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 weak on high relative volume 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 $54.3 million.
  • HA has traded 419,394 shares today.
  • HA is trading at 3.01 times the normal volume for the stock at this time of day.
  • HA is trading at a new low 3.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 12.5. Currently there are 3 analysts that rate Hawaiian Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Hawaiian Holdings has been 1.5 million shares per day over the past 30 days. Hawaiian has a market cap of $1.1 billion and is part of the services sector and transportation industry. The stock has a beta of 0.99 and a short float of 12.3% with 1.65 days to cover. Shares are down 26.7% year-to-date as of the close of trading on Monday.

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 and revenue growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, HA's share price has jumped by 162.26%, 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 21.8%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
  • HAWAIIAN HOLDINGS INC's earnings per share declined by 45.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HAWAIIAN HOLDINGS INC increased its bottom line by earning $1.06 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $1.06).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Airlines industry average, but is less than that of the S&P 500. The net income has significantly decreased by 35.0% when compared to the same quarter one year ago, falling from $17.08 million to $11.10 million.
  • The gross profit margin for HAWAIIAN HOLDINGS INC is currently lower than what is desirable, coming in at 30.31%. Regardless of HA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, HA's net profit margin of 1.93% compares favorably to the industry average.

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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