Trade-Ideas LLC identified

Spirit Airlines

(

SAVE

) as a strong on high relative volume 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 $68.4 million.
  • SAVE has traded 172,128 shares today.
  • SAVE is trading at 3.00 times the normal volume for the stock at this time of day.
  • SAVE is trading at a new high 3.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SAVE:

Spirit Airlines, Inc. provides low-fare airline services. SAVE has a PE ratio of 11. Currently there are 7 analysts that rate Spirit Airlines a buy, no analysts rate it a sell, and 2 rate 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 $3.6 billion and is part of the services sector and transportation industry. The stock has a beta of 0.65 and a short float of 6% with 2.77 days to cover. Shares are up 24.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Spirit Airlines as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 9.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SAVE has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 37.26% is the gross profit margin for SPIRIT AIRLINES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.31% is above that of the industry average.
  • Net operating cash flow has significantly increased by 96.80% to $106.70 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 -32.44%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Airlines industry and the overall market on the basis of return on equity, SPIRIT AIRLINES INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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