How did the Qantas (ASX:QAN) share price perform in 2021?

A year in review for the Qantas share price…
The post How did the Qantas (ASX:QAN) share price perform in 2021? appeared first on The Motley Fool Australia. –

The Qantas Airways Limited (ASX: QAN) share price failed to take off in 2021. It was no secret that the company struggled with most of its operations halted due to COVID-19.

Since the beginning of the year, the airline operator’s shares moved marginally higher, up 2%. In comparison, the S&P/ASX 200 Index (ASX: XJO) gained roughly 13.5% over the same period.

For the final day of 2021, Qantas shares closed flat at $4.98 apiece. It’s worth noting that in early November, its share price touched a 52-week high of $5.97 before treading lower.

What happened with the Qantas share price?

The volatility in the Qantas share price in 2021 has been driven by uncertainty relating to the recovery of the travel market.

Earlier this year, Australia effectively managed to control the spread of COVID-19. This led to the company taking advantage of the strong interest in consumers wanting to travel domestically.

During March and April, investors scrambled to buy Qantas shares which led to a sharp and sudden ascent.

However, things turned sour when outbreaks of COVID-19 began to prop up across the country. This caused Qantas to forcefully ground its domestic fleet as several states went into hard lockdowns.

The turmoil drove investors to the exits, sending the airline’s shares to a 52-week low of $4.20 in August.

Fast-forward to November, the outlook for the travel industry became rosy again as COVID-19 had been on a steady decline. Furthermore, the Australian government’s re-opening of international travel excited investors.

The company brought back several planes from deep storage to meet the expected surge in demand for travel.

But yet again, a new variant of COVID-19, Omicron caused widespread panic across the globe. As such, several counties have gone back into lockdown, and Australia has re-reintroduced restrictions because of the record number of cases.

Is this a buying opportunity?

The good news for investors is that a number of brokers believe that the Qantas share price is attractively valued.

Multinational investment bank, Citi cut its price target by 1.2% to $5.86. Although this is a reduction, it implies an upside of almost 18% over the next 12 months.

In addition, JPMorgan also slashed its outlook by 3.1% to $6.30 a pop. This represents a potential upside of 26% from where it trades today.

Following suit, Swiss investment firm, UBS lowered its assessment on Qantas shares by 3.1% to $6.20. Its analysts clearly believe that there is still significant value in the airline and that a recovery is inevitable.

The post How did the Qantas (ASX:QAN) share price perform in 2021? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Qantas right now?

Before you consider Qantas, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Brokers name 3 ASX shares to buy

Brokers name 3 ASX shares to sell

How are ASX 200 travel shares faring over the holiday season?

ASX travel shares in focus on global flight cancellations

3 excellent ASX 200 blue chip shares to buy in 2022

Motley Fool contributor Aaron Teboneras owns Qantas Airways Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!