NEW YORK (

TheStreet

)

-- US Airways Group

(NYSE:

LCC

) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally poor debt management.

Highlights from the ratings report include:

  • LCC's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 8.5%. 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.
  • US AIRWAYS GROUP INC's earnings per share declined by 35.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, US AIRWAYS GROUP INC reported lower earnings of $0.30 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $0.30).
  • The gross profit margin for US AIRWAYS GROUP INC is rather low; currently it is at 18.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.60% trails that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.98%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 35.29% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

US Airways Group, Inc., through its subsidiaries, provides air transportation for passengers and cargo. The company has a P/E ratio of 11.5, below the average transportation industry P/E ratio of 18.3 and below the S&P 500 P/E ratio of 17.7. US Airways Group has a market cap of $1.04 billion and is part of the

services

sector and

transportation

industry. Shares are up 61.3% year to date as of the close of trading on Monday.

You can view the full

US Airways Group Ratings Report

or get investment ideas from our

investment research center

.

null