A quick screen for potential value stocks uncovers at least 4 airline companies that may qualify. Emphasis on the word "may." Setting aside, for now, narratives that might attempt to explain "why," the simple non-story metrics lead to:
Skywest (SKYW) would seem to fit the mold. The price/earnings ratio is a measly 11 and it's trading at about half of its book value. The dividend payment comes to 1.4%. The 2012 low was 6.50 – it's doubled since then.
Republic Airways Holdings Republic Airways Holdings trades at about 90% of book value. The P/E is low at 7. The stock is priced today at 9.51 –it's been down trending for about 6 months — but is well up from it's 2011 low of 3.
China Southern Airlines China Southern Airlines has a P/E of 8 and trades at about 90% of book. It's been down trending steadily for months and at 16.40 is brushing 4-year lows.
China Eastern Airlines China Eastern Airlines has been trading in a range between 25 and 14 for 4 years now. At 16.61 today, it's available at the low end of that range. The P/E is 8 and it's priced at just about book value.
I would guess that the uncertainty and mystery surrounding Malaysian Flight MH370 is affecting the prices of airline stocks and especially those based in China. This short list is merely a starting point for more extensive research.
Airline stocks such these can be volatile and should be regarded as speculative even as they might seem to offer opportunity from a valuation perspective.
Disclosure: I do not hold positions in any of these stocks, long or short.
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