US Airways Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of US Airways Group (NYS: LCC) jumped 10% in early trading after being upgraded by an analyst.
So what:Barclays analyst Gary Chase upgraded the stock this morning, saying the company's stock has underperformed competitors this year. There have also been rumors that US Airways would be a good suitor for the recently bankrupt American Airlines parent AMR (NYS: AMR) .
Now what: United Continental (NYS: UAL) and Delta (NYS: DAL) are also trading higher today, partly because JPMorgan (NYS: JPM) raised its outlook for airlines. I guess analysts have to update their models after AMR's bankruptcy, but the airline business still makes me queasy. I wouldn't touch any of these stocks -- no matter what analysts say -- because long-term airlines still make a very bad investment.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.