Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass
Highlights from the ratings report include:
- Compared to its closing price of one year ago, LCC's share price has jumped by 68.95%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LCC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LCC's revenue growth trails the industry average of 13.6%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Airlines industry and the overall market, US AIRWAYS GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Airlines industry average, but is less than that of the S&P 500. The net income has decreased by 8.3% when compared to the same quarter one year ago, dropping from $48.00 million to $44.00 million.
- US AIRWAYS GROUP INC's earnings per share declined by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, US AIRWAYS GROUP INC increased its bottom line by earning $3.28 versus $0.30 in the prior year. For the next year, the market is expecting a contraction of 12.8% in earnings ($2.86 versus $3.28).
US Airways Group, Inc., through its subsidiaries, provides air transportation for passengers and cargo. US Airways Group has a market cap of $2.7 billion and is part of the services sector and transportation industry. The company has a P/E ratio of 5.00, below the S&P 500 P/E ratio of 18.00. Shares are up 22.9% year to date as of the close of trading on Monday.
You can view the full
or get investment ideas from our
--Written by a member of TheStreet Ratings Staff.
Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.