New Lifetime High Reached By Virgin America (VA)
Trade-Ideas LLC identified Virgin America ( VA) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Virgin America as such a stock due to the following factors:
- VA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.7 million.
- VA has traded 433,024 shares today.
- VA is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VA with the Ticky from Trade-Ideas. See the FREE profile for VA NOW at Trade-Ideas
More details on VA: Virgin America Inc. provides scheduled air travel services. The company has a fleet of 60 Airbus single-aisle aircraft consisting of 10 Airbus A319s and 50 Airbus A320s. As of December 31, 2015, it provided services to 23 airports in the United States and Mexico. VA has a PE ratio of 12. Currently there are no analysts that rate Virgin America a buy, 1 analyst rates it a sell, and 6 rate it a hold. The average volume for Virgin America has been 1.1 million shares per day over the past 30 days. Virgin America has a market cap of $2.5 billion and is part of the services sector and transportation industry. Shares are up 54.6% year-to-date as of the close of trading on Friday.
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 Virgin America as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 11.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 34.48% and other important driving factors, this stock has surged by 83.91% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although VA had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- 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 36.5% when compared to the same quarter one year prior, rising from $12.79 million to $17.45 million.
- VIRGIN AMERICA INC has improved earnings per share by 34.5% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, VIRGIN AMERICA INC increased its bottom line by earning $7.65 versus $1.06 in the prior year. For the next year, the market is expecting a contraction of 52.6% in earnings ($3.63 versus $7.65).
- The gross profit margin for VIRGIN AMERICA INC is rather low; currently it is at 20.26%. Regardless of VA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.79% trails the industry average.
- You can view the full Virgin America 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.
