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Strength Seen in Frontier Group (ULCC): Can Its 16.4% Jump Turn into More Strength?
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Frontier Group Holdings (ULCC - Free Report) shares soared 16.4% in the last trading session to close at $5.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.6% gain over the past four weeks.
This jump in stock price came after news that Spirit Airlines , a Frontier Group Holdings rival in the low-cost airline space, is considering bankruptcy. Spirit has faced losses and declining revenue due to fierce competition and the failed attempt to merge with Frontier in 2022. After agreeing to a takeover by JetBlue, that deal fell through this year over antitrust concerns. Soon after the markets opened last Friday, Spirit's shares plunged by 25%.
This discount airline is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +78.6%. Revenues are expected to be $925.73 million, up 4.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Frontier Group, the consensus EPS estimate for the quarter has been revised 737.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ULCC going forward to see if this recent jump can turn into more strength down the road.
Frontier Group belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Spirit , closed the last trading session 24.6% lower at $1.69. Over the past month, SAVE has returned -10.8%.
Spirit's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$2.35. Compared to the company's year-ago EPS, this represents a change of -71.5%. Spirit currently boasts a Zacks Rank of #3 (Hold).
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Strength Seen in Frontier Group (ULCC): Can Its 16.4% Jump Turn into More Strength?
Frontier Group Holdings (ULCC - Free Report) shares soared 16.4% in the last trading session to close at $5.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.6% gain over the past four weeks.
This jump in stock price came after news that Spirit Airlines , a Frontier Group Holdings rival in the low-cost airline space, is considering bankruptcy. Spirit has faced losses and declining revenue due to fierce competition and the failed attempt to merge with Frontier in 2022. After agreeing to a takeover by JetBlue, that deal fell through this year over antitrust concerns. Soon after the markets opened last Friday, Spirit's shares plunged by 25%.
This discount airline is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +78.6%. Revenues are expected to be $925.73 million, up 4.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Frontier Group, the consensus EPS estimate for the quarter has been revised 737.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ULCC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Frontier Group belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Spirit , closed the last trading session 24.6% lower at $1.69. Over the past month, SAVE has returned -10.8%.
Spirit's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$2.35. Compared to the company's year-ago EPS, this represents a change of -71.5%. Spirit currently boasts a Zacks Rank of #3 (Hold).