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

Hawaiian Holdings

(

HA

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Hawaiian Holdings as such a stock due to the following factors:

  • HA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.2 million.
  • HA has traded 1.8 million shares today.
  • HA traded in a range 293.8% of the normal price range with a price range of $1.59.
  • HA traded above its daily resistance level (quality: 53 days, meaning that the stock is crossing a resistance level set by the last 53 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on HA:

Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages in the scheduled air transportation of passengers and cargo. HA has a PE ratio of 19.1. Currently there are 2 analysts that rate Hawaiian Holdings a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Hawaiian Holdings has been 1.9 million shares per day over the past 30 days. Hawaiian has a market cap of $1.1 billion and is part of the services sector and transportation industry. The stock has a beta of 1.11 and a short float of 10.2% with 2.37 days to cover. Shares are down 21.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hawaiian Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations 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.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, HA's share price has jumped by 47.59%, 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, HA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HA's revenue growth trails the industry average of 22.1%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Airlines industry and the overall market on the basis of return on equity, HAWAIIAN HOLDINGS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has increased to $48.27 million or 34.84% when compared to the same quarter last year. Despite an increase in cash flow of 34.84%, HAWAIIAN HOLDINGS INC is still growing at a significantly lower rate than the industry average of 1559.00%.

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