As consumers continue to spend on travel and experiences, many investors are looking for the best way to capitalize on this trend and optimize their portfolios.
Abhay Deshpande, Centerstone Investors Founder & CIO, joins Yahoo Finance for the latest edition of Good Buy or Goodbye, taking a look at European airlines.
Deshpande claims his Good Buy to be Ryanair (RYAAY) citing its low-cost position and low prices, which can draw in more customers. He also likes how it has a good balance sheet by keeping its fleet and costs narrowly focused and has a high-quality management team that can properly oversee the entire business.
Deshpande claims his Goodbye is Lufthansa (LHA.DE), citing its profits are susceptible to economic cycles, especially among economic headwinds, considering it is a higher-priced airline. Deshpande also says the airline is losing market share to low-cost providers, like Ryanair, and it has more leverage on its balance sheet and is therefore more exposed to higher interest rates.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino