New Lifetime High Today: Allegiant Travel Company (ALGT)

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 Allegiant Travel Company ( ALGT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Allegiant Travel Company as such a stock due to the following factors:

  • ALGT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.6 million.
  • ALGT has traded 59,025 shares today.
  • ALGT is trading at a new lifetime high.

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More details on ALGT:

Allegiant Travel Company, a leisure travel company, focuses on the provision of travel services and products to residents of small cities in the United States. ALGT has a PE ratio of 23.0. Currently there are 4 analysts that rate Allegiant Travel Company a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Allegiant Travel Company has been 139,700 shares per day over the past 30 days. Allegiant Travel has a market cap of $2.2 billion and is part of the services sector and transportation industry. The stock has a beta of 0.05 and a short float of 4.9% with 5.09 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Allegiant Travel Company as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • ALGT's revenue growth trails the industry average of 26.7%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • ALLEGIANT TRAVEL CO has improved earnings per share by 23.7% 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, ALLEGIANT TRAVEL CO increased its bottom line by earning $4.84 versus $4.05 in the prior year. This year, the market expects an improvement in earnings ($5.60 versus $4.84).
  • 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 36.89% 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Airlines industry and the overall market on the basis of return on equity, ALLEGIANT TRAVEL CO has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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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