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 revenue growth, attractive valuation levels, solid stock price performance 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.
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Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.4%. 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.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 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.
- 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.
US Airways Group, Inc., through its subsidiaries, provides air transportation for passengers and cargo. US Airways Group has a market cap of $2.9 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 21.6% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.