Airline stocks are set up for a broad rally, led by American Airlines Group Inc. (NAS:AAL) shares, after Deutsche Bank analyst Michael Linenberg said it was time to buy into the sector as COVID-19 cases, hospitalizations and vaccination rates are all trending in the right direction. He upgraded nine U.S.-based airlines to buy from hold. "As our upgrade is a sector-wide call, we are of the view that all of our names could see material upside from current levels," Linenberg wrote in a note to clients. Among the biggest premarket gainers, shares of American Airlines shot up 5.8%, JetBlue Airways Corp. (NAS:JBLU) rallied 2.1%, Delta Air Lines Inc. (NYS:DAL) rose 1.6%, Southwest Airlines Co. (NYS:LU) hiked up 1.3% and Alaska Air Group Inc. (NYS:ALK) tacked on 1.2%. Meanwhile, United Airlines Holdings Inc. (NAS:UAL) edged up 0.3%, after an engine on Flight 328 blew apart midflight on Saturday. The U.S. Global Jets ETF (PSE:JETS) climbed 1.4% ahead of the open, putting it on track to open at a one-year high, while futures (CME:ES00) for the S&P 500 (S&P:SPX) fell 0.8%.
Feb. 22, 2021, 7:43 a.m. EST