Cramer: These Airlines Are a Buy on Today's Stormy Stock Prices

 | Mar 14, 2017 | 12:40 PM EDT
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Stock quotes in this article:

luv

,

dal

These airlines are going down correctly on the storm closings, but incorrectly if oil keeps plummeting.

This is a classic example of short- vs. long-term thinking.

I think that the airlines have earned enough street cred that after they fall, we will look at their chief operating cost -- oil -- and realize that they are bargains.

I see Southwest Airlines (LUV) , in particular, as being a terrific opportunity. Just a couple of weeks ago, we read research that suggested that Warren Buffett, who made some big investments in this group, might buy Southwest the way he bought Burlington Northern.

I don't think that's right, but $59 down to $53 seems pretty attractive. Delta Air Lines (DAL) , another Buffett fave, has gone from $52 to $46.

Is this the moment that you have to start buying, given the decline in oil? I think you could get started. They are cheap, they are down and they have already discounted a lot of negatives.

The only thing that is worrisome? These are momentum stocks, with lots of chartists.

Our chartist, Bruce Kamich, has provided some analysis on these stocks to help determine the best entry point.
 
Here is what Bruce has to say about Southwest Airlines:
LUV has made a strong rally since September, so a pullback should not be a total surprise. The stock should probably retest the chart support in the $52 to $50 area where it stalled in December and January. (See Bruce's full analysis of LUV here.)
 
 
And here's Bruce's take on Delta Air Lines:
DAL made a new low for the move down today. It could reverse back to the upside, but for now it looks like the flight plan is headed lower, perhaps as low as $42 in the weeks ahead. (See Bruce's full analysis of DAL here.)
 
 
 

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