Hawaiian Holdings (HA) Highlighted As Today's Perilous Reversal Stock

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 Hawaiian Holdings ( HA) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Hawaiian Holdings as such a stock due to the following factors:

  • HA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.3 million.
  • HA has traded 551,139 shares today.
  • HA is down 3% today.
  • HA was up 5.9% yesterday.

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More details on HA:

Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., is engaged in the scheduled air transportation of passengers and cargo. HA has a PE ratio of 14.2. Currently there are 2 analysts that rate Hawaiian Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Hawaiian Holdings has been 965,600 shares per day over the past 30 days. Hawaiian has a market cap of $970.8 million and is part of the services sector and transportation industry. The stock has a beta of 0.77 and a short float of 12.5% with 2.99 days to cover. Shares are up 97.6% 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 Hawaiian Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, HA's share price has jumped by 100.47%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HA's revenue growth trails the industry average of 33.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $48.19 million or 22.46% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.05%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Airlines industry and the overall market on the basis of return on equity, HAWAIIAN HOLDINGS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • HAWAIIAN HOLDINGS INC's earnings per share declined by 26.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, HAWAIIAN HOLDINGS INC reported lower earnings of $0.95 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $0.95).

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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