The Coronavirus crisis has torpedoed most business sectors, and amid such widespread financial devastation, the travel industry has suffered particularly badly.
Global lockdown brought with it stringently observed travel restrictions, meaning almost all commercial flights have been grounded for two months. This total evisceration of bookings is obviously terrible news for the industry and most airline stocks have suffered massively.
Qantas certainly wasn’t immune to this industry-wide devastation, but the Australian airline has rallied impressively and currently stands out as one of the very few major airlines that seems set for a resurgence.
Thinking of investing in Qantas stock? This guide will explain how to buy Qantas stock, take a look at the best stockbrokers and consider the company’s prospects going forward.
Where to Trade Qantas Stock
If you’re looking to trade Qantas, we advise creating an account with one of our recommended online stockbrokers. If you’re outside the United States, select Plus500. If you’re inside the US or Canada, Fidelity is the best platform on which to buy Qantas stock.
1. Plus500 – No.1 stock broker for non-US customers
Looking for a trustworthy broker where you can trade QAN? If you’re based in the UK, Plus500 is a safe, competitively priced trading platform that offers CFD and FX trading.
First and foremost, Plus500 is a solid choice because it’s regulated. Licensed by several international financial authorities, including the UK's Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC), Plus500 is also listed on the London Stock Exchange and discloses its financials, so you can be confident you’re in safe hands.
This London-based broker offers access to a comprehensive product line, including forex, stock indexes, equities, commodities, cryptocurrencies, ETFs, and options. In total, Plus500 offers access to more than 2,000 trading instruments in the form of CFDs.
Plus500 is competitively priced – spreads are generally low and commission is non-existent, and the minimum deposit (£100) is affordable, so it's a good place to buy Qantas stock if you're working on a budget. Leverage goes up to 1:30 for retail accounts and 1:300 for professional accounts.
Other benefits include a great UX that should make for a seamless trading experience. Whether you’re trading on your computer desktop or your mobile via the plus500 app, the experience is intuitive and easy to master.
- Lowest spreads in the market
- Trade a wide range of stocks
- No commission on trades
- Light on educational resources
2. Fidelity – US Broker Offering Commission-Free Stock Trades
Long-established as one of America’s leading stockbrokers, Fidelity grants access to a vast array of instruments, including Qantas stock.
If you’re looking for a broker you can trust, look no further. Fidelity has been helping people to invest in the stock market for over 70 years, so you know you’re getting a tried and trusted service. But don’t assume old means out of touch, as Fidelity has done a great job of keeping up with the latest stockbroker platforms and provides investors with an array of tools and market data.
Usability is a strength, thanks to slick, customisable dashboards and bug-free performance, while $0 commission stock and ETF trades ensure great value for investors. There's also some helpful information and research tools to help you build up your knowledge.
- No commission on stock and ETFs
- Educational resources and insights
- High mutual fund fees and financing rates
Should I Buy Qantas Stock? Points to Consider
Before you buy Qantas stock, or invest in similar assets like EasyJet stocks, it’s a good idea to do your research. We always recommend taking a closer look at the company fundamentals, historic price movements and forecasts before you invest any money.
Qantas business model and share price history
“It will be some time before total demand reaches pre-crisis levels,” Qantas CEO Alan Joyce said in the first week of May. “With the possible exception of New Zealand, international travel demand could take years to return to what it was.”
It’s an ominous but realistic assessment of where the Australian airline finds itself two months into the Coronavirus crisis. And yet, Qantas appears to be in a better position to weather the storm than most airlines on the planet. Which isn’t saying much.
Having dumped all his airline stock, Warren Buffett recently observed that ‘the world has changed’ for airlines in the wake of COVID-19, and it’s hard to disagree. The pandemic has obliterated airline revenue and any sort of revival looks a long way away.
At least Qantas seems to have a bit of a head start, having raised enough capital to cover lost business until December 2021, which hopefully represents a worst-case scenario.
Having furloughed the majority of its 30,000-strong workforce in March, Qantas managed to raise A$1.05 billion in March, a move that resulted in a share price resurgence in April. After hitting a rock bottom price of A$2.14 on March 19th, QAN was back up to A$3.72 by mid-April.
Further encouragement came with an announcement, on May 5, that the airline has raised an additional A$550 million, shoring up its chances of riding out this hugely challenging period.
While acknowledging the unprecedented challenges ahead, Alan Joyce was positive about the region’s successful response to Coronavirus and raised the possibility of a “trans-Tasman travel bubble”, which could see the reintroduction of international flights between Australia and New Zealand ahead of further-flung international routes.
Few airlines can match Qantas’ roadmap to revival right now and it’s easy to see why investors might be sniffing an opportunity, in spite of the tough times that undoubtedly lie ahead.
Qantas stock dividend information
Qantas pays an annual dividend of $0.27 per share, with a dividend yield of 7.46%. Payments are made semi-annually and the most recent instalment was paid on April 9, 2020.
Qantas stock forecast and prediction
The Wall Street Journal gives QAN a median target price of $4.16, with a low target of $2.09 and a high target of $5.60. The median target represents an 14.9% increase on the current price of $3.62 (04/05/20).
How to Trade Qantas Stock on Plus500
It’s quick and easy to buy Qantas stock at our recommended broker, Plus500. Assuming you’ve signed up and funded your broker account, follow these simple steps to invest in Qantas stock.
Step 1: Search for Qantas (QAN) Stock
Look up Qantas by typing the ticker symbol QAN into the search box.
Step 2: Click on the instrument
Select Qantas from the drop-down menu to bring up the Qantas trading screen.
Step 3: Choose Buy or Sell
Choose either ‘Sell’ or ‘Buy’ to open a long or short position on QAN.
Step 4: Configure your trade and hit Buy or Sell
Set your leverage amount, Stop loss and Take profit order limits, then select ‘Buy’ or ‘Sell’.
Investing in Qantas stock – Final Thoughts
Qantas finds itself in an odd position right now. While the Coronavirus crisis has had a devastating impact, effectively halting business for months, the Australian airline appears uniquely well-positioned to weather the storm and, potentially, emerge with a strong competitive advantage.
Qantas has extended the suspension of most of its domestic and trans-Tasman flights until the end of June, so the immediate outlook isn’t great, and anything beyond that is shrouded in uncertainty. However, the Australian airline has the liquidity (reportedly $3.5 billion in short-term liquidity) to survive anything short of the most extreme scenario.
If you do want to buy Qantas stock today, we advise signing up to one of our recommended online stockbrokers. If you live outside the US, we suggest Plus500, while Fidelity is our top pick for US traders.
Plus500 - No.1 CFD broker for non-U.S. customers
- Lowest spreads in the market
- No commissions on trades
- Listed on the stock exchange and FCA & CySEC regulated
- Advanced stock analysis tools including historical charts, news, and realtime prices
- Over 2,000 shares to buy
Trade Stocks With No Commission in the U.S.
- 0% commission stock trading
- Experienced and respected broker
- Helpful educational resources
FAQs
Should I buy Qantas stock or wait?
Qantas is well-positioned to emerge from the Coronavirus crisis and do well. Brave investors could see plenty of upside in a year or two.
What are the fees when buying Qantas stock?
Zero-commission trading is available to European clients who trade on Plus500. This means that Plus500 doesn't add a dealing charge or any administrative fees when you trade QAN. However, you still have to consider the spread and other charges like overnight fees.
Is there a Qantas stock price prediction?
WSJ's price target is $4.16, a 14.9% increase on the current price.
What does the Qantas stock dividend pay?
Qantas currently pays an annual dividend of $0.27 per share.
