JETS: Strong Numbers From United, But Broader Trends Lackluster

seekingalpha04-22

Thomas Barwick The travel boom continues. According to TSA data, folks are flying the friendly skies at record levels for this time of year - up 4.6% from this time in 2019. What's more, Q1 results ...

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What's more, Q1 results ...</p>\n\n<a href=\"https://seekingalpha.com/article/4685079-jets-strong-numbers-from-united-but-broader-trends-lackluster\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>JETS: Strong Numbers From United, But Broader Trends Lackluster</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJETS: Strong Numbers From United, But Broader Trends Lackluster\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-22 23:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4685079-jets-strong-numbers-from-united-but-broader-trends-lackluster><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Thomas Barwick The travel boom continues. According to TSA data, folks are flying the friendly skies at record levels for this time of year - up 4.6% from this time in 2019. What's more, Q1 results ...</p>\n\n<a href=\"https://seekingalpha.com/article/4685079-jets-strong-numbers-from-united-but-broader-trends-lackluster\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AAL","symbol_name":"美国航空","start_time":0,"source_url":"https://seekingalpha.com/article/4685079-jets-strong-numbers-from-united-but-broader-trends-lackluster","article_id":"2429708920","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1447917788/image_1447917788.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2429708920","pubTimestamp":1713798019,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Thomas Barwick The travel boom continues. 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According to TSA data, folks are flying the friendly skies at record levels for this time of year - up 4.6% from this time in 2019. What's more, Q1 results from early reporters in the Passenger Airline industry within the Industrials sector have been rather solid. United Airlines reported strong first quarter numbers earlier this month, and we'll hear from more airline firms this week. Still, I reiterate a hold rating on the U.S. Global Jets ETF (NYSEARCA:JETS). I see the concentrated fund as cheap on valuation, but stuck on the tarmac with respect to its momentum, all while a market correction appears ongoing. Traveler Volume Strong in 2024 So Far The Daily Shot Airlines Report Thursday Morning This Week Wall Street Horizon According to the issuer, JETS provides investors access to the global airline industry, including airline operators and manufacturers from all over the world. It invests in stocks of companies operating across industrials, capital goods, aerospace and defense, passenger and cargo aircrafts and airplanes, commercial passenger airplanes, transportation, air freight and logistics, passenger airlines, transportation infrastructure, airport services, airports, and airport terminal services sectors. JETS is a moderate-sized ETF with $1.3 billion in assets under management as of April 19, 2024. That's close to the unchanged mark since I last analyzed the fund. Income investors may want to divert their attention from JETS since it does not pay a dividend. Moreover, the annual expense ratio is lofty considering how straightforward the product is - 0.60%. To its credit, share-price momentum has done a 180 in the last handful of months, turning from an F ETF Grade to an A, though I will highlight why the technical situation is not firing on all cylinders later in the article. Risk metrics are not impressive, mainly due to its concentration in a handful of airline stocks while JETS' liquidity profile is robust given average daily volume of more than 3 million shares and a median 30-day bid/ask spread of five basis points. Digging deeper into the portfolio, the 1-star, Neutral-rated fund by Morningstar has diversification across the style box. Just 16% of the allocation is considered large cap while a high 58% is in the mid-cap category. The portfolio is also split almost evenly between value and growth. I also found that JETS' price-to-earnings ratio is right where it was a year ago, in the high single digits, so I don't think investors have to be overly aggressive to go after the fund from a value perspective. JETS: Portfolio & Factor Profiles Morningstar Earlier I hinted that JETS is among the most concentrated ETFs you'll come across. I suggest that it should primarily be used for swing trades if you see a cyclical upturn in both consumer spending and improving fundamentals in the airline industry, perhaps driven by lower fuel prices. But with oil on the rise lately, there have been some headwinds. In all, the biggest four positions command a high 40%-plus weight in JETS, so monitoring fundamental and momentum trends among UAL, Delta Air Lines, Inc. (DAL), American Airlines Group Inc. (AAL), and Southwest Airlines Co. (LUV) is important. JETS: A Concentrated Allocation, No Yield Seeking Alpha AAL, UAL Earnings on Tap, UAL Investor Day & Shareholder Meetings in Q2 Wall Street Horizon Another reason not to jump on board JETS right now is that its seasonal trends are often turbulent through October. In fact, just about all the fund's historical gains over the past eight years, according to Seeking Alpha, have come in November (largely the result of a 30% gain in November 2020 immediately after COVID-19 vaccines were developed). JETS: Bearish Seasonal Trends Through October Seeking Alpha The Technical Take With a low valuation, concentrated allocation, and somewhat bearish seasonals, JETS's technical chart is about as exciting as enduring a flight delay. Notice in the graph below that shares have traded sideways in the last two years after a protracted downtrend from their high in 2021. That's evidenced by a long-term 200-day moving average that is flat in its slope and considering that JETS failed to fly above its peak from July last year, above the $22 mark. Still, I see support at the 200dma - that is where the fund notched a near-term low just a few weeks ago. Bigger picture, a bullish double bottom low formed between $14.50 and $15 in Q4 last year - matching the October 2023 nadir. So, we have some key price points to monitor on the downside as well as upside resistance points. Perhaps the selling was washed out late last year when the RSI momentum oscillator hit oversold territory over the course of two months - that came after a bear flag pattern from late 2022 through mid-2023. Overall, JETS' chart is unexciting. It has been an underperforming ETF over the past 12 months, and I see few reasons that a bullish turnaround is in the works. JETS: Neutral Trends, Shares Holding the Flat 200dma StockCharts.com The Bottom Line  I reiterate a hold rating on JETS. I see the industry ETF as cheap on valuation, but momentum over the intermediate term is lacking while its expense ratio is somewhat pricey.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2429708920"}