What can we learn from the flying kangaroo’s recent share price performance?
The post What can we learn from the Qantas (ASX:QAN) share price history? appeared first on The Motley Fool Australia. –
The Qantas Airways Limited (ASX: QAN) share price has not been one that has enjoyed 2021 so far. At the time of writing, Qantas shares remain down by around 13% year to date.
With the airline scheduled to report its FY2021 earnings next Thursday, it might be a good time to jump into the Qantas share price history to see if we can learn anything today.
Qantas is a company that many investors might feel a special attachment to. The ‘flying kangaroo’ used to be a government-owned company before its privatisation back in the 1990s. Today, it is listed on the ASX boards as a public company, available for all Aussie investors.
What does the Qantas share price flight path look like?
Well, to start things off, here is a graph of Qantas share price over the past decade:
QAN 10-year chart and pricing data | source: fool.com.au
As you can see, it hasn’t exactly been a smooth ascent over the past 10 years. As an airline, Qantas is a company that faces wildly cyclical business conditions. Its profitability rests on many factors, including oil prices, competition, Australian dollar exchange rates, demand for tourism and travel, and the overall health of the economy.
You can see this cyclicality reflected in the Qantas share price.
Of course, the biggest hit that Qantas has taken in the past decade came last year with the onset of the coronavirus.
As soon as it became evident that both international and domestic travel would be shuttered last year, the Qantas share price went into freefall. In December 2020, Qantas shares were at an all-time high, over $7. But by late March 2020, the company had fallen to less than $2.50 a share.
Qantas shares have faced a lot of turbulence (last pun, I promise) in the months since too. With lockdowns, international ‘bubbles’ and travel restrictions whipsawing wildly from state to state, and country to country, over the past 18 months or so, Qantas has certainly had to endure plenty of uncertainty.
The more recent Delta outbreaks have clearly not been helpful to the company. Qantas shares are now down more than 13% since the start of July.
So it will be interesting to hear what the flying kangaroo has to say next Thursday when it reports its earnings.
At recent Qantas share pricing, the airline has a market capitalisation of $8.19 billion.
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
How does the Qantas (ASX:QAN) share price perform during lockdowns?
The Qantas (ASX:QAN) share price is down 4% in a month. Here’s why
Move over Qantas (ASX:QAN). This ASX airline share is profiting during COVID
3 reopening ASX share ideas as potential buys
Motley Fool contributor Sebastian Bowen 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.