Why Lufthansa Stock is Only a Hold Position
The route network and presence in the economically important region of Northern Italy are being expanded.
ITA Airways serves nearly 70 destinations worldwide and carried about 18 million passengers in 2024.
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The Lufthansa stock (XETRA: LHA) is merely a hold position for me. Historically, airlines have often performed much worse than the overall market. Airlines are known for low margins and high fixed costs, making the industry a less attractive long-term investment. Nevertheless, Lufthansa currently offers an interesting valuation. With a forward P/E ratio of 5.9, the stock lures with a relatively affordable entry point. Additionally, the "Crane Airline" distributed a dividend in May 2024 after a five-year break, providing investors with an appealing...
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