Hawaiian Holdings (HA) Marked As A Barbarian At The Gate
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Hawaiian Holdings as such a stock due to the following factors:
- HA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.2 million.
- HA has traded 1.3 million shares today.
- HA traded in a range 216.7% of the normal price range with a price range of $2.99.
- HA traded above its daily resistance level (quality: 90 days, meaning that the stock is crossing a resistance level set by the last 90 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HA with the Ticky from Trade-Ideas. See the FREE profile for HA NOW at Trade-Ideas
More details on HA:
Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages in the scheduled air transportation of passengers and cargo. HA has a PE ratio of 12. Currently there are 2 analysts that rate Hawaiian Holdings a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Hawaiian Holdings has been 920,500 shares per day over the past 30 days. Hawaiian has a market cap of $2.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.82 and a short float of 5.7% with 3.25 days to cover. Shares are up 23.1% year-to-date as of the close of trading on Thursday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Hawaiian Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- HA's revenue growth has slightly outpaced the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HAWAIIAN HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HAWAIIAN HOLDINGS INC increased its bottom line by earning $3.00 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($4.66 versus $3.00).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 98.8% when compared to the same quarter one year prior, rising from $25.88 million to $51.47 million.
- Net operating cash flow has increased to $198.51 million or 22.77% when compared to the same quarter last year. In addition, HAWAIIAN HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -33.00%.
- 37.15% is the gross profit margin for HAWAIIAN HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.33% trails the industry average.
- You can view the full Hawaiian Holdings Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.