New Lifetime High Reached By Spirit Airlines (SAVE)

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 or Stephanie Link.

Trade-Ideas LLC identified Spirit Airlines ( SAVE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Spirit Airlines as such a stock due to the following factors:

  • SAVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.3 million.
  • SAVE has traded 549,192 shares today.
  • SAVE is trading at a new lifetime high.

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More details on SAVE:

Spirit Airlines, Inc. provides low-fare airline services. It operates approximately 200 daily flights to 50 destinations in the United States, Latin America, and the Caribbean. SAVE has a PE ratio of 20.4. Currently there are 5 analysts that rate Spirit Airlines a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Spirit Airlines has been 747,900 shares per day over the past 30 days. Spirit Airlines has a market cap of $2.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.49 and a short float of 1.9% with 1.27 days to cover. Shares are up 94.6% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Spirit Airlines as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • SPIRIT AIRLINES INC has improved earnings per share by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SPIRIT AIRLINES INC increased its bottom line by earning $1.50 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $1.50).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 17.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SAVE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 176.49% to $49.07 million when compared to the same quarter last year. In addition, SPIRIT AIRLINES INC has also vastly surpassed the industry average cash flow growth rate of 83.45%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 144.64% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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