The U.S. Global Jets exchange-traded fund tracks Delta Air Lines , United Airlines Holdings , JetBlue Airways , American Airlines Group , and others. The ETF has dropped about 27% from the $22 year high set in July, weighed down by higher oil prices on the back of the conflict in Israeli. Fuel is a major cost for airlines, and increases squeeze the profit margins.
The fact that the stocks are down more than the drop in earnings estimates means the multiples of next year’s earnings per share that the shares trade at have fallen, too. The ETF’s multiple has come down to 8.6 times estimated next-12-months earnings from 9.3 times about three months ago. In fact, buyers are beginning to step in, and the ETF rose to about $16 Tuesday morning even with the U.S. indexes down a touch. The $15 or $16 level is where buyers have consistently stepped in to support the ETF many times after selloffs since the summer of 2020.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »
Stocks edge lower, retail sales on deck, Goldman Sachs, United Airlines, Johnson & Johnson earningsStocks lower, retail sales, Goldman Sachs, United Airlines, Johnson & Johnson
Source: startelegram - 🏆 248. / 63 Read more »