Spirit Airlines (SAVE) Reaches New Lifetime High Today

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 $33.2 million.
  • SAVE has traded 631,438 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 21.7. 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 882,600 shares per day over the past 30 days. Spirit Airlines has a market cap of $3.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.63 and a short float of 1.8% with 1.29 days to cover. Shares are up 156.6% year to date as of the close of trading on Tuesday.

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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 15.1%. Since the same quarter one year prior, revenues rose by 33.4%. Growth in the company's revenue appears to have helped boost 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. To add to this, SAVE has a quick ratio of 1.71, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPIRIT AIRLINES INC reported significant earnings per share improvement 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 ($2.34 versus $1.50).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 97.8% when compared to the same quarter one year prior, rising from $30.88 million to $61.10 million.
  • Net operating cash flow has significantly increased by 557.11% to $39.37 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 133.47%.

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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