Originally Posted by
TrojanCMH
I think it’s both. Spirit has always been an undervalued stock/company for whatever reason. Allegiant and now Frontier seem to be a little overvalued. Never really understood why if we are larger than either of those companies, beat them or come very close in basically every metric and yet they’re still valued over us. Maybe it’s a debt issue...
LUV stock suffered the same fate compared to the big 3 for the last several years but has consistently remained the most stable stock among them. And now their valuation has steadily increased and even surpassed DAL after the pandemic began — largely owed to their prudent business management over the last several decades. Slow and steady wins the race as they say. SAVE will be fine, it’s definitely a stock that will take off over time. ULCC might be more prone to shorting until they establish a more stable growth strategy and reputation (like SAVE has).