"While perhaps somewhat late to the game, we are upgrading the shares of US Airways from Neutral to Buy - the primary catalysts are lower fuel prices, stronger-than-expected domestic yields, and the ability to navigate the current tight capacity environment better than we had expected," Sterne Agee analysts wrote in a May 14 report. "With recent news out of AMR (AAMRQ - $0.52, Neutral), LCC may now have additional optionality into that outcome."
Shares of U.S. Airways hit a 52-week high of $12.23 on Thursday. The stock's 52-week low of $3.96 was set on Nov. 23.US Airways trades at an estimated price-to-earnings ratio for next year of 4.22 times; the average for airlines companies is 6.02. For comparison, Delta Air Lines (DAL) has a lower forward P/E of 4.2. Twelve of the 15 analysts who cover U.S. Airways rated it buy. Two analysts gave the stock a hold rating and one rated it sell. The stock has risen 135.5% year to date.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV