Ask Matt: Which airline stock is the best?

Q: Which airline stock is the best?

A: Airline stocks have been descending this year as investors worry about valuations, the strong dollar and demand for travel. But that’s creating an opportunity where most the big airlines’ stocks look attractive to analysts at least.

Analysts on average rate seven of the major airlines trading on U.S. exchanges as an “outperform” or “buy,” including Alaska Air (ALK), American Airlines (AAL), Delta Air Lines (DAL), JetBlue Airways (JBLU), Southwest Airlines (LUV), Spirit Airlines (SAVE) and United Continental (UAL), says S&P Global Market Intelligence. Hopes for the stocks are highest for Delta. The stock is down 20% this year to $40.74 a share, but analysts on average think it could be worth $54.46 a share in 18 months. If they’re right, that would be 34% upside, which is higher than the implied upside in any of these airline stocks. The company’s adjusted earnings per share are expected to rise 27% this year to $5.86. Investors are even willing to look past some earnings declines in search for value. United shares rose 2% to roughly $49 a share Wednesday after the company Tuesday reported 21% lower adjusted quarterly profit of $2.61 a share. Those results beat expectations by 2%. Analysts see 23% upside for the stock.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.