The Qantas Airways Limited (ASX: QAN) share price has been out of form so far in 2021. Since the start…
The post It hasn’t been a great 2021 so far for the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia. –
The Qantas Airways Limited (ASX: QAN) share price has been out of form so far in 2021.
Since the start of the year, the airline operator’s shares are down almost 4%. This compares to a 10% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.
However, that only tells you half of the story. Things were going a lot better for the Qantas share price earlier in the year.
For example, just four months ago Qantas shares were trading at $5.50. This means the airline’s shares have fallen 14.2% since peaking at that level.
What is happening 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 when Australia was COVID-free, Qantas was busy planning to increase its capacity to take advantage of the strong recovery in the domestic travel market. At that point, investors were scrambling to buy Qantas shares and driving them higher.
However, since then, outbreaks of COVID-19 have caused lockdowns across several states, grounding a good portion of the airline’s domestic fleet. This has spooked investors, sending many to the exits.
Is this a buying opportunity?
The good news for investors is that the majority of brokers in Australia believe the Qantas share price is in the buy zone right now.
For example, late last month analysts at Morgan Stanley put an overweight rating and $7.00 price target on the company’s shares. This implies potential upside of 48% over the next 12 months.
Elsewhere, at the end of May, the team at Citi put a buy rating and $5.89 price target on Qantas shares. This represents potential upside of 25% from where it trades today.
Finally, analysts at Goldman Sachs currently have a buy rating and $6.38 price target. Its analysts believe Qantas is a top recovery investment option for investors. Particularly given its strengthening market position and cost reduction program.
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 May 24th 2021
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.