Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Spirit Airlines as such a stock due to the following factors:
- SAVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.8 million.
- SAVE has traded 101,290 shares today.
- SAVE is trading at a new lifetime high.
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More details on SAVE:
Spirit Airlines, Inc. provides low-fare airline services. It operates approximately 250 daily flights to 50 destinations in the United States, Caribbean, and Latin America. SAVE has a PE ratio of 26.6. Currently there are 8 analysts that rate Spirit Airlines a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Spirit Airlines has been 1.3 million shares per day over the past 30 days. Spirit Airlines has a market cap of $5.6 billion and is part of the services sector and transportation industry. The stock has a beta of 1.68 and a short float of 2.5% with 1.67 days to cover. Shares are up 70% year-to-date as of the close of trading on Tuesday.
rates Spirit Airlines as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- SPIRIT AIRLINES INC has improved earnings per share by 8.3% 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, SPIRIT AIRLINES INC increased its bottom line by earning $2.43 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($3.25 versus $2.43).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Airlines industry average. The net income increased by 9.7% when compared to the same quarter one year prior, going from $61.10 million to $67.00 million.
- SAVE's revenue growth trails the industry average of 30.4%. Since the same quarter one year prior, revenues rose by 13.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SAVE's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SAVE has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 57.88% to $62.16 million when compared to the same quarter last year. In addition, SPIRIT AIRLINES INC has also vastly surpassed the industry average cash flow growth rate of -3.38%.
- You can view the full Spirit Airlines Ratings Report.