The 'Cheap' Airline Stock That Beat World Peers With 343% Rally
- 9 years ago
At first sight, investors have good reasons to shun El Al Israel Airlines shares. The national carrier is grappling with a slump in tourism fueled by political violence, as well as intensified competition after Prime Minister Benjamin Netanyahu’s government opened the market to low-cost operators in 2013. Yet the 1.46 billion-shekel ($375 million) company has a combination of factors in its favor: falling oil prices and the strength of the shekel. The stock has increased four-fold in the past year to outperform every one of its global peers. Psagot Investment House Ltd., Israel’s largest money manager, says the shares may rise at least a further 50 percent as Israelis take advantage of their increased purchasing power. The number of people taking trips abroad has risen 15 percent so far this year, according to the Jerusalem-based Central Bureau of Statistics.