Flying Under the Radar: Strategies for Creating a Private Equity Portfolio with Publicly Traded Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2025
0mins
Source: Benzinga
Private Equity Myths: The allure of private equity is often overstated; successful investments rely on buying small, undervalued companies with debt, not on any magical strategy.
Key Traits for Success: High-performing companies in private equity share traits such as paying down debt, improving asset turnover, and strong profitability, which align with deep value investing principles.
Public Market Opportunities: Individual investors can replicate private equity strategies in public markets by targeting smaller companies with improving fundamentals and favorable valuations, without the associated fees and restrictions.
Candidate Companies: Five companies—Sun Country Airlines, Heritage Insurance, Malibu Boats, Core Molding Technologies, and John Wiley & Sons—exemplify the characteristics of private equity replication candidates, offering potential for significant returns through operational improvements and financial leverage.
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Analyst Views on SNCY
Wall Street analysts forecast SNCY stock price to rise
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 16.170
Low
18.00
Averages
19.43
High
21.00
Current: 16.170
Low
18.00
Averages
19.43
High
21.00
About SNCY
Sun Country Airlines Holdings, Inc. is a hybrid low-cost air carrier that deploys shared resources across its scheduled service, charter, and cargo businesses. The Company focuses on serving leisure and visiting friends and relatives (VFR) passengers, charter customers, and providing crew, maintenance, and insurance (CMI) service to Amazon.com Services, LLC (Amazon), with flights throughout the United States and to destinations in Canada, Mexico, Central America, and the Caribbean. Its Passenger segment consists of two businesses: Scheduled Service and Charter. These businesses both utilize the Company's passenger fleet. Its Cargo segment provides air cargo services. It flies a single-family fleet of midlife Boeing 737-NG aircraft. Its fleet consists of about 70 Boeing 737-NG aircraft. This includes 47 aircraft in the passenger fleet, 20 cargo aircraft operated through the A&R ATSA with Amazon, and six aircraft that are on lease to unaffiliated airlines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alignment Healthcare Joins S&P SmallCap 600 Index
- Stock Surge: Alignment Healthcare's shares jumped 7.8% in the afternoon session, reflecting market optimism regarding its inclusion in the S&P SmallCap 600 index, which is expected to attract more investor interest.
- Index Composition Change: According to the announcement, Alignment Healthcare will replace Sun Country Airlines Holdings before trading begins on May 14, meaning its stock will be forcibly purchased by index funds and ETFs, thereby increasing demand and pushing the stock price higher.
- Market Volatility: Over the past year, Alignment Healthcare's stock has experienced 23 moves greater than 5%, indicating that while today's increase is seen as significant, the market's perception of the company's fundamentals remains unchanged.
- Long-term Performance: Since the beginning of the year, Alignment Healthcare's stock has declined by 8.8%, currently trading at $18.45, which is 22.5% below its 52-week high of $23.81, showing that investors who bought $1,000 worth of shares five years ago would now see a return of only $865.20, indicating a loss on their initial investment.
See More
Allegiant's Acquisition of Sun Country Completed
- Acquisition Finalized: Allegiant completed its acquisition of Sun Country yesterday, which is expected to enhance the competitive edge of both companies in the budget airline market, potentially increasing overall operational efficiency and market share.
- New Fed Chair: Kevin Warsh was confirmed as the chair of the Federal Reserve with a narrow 54-vote margin, marking the lowest support for any Fed chair in history, which may foreshadow challenges he will face in monetary policy, especially with rising inflation.
- Tech Stock Rally: The S&P 500 rebounded to all-time highs despite two-thirds of its members trading in the red, driven by strong performance in technology stocks, with the Nasdaq Composite surging over 1%, reflecting investor confidence in the tech sector.
- Cisco's Strong Performance: Cisco exceeded Wall Street's expectations for its third-quarter results, with shares surging over 15% in after-hours trading, while announcing nearly 4,000 job cuts, indicating a strategic shift to capitalize on growing AI orders.
See More
Allegiant's Acquisition of Sun Country Completed
- Acquisition Completed: Allegiant's acquisition of Sun Country was finalized yesterday, which is expected to enhance market share and operational efficiency, laying a solid foundation for future growth.
- New Fed Chair: The Senate confirmed Kevin Warsh as the new chair of the Federal Reserve with a narrow vote of 54, indicating the challenges he may face, particularly with rising inflation potentially impacting future monetary policy.
- Tech Stock Rally: Despite two-thirds of S&P 500 members trading in the red, strong performance from tech stocks propelled the Nasdaq to a new record high, reflecting sustained investor confidence in the technology sector.
- Cisco Beats Expectations: Cisco exceeded Wall Street's third-quarter expectations, with shares surging over 15% in after-hours trading, while also announcing plans to cut nearly 4,000 jobs, highlighting significant growth in AI orders this year.
See More
Allegiant Completes Acquisition of Sun Country Airlines
- Acquisition Finalized: Allegiant Air completed its acquisition of Sun Country Airlines on Wednesday for $1.5 billion, and despite the surge in jet fuel costs, Allegiant aims to maintain its unique business model to protect margins.
- Market Expansion: The combined airline will serve approximately 175 cities with over 650 routes, with Allegiant planning to ramp up service during peak travel periods while reducing capacity on lower-demand Tuesdays and Wednesdays to optimize revenue.
- Strong Demand: Despite jet fuel prices doubling since February, Allegiant's budget-conscious leisure customer demand remains robust, with a reported profit of $42.5 million in the first quarter, reflecting a 32% year-over-year increase and demonstrating the effectiveness of low-cost business models.
- Industry Challenges: As Allegiant acquires Sun Country, other low-cost carriers face significant challenges, notably the collapse of Spirit Airlines, suggesting that Allegiant's strategic approach may provide a buffer in a highly competitive market.
See More
Allegiant Completes Acquisition of Sun Country Airlines
- Acquisition Completed: Allegiant finalized its acquisition of rival Sun Country Airlines on Wednesday, with a total deal value of $1.5 billion, including debt, marking a significant expansion in the low-cost airline market.
- CEO Strategic Positioning: Allegiant CEO Greg Anderson stated that despite soaring fuel prices, the airline will continue to focus on protecting margins rather than chasing growth, thereby maintaining competitiveness amid industry turmoil.
- Market Service Expansion: The combined airline will serve approximately 175 cities with over 650 routes, planning to ramp up service during peak travel periods while dialing back capacity on lower-demand Tuesdays and Wednesdays to enhance pricing power.
- Strong Financial Performance: Allegiant reported a profit of $42.5 million in the first quarter, a 32% increase year-over-year, demonstrating the effectiveness of the low-cost airline model despite the industry facing billions in additional costs due to rising fuel prices.
See More
Allegiant and Sun Country Merger Set to Close Soon
- Merger Agreement Finalized: Allegiant and Sun Country announced their merger agreement in January, with a total deal value of approximately $1.5 billion, including debt, and is expected to close this week, marking a significant consolidation in the U.S. leisure airline market.
- Market Expansion: Post-merger, Allegiant will operate over 650 routes, combining its strength in small and mid-sized markets with Sun Country's network in larger cities and international leisure destinations, enhancing competitive positioning.
- Equity Structure Changes: After the merger closes, Allegiant shareholders are expected to own about 67% of the combined entity, while Sun Country shareholders will hold approximately 33%, impacting future decision-making and strategic direction for both companies.
- Operational Integration Plan: Until they receive a single operating certificate from the FAA, both companies will continue to operate separately, ensuring that existing ticketing and flight schedules remain unaffected, thereby laying a solid foundation for a smooth transition post-merger.
See More
Alignment Healthcare Joins S&P SmallCap 600 Index
- Stock Surge: Alignment Healthcare's shares jumped 7.8% in the afternoon session, reflecting market optimism regarding its inclusion in the S&P SmallCap 600 index, which is expected to attract more investor interest.
- Index Composition Change: According to the announcement, Alignment Healthcare will replace Sun Country Airlines Holdings before trading begins on May 14, meaning its stock will be forcibly purchased by index funds and ETFs, thereby increasing demand and pushing the stock price higher.
- Market Volatility: Over the past year, Alignment Healthcare's stock has experienced 23 moves greater than 5%, indicating that while today's increase is seen as significant, the market's perception of the company's fundamentals remains unchanged.
- Long-term Performance: Since the beginning of the year, Alignment Healthcare's stock has declined by 8.8%, currently trading at $18.45, which is 22.5% below its 52-week high of $23.81, showing that investors who bought $1,000 worth of shares five years ago would now see a return of only $865.20, indicating a loss on their initial investment.
See More
Allegiant's Acquisition of Sun Country Completed
- Acquisition Finalized: Allegiant completed its acquisition of Sun Country yesterday, which is expected to enhance the competitive edge of both companies in the budget airline market, potentially increasing overall operational efficiency and market share.
- New Fed Chair: Kevin Warsh was confirmed as the chair of the Federal Reserve with a narrow 54-vote margin, marking the lowest support for any Fed chair in history, which may foreshadow challenges he will face in monetary policy, especially with rising inflation.
- Tech Stock Rally: The S&P 500 rebounded to all-time highs despite two-thirds of its members trading in the red, driven by strong performance in technology stocks, with the Nasdaq Composite surging over 1%, reflecting investor confidence in the tech sector.
- Cisco's Strong Performance: Cisco exceeded Wall Street's expectations for its third-quarter results, with shares surging over 15% in after-hours trading, while announcing nearly 4,000 job cuts, indicating a strategic shift to capitalize on growing AI orders.
See More
Allegiant's Acquisition of Sun Country Completed
- Acquisition Completed: Allegiant's acquisition of Sun Country was finalized yesterday, which is expected to enhance market share and operational efficiency, laying a solid foundation for future growth.
- New Fed Chair: The Senate confirmed Kevin Warsh as the new chair of the Federal Reserve with a narrow vote of 54, indicating the challenges he may face, particularly with rising inflation potentially impacting future monetary policy.
- Tech Stock Rally: Despite two-thirds of S&P 500 members trading in the red, strong performance from tech stocks propelled the Nasdaq to a new record high, reflecting sustained investor confidence in the technology sector.
- Cisco Beats Expectations: Cisco exceeded Wall Street's third-quarter expectations, with shares surging over 15% in after-hours trading, while also announcing plans to cut nearly 4,000 jobs, highlighting significant growth in AI orders this year.
See More
Allegiant Completes Acquisition of Sun Country Airlines
- Acquisition Finalized: Allegiant Air completed its acquisition of Sun Country Airlines on Wednesday for $1.5 billion, and despite the surge in jet fuel costs, Allegiant aims to maintain its unique business model to protect margins.
- Market Expansion: The combined airline will serve approximately 175 cities with over 650 routes, with Allegiant planning to ramp up service during peak travel periods while reducing capacity on lower-demand Tuesdays and Wednesdays to optimize revenue.
- Strong Demand: Despite jet fuel prices doubling since February, Allegiant's budget-conscious leisure customer demand remains robust, with a reported profit of $42.5 million in the first quarter, reflecting a 32% year-over-year increase and demonstrating the effectiveness of low-cost business models.
- Industry Challenges: As Allegiant acquires Sun Country, other low-cost carriers face significant challenges, notably the collapse of Spirit Airlines, suggesting that Allegiant's strategic approach may provide a buffer in a highly competitive market.
See More
Allegiant Completes Acquisition of Sun Country Airlines
- Acquisition Completed: Allegiant finalized its acquisition of rival Sun Country Airlines on Wednesday, with a total deal value of $1.5 billion, including debt, marking a significant expansion in the low-cost airline market.
- CEO Strategic Positioning: Allegiant CEO Greg Anderson stated that despite soaring fuel prices, the airline will continue to focus on protecting margins rather than chasing growth, thereby maintaining competitiveness amid industry turmoil.
- Market Service Expansion: The combined airline will serve approximately 175 cities with over 650 routes, planning to ramp up service during peak travel periods while dialing back capacity on lower-demand Tuesdays and Wednesdays to enhance pricing power.
- Strong Financial Performance: Allegiant reported a profit of $42.5 million in the first quarter, a 32% increase year-over-year, demonstrating the effectiveness of the low-cost airline model despite the industry facing billions in additional costs due to rising fuel prices.
See More
Allegiant and Sun Country Merger Set to Close Soon
- Merger Agreement Finalized: Allegiant and Sun Country announced their merger agreement in January, with a total deal value of approximately $1.5 billion, including debt, and is expected to close this week, marking a significant consolidation in the U.S. leisure airline market.
- Market Expansion: Post-merger, Allegiant will operate over 650 routes, combining its strength in small and mid-sized markets with Sun Country's network in larger cities and international leisure destinations, enhancing competitive positioning.
- Equity Structure Changes: After the merger closes, Allegiant shareholders are expected to own about 67% of the combined entity, while Sun Country shareholders will hold approximately 33%, impacting future decision-making and strategic direction for both companies.
- Operational Integration Plan: Until they receive a single operating certificate from the FAA, both companies will continue to operate separately, ensuring that existing ticketing and flight schedules remain unaffected, thereby laying a solid foundation for a smooth transition post-merger.
See More
