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.

Trade-Ideas LLC identified

Republic Airways Holdings

(

RJET

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Republic Airways Holdings as such a stock due to the following factors:

  • RJET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.5 million.
  • RJET has traded 118,745 shares today.
  • RJET is down 5.9% today.
  • RJET was up 52.9% yesterday.

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More details on RJET:

Republic Airways Holdings Inc., through its subsidiaries, provides scheduled passenger services. The company offers scheduled passenger service on approximately 1,229 flights daily to approximately 101 cities in the U.S. and Canada. RJET has a PE ratio of 3. Currently there is 1 analyst that rates Republic Airways Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Republic Airways Holdings has been 608,300 shares per day over the past 30 days. Republic Airways has a market cap of $191.6 million and is part of the services sector and transportation industry. The stock has a beta of 2.12 and a short float of 3.3% with 0.30 days to cover. Shares are down 76.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Republic Airways Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • RJET's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 39.30% is the gross profit margin for REPUBLIC AIRWAYS HLDGS 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 1.87% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Airlines industry. The net income has significantly decreased by 54.3% when compared to the same quarter one year ago, falling from $14.00 million to $6.40 million.
  • The debt-to-equity ratio is very high at 3.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RJET has a quick ratio of 0.50, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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