Allegiant Travel Company (NASDAQ:ALGT) is one of the cheap stocks to buy for the next 5 years. On October 3, Susquehanna raised the firm’s price target on Allegiant Travel to $65 from $50, while keeping a Neutral rating on the shares as part of its Q3 2025 earnings preview for the airlines group.
Earlier for Q2 2025, Allegiant Travel reported that the company’s revenue reached $669 million, which was ~3% above the prior year’s figure. The company achieved an operating margin of 8.6%, successfully exceeding its initial guidance, contributing to a first-half operating margin close to 9%, an improvement over the previous year.
Fleet changes included the retirement of 2 A320 series aircraft and the delivery of 5 new 737 MAX aircraft. The company’s financial position included $853 million in cash and investments, and a total debt of just below $2 billion, resulting in a net leverage of 2.6 times. Allegiant was also named Skytrax’s best low-cost carrier in North America for the second consecutive year.
Allegiant Travel Company (NASDAQ:ALGT) is a leisure travel company that provides travel and leisure services and products to residents of underserved cities in the US.
While we acknowledge the potential of ALGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
