This Could Be a Surprise Winner of the Airline Industry Selloff

Airline stocks have been hammered by the COVID-19 pandemic, which has brought global travel to a halt and left carriers scrambling to bring down costs by canceling flights and grounding planes.

That's also causing a trickle-down effect on businesses that serve airlines, including aerospace suppliers, plane manufacturers, and the leasing firms that buy planes and rent them to airlines. Leasing firms have become increasingly popular in recent years as airlines try to move toward more of an asset-light model and keep huge plane expenditures off their balance sheets.

Shares of one such lessor, AerCap Holdings (NYSE: AER), are down more than 50% year to date on investor concerns that a wave of airline bankruptcies might leave the company with planes it is unable to place in revenue-generating service. Those fears are misplaced, and AerCap might be the best stock to buy for investors interested in betting on an eventual airline recovery.

Source Fool.com