Latest news with #QualityPortfolio
Forbes
2 days ago
- Business
- Forbes
How United Airlines Could Be The Biggest Winner From Spirit's Crisis
On August 12, 2025, airline stocks experienced a surge following Spirit Airlines' filing of a "going-concern" warning with the SEC, raising concerns about its capacity to sustain operations over the next 12 months. This predicament, occurring just five months after the airline's emergence from bankruptcy, initiated a rally predominantly led by United Airlines stock (NASDAQ: UAL), which saw a 10% increase. American Airlines and JetBlue also recorded substantial increases of 12%, while Delta Air Lines, Alaska Air, and Southwest all rose as well. However, if you are looking for a less volatile option compared to holding an individual stock, you might want to consider the High Quality Portfolio, which has consistently outperformed its benchmark—a combination of the S&P 500, Russell, and S&P midcap index—achieving returns that surpass 91% since its inception. Spirit Airlines' Financial Crisis Spirit's troubles arise from a convergence of challenges including low domestic leisure travel demand and high capacity, which have jointly exerted severe pricing pressure. The airline disclosed a net loss of $245.8 million for the second quarter, an increase from $192.9 million during the same timeframe last year. The situation is critical due to various overlapping factors: How United Airlines and Others Benefit Should Spirit exit the market, United Airlines could see significant benefits. United could lease Spirit's gates at Fort Lauderdale-Hollywood International Airport, an essential move for enhancing its footprint in Florida. This strategic acquisition would enable United to create a competitive hub for its Latin American routes, challenging American Airlines' dominance from its Miami hub and improving connectivity in the lucrative South Florida market. Furthermore, United could benefit from leasing Spirit's gates at Los Angeles International Airport (LAX), where gate space is both precious and scarce. The potential exit of Spirit would transform the airline industry by eliminating an ultra-low-cost competitor, which could: Outlook While the market remains hopeful about decreased competition and possible fare hikes, the ultimate resolution of the situation is still uncertain. Spirit may still secure funding or identify a merger partner. Nevertheless, if it does halt operations, the advantages for major carriers such as United could be significant, though a major exit could also draw regulatory scrutiny regarding market concentration. Additionally, check out – Buy or Sell UAL Stock? The immediate rally in stocks for United and other airlines reflects investor confidence in their capability to leverage Spirit's difficulties. However, it is crucial to be aware of the considerable risks involved when investing in a single, or a limited number of stocks. Take into account the Trefis High Quality (HQ) Portfolio which, comprising 30 stocks, has a proven history of comfortably outperforming the S&P 500 over the past 4-year period. Why is that? Collectively, HQ Portfolio stocks delivered better returns with lower risk compared to the benchmark index; providing a steadier ride as indicated in HQ Portfolio performance metrics.
Forbes
14-04-2025
- Business
- Forbes
Dell Stock At $90: Should You Buy Now?
Trefis The Trump administration has recently granted tariff exemptions for several high-tech imports, including smartphones, laptops, semiconductor equipment, and other electronics. This move stands to benefit companies such as Dell Technologies. Despite a steep 30% decline this year amid tariff and trade war concerns, we believe DELL stock—currently priced around $88—offers a strong buying opportunity, albeit with certain risks. While our assessment of the stock's valuation in light of its recent operational performance and financial standing highlights weaknesses in areas like Growth, Profitability, Stability, and Downturn Resilience (outlined below), its current low valuation makes it appealing. For investors preferring lower volatility than single-stock exposure, the Trefis High-Quality portfolio offers a compelling alternative — having outperformed the S&P 500 with over 91% total returns since inception. Based on sales and profits, DELL stock appears significantly undervalued when compared to the broader market. Dell Technologies' Revenues have exhibited some growth in recent years. Dell Technologies' margins are notably below average relative to other companies tracked by Trefis. Dell Technologies' balance sheet appears relatively weak. DELL stock has fared slightly better than the S&P 500 during some past market downturns. While hopes are pinned on a soft economic landing, investors may wonder how much worse things could get in a recession. Our dashboard How Low Can Stocks Go During A Market Crash explores how top stocks performed in the last six market crashes. Here's how Dell Technologies measures up across key categories: Despite certain risks stemming from its underwhelming performance in profitability and financial strength, DELL stock's deeply discounted valuation makes it a potentially attractive buy. Additional upside could come from recently announced tariff exemptions for electronics, along with Dell's $10 billion share repurchase program and dividend increase announced last month. While DELL stock has promise, single-stock investments come with risk. In contrast, the Trefis High Quality Portfolio, which includes 30 stocks, has consistently outperformed the S&P 500 over the past four years. What's the secret?These HQ Portfolio stocks tend to deliver higher returns with lower volatility — a smoother ride, as demonstrated by the HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
