The stocks of Disney, Starbucks, and Restaurant Brands, respectively, have fallen by 37%, 31%, and 41% from their 2019 highs. They are getting increasingly attractive as long-term investments.
Currently, analysts predict Air Canada’s adjusted earnings will decline about 26% year over year. However, the coronavirus situation is dynamic, and estimates can change for better or worse.
At about $24 per share at writing, Air Canada stock trades at roughly 9.6 times its forward earnings, while its normal price-to-earnings ratio (P/E) is about seven, which represents a price target of $17.50.
In 2009, during the last recession and market crash, Air Canada stock fell to below $1 per share and almost went bankrupt. Investors who plunged in and held on until 2018 would have landed on a 27-bagger, transforming $10,000 into $270,000.
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