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NEW YORK (
TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,300 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.
TheStreet Ratings released rating changes on 23 U.S. common stocks for week ending April 12, 2013. 9 stocks were upgraded and 14 stocks were downgraded by our stock model.
Rating Change #10Atlas Air Worldwide Holdings Inc (AAWW) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
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Highlights from the ratings report include:
The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 16.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
Even though the current debt-to-equity ratio is 1.02, it is still below the industry average, suggesting that this level of debt is acceptable within the Air Freight & Logistics industry. Despite the fact that AAWW's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.67 is high and demonstrates strong liquidity.
AAWW has underperformed the S&P 500 Index, declining 18.54% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
The gross profit margin for ATLAS AIR WORLDWIDE HLDG INC is currently lower than what is desirable, coming in at 28.90%. Regardless of AAWW's low profit margin, it has managed to increase from the same period last year.
Atlas Air Worldwide Holdings, Inc., through its subsidiaries, provides outsourced aircraft and aviation operating services in the United States and internationally. It operates in four segments: ACMI, AMC Charter, Commercial Charter, and Dry Leasing. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Atlas Air Worldwide has a market cap of $1.04 billion and is part of the services sector and transportation industry. Shares are down 11.4% year to date as of the close of trading on Wednesday.
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