US Airways Group Inc (LCC): Today's Featured Transportation Laggard

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.

US Airways Group ( LCC) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day up 0.4%. By the end of trading, US Airways Group fell 16 cents (-1.5%) to $10.51 on light volume. Throughout the day, 5.2 million shares of US Airways Group exchanged hands as compared to its average daily volume of 8.4 million shares. The stock ranged in price between $10.35-$10.94 after having opened the day at $10.65 as compared to the previous trading day's close of $10.67. Other companies within the Transportation industry that declined today were: Eagle Bulk Shipping ( EGLE), down 4.3%, DS Torm ( TRMD), down 4.2%, Vitran Corporation ( VTNC), down 4.1%, and Global Ship Lease ( GSL), down 4.1%.
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US Airways Group, Inc., through its subsidiaries, provides air transportation for passengers and cargo. US Airways Group has a market cap of $1.73 billion and is part of the services sector. The company has a P/E ratio of 4.5, below the average transportation industry P/E ratio of 4.6 and below the S&P 500 P/E ratio of 17.7. Shares are up 110.7% year to date as of the close of trading on Friday. Currently there are eight analysts that rate US Airways Group a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates US Airways Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Excel Maritime Carriers ( EXM), up 21.9%, Arkansas Best Corporation ( ABFS), up 6.3%, Gol Intelligent Airlines ( GOL), up 6.3%, and Euroseas ( ESEA), up 6%, were all gainers within the transportation industry with Union Pacific ( UNP) being today's featured transportation industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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