may need to raise even more capital, with the easyJet share price declining as a consequence. The bottom line Yet despite the increase in leverage, easyJet still looks healthy as a business to me, especially as half of its fleet is still eligible for aircraft lease-back agreements. These contracts allow easyJet to sell one of its planes to a third-party that immediately leases it back to easyJet. This enables the stock to raise large lump sums of cash quickly without affecting its leverage or suffering any disruptions to business operations. Therefore even though there are risks, the potentially massive boost in air travel on the horizon makes easyJet a stock I would consider adding to my growth portfolio. But besides from easyJet, I did find another stock that looks ready to take off in 2021. Here is: A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading My best airline shares to buy The easyJet share price has taken-off. Would I buy the stock now? Cineworld and easyJet shares: should I buy the reopening trade? Should I buy airline stocks today? Here’s my view on the struggling sector What I’d do about the easyJet share price right now Zaven Boyrazian does not own shares in easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The easyJet share price is taking off. Is now the time to buy? appeared first on The Motley Fool UK.
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  16. Europe Markets: European stocks struggle for traction. Shares of LVMH and SAP climb on results (14/04/2021 - Market Watch)
    European stocks struggled for traction on Wednesday, as investors mulled concerns over COVID-19 vaccines and looked toward the start of earnings season. Shares of SAP and LVMH Moet Hennessey and easyJet climbed on well-received results
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  17. What’s going on with the easyJet share price? (20/07/2021 - The Motley Fool UK)
    Passenger numbers are rising, but the easyJet (LSE: EZJ) share price has fallen by 20% over the last month. What’s going on? First, it’s worth remembering that easyJet shares are still worth 20% more than they were one year ago. The longer-term trend is positive. What I think we’re seeing at the moment is a reality check, as the difficulty of reopening hits home. Is this a buying opportunity? I think it could be. 3,381% more flights Let’s start with the good news: easyJet is flying again. The company flew 24,682 flights during the three months to 30 June. That’s a whopping 3,381% more than during the same period last year, when the airline’s fleet was pretty much grounded. I admit that this is still a long way below normal. Flights over the last three months were still only 17% of 2019 levels. However, management expects flights over the next three months to rise to 60% of 2019 levels. That might not be enough for it to turn a profit this year, but in my view it’s a clear sign that things are getting closer to normal. The secret to success? To maximise flying levels over the last few months, easyJet has been shifting capacity around its network. In particular, it’s been transferring capacity from UK-EU routes to routes within the EU, where there are fewer travel restrictions. I think this flexibility could help easyJet — and its share price — recover more quickly than flag carrier airlines such as British Airways. This year is obviously going to be difficult for the budget airline, which is expected to report a loss of around £900m during the current year. However, easyJet has access to £2.9bn of cash if needed and is expected to generate a profit of about £240m next year. I don’t think the group is likely to need any further refinancing. Although easyJet has cut costs and reduced its fleet of aircraft by 10% over the last year, management is already making plans to add capacity for next summer when foreign holidays are expected to rebound. easyJet share price: why I’d buy Investments always carry some risk, and that’s certainly true with easyJet (and other airlines). I can see two main risks for investors at the moment. The first is a general industry risk that Covid-19 disruption will continue for longer than expected. We can’t be sure right now, but I think that if travel hasn’t normalised by next Easter, airline losses could be worse than expected. For easyJet specifically, I think the risk is that historically, this airline has not been the cheapest (Ryanair and Wizz Air) or the most prestigious (British Airways and other flag carriers). easyJet has cut costs over the last year, but I still wonder if the airline will struggle to compete with more ruthless rivals. However, at 800p, I think easyJet looks fairly priced for a long-term investment. Broker forecasts today put the stock on a 2022 price/earnings ratio of 15, falling to a P/E of 8 in 2023. I’d be happy to add the shares to my portfolio at this level. The post What’s going on with the easyJet share price? appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading This is what I’m doing about the easyJet share price! Is the easyJet share price about to soar? The easyJet share price is weakening. Should I buy now? The easyJet share price continues to fall: should I buy now? The EZJ vs the IAG share price rated Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  18. Why I think the easyJet share price is a long-term buy (22/03/2021 - The Motley Fool UK)
    The easyJet (LSE: EZJ) share price has been on a wild ride over the past 12 months. It’s easy to understand why. To try and control the spread of coronavirus around the world, governments have introduced travel restrictions. These have devastated the demand for air travel. And while the outlook for specific sectors of the economy has started to improve over the past few months, the outlook for the airline industry remains incredibly uncertain. Indeed today, the easyJet share price and that of the company’s peers are trading sharply lower on speculation the government could extend the international travel ban.  Uncertainty prevails Here at the Motley Fool, we are long-term investors. That means we consider the long-term potential of a business rather than speculate about what could happen in the next few weeks or months.  As such, when reviewing easyJet, I try to take into account its long-term outlook.  Over the long run, I think the company has incredible potential. Its brand is one of the most established in the European aviation industry, and while it may not have the best record of customer service, its reputation is better than other low-cost peers. The airline’s average fee is also more than double that of its closest competitor Ryanair, but customers get much more for their money.  Unlike many of the company’s European peers, easyJet also ended the crisis with a strong balance sheet. As a result, the organisation has been able to avoid taking a government bailout or collapsing.  The easyJet share price as a long-term investment These qualities lead me to conclude that easyJet could be an excellent long-term investment. In my opinion, the best long-term investments are those companies with substantial competitive advantages and robust balance sheets. My research shows easyJet has both of these qualities.  That’s not to say the business doesn’t have its risks. The airline industry is incredibly competitive. There’s a high chance a fares war will break out after the pandemic as operators fight for customers. This would have a detrimental impact on the group’s recovery. Analysts have also expressed concern about the group’s expansion pace. This could leave it with a more extensive-than-needed fleet and a weak balance sheet. So far, the company has managed to avoid these challenges, but there’s no guarantee this will continue to be the case.  A long-term buy  All of the above leads me to the conclusion that easyJet is a long-term buy. However, the group’s short-term outlook depends on how quickly the global economy recovers from the coronavirus pandemic. If the international travel market picks up towards the end of this year, the value of the stock may increase dramatically. If not, the stock could continue to fall.  Nevertheless, despite this uncertainty, I’d buy the stock for my portfolio today based on the qualities outlined above as a long-term investment. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The easyJet share price is surging. Should I buy the stock now? 2 of the best stocks to buy now with £1,000 TUI and easyJet share prices are taking off. Here’s what I would do about it The easyJet share price is taking off. Is now the time to buy? My best airline shares to buy Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think the easyJet share price is a long-term buy appeared first on The Motley Fool UK.
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  19. Here’s why I’d buy the dip in the easyJet share price (20/05/2021 - The Motley Fool UK)
    The low-cost airline has come a long way in the past year, but the easyJet (LSE: EZJ) share price has dipped today. Its share price is down almost 3% as I write, on poor results.  Expectedly dismal results Its revenues declined by 90% for the six months ending March 31, compared to the same period last year. Its loss increased by more than 3.5 times to £701m, in line with expectations. That the company was expecting a big loss is hardly surprising. Vaccines were developed only in November, which was already one month into the six months in question. And it took still longer for the vaccination rollout to kick off.  So, the pandemic was still very much raging in the period for which the results have been reported. Further, easyJet’s biggest market, the UK, was in lockdown for much of the time.  This has, of course, shown up in low travel numbers. An 89.4% drop was seen in passenger numbers and capacity decreased by 85%. As I looked at the numbers, the question I found myself asking was: why is the easyJet share price reacting this way if the results were expected? I think one reason for this is its weak outlook.  The low-cost airline expects to fly only 15% of capacity in the third quarter. This is after the lockdown is slated to completely lift in the UK. It also indicates that summer travel will be muted, despite much progress with vaccinations. It has also provided no guidance for the current financial year.  Not as bad as it looks These numbers look dismal, I know. But I am actually quite bullish on easyJet. In fact, I even bought its shares last year. And purely from my own example, I can say that it has been a rewarding experience. The airline’s share price has almost doubled since the same time last year.  But the question now is if easyJet can continue to make gains.  I think it is possible. Its share price is still way below its pre-pandemic highs. This is true for many travel stocks whose future is still far more uncertain than other reopening stocks like retailers or even pubs.  But it would be fair to say that the extent of uncertainty is declining. Even though new variants are bringing in fresh threats, large-scale vaccinations have reduced the severity of the pandemic. So, if anything, I am optimistic about easyJet’s future.  My takeaway for the easyJet share price There can be some wobbles along the way as long as coronavirus is still around. But in the overall scheme of things, I reckon the airline will do better. The company notes that it is “the largest operator to Green list countries”. Further, it is ready to ramp up flying in the summer as European governments ease travel restrictions. It can operate up to 90% of its capacity if demand increases. This suggests that it is probably conservative in its outlook right now. Things may turn out better than it suggests in its latest release. easyJet is still a buy for me.  A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The easyJet share price rise is falling back. Is this a chance to buy? I was right about the easyJet share price. Here’s what I’d do next Manika Premsingh owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why I’d buy the dip in the easyJet share price appeared first on The Motley Fool UK.
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  20. The easyJet share price continues to fall: should I buy now? (29/06/2021 - The Motley Fool UK)
    Since the start of the pandemic, the easyJet (LSE: EZJ) share price has seen a prolonged period of volatility. Although the share price is up 17% year-to-date (and 31% over 12 months), the last month has seen a near 11% fall. With the current dip, is now a good time to buy? Let’s take a look. Bull case First, let’s look at the opportunities easyJet currently presents. Most noticeable is the restructuring process the business has been through during the pandemic. The last six months have seen redundancies, pay cuts, and adjustments to working hours — all to slash costs. Its cost-cut programme aims to deliver around £500m of savings in FY21 alone. Although short-term actions such as redundancies may fill investors with doubt, long-term this provides a solid opportunity for the business. This positions it for a strong bounce-back post-Covid-19 and offers potential for the easyJet share price to take off. To add to this, as of the end of March, easyJet reported £2.9bn of cash and unused debt. As such, this provides financial stability. CEO Johan Lundgren said easyJet will not require financing unless the summer 2022 season is disrupted.  The half-year results also mentioned how it remains flexible and can ramp capacity up or down quickly, which could hugely benefit the business should restrictions continue to chop and change. With what it says is a flexibility to maximise European opportunities, should more countries eventually be added to the green list the volume of travellers could rise significantly for the remainder of 2021. This, in turn, could boost the share price. Bear case With the above said, I am aware of the risks. The latest half-year results showed a 90% drop in revenues year-on-year, falling to £240m. This included a 91% fall in passenger revenue to £170m. This clearly provides a risk for the future easyJet share price – potentially damaging investor confidence. However, I could argue that this was expected, and therefore is not as bad as it initially seems, as my fellow Fool Manika Premsingh discussed back in May. On top of this, regardless of easyJet’s likely ability bounce back from the impacts of the pandemic, it may take years to see volumes of travel anywhere near pre-Covid levels. Many expect the aviation industry to return to ‘normal’ only in 2024.  Another major issue is the pushing back of the ‘freedom day’ date when all restrictions will be lifted. Originally set for 21 June, it is now 19 July — but even that is not guaranteed. With new guidelines being put into place, including the UK government’s green, amber and red lists for destinations, it provides instability for the travel sector. This could negatively impact the easyJet share price. Should I buy easyJet? Although easyJet provides opportunities, the persistence of the pandemic continues to dampen these opportunities. With the easyJet share price currently sat at around 900p, I personally will not buy. The uncertainty around what the future holds surrounding Covid makes me wary. As such, I intend to place easyJet on my watchlist until the path out of the pandemic for travel is clearer. The post The easyJet share price continues to fall: should I buy now? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The EZJ vs the IAG share price rated Should I buy crashing airline stocks? 2 cheap stocks to buy right now Will the easyJet share price bounce back? Charlie Keough does not own shares in easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  21. This is what I’m doing about the easyJet share price! (10/07/2021 - The Motley Fool UK)
    It’s perhaps no surprise that the easyJet (LSE: EZJ) share price is struggling for traction again. Sure, this UK airline share is up 40% during the past 12 months. But rising Covid-19 infection rates in recent weeks — and particularly in Britain where cases of the Delta variant have exploded — have dampened enthusiasm for travel stocks like this. Is the easyJet share price on the cusp of collapsing again? Or will the FTSE 250 flyer take to the skies very soon? Why easyjet’s share price could sink There are some clear dangers to the easyJet share price in the near-term and beyond. These include: #1: Covid-19 travel restrictions worsening. The travel industry received a boost yesterday when the UK government axed quarantine requirements for fully-vaccinated people returning from certain destinations. But soaring infections in parts of Europe are causing lawmakers elsewhere to get jittery again. France has just warned against travel to Portugal and Spain, for example. Fresh action to curb the fast-spreading Delta variant could be days or weeks away. #2: Fears over easyJet’s debt pile ignite. The prospect that its planes will remain largely grounded is particularly dangerous for easyJet’s share price, given the colossal amounts of debt the company has. Net debt stood at £2bn as of March, up from £467m a year earlier. This UK share could be forced to raise additional capital via share placings, or by raising its debt mountain still further to see out the crisis. #3: Rising fuel costs. As well as suffering from a severe revenues slump, airlines are also being hit by spiking fuel costs. Brent oil prices have leapt 77% during the past year, to $74.80 per barrel. And they could keep climbing as the economic recovery drains energy supplies. Longer-term optimism Clearly, a long and lumpy fightback against Covid-19 is the biggest threat to the easyJet share price. Indeed, it’s possible that the public health emergency could hamper the travel industry for years to come. As my colleague Charlie Keough recently commented, United Airlines boss Scott Kirby suggested that airline activity may not recover to pre-coronavirus levels until 2024. That said, I buy UK shares on the basis of what returns I can expect to make over a long-term basis. That usually covers a period of at least a decade from when I buy. And provided easyJet can survive the current crisis, things could be looking very good indeed. Not only is the low-cost end of the travel market tipped to be the fastest recovering part of the broader aviation industry. The survivors will also benefit from reduced competitive pressure, given the high number of airline casualties during the Covid-19 crisis. For the time being, I’m happy to ignore easyJet and its flagging share price. This is due to high amounts of debt the business currently has on its books. I still think it could potentially deliver blockbuster shareholder profits later on this decade. But the uncertain near-term outlook makes it too risky for my liking. The post This is what I’m doing about the easyJet share price! appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Is the easyJet share price about to soar? The easyJet share price is weakening. Should I buy now? The easyJet share price continues to fall: should I buy now? The EZJ vs the IAG share price rated Should I buy crashing airline stocks? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  22. The easyJet share price is weakening. Should I buy now? (29/06/2021 - The Motley Fool UK)
    Like many other airline stocks, the easyJet (LSE:EZJ) share price took an enormous hit in March 2020. Since then, it has made an impressive partial recovery, thanks this year to the relatively rapid progress of the vaccine rollout. But recently, the stock is back on the decline following its latest earnings report and a collection of unfavourable events. Since May, it’s fallen by around 12%, which is hardly a collapse like the one seen in early 2020. However, is there cause for concern? Or is this a buying opportunity for my portfolio? The falling easyJet share price Since the last time I looked at this business, it has released its half-year earnings for FY21. And they weren’t a pleasant sight for sure. Compared to a year before, total revenue fell by 90% from £2,382m to £240m, due to passenger numbers plummeting from 38.6m travellers to 4.1m. Total aircraft capacity fell to 6.4%, pushing the cost per seat from £59.75 to £145. That’s well above the average revenue generated per seat of £36.93. These results are undoubtedly terrible, so seeing the easyJet share price suffer after publication isn’t surprising. It also doesn’t help that lockdown restrictions in the UK have been extended by four weeks, with Portugal being moved to the amber list. To make matters worse, the International Air Transport Association (IATA) estimates that the volume of aircraft passengers in Western Europe won’t return to pre-pandemic levels until 2023. If accurate, this will prove problematic for easyJet and other airline businesses, given their operational costs are predominantly fixed. This certainly paints a bleak picture for the easyJet share price. But the situation may not be as dire as it seems. The signs of recovery are there As horrendous as the half-year results were, they were hardly unsurprising. After all, these figures represent the performance between October 2020 to March 2021 – a period when travel and lockdown restrictions were still in full force. Looking at management’s guidance, EZJ expected travel capacity to return to 15% by June, within Q3. This level is also expected to climb higher thereafter. That’s still relatively low, so the average cost per seat will remain high. But it’s moving in the right direction. And as these figures improve, I would expect to see the easyJet share price move in correlation. Meanwhile, the company has successfully executed its “largest ever” structural cost-cut programme. As a result, easyJet now expects operating expenses to fall by £500m by the end of 2021. That’s quite an impressive feat in my eyes. And when compared to 2019 figures, this represents a roughly 8% increase in margins. Combining these cost savings with its £2.34bn cash balance, easyJet looks like it’s in a relatively healthy position compared to some of its competitors. The bottom line Over the long term, I think easyJet and its share price can return to pre-pandemic levels. And it seems most investors agree with me, given the stock didn’t completely collapse following the latest earnings report.  However, I believe there are far better growth opportunities with much less risk to be found elsewhere. So I won’t be adding any shares to my portfolio today. The post The easyJet share price is weakening. Should I buy now? appeared first on The Motley Fool UK. Instead, I much rather invest in: One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The easyJet share price continues to fall: should I buy now? The EZJ vs the IAG share price rated Should I buy crashing airline stocks? 2 cheap stocks to buy right now Will the easyJet share price bounce back? Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  23. 2 dirt-cheap FTSE 250 stocks to buy in August (28/07/2021 - The Motley Fool UK)
    I’m looking at a number of FTSE 250 stocks I think are trading at bargain prices. While the index has regained its pre-pandemic level and gone on to make new all-time highs, not all stocks have participated. Airline easyJet (LSE: EZJ) and bingo halls and casinos owner Rank Group (LSE: RNK) were both floored by pandemic lockdowns and restrictions. Their share prices are still languishing far below their pre-pandemic levels. But I think they’re fundamentally sound businesses. And I reckon their discount prices make them great stocks for me to buy in August. Low flyer In easyJet’s last pre-pandemic trading year (to 30 September 2019), it made an underlying profit of £349m. In the weeks between a trading update on 21 January 2020 and the pandemic crash, the stock traded within a market-capitalisation range of between £5.51bn and £6.16bn. Put another way, between 15.8 and 17.7 times the profit. Today, easyJet’s market capitalisation is just £3.88bn, or 11.1 times the profit of the last normal year’s trading. If the company were to get back to its pre-pandemic profit and the stock were to regain its pre-pandemic valuation, the upside would be between 42% and 59%. In terms of the share price, that’s between about £12 and £13.50, compared with the current £8.50. Risks to a positive outcome Earlier this month — the day after ‘Freedom Day’ — easyJet published a trading update for the three months to 30 June. The first thing I’m looking at with businesses like this is whether I think they can get through to a return to normality without going bust. Virus variants and renewed restrictions or lockdowns remain risks. As such, I have to accept there are potential downside scenarios that could be damaging for my investment. Having said that, the company ended the period with access to £2.9bn of liquidity. With this headroom, I’m more than hopeful of a positive outcome. As such, this discount FTSE 250 stock looks very buyable for me. Low rank The calendar year of 2019 was Rank’s last 12 months of normal trading. It made an underlying profit of £77m. Between its half-year results on 30 January 2020 and the pandemic crash, the stock traded within a market-capitalisation range of between £1.11bn and £1.27bn. Or between 14.4 and 16.5 times the profit. Rank’s market capitalisation is currently just £0.79bn, or 10.3 times the profit of the last normal 12 months’ trading. If the company were to get back to its pre-pandemic profit and the stock were to regain its pre-pandemic valuation, the upside would be between 41% and 61%. In terms of the share price, between 237p and 271p, compared with the current 168p. Risks but additional liquidity As with easyJet, I have to accept there are downside scenarios that could adversely affect an investment in Rank. Again, the risks of virus variants and renewed restrictions or lockdowns feature prominently. However, Rank has made two announcements this month that are positive for its liquidity. First, it’s agreed an additional £25m credit facility. Second, it’s won a favourable ruling on an £80m VAT refund claim. Industry watchers believe HMRC is unlikely to appeal. As such, this is another FTSE 250 stock I’d be happy to buy. The post 2 dirt-cheap FTSE 250 stocks to buy in August appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading FTSE 250 stocks: 2 to buy Is now the right time to buy easyJet shares? What’s going on with the easyJet share price? This is what I’m doing about the easyJet share price! Is the easyJet share price about to soar? G A Chester has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  24. Can the easyJet share price recover in 2021? (07/04/2021 - The Motley Fool UK)
    With lockdown restrictions in the UK slowly being eased, the number of holiday bookings has skyrocketed. In fact, easyJet (LSE:EZJ) has reported a significant increase in international travel demand. Its overall booked flights have increased by 337%, and package holiday sales are up by over 600%. Therefore, seeing the easyJet share price take off by 60% over the last 12 months isn’t too surprising. But can it recover to pre-pandemic levels this year? And should I be adding the business to my portfolio? The rising EasyJet share price 2020 was a rough time for airline stocks, and easyJet was no exception. Its share price collapsed in late February last year, falling from 1,500p to 494p. That’s nearly a 70% crash in only a few weeks. And it’s understandable. After all, flights were grounded as borders were closed. But while fuel costs might disappear, airport fees and maintenance expenses still need to be paid. This proved to be particularly problematic, as airline companies don’t tend to have a lot of cash to provide liquidity. And with virtually no revenue flowing into the business, easyJet reported its first-ever annual loss of £1.08bn. To remain afloat, the management team did two primary things. The first was to borrow a significant amount of money using seven-year bonds that pushed its overall debt level to £3.4bn. The second was to sign an aircraft leaseback agreements as well as sell one of its planes to raise $169.5m (£130.7m) in cash. Both these money-raising methods can have a long-term impact on the financial health of the business. However, they have also enabled easyJet to survive the pandemic. At least for now. With bookings surging and borders reopening, it seems to me that the worst might have passed. And so I think the easyJet share price can continue to recover. But there are still a few things to consider. New obligations can restrict progress The aircraft leaseback agreement undoubtedly helped easyJet strengthen its balance sheet. However, it has also created some potential problems. As a reminder, under these agreements, an airline company sells a plane to a third-party who then immediately leases it back. This provides a lot of cash with no disruptions to operations. But it also introduces an interest equivalent expense that lasts several years. Let’s assume that easyJet can return to pre-pandemic levels of operations in 2021. In this scenario, it will roughly generate £460m of operating profit. But combining the new interest payments on its additional loans, with the lease expenses of its existing and newly sold aircraft, around £284m of that is being gobbled up. While affordable, it also means there is limited profit available to pay down debts, reinvest in the business, or return capital to shareholders via dividends/share buybacks. The bottom line Despite the increased leverage, in my opinion, easyJet still looks relatively healthy. And with such a sizeable pent-up demand to go on holiday after a year in confinement, I believe the desire for its services is high. While lockdown restrictions in the UK are slowly being lifted, it’s not the same story for some popular European destinations. Therefore, while possible, I think it’s unlikely that the easyJet share price will fully recover in 2021. But I do believe it will be on track. And so, I would consider adding the stock to my portfolio today. There is also another growth stock that caught my attention this week… A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks Why the easyJet share price doesn’t tempt me Here’s what I’m doing about the easyJet share price right now 2 top UK shares I might buy for the new bull market Why I think the easyJet share price is a long-term buy Zaven Boyrazian does not own shares in easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Can the easyJet share price recover in 2021? appeared first on The Motley Fool UK.
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  25. TUI and easyJet share prices are taking off. Here’s what I would do about it (05/03/2021 - The Motley Fool UK)
    The Covid-19 pandemic has sent shockwaves through the travel industry, closing borders, cancelling holidays, and reducing flights. Throughout the first 10 months of 2020, the tourism industry suffered losses of $935bn worldwide. As a result of this, TUI (LSE:TUI) and easyJet (LSE:EZJ) share prices plummeted throughout 2020, but with Boris Johnson’s recent roadmap plan back to normality signalling travel could be open for summer, both stocks have seen a surge. So where do I see TUI and easyJet share prices going in the future? TUI’s rising share price vs struggling business Throughout 2021 TUI has seen a massive recovery, with its share price rising 48% in the last three months. However, this figure is deceiving when considering some of TUI’s business fundamentals. At the end of 2019, TUI boasted a market cap of £5.4bn, which has since shrunk to £2bn, largely due to a third bailout from the German government to keep the company afloat. This largely added to company debt, which didn’t help an already struggling balance sheet. Part of this deal also included placing restrictions, such as a dividend ban, making the company less appealing to investors. However, CEO Friedrich Joussen quoted in the 2020 Annual Report that he believes the “holiday sector remains on its long-term growth pathway”, showing future confidence, perhaps due to the 2.8m holidays TUI still has booked for this year’s summer. Regardless, in its first quarterly report of 2021 TUI has shown a group revenue of only £414m, down 88% from last year, with analysts indicating the company won’t operate at full capacity until 2022/23. A similar story for easyJet? The easyJet share price has followed a similar trajectory, crashing in 2020 whilst recently spiking 30% since the government announcement. However, there are a few reasons why I prefer this stock to TUI for my portfolio. Whilst TUI’s loan came with restrictions such as dividend suspensions, easyJet’s £1.4bn package is actually expected to strengthen its balance sheet, through extending its debt maturity profile and increasing liquidity levels. The company believes it will “emerge from the pandemic more efficient” as a result of this. It’s still hard to ignore the 88% drop in revenue from 2021’s first financial quarter. However, to combat this easyJet has confirmed that it has reduced costs by 52% excluding fuel, with material savings across much of the business running in line with its structural cost-out programme announced last year. What’s more, research conducted by easyJet shows that nearly 75% of previous customers are planning to travel this year. The verdict Whilst both companies have seen a recent surge in share price, I am still unconvinced on whether their stock will continue to offer significant returns until a lot further down the line. TUI is facing some serious balance sheet issues due to consistent government bailouts, leaving a cloud of uncertainty above its share price. The vaccine rollout may help TUI’s stock in the short term, but I am less convinced it will offer more significant returns throughout this year. As for easyJet’s share price, the streamlining and strengthening of its balance sheet is certainly a good indication of what I believe will be a more prosperous future. As a current investor myself, I will be holding for the long run. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading The easyJet share price is taking off. Is now the time to buy? The TUI share price has jumped 45%! Is it too late for me to buy the stock? The TUI share price is rising! Should I buy the shares today? My best airline shares to buy The easyJet share price has taken-off. Would I buy the stock now? Dylan Hood has shares in easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post TUI and easyJet share prices are taking off. Here’s what I would do about it appeared first on The Motley Fool UK.
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  26. The easyJet share price is falling: should I buy now? (21/05/2021 - The Motley Fool UK)
    Budget airline easyJet‘s (LSE: EZJ) share price fell by 2% yesterday after the company released its first-half results. In contrast, the FTSE 100 index rose 1%. This suggests to me that investor sentiment is low for the stock after the company’s result announcement. Is the price drop a buying opportunity for me?  easyJet’s recent results Revenue for the first half of 2021 fell by 90% year-on-year to £240m. This was primarily the result of lower passenger travel due to the lockdown. Passenger revenue fell by 91% to £170m and ancillary revenue fell by 87% to £70m. Ancillary revenue includes extra baggage, allocate seat, and seat changing charges, among others. So, this revenue segment also depends on more passengers. On the whole, I consider the revenue satisfactory considering the lockdowns and Covid-19 disruptions.  I also think the company’s liquidity position is good. It has cash and undrawn loans of about £2.9bn. The company successfully raised capital from various sources since the start of the pandemic. It was also able to reduce its cash burn for the second quarter to £38m per week on average, outperforming the company’s previous guidance of £40m per week. Risks to consider The company expects to fly 15% of 2019 capacity levels. This is lower than the expected passenger capacity for British Airways owner IAG, which is expected to be around 25% for the June quarter and the company’s own earlier estimate of 20%. Also, there is uncertainty on full re-opening due to new Covid-19 variants. The hope of resumption of summer travel was one of the reasons for the stock’s appreciation in the past few months. If the travel industry is slow to pick up steam, I think that easyJet’s share price might hit the floor.  The company’s operating costs will also rise when it starts its operations. So, the benefits will not be immediate for the company. Also, there is uncertainty on the number of countries where hotel quarantine is required. This will be an additional burden to flyers. So, holiday flyers might postpone their summer travel plans. This could further negatively impact the company’s revenues this year.  The company reported a pre-tax loss of £701m. This was within the management guidance range of £690m–£730m loss. I think various governments might keep some restrictions in place since international travel appears to promote the spread of variants. If this is the case, the company will need more time to return to profitability. During the normal international travel period from the year 2015 to 2019, the company’s average price-to-earnings ratio was around 14. Using the 2019 diluted earnings per share (EPS) figure of 87.8p, the current share price is trading about 11 times. There is high uncertainty at the moment as to when the company will achieve this EPS. So, I believe that there is not much upside. My final view for easyJet’s share price The company’s share price rose about 75% in the past year. The successful vaccination drive and the expected start of international travel led to the strong upward movement. However, the increase new Covid-19 variants and also the uncertainty of travel regulations makes me feel that this is not the right time for me to buy easyJet. I would like to keep the stock on my watchlist.  One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Here’s why I’d buy the dip in the easyJet share price The easyJet share price rise is falling back. Is this a chance to buy? I was right about the easyJet share price. Here’s what I’d do next Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The easyJet share price is falling: should I buy now? appeared first on The Motley Fool UK.
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  27. Should I buy airline stocks today? Here’s my view on the struggling sector (16/02/2021 - The Motley Fool UK)
    I’m dreaming of jetting off on holiday to Spain or France this year. Sitting on a sunny terrace having lunch without a care in the world. A dream is all it is at this stage. So with international travel having been heavily restricted over the last year, where does that leave airline stocks as an investment? The industry has been decimated by the impact of Covid-19 restrictions. The share prices of International Consolidated Airlines Group (LSE:IAG), easyJet (LSE:RYA) fell an average of 55% in the last year. Interestingly, the Ryanair (LSE:RYA) share price has recovered to pre-pandemic levels. So where do I think these airline stocks are headed in the future? The sector Having covered some of these companies individually over the last few weeks, I’m clear on my stance that I fully expect airline stocks to recover in the long term. Things look bleak at the moment with international travel greatly restricted. The UK has moved to introduce mandatory hotel quarantine for international arrivals. However, I’m an investor who focuses on the long term rather than seeking short-term profits. And I think airline stocks will return to regular flying numbers in five years. They may not do so within the next 12 months, though. But I think business and leisure travel will return in a significant way. I also think pent-up demand for holidays will drive a lot of revenue for airline stocks when some degree of normality eventually happens. IAG British Airways owner IAG has seen its performance dive the most since Covid-19 began. However, at 160p, the shares seem really cheap to me today.  The company recently completed the acquisition of budget carrier Air Europa in a cut-price deal, and with smaller airlines struggling even more, further takeovers could happen. I see the rollout of vaccines as being a major upside for IAG too and the main reason why I would buy it. It must be noted that the shares are really volatile however, and any further market setbacks in the fight against coronavirus could see the price fall further. easyJet FTSE 250-listed easyJet is going through a transition. CEO Johan Lundgren’s wants to take it a little more upmarket to compete with the likes of British Airways. But it’s been difficult to tell how that has gone with travel stunted so much.  I have reservations about that strategy, and also about the firm’s costs — ongoing costs at easyJet are higher than other airlines at €53 per passenger. The company will need to return to profitable trading soon to see any growth in the next few years. However I feel these challenges can be overcome if normal trading conditions resume within the next year and still see plenty of value in the shares at 840p. Ryanair Ryanair shares have actually risen 4% in the last 12 months, despite the pandemic. Its solid balance sheet is perhaps one reason for this. While the balance sheet may take a hit by the end of 2021 with further restrictions, I’m encouraged by analyst predictions of a return to earnings of 56 cents per share by next year. With current passenger numbers 80% lower than this time last year, there’s a risk to buying Ryanair shares right now, but like easyJet and IAG, I’m confident of a sector recovery and would buy Ryanair for my portfolio today. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Will the IAG share price ever return to pre-pandemic levels? Can the IAG share price bounce back in 2021? What I’d do about the easyJet share price right now Should I buy or avoid IAG shares? Here’s why I’m avoiding the easyJet share price in 2021 conorcoyle owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy airline stocks today? Here’s my view on the struggling sector appeared first on The Motley Fool UK.
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  28. The EZJ vs the IAG share price rated (24/06/2021 - The Motley Fool UK)
    The easyJet (LSE: EZJ) and IAG (LSE: IAG) share prices have both seen significant declines since the beginning of the coronavirus pandemic. Since early February 2020, the EZJ share price has fallen around 34%. Meanwhile, shares in British Airways owner IAG are off around 50%.  However, I think both of these airlines could provide attractive ways to invest in the global economic recovery over the next few years. But if I had to pick just one company to buy for my portfolio, which stock would I choose? IAG share price challenges  Easyjet and IAG are both very different companies. The latter owns a portfolio of airlines across Europe, which cater to different customers and fly to different locations. I think this diversification is appealing from an investment perspective.  On the other hand, EZJ owns and operates one of the most efficient, low-cost airline brands in Europe. Its balance sheet is more robust than its larger peer, and it’s far more efficient. What’s more, its low-cost offering may appeal to consumers over the next few years as in periods of economic stress, consumers tend to favour goods and services with lower prices.  So, easyJet has the edge when it comes to pricing. Further, the business is far more flexible than its larger peer, and it has a stronger balance sheet. A weak balance sheet is one reason why the IAG share price has performed so poorly this year.  For example, earlier this week, it was reported that IAG would reevaluate its position at Gatwick Airport. A current waiver on slot usage has allowed BA to avoid penalties for not launching flights from Gatwick over the last 18 months. That will expire at the end of 2021. Therefore, management is reportedly considering consolidating operations at Heathrow. Meanwhile, EZJ has recently decided to add 12 new UK domestic UK routes and five new European routes from Birmingham. The company also has plans in place to expand its Gatwick presence.  While IAG is also launching more flights from smaller UK airports, it’s notable the group is leaving one of its major bases while easyJet expands.  EZJ opportunity  Considering all of the above, if I had to choose between IAG and easyJet, I would buy shares in the latter. I think it’s better managed and has more room for growth in the years ahead.  That being said, the success of both companies over the next few quarters depends on current government travel regulations. Unfortunately, travel regulations seem to change almost every week. The industry is awash with rumours about what will happen next. There’s also a high level of uncertainty regarding how long it will take for the industry to return to 2019 levels of activity, let alone grow beyond that. If consumers don’t return quickly, both companies may struggle. But I think easyJet is better placed to navigate a challenging environment due to its operational flexibility.  Overall, I would avoid IAG shares and acquire easyJet for my portfolio if I had to choose between these two recovery plays.  The post The EZJ vs the IAG share price rated appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Should I buy crashing airline stocks? Is the IAG share price a value trap? 2 cheap stocks to buy right now Here’s why I’ll be avoiding IAG shares The IAG share price leaps 47% since January. Should I buy now? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  29. Rate my port? (14/02/2021 - Reddit Stocks)
    Should I sell my RY, ENB, CM and just buy some ETFs? ​ VOO 31 shares QQQ 27 shares RY.TO 48 shares ENB.TO 100 shares CM.TO 38 shares VGRO.TO 92 shares ARKK 10 shares VFV.TO 11 shares XUU.TO 22 shares ARKG 3 shares XIT.TO 7 shares VCN.TO 9 shares   submitted by   /u/FeignNewb [link]   [comments]
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  30. 2 cheap stocks to buy right now (13/06/2021 - The Motley Fool UK)
    As the UK economy continues to recover from the coronavirus pandemic, I have been looking for cheap stocks to buy for my portfolio. Here are two companies that I believe could achieve strong growth as the UK moves on from the crisis. Cheap stocks to buy Commercial property, especially retail and office properties, have been particularly severely impacted by the coronavirus pandemic. As office workers have been advised to stay at home, and retailers have been forced to close, rent collection has plunged. Landlords have had to write down the value of their property portfolios as a result. Great Portland Estates (LSE: GPOR) has not been able to escape the carnage. According to the company’s full-year results for the year ended 31 March 2021, the value of its property portfolio declined by 8.7% last year. The value of its office properties fell 1.7%, and retail properties declined 27.3%. As a result, its net asset value per share decreased 10.3% to 779p. I think this presents an excellent opportunity, which is why I believe it is one of the best cheap stocks to buy. Initial indications suggest that consumers have quickly returned to retail outlets as they have reopened. Meanwhile, some office properties across central London, where the bulk of Great Portland’s estate is located, are reporting the strong demand for tenants. As such, I would buy this company as part of my basket of cheap stocks. While the business may encounter further turbulence, demand for its properties could expand rapidly as the economy reopens. Unfortunately, a recovery isn’t guaranteed. Another coronavirus wave or a change in government guidance could hurt tenant confidence. This may lead to reduced demand for office and retail space. That would put further downward pressure on the value of Great Portland’s property portfolio. I see this is as the most considerable risk the company faces right now. Slowly recovering EasyJet‘s (LSE: EZJ) recovery looked as if it was guaranteed earlier this year, but the government’s flip-flopping on travel from the UK has dented the group’s recovery prospects. Moreover, it looks as if some restrictions on travel could last until 2022. Therefore, it could be some time before the organisation can capitalise on its position in the market as one of the best low-cost carriers in Europe. Still, I think this is one of the best cheap stocks to buy because of its recovery potential. EasyJet’s brand is incredibly valuable, and I don’t think the market appreciates this right now. Further, consumers are already showing a willingness to spend more on travel as the economy reopens. This suggests to me that there could be a surge in bookings when unrestricted travel resumes. As well as this tailwind, the airline has also shown a willingness to return excess profits to investors with dividends. It may take some time for the company to resume its dividend distributions (if it ever does). Still, this is another reason I would buy the corporation for my portfolio of cheap stocks. The post 2 cheap stocks to buy right now appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Will the easyJet share price bounce back? The easyJet share price is falling: should I buy now? Here’s why I’d buy the dip in the easyJet share price The easyJet share price rise is falling back. Is this a chance to buy? Rupert Hargreaves owns shares in Great Portland Estates. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  31. Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks (06/04/2021 - The Motley Fool UK)
    With vaccines roll-out continuing apace, many investors are now focusing on ‘reopening stocks’. Two such stocks UK investors have been piling into are easyJet (LSE: EZJ) and IAG (LSE: IAG). I can see why these airline stocks are popular. Right now, there’s huge pent-up demand to travel. People are desperate to take a holiday. Having said that, these aren’t reopening stocks I’d buy myself. Below, I’ll explain why. I’ll also highlight some stocks I’d buy instead. IAG and easyJet shares: risks remain In the short term, I expect EasyJet and IAG to continue facing coronavirus challenges. While the UK is making excellent progress in the battle against Covid-19, many European countries are struggling to control the virus. France, for example, has just begun a new lockdown as it battles a third wave. I think there’s a real risk this summer could be a write-off for Europe-focused airlines. If it is, easyJet and IAG may have to raise more equity or issue more debt to survive. Meanwhile, I also have long-term concerns about these flyers. History shows that airline stocks are generally not good investments in the long run. A huge amount of capital is required to keep an airline running smoothly and there’s a lot that can go wrong. Fundsmith portfolio manager Terry Smith describes airlines as a “machine for losing money.” He says that airlines is a “truly awful sector” from an investment standpoint. Given his track record, I think he’s probably worth listening to. So, while there’s clearly demand to fly, I’m leaving the airline stocks alone for now. The risks are too high for me. Reopening stocks I would buy Instead of investing in airlines, I’m focusing on reopening stocks that are also poised to benefit from long-term growth trends. My logic is that these companies could do well in the short term and the long term. One example is Alphabet, the owner of Google and YouTube. It’s the largest online advertising company in the world. I think it has the potential to benefit from the reopening this year as businesses ramp up their ad spending. It’s worth noting that travel ads make up over 10% of all ad spending on its platform. So, it could get a massive boost as travel companies increase their related spend. In the long run, the company looks set to benefit from the shift to digital advertising. This market is expected to triple between now and 2025. I also think credit card companies such as Mastercard and Visa are well-placed to benefit from the reopening of the global economy. More activity means more transactions. And these companies will benefit from travel too as they generate a large proportion of revenues from cross-border payments. In the long term, the growth story here looks exciting – by 2030, nearly 3trn payments are set to move from cash to cards and electronic payments. Of course, these kinds of reopening stocks aren’t without risk. Alphabet could face regulatory intervention. Meanwhile, MasterCard and Visa face competition from new FinTech start-ups. The three stocks I’ve mentioned all trade at relatively high valuations too, which adds risk. However, I’m comfortable with these risks. Overall, I think these stocks are safer reopening plays than airlines such as IAG and easyJet. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why the easyJet share price doesn’t tempt me Hargreaves Lansdown investors are buying Rolls-Royce shares and IAG. Here’s what I’d do Here’s what I’m doing about the easyJet share price right now 2 top UK shares I might buy for the new bull market Buy the dip? This is my view on the IAG share price today Edward Sheldon owns shares in Alphabet and MasterCard and has a position in Fundsmith. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares), Mastercard, and Visa. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks appeared first on The Motley Fool UK.
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  32. 2 reopening shares I’d buy in my ISA as UK lockdown measures ease (12/04/2021 - The Motley Fool UK)
    I’m on the hunt for top ‘reopening shares’ to buy as Covid-19 lockdowns in the UK ease again today. Here are two on my Stocks and Shares ISA watchlist. Getting ready for take-off I’d need to swallow a large dollop of risk when buying easyJet (LSE: EZJ) shares. The ‘third wave’ of Covid-19 infections means that social and travel restrictions in Europe continue to emerge. The battle against the pandemic is far from over, and it’s too early to predict when the UK airline share’s planes will take to the skies in large numbers again. But on the plus side, I think easyJet could still prove a lucrative reopening share for long-term investors like me. First and foremost, the business has issued bonds and signed leaseback agreements for its aircraft to help it stay afloat during the ongoing pandemic. And by the look of things, market conditions are still extremely bright for the likes of easyJet. The low-cost travel market is expected to resume its rocketing growth of recent decades when the public health emergency is over. On top of this, the survivors of the current industry crisis will reap the fruits of reduced competition that will boost long-term revenues and profit margins. A word of warning, though. Over the weekend French lawmakers voted for a ban on many domestic flights to help it meet carbon emissions targets. The aviation industry is a major contributor to greenhouse gases. So this action could be replicated in other countries as the fight against climate change intensifies, developments that would clearly damage easyJet and its ability to go about its business. Another reopening share on my radar I also believe that Hollywood Bowl (LSE: BOWL) is an attractive reopening share to buy today. As the name suggests, this UK stock operates ten-pin bowling centres. In fact it operates 64 centres today, giving it a market share north of 20%. It’s well placed to ride the soaring popularity of bowling in Britain, a market that expanded 23% in the five years to 2018, according to Mintel analysts. Bear in mind that Hollywood has ambitious plans to grow its share of the market, too. It plans to resume its strategy of adding two bowling centres to its portfolio each year from 2022. And the business recently raised £30m via a share placing to help it exploit its healthy pipeline of new centres. There are a couple of risks that I need to be aware of with this reopening share, however. Hollywood Bowl’s centres are due to open their doors to the public again on May 17. But of course, the emergence of a third wave of Covid-19 cases here could put paid to this date. In addition, this UK share doesn’t have a wide geographic footprint as it operates solely on these shores. This could put earnings in significant danger if local interest in ten-pin bowling begins to wane. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Can the easyJet share price recover in 2021? Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks Why the easyJet share price doesn’t tempt me Here’s what I’m doing about the easyJet share price right now 2 top UK shares I might buy for the new bull market Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Hollywood Bowl. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 reopening shares I’d buy in my ISA as UK lockdown measures ease appeared first on The Motley Fool UK.
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  33. Is the easyJet share price about to soar? (08/07/2021 - The Motley Fool UK)
    The easyJet (LSE: EZJ) share price has been gradually recovering its mojo in 2021. Having spent a lot of the previous year circling around the 500p level, it’s now cruising around 900p a pop. Will July 19 — the day Covid restrictions are finally set to end in England — be the catalyst for the stock to really fly? easyJet share price: ready to fly? There are certainly arguments for thinking the recent positive momentum in the easyJet share price will continue. After being confined to their homes for so long, I don’t think anyone can deny that demand for foreign travel and holidays from families and budget travellers is there.  There’s also a sense that UK investors think the worst is over. Interestingly, easyJet shares were the fourth most popular buy on share-dealing platform Hargreaves Lansdown last week. The fact that industry peer International Consolidated Airlines and jet engine-maker Rolls Royce also featured is another bullish indicator (although both featured on the list of most popular sells too).   Even so, I don’t think it’s a screaming buy. Naturally, the FTSE 250 stock’s balance sheet isn’t quite what it used to be with the company now carrying a significant amount of debt. In addition to this, easyJet will still face significant competition for passengers in what remains a cutthroat industry. There are other, more general risks to consider. A big rise in the number of infections from the Delta variant could slow short-term demand for travel even when restrictions are lifted. Indeed, the World Health Organisation has already warned other countries not to lift Covid-19 restrictions too quickly. A higher oil price isn’t great news for airlines either. An even stronger company? My caution over easyJet could also be applied to package holiday firm and airline Jet2 (LSE: JET2). Like easyJet, restrictions on travel meant Jet2’s planes were out of the sky for over half the year. Even when permitted, a “significantly reduced” number of flights took to the skies. Passenger numbers fell by 91% to 1.32 million, forcing the company to report a pre-tax and foreign exchange revaluation loss of just under £374m today. Thankfully, this looks like being a temporary blip. Bookings for next summer have been “encouraging” and a “materially higher” proportion of these are for (higher-margin) package holidays, the company said.  Jet2 believes it will “emerge from this crisis an even stronger company”. Is it a better buy though? I’m on the fence. Its finances look decent. Having slashed costs and propped up its balance sheet via loans, the firm has just over £1.9bn in cash. On the flip side, easyJet’s status as one of the largest airlines in the (pre-pandemic) world arguably gives it more clout. Its brand is likely to be far more familiar to travellers as well. Cautious buy I think there’s a good chance the easyJet share price will be higher in 2022. The same goes for Jet2. As such, I think both could be cautious buys for my portfolio. That said, I would always check that I’m sufficiently diversified elsewhere first. I’d also need to be willing to hold if things don’t go to plan. As Jet2 commented today, it still has limited visibility on performance in the current financial year. Notwithstanding this, I think I’ve found an even better opportunity for myself elsewhere in the travel space.  The post Is the easyJet share price about to soar? appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading The easyJet share price is weakening. Should I buy now? The easyJet share price continues to fall: should I buy now? The EZJ vs the IAG share price rated Should I buy crashing airline stocks? 2 cheap stocks to buy right now Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  34. Just go into the stock market for the first time. (21/05/2021 - Reddit Stocks)
    22 (M) and just got into the stock market for the first time. I currently only have $150 I am investing (once I get more money I will invest more). I was looking at more NFT’s and Altcoins. What should I improve on next time? 19.42 shares in Cinedgm at $1.29 13.33 shares in Liquid Media at $1.88 12.49 shares in Allied Esports Entertainment at $2.4 5.1 Shares in Vinco Ventures at $3.90   submitted by   /u/Camball1998 [link]   [comments]
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  35. Is the Jet2 share price about to soar? (09/07/2021 - The Motley Fool UK)
    Just where are travel stocks like Jet2 (LSE: JET2) going to go next? One minute the Jet2 share price is climbing. And the next time I look, it’s falling again. Jet2 did well in the late 2020 stock market recovery. But although up 58% over the past 12 months, the shares are still a long way below the their pre-pandemic peak. And since a high this May, we’re looking at a 23% fall. Something similar has happened with the easyJet and TUI share prices. They both peaked around the same time, and have both since fallen back. Do these ups and downs give me a buying opportunity? That volatility could be a double-edged sword. While it’s nice to buy shares during dips, airlines in particular can be very susceptible to longer-term economic cycles. In particular, they have little control over costs, including fuel. And oil is back up around $75 per barrel. So that must surely be contributing to the recent share price weakness affecting all three. Jet2 share price support The spread of the Covid delta variant can’t be helping. But I think it’s a mistake to look only at month-by-month progress. What happens over the next few years is far more important. And right now, for the Jet2 share price and others in the sector, I’d say it’s all about liquidity. Jet2 ended the year to March 2021 with a loss from continuing operations of £373.8m. But through a combination of debt, equity, and other activities, the company enhanced its liquidity by an extra £1bn. As recently as 4 July, the airline had a cash position of £1.908bn. It includes an ‘own cash’ position (which excludes advance customer deposits) of £1.46bn. That’s even after $1.4bn in customer refunds, and it looks comfortable enough to me. Competition is tough But even if Jet2 is on the way back, there’s one thing that worries me a little. It’s easyJet, which is a more established and better known airline. It does raise the question of whether brand really matters in the airline business. Generally, I don’t think it matters a lot. But in the very competitive business of short-haul budget airlines, any slim advantage could make a difference. But TUI is perhaps more challenged. Alone of the three, it’s still in negative territory over 12 months, while the others have made it some way back up. And over two years, TUI shares are down 53%. That compares with a 42% gain for the Jet2 share price, with easyJet down 5%. Government bailout But there’s one thing that should help limit the future downside for TUI, the German government. Berlin has provided the company with several bailouts during the pandemic. And hopefully that should be enough to see it back to profitable days again. Would I buy any of these right now? I really do think all three could end the year higher. But I’m sticking with my well-tested rule to keep away from airlines. And there’s too much uncertainty in the holiday business in general for me. The post Is the Jet2 share price about to soar? appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading Is the easyJet share price about to soar? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  36. Why easyJet stock could now soar after H1 results (16/04/2021 - The Motley Fool UK)
    easyJet (LSE: EZJ) stock should pique interest following the release of the airline’s H1 figures. Its latest trading statement might have revealed a first-half year loss ranging between £690 to £730 million, but this was below expectations.  A strong grip on cost cutting was achieved by cash-generative flying over the quiet winter period, and capacity forecasting also contributed to lower cash burn. Additionally a surer financial footing has also been reached by raising £5.5 billion since the pandemic, resulting in easy access to £2.9 billion in funds. In the current pandemic climate, it can’t come as a surprise that passenger numbers fell by 89%, with group revenue spiralling down by c.90% to around £235 million. Yet despite the crippling conditions for all airlines over the past year, easyJet stock has still impressively climbed upwards by c.45%. But the share price is still way below pre-pandemic peaks, suggesting room for further price growth. Reasons to be optimistic From May onwards many countries are likely to open up to travel, with restrictions in place with regard to transporting Covid-19 variants. Across the EU a ‘vaccine passport’ system conceived by the European Commission is now at a more advanced stage. The hope is that a certification process will be in action by the summer. The aim is to provide evidence that travellers have been vaccinated, or have either tested negative or have fully recovered from a Covid-19 infection, allowing them to board a plane for that much-yearned-for sunshine break. While in the UK, its Global Travel Task Force is looking to adopt a ‘traffic light’ system, based on the risk involved in travelling to a country, alongside a certification process. Outside of a few longer-haul routes to North Africa, such as Tunisia and Israel, all of easyJet’s flights are all around Europe. The moving forward of legislations are a clear sign of foresight on getting the travel industry going again, boosting market confidence, which is why I am looking to invest in easyJet stock. easyJet itself is optimistic, and it forecasts flying at 20% of capacity levels in Q3 compared to a year ago, with footfall increasing from May onwards. Hurdles still to clear It’s an unclear picture just how realistic that a functioning travel system can be achieved this summer, as coronavirus cases remain high across many parts of Europe. New and dangerous variants of Covid-19 are a lingering threat. France announced new lockdown measures only as far back as March 31, while Germany and Italy are also currently dealing with a high level of Covid-19 infections. It’s a mixed bag for other typical holiday destinations. Spain have cases under control, as opposed to Greece who are experiencing a relative spike in positive cases since February. Also, the vaccination programme in many European countries has been relatively far slower, in comparison to the UK and Israel. Yet vaccine logistical problems seem to be clearing, as jab rates are increasing in most EU members. Doubts over the AstraZeneca vaccine, and the delay of the Johnson & Johnson roll-out in Europe over potential rare blood clots, are a further concern in reaching some kind of stability. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 3 reasons I’d buy easyJet shares today The easyJet share price is flying. Should I buy the stock now? Why I like the easyJet, IAG, and Wizz Air shares now 2 reopening shares I’d buy in my ISA as UK lockdown measures ease Can the easyJet share price recover in 2021? Peter Taberner has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why easyJet stock could now soar after H1 results appeared first on The Motley Fool UK.
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  37. 2 of the best stocks to buy now with £1,000 (07/03/2021 - The Motley Fool UK)
    If I had £1,000 to invest, I think the best stocks to buy now would be companies that may benefit from the economic recovery over the next 12 months. As the global vaccine rollout gains traction, the outlook for companies most affected by the coronavirus pandemic is improving. Unfortunately, it’s unlikely to be plain sailing for these businesses as we advance. The vaccination programme is having an impact on coronavirus infections, but there’s no guarantee the economy will bounce back quickly. It could take years for spending in sectors such as tourism to recover to 2019 levels.  Still, I’m comfortable with this level of uncertainty. That’s why I would invest £1,000 today in Carnival (LSE: CCL) and easyJet (LSE: EZJ). The best stocks to buy now  There’s one main reason why I’ve picked these companies in particular. They’re both leaders in their respective industries.  easyJet is one of the most successful low-cost airlines globally and dominates the European air travel market. Its brand is highly recognisable and, unlike peer and main competitor Ryanair, it has a solid record in customer service. Meanwhile, Carnival is the world’s largest cruise ship operator. This gives the company economies of scale. Its size has also helped the enterprise raise finance from investors over the past 12 months to keep the lights on.  I believe these advantages will help both companies recover quickly when the time comes.  Consumers know their brands, and they could be the first organisations holidaymakers visit when booking their post-pandemic trips. Carnival has already said its bookings for the first half of 2022 have already surpassed 2019 levels. This is an incredibly positive development, and I believe it indicates the potential here. That’s another reason why these equities feature on my list of the best stocks to buy now.  That said, despite these companies’ advantages, it has been touch-and-go for both over the past year. The next 12 months will be crucial for both Carnival and easyJet. It remains unclear at this stage if they’ll be able to survive if global travel restrictions last into 2022. This is the most significant risk facing these two operations. While both companies may see a rapid recovery if the travel market opens later this year and next and consumers spend freely, they may struggle to survive if restrictions last longer than expected.  Limiting risk As it stands, both could generate lucrative returns for investors as the economy reopens. That’s why I believe they’re the best stocks to buy now. However, these are high-risk, high-reward opportunities. As such, they aren’t going to be suitable for every investor. However, I’d limit my investment in these shares because of the level of uncertainty surrounding their outlooks. I don’t want to risk too much of my portfolio on companies that, in the case of Carnival at least, don’t have any revenue at this point. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading TUI and easyJet share prices are taking off. Here’s what I would do about it The Carnival share price is booming! Should I invest in the company today? Are Carnival shares a value investing opportunity to profit during Covid-19? The easyJet share price is taking off. Is now the time to buy? Carnival share price: up 160% since the market crash. Can it rise more? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 of the best stocks to buy now with £1,000 appeared first on The Motley Fool UK.
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  38. My best airline shares to buy (24/02/2021 - The Motley Fool UK)
    Airline shares have been one of the worst performers in the past year. Prime Minister Boris Johnson recently announced a four-step plan to ease lockdown in England, which has led to renewed optimism in airline stocks. I would like to review the best airline shares to include in my portfolio. Best airline shares #1 International Airlines Group (LSE: IAG) stock fell about 70% in the past year. In my opinion, most of the investors grew bearish on the company due to the lockdown. With the reopening of all the sectors by June, I expect investor sentiment to change very soon. The company has a stable balance sheet. British Airways was able to finalise two financing agreements recently, providing the much-needed cash for the company’s operations. Pre-Covid-19, the company had a good return on invested capital of 14.7% for the year 2019.  On the other hand, the company’s third-quarter revenue fell by 83% year-over-year to €1.2bn. The operating loss before the exceptional item was €1.3bn compared to an operating profit of €1.4bn for the previous year. I expect the results to normalise only in the second half of 2021. The company has deferred its pension payments, which will reduce the company’s profits in the future. Best airline shares #2 EasyJet (LSE: EZJ) stock fell around 40% in the past year. The company is working on reducing costs which is positive. It has also maintained its investment-grade balance sheet. It further secured liquidity through a new £1.4bn loan facility. There is more positive news as the research conducted by the company among 5,000 European consumers between 8 January and 20 January showed that 65% have or plan to make a travel booking in 2021. Among the existing easyJet customers, the percentage was even higher, with around 75% planning a trip this year. Revenue in the first quarter of fiscal year 2021 fell by 88% year-over-year to £165m. Passenger numbers also decreased by 87% year-over-year to 2.9m. If the number of Covid-19 cases rises again, it might take a longer time for the full operations of flights to return. There were leaked reports last year that if the business does not return to normal in summer, then easyJet pilots will have no job as the company was in a really dire situation. Best airline shares #3 Ryanair Holdings (LSE: RYA) stock rose around 10% in the past year. In December, Ryanair increased its order for the Boeing 737-MAX. In my opinion, this shows the company is optimistic about better opportunities in 2021. According to management, Boeing 737-MAX  aircraft have 4% more seats but burn 16% less fuel and lower emissions by 40%. This should help the company to reduce operating expenses. The company also has a strong balance sheet as it had cash of €3.5bn at the end of 31 December 2020. Revenue in the third quarter of the fiscal year 2021 fell by 82% year-over-year to €0.34bn. It reported a loss of €306m compared to a profit of €88m for the same period last year. The management also expects lower traffic in the fourth quarter of the fiscal year 2021 due to the lockdown and travel bans. It believes that the fiscal year 2021 to be the most challenging year in Ryanair’s 35-year history. Lastly, another important risk to consider is that it will have restricted voting rights for non-European Union shareholders from 1 January. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The easyJet share price has taken-off. Would I buy the stock now? Cineworld and easyJet shares: should I buy the reopening trade? Stock investing: a UK share I’d buy in an ISA for the new bull market Could the IAG share price take off in 2021? The IAG share price is beating the FTSE 100 in February: here’s what I’d do Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post My best airline shares to buy appeared first on The Motley Fool UK.
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  39. 2 top UK shares I might buy for the new bull market (25/03/2021 - The Motley Fool UK)
    I believe that now is a great time to buy UK shares. This is because prices of many quality companies remain well below their pre-pandemic levels. This provides long-term investors like me with a brilliant chance to nip in and grab a bargain (or two). I’ve continued to load my Stocks and Shares ISA with top-notch British stocks despite the uncertain economic environment. And I’m on the lookout for more UK shares that might soar during the new bull market. Here are two that are on my radar today: #1: Easy tiger I believe the easyJet (LSE: EZJ) share price might be one of the strongest risers when the bull market kicks off. The amount people spend on non-essential items like holidays rises strongly during the early stages of economic upturns. But low-cost carriers like easyJet might be the aviation sector winners even if economic conditions remain difficult as demand for its cheap tickets will remain strong. Besides this, rampant cost-cutting at easyJet has created a nimbler machine that will be more responsive to exploiting positive market conditions. As analysts at GlobalData comment: “drastic action taken by the airline to reduce its costs [following the Covid-19 outbreak] will benefit the carrier as it looks towards recovery and will mean the airline can competitively price its tickets, undercut the competition and win a larger market share”. That said, a rising oil price poses significant danger to UK airline shares like these and their ability to bounce back into profit. The boffins at ING Bank said that they expect “ongoing upward pressure on oil prices throughout 2021”. This is a significant problem for the likes of easyJet as carriers spend between 15% and 30% of all expenses on fuel. #2: A UK retail share that’s set to rebound? I think buying Dixons Carphone (LSE: DC) shares might be a good idea for the new bull market as well. This isn’t just because of that aforementioned bounceback in broader consumer activity during economic rebounds. It’s because the UK retail share has doubled down on the fast-growing e-commerce channel and this is paying dividends. Dixons Carphone’s online market share rose in all territories in the 10 weeks to 9 January. And in its core UK and Ireland marketplace its share more than doubled year-on-year to 75%. City analysts are expecting Dixons Carphone’s annual earnings to rebound strongly in the financial year to April 2022. This is based partly on hopes that Britons will go on a spending splurge when Covid-19 lockdowns are lifted. However, some reports suggest that this frenzy might fail to transpire. A survey by deVere Group for instance shows that 72% of respondents “appear to welcome having an extra financial buffer” and don’t plan to spend the majority of the savings they acquired during Covid-19 lockdowns. Softer-than-expected trade could well pull the Dixons Carphone share price much lower following recent strong gains. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Why I’m backing this FTSE 250 stock to continue its recovery post-Covid Why I think the easyJet share price is a long-term buy The easyJet share price is surging. Should I buy the stock now? UK shares to buy now: 3 dirt-cheap stocks 2 of the best stocks to buy now with £1,000 Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 top UK shares I might buy for the new bull market appeared first on The Motley Fool UK.
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  40. Should I buy crashing airline stocks? (14/06/2021 - The Motley Fool UK)
    International Consolidated Airlines (LSE:IAG) and easyJet (LSE:EZJ) saw their share prices fall today as the UK government is expected to delay its reopening by another month. So is this a good opportunity to buy these airline stocks in the dip? IAG fundamentals IAG owns British Airways, Iberia, and Aer Lingus, and its share price has been erratic ever since Covid-19 hit. Nevertheless, it’s bounced impressively above its lows and is up 31% year-to-date. But today, IAG’s earnings per share are negative and its debt exceeds its market cap. The reason for its low valuation is the sheer uncertainty the pandemic has brought to the industry. Until airlines can get back to flying at pre-pandemic capacity, they’re losing money. Despite today’s dip, the IAG share price is down less than 3% from its 52-week high. This makes me think it may have further to fall if the uncertainty continues to weigh on investor hopes. Airline stocks weighed by debt In the past year, IAG has increased its debt burden considerably. In Q1 this year alone, its net debt rose by €1.8bn. However, by the end of Q1, IAG had €10.5bn of liquidity, beating its pre-pandemic level of €9.1bn. The faster it recovers, the quicker it can pay off debt without incurring penalties. But if this is drawn out, the penalties could severely impact its ability to offer shareholder value. I don’t think there’s any doubt that pent-up demand for foreign holidays is there. In theory, this should mean an upsurge in bookings for flights. But it will ultimately depend on what consumers can afford and if flight prices increase. Plus, of course, the lifting of Covid-19 restrictions. I don’t currently hold IAG shares, and I’m reluctant to take the risk. But, on the other hand, it could prove a phenomenal recovery play if all goes well with the reopening and the country gets back on track to a more normal future. But so far, that’s not a given. easyJet predicts 15% capacity in Q3 The uncertainty ahead is just as prominent for easyJet. It’s currently projecting 15% capacity for Q3, compared to 2019 levels, which is not a lot of income to look forward to. easyJet has also racked up considerable debt. But much of it doesn’t mature until 2023. Although, it does have to repay £300m by November 2021. In response to the chaos caused by the pandemic, the company has brought in significant streamlining measures over the past six months. This was necessary and should greatly benefit the strength of the company in the future. easyJet is an instantly recognised and popular budget airline in the UK. I don’t think it’s going to go out of business, but I think the challenges ahead make it a risky investment. Its share price is likely to be subject to extreme volatility in the coming years. I think there are stocks with a less uncertain future that I’d prefer to invest in long term. So I don’t intend to add either of these airline stocks to my Stocks and Shares ISA today. The post Should I buy crashing airline stocks? appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Is the IAG share price a value trap? 2 cheap stocks to buy right now Here’s why I’ll be avoiding IAG shares The IAG share price leaps 47% since January. Should I buy now? Will the easyJet share price bounce back? Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  41. 3 top stocks I’ll watch in June (30/05/2021 - The Motley Fool UK)
    The reopening of the UK economy is mostly complete. But one crucial sector is still in lockdown for all practical purposes. I am talking about aviation. But airline stocks will soon be able to breathe a sigh of relief. The last bit of the lockdown is lifted next month. I reckon share prices of stocks like International Consolidated Airlines, easyJet, and Wizzair could show some sharp movements then, making them my top stocks to watch in June.  Share prices rise in anticipation Broadly, the story is similar for all of them. With little business activity during the past year, they have run up big losses. Even after travel resumes, they expect that it will be a while before they are able to go back to pre-pandemic health. But what is true for financial health need not be so for stock prices. The past year showed us how stock markets are fuelled by expectation. The stock market rally started soon after vaccines were developed. Investors bought stocks of Covid-19-impacted companies fast in anticipation of bettering conditions in the future, even though there was absolutely no on-the-ground difference in their operations yet.  That included aviation stocks, some of whom have bounced back exceptionally well. Consider the Irish low-cost airline Ryanair, whose share price recently touched three-year-highs. In stark contrast, it posted an expectedly big loss during the past year.  International Consolidated Airlines lags Not all airline stocks have had it that good though.  The FTSE 100 airline group International Consolidated Airlines, for example, is not just presently at a fraction of its pre-crash share price, it is even lower than where it was last year at this time. It is easy to see why from its latest update. It reported a sharp reduction in revenue in the first quarter of 2021 compared to the same time last year. Low cost airlines have it better Low cost airline easyJet has had it better at the stock market. Compared to last year, its share price is up almost 17% and it is back to early March 2020 levels, just before the pandemic fear got real. It has also reported poor results recently, but has also pointed out signs of pent-up travel demand. It is ready to ramp up capacity to 90% of its fleet if summer demand is strong.  The only FTSE airline to beat Ryanair on share price is Wizz Air, which actually touched all-time-highs in April this year. The Hungarian ultra-low cost airline has the advantage of being particularly attractive after a slowdown when consumers could be careful about how much they spend. I am interested in whether its share price will rise any higher when the air travel situation eases. My takeaway for the three aviation stocks Since Wizz Air’s share price does not seem to be in line with its weak current financials, however, I would stay away from it for now. I already hold easyJet shares and that leaves me with International Consolidated Airlines. I think it has potential, and I will most closely watch this stock as a potential long-term investment. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 secret income stocks to buy in June Sell in May and go away? Here’s what we’d have missed 3 FTSE 250 growth stocks to buy 3 reasons I like Royal Mail shares 3 cheap FTSE 100 shares for my investment portfolio Manika Premsingh owns shares of easyJet. The Motley Fool UK has recommended Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 top stocks I’ll watch in June appeared first on The Motley Fool UK.
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  42. I own some shares in a stock that the company decided to redeem 100% of the shares. (18/05/2021 - Reddit Stocks)
    So, I bought the shares kind of cheap and this is my first time going through a buy back or 100% redeeming of shares by the company. I want to know how the process takes place. Since I have the shares through TD, and this is a 100% redeem by the company, will this automatically take away my shares and corresponding share cost will be added to my account? Is there a formal procedure that I need to be a part of to ensure I get paid?   submitted by   /u/Firestorm_001 [link]   [comments]
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  43. Would I buy IAG or Easyjet stock today? (22/02/2021 - The Motley Fool UK)
    The coronavirus pandemic has been devasting for airline stocks like International Consolidated Airlines (IAG), the owner of British Airways, and Easyjet. In 2020, industry-wide revenue passenger kilometres (RPKs) — flying a paying customer one kilometre equals one RPK — fell back to levels last seen in 1999 according to the CAPA fleet database. The number of passenger aircraft in service fell from 23,600 at the end of 2019 to 16,700 at the end of 2020. Despite airlines slashing the number of planes in active service, the load factor — a measure of how full planes are — fell back to around 65%, which is a level not seen since the 90s. IAG and Easyjet stock nosedive It will come as no surprise that the share price of Easyjet is down 43% over the last 12 months. IAG stock has also tumbled 59% over the course of a year. Both companies experienced slumps in revenue in 2020 and issued sizeable amounts of debt to generate cash. Today, British Airways announced it had received an additional £2.45bn in debt financing and will not be paying dividends to its parent, IAG, before the end of 2023. In January, Easyjet signed up for a £1.4bn five-year loan facility, bringing the total raised during the pandemic to £4.5bn. Considering only the short-term woes of IAG and Easyjet makes it easy to forget that industry growth was healthy before the pandemic. Except for 2001 and 2009, industry RPKs had been growing every year since 1996. In 2017, despite thousands more aircraft taking to the skies, industry load factors were more like 80%. The pandemic will end eventually. Perhaps experience with remote working will eat away at some business travel, and long-haul trips will be taken with trepidation for a while. Still, eventually, people will take to the skies in large numbers again. Airline stocks are, I think, poised for a recovery, but there is still rough air ahead. Who to fly with? There are four London-listed airline stocks. Market cap to revenue ratios splits them into two groups: IAG and Easyjet with lower than average ratios and Ryanair and Wizzair with higher. The Wizzair share price is up 14% over the last 12 months, and Ryanair’s share price has risen 6% over the last year. It appears that stronger cash positions going in and gentler debt raising during the crisis for Wizzair and Ryanair explain much of the difference in valuations. Name Ticker Market Cap Revenue Market Cap to Revenue Ryanair RYA €15.41bn €2.37bn 6.5 International Consolidated Airlines IAG €7.9bn €16.35bn 0.5 Wizz Air WIZZ €4.12bn €937.06m 4.4 Easyjet EZJ £3.73bn £3.01bn 1.2 Source: Financial Times Markets Data and author’s calculations Ryanair and Easyjet are short-haul market competitors, but Ryanair has a stronger balance sheet. But IAG is restructuring to compete with low-cost airlines like Ryanair and Easyjet domestically. Its long-haul and business class travel routes will probably take longer to recover fully, if at all. Short-haul competition between Ryanair, Easyjet, and IAG is likely to be fierce. For this reason, I would, and indeed have bought shares in Wizzair. It is based in Eastern Europe and serves a slightly different short-haul market than the other three. However, even a younger and more robustly growing Eastern European air travel market is not immune to a protracted pandemic. If travel restrictions linger longer than expected, no airline will be spared the pain. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 8 tips to maintain car value ahead of part-exchanging Is the falling Tesco share price a buying opportunity? This FTSE 100 stock has soared since 2020. Here’s what I’d do now The ISA deadline is approaching! Here’s what I’d do now The IAG share price is beating the FTSE 100 in February: here’s what I’d do James J. McCombie owns shares of Wizz Air Holdings. The Motley Fool UK has recommended Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Would I buy IAG or Easyjet stock today? appeared first on The Motley Fool UK.
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  44. : Airlines and travel stocks surge as U.K. sets out lockdown exit plans (23/02/2021 - Market Watch)
    EasyJet said holiday bookings jumped by 660% hours after Prime Minister Boris Johnson outlined a road map for a return to air travel.
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  45. Cineworld share price zooms past 100p! Would I buy it now? (06/03/2021 - The Motley Fool UK)
    In hindsight, the pandemic’s impact on the stock market may appear quite short-lived. Consider Cineworld (LSE: CINE). Earlier this week, the Cineworld share price zoomed past 100p and has stayed at these levels since.  Let me put this in perspective.  Just before the stock market rally started in November last year, the Cineworld share price was at around 25p. It has risen by more than four times since. Let me give even more perspective.  The Cineworld share price is now back to its pre-stock market crash levels of March, 2020. In other words, if it maintains these levels, the company’s share would have successfully managed to put the stock market crash behind it.  Going by how much CINE has suffered during the pandemic, this would have appeared unlikely even six months ago. This is why I said at the beginning that the stock market impact of Covid-19 may appear short-lived when we look back.  Positives for the Cineworld share price But we do not know that for certain yet. When the economy reopens, we will know for sure how far business comes back to life.  I am optimistic though. Over 70% of Cineworld’s revenues are generated in the US. The US economy grew by a strong 4.1% in the last quarter of 2020. Its growth boom is expected to continue this year as well. If President Biden’s fiscal stimulus of $1.9trn comes in, the surge in the economy could be well beyond what is expected now.  Where the money goes is also important. As long as it finds its way to low-to-middle income households, as is expected, spending could increase substantially.  This in turn, would be good for entertainment companies like Cineworld. Cinema is a relatively inexpensive form of entertainment, which goes in its favour.  Moreover, there is a lot of pent-up-demand for recreation. A good example of this is the surge in holiday travel bookings easyJet saw as soon as the phased end to the UK’s lockdown was announced recently.  What can go wrong The US fiscal stimulus plan isn’t certain, nor is it certain that it will have the intended effect. And a year of pandemic living, including uncertain income may encourage us to focus more on saving, which could have a negative effect on Cineworld’s profits. I am also concerned Cineworld’s debt levels. They were already high pre-pandemic and are higher still now. I think it is safe to assume that it will be a while before it can pay off its loans. The good thing, though, is this. I reckon creditors will be understanding right now. And if we are talking of a roaring ‘20s comeback, this may well be the best time there is for Cineworld to get out of its funk and get its finances back on track. But I think it is important to remember that even pre-Covid 19, the Cineworld share price was falling. I think it is time to start thinking about why it got into that position again.  The takeaway I think it would be beneficial in this case to check share price forecasts given the already sharp run-up in share price. I am making some calculations of my own right now to see how far the Cineworld share price might go. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Cineworld share price is up 250% in four months! But I’m not buying The Cineworld share price has soared 300%! Should I buy now? Why I’d ignore the Cineworld share price and buy other UK shares for my ISA Cineworld and easyJet shares: should I buy the reopening trade? I’d ignore the Cineworld share price and buy this US stock for my ISA instead Manika Premsingh owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld share price zooms past 100p! Would I buy it now? appeared first on The Motley Fool UK.
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  46. I’m almost embarrassed to ask this, but... (04/05/2021 - Reddit Stocks)
    If you consistently buy a stock when it dips, and then sell it with profit and repeating that with the same stock throughout a steady increase, would you make more than if you just held? Considering each time one buys back in, they are paying a higher price. For example, let’s say you kept going in and out of one position as shown—- Buy: 100 shares at $10 Sell: 100 shares at $15 Buy: 100 shares at $12 Sell: 100 shares at $16 Buy: 100 shares at $15 Sell: 100 shares at $20 Or is it better to just hold through the dips? It seems like it would be a similar profit either way, but am I missing something?   submitted by   /u/ADHDoll [link]   [comments]
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  47. Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? (03/06/2021 - The Motley Fool UK)
    That aviation is going through an awful time right now is an understatement. The upswing has started for most other segments of the economy, but we are still waiting for air travel to restart in earnest.  Not all aviation stocks are made equal There are better days ahead in store though, I feel. And some aviation stocks have already run-up significantly in anticipation of better times.  Low-cost airline Wizz Air, for instance, was recently at all-time-highs. RyanAir, another low-cost carrier, saw its share price rise to three-year highs. easyJet has also seen significant gains over the past year. Yet the speedy share price rise for these stocks combined with the expected slow healing of their financial health makes me doubtful if they can rise more in the near future.  But there are two stocks in aviation I see as having much potential. One is British Airways owner International Consolidated Airlines Group (LSE: IAG) and the other is aircraft engines’ provider Rolls-Royce (LSE: RR). They stand out for how little they have gained since last year’s market crash. IAG’s share price is actually lower than it was at the same time last year and the Rolls-Royce share price is almost at the same level. Rolls-Royce or IAG – which is the better buy? This could be a good opportunity to buy for me. But I do not want to expose myself a whole lot to aviation yet. So, I would like to buy shares of either IAG or Rolls-Royce, not both.  The question now is: which one of them is a better investment for me? Three ways to assess To assess this, I compared them across three parameters. One, their share price trends before the market crash. Two, their financial performances pre-pandemic. And three, their own outlooks for the rest of the year. In understanding their share price performances, I considered the five-year period between early 2015 and early 2020. Turns out that both their share prices have dropped over this time, albeit with much fluctuation during the interim.  In terms of financial performance, IAG is ahead of Rolls-Royce. IAG showed steady growth in revenue and was also profitable in the three years before the pandemic. Rolls-Royce too saw growth in revenue, but it was loss-making for two of the three years. And now it has had another bad year.  The outlook for both companies has improved, with some caution of course. But I think Rolls-Royce may be better placed even if aviation recovery is slow. Besides civil aerospace, power systems and defence systems are important sources of revenue for it. And it is optimistic about their recovery.  If, however, air travel restarts as planned, IAG can start recovering too. It does mention a “high level” of pent-up demand in its latest update.  My takeaway Based on this assessment, I lean towards IAG, largely because of its past performance. However, I will wait for another month to see how air travel picks up. That should indicate better which of the two is better placed. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Cheap UK stocks: should I be buying airline shares ahead of the summer? Where will the Rolls-Royce share price go in June? What’s happening to the Rolls-Royce share price? Could the Rolls-Royce share price fall below 100p? Should I Invest in IAG shares right now? Manika Premsingh owns shares of easyJet. The Motley Fool UK has recommended Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? appeared first on The Motley Fool UK.
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  48. Selling large number of shares question (09/06/2021 - Reddit Stocks)
    Hypothetically, if I had 10k shares of a stock and wanted to sell all of them. If I sold all 10k in one order, how would that work? Would it wait to be executed until someone bought 10k shares or more? Or would it queue buyers until it reached 10k shares? So I'm assuming it would be a longer wait time than if I was only selling 100 shares. Would it be better, (execute faster) if I sold in smaller increments?   submitted by   /u/realpawel [link]   [comments]
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  49. Cheap UK stocks: should I be buying airline shares ahead of the summer? (03/06/2021 - The Motley Fool UK)
    Airline shares have been the topic of much conversation since the pandemic began. During the stock market crash last year, airline shares were some of the hardest hit. For example, the International Consolidated Airlines Group (LSE: IAG) share price fell around 70% during the depths of the crash from 435p to around 130p, before recovering to levels around 200p at the moment. So when looking for cheap UK stocks to buy, should airline shares be high up on my list? The case for buying airline shares If I want to look at UK stocks that are cheap based on their past share price levels, some airlines do tick the box. IAG (mentioned above), had a share price double current levels as we came into 2020. Based on current levels, I could make a strong case that the shares should move higher. For example, in the March-December period of 2020, passenger kilometers flown were down 87% versus 2019. This was an average of the airlines within the IAG group. These include the likes of British Airways and Aer Lingus. Now I don’t think this will fully bounce back over this summer, or even by the end of the year. But I don’t see how it will fall further. The UK has a traffic light system on countries available to travel to, and in my opinion the green list will grow over the summer. This is because Europe is picking up the pace of vaccines being rolled out. Further afield, long-haul business travel could start to see an increase in demand later this year. If we see people continue to return to offices, the next step for corporates is to resume business travel. I think this makes IAG a cheap UK stock, to buy for the pick-up in momentum over the course of this year and beyond. Are all airlines cheap UK stocks? Of course, a cheap UK stock may be cheap for a reason, because no one wants to buy it! This could be the case with airline shares. There’s concern that continued high operating costs and the size of debt taken on will make it hard to generate profitability for 2021. For example, easyJet released its fiscal half-year results a few weeks ago. My colleague Royston Roche covered it in detail here.  As he noted, easyJet shares fell after the results came out. I could say that a cheap UK stock got even cheaper. ut there were good reasons for the fall. The business had a cash burn rate of £38m a week in Q2, despite revenue falling by 90% year-on-year. This tells me that even without much flying, costs are still high. My concern across the industry is that even if we see flying miles increase, the amount of cash burnt so far this year (not to mention 2020) is huge. It’ll likely take years to adjust debt back to sustainable levels. If the Bank of England increases rates to counter inflation later this year, it could make it even more expensive to restructure this debt. Overall, it’s impossible to say all airlines are cheap UK stocks to buy now. I do think there’s value in individual companies. In this case, although I wouldn’t buy easyJet shares, I’d consider buying IAG. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I Invest in IAG shares right now? The IAG share price has crashed 7% today! Here’s why Would I buy these 2 FTSE 100 reopening stocks now? Is the IAG share price still cheap enough to buy? The IAG share price soars 37% in 3 months. Can it go higher? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cheap UK stocks: should I be buying airline shares ahead of the summer? appeared first on The Motley Fool UK.
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