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Here's Why You Should Hold On to Spirit Airlines for Now
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Spirit Airlines (SAVE - Free Report) has its share of positives despite being hurt by the recent pilot dispute. Let’s delve into the details.
The carrier’s efforts to modernize its fleet raise optimism. During the first quarter, the carrier took delivery of three new A321ceo aircrafts and two used A319 planes. The fleet strength at the quarter-end stood at 100. The fleet-size is expected to expand to 112 and 160 by the end of 2017 and 2021, respectively.
The carrier’s constant attempts to expand its operations lend a positive sign. The airline will start nonstop services from Baltimore/Washington International Thurgood Marshall Airport and Chicago O’Hare Airport to Cancun International Airport from Nov 9, 2017.
The carrier has begun summer flights to eight destinations and has been offering daily nonstop services in Baltimore/Washington, Cleveland, Detroit, New Orleans, Oakland, Orlando, San Diego and Seattle from May 25 onward.
Spirit will also launch operations to Southwest Florida International Airport in Fort Myers and Tampa International Airport from Hartford’s Bradley International Airport and Pittsburgh International Airport. The daily seasonal flights will offer ultra-low fare options to the airline’s customers.
The carrier has initiated services from Hartford and Pittsburgh to Fort Lauderdale-Hollywood International Airport on Jun 16. Moreover, the carrier has plans to roll out additional services from Pittsburgh to Orlando, Las Vegas, Houston and Los Angeles in the near future.
The company’s endeavors to reward stockholders through share buybacks are also noteworthy. During 2016, the company had returned approximately $100 million to its shareholders. The carrier had bought back approximately 2.3 million shares during the year.
Incidentally, Spirit is not a much leveraged company. This is indicated by the ratio of its long-term debt-to-equity (expressed as a percentage), which is 69.4. This compares favorably to 108.8% and 83.5%, representing the Zacks-categorized Transportation - Airline industry and the S&P 500 index, respectively.
Shares of Air France-KLM, American Airlines and Delta Air Lines have soared 83%, 23% and 20% respectively, in the last three months.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Here's Why You Should Hold On to Spirit Airlines for Now
Spirit Airlines (SAVE - Free Report) has its share of positives despite being hurt by the recent pilot dispute. Let’s delve into the details.
The carrier’s efforts to modernize its fleet raise optimism. During the first quarter, the carrier took delivery of three new A321ceo aircrafts and two used A319 planes. The fleet strength at the quarter-end stood at 100. The fleet-size is expected to expand to 112 and 160 by the end of 2017 and 2021, respectively.
The carrier’s constant attempts to expand its operations lend a positive sign. The airline will start nonstop services from Baltimore/Washington International Thurgood Marshall Airport and Chicago O’Hare Airport to Cancun International Airport from Nov 9, 2017.
The carrier has begun summer flights to eight destinations and has been offering daily nonstop services in Baltimore/Washington, Cleveland, Detroit, New Orleans, Oakland, Orlando, San Diego and Seattle from May 25 onward.
Spirit will also launch operations to Southwest Florida International Airport in Fort Myers and Tampa International Airport from Hartford’s Bradley International Airport and Pittsburgh International Airport. The daily seasonal flights will offer ultra-low fare options to the airline’s customers.
The carrier has initiated services from Hartford and Pittsburgh to Fort Lauderdale-Hollywood International Airport on Jun 16. Moreover, the carrier has plans to roll out additional services from Pittsburgh to Orlando, Las Vegas, Houston and Los Angeles in the near future.
The company’s endeavors to reward stockholders through share buybacks are also noteworthy. During 2016, the company had returned approximately $100 million to its shareholders. The carrier had bought back approximately 2.3 million shares during the year.
Incidentally, Spirit is not a much leveraged company. This is indicated by the ratio of its long-term debt-to-equity (expressed as a percentage), which is 69.4. This compares favorably to 108.8% and 83.5%, representing the Zacks-categorized Transportation - Airline industry and the S&P 500 index, respectively.
Spirit Airlines, Inc. Price and Consensus
Spirit Airlines, Inc. Price and Consensus | Spirit Airlines, Inc. Quote
Keeping the positives in view, investors should retain Spirit Airlines in their portfolio for now.
Zacks Rank & Key Picks
Spirit Airlines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include Air France-KLM SA (AFLYY - Free Report) , American Airlines Group, Inc. (AAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Air France-KLM, American Airlines and Delta Air Lines have soared 83%, 23% and 20% respectively, in the last three months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>