Ryanair stock has dropped 17.7% this year but strong growth and balance sheet recommend buying.

From Nasdaq: 2024-11-28 12:57:00

Shares of Ryanair Holdings (RYAAY) have declined in double digits this year, underperforming the industry and other airline operators like Alaska Air Group, Inc. (ALK) and Southwest Airlines Co. (LUV). Despite the drop in stock price, upbeat air travel demand has led to strong passenger volume growth for Ryanair.

With a robust balance sheet, Ryanair ended the second quarter of fiscal 2025 with cash and cash equivalents of $3.73 billion, higher than its debt level of $982 million. The company has also been rewarding shareholders with dividends and share buybacks, with plans to return almost €9 billion to shareholders since 2008.

Although Ryanair’s stock has faced challenges like rising operating expenses due to fuel costs and Boeing delivery delays, the positive outlook for the company, including strong passenger volumes, fleet expansion, and earnings estimates, suggests that investors may want to consider buying the dip in RYAAY stock. The company’s Zacks Rank #2 (Buy) further supports this recommendation.



Read more at Nasdaq: Ryanair Stock Plunges 17.7% YTD: Should You Buy the Dip?