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 0.6%. By the end of trading, US Airways Group fell 28 cents (-2.2%) to $12.38 on average volume. Throughout the day, 5.7 million shares of US Airways Group exchanged hands as compared to its average daily volume of 6.1 million shares. The stock ranged in price between $12.06-$12.89 after having opened the day at $12.72 as compared to the previous trading day's close of $12.66. Other companies within the Transportation industry that declined today were: Vitran Corporation ( VTNC), down 7.3%, Air Transport Services Group ( ATSG), down 3.5%, YRC Worldwide ( YRCW), down 3.3%, and TOP Ships ( TOPS), down 3.2%.
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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 $2.09 billion and is part of the services sector. The company has a P/E ratio of 4.1, below the S&P 500 P/E ratio of 17.7. Shares are up 154.2% year to date as of the close of trading on Monday. 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 compelling growth in net income, revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. 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, Sino-Global Shipping America ( SINO), up 21.1%, DS Torm ( TRMD), up 18.9%, Pacer International ( PACR), up 10%, and Star Bulk Carriers ( SBLK), up 7.8%, were all gainers within the transportation industry with Canadian Pacific Railway ( CP) 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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