With revenues of $2.6 billion, Spirit Airlines (SAVE), based in Miramar, Florida, provides airline services in the U.S., Caribbean and Latin America. Its all-Airbus Fit Fleet operates some 420 daily flights to 59 destinations, notes technical trading specialist Leo Fasciocco, editor of Ticker Tape Digest.
The company has 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models.
Its Bare Fares offerings are unbundled base fares that remove components included in the price of an airline ticket. It also offers Frill Control, which allows customers to pay only for the options they choose, such as bags, advance seat assignments and refreshments.
The stock has surged 55% the past 12 months compared with a 3% gain for the stock market. The shares recently surged past their technical breakout point; it is well positioned to breakout from its long-term consolidation.
The big move was triggered when the company said revenues for the latest period were much stronger than expected. The big pick up in volume is also very bullish.
This year, analysts are forecasting a 12% increase in net to $3.72 a share from the $3.33 the year before. The 2018 estimate could be boosted by analysts.
The stock sells with a price-earnings ratio of 14. We see that as attractive for value-growth investors. Looking out to 2019, the Street predicts a 23% gain in net to $4.58 a share from the anticipated $3.72 this year.
We are targeting the stock for a move to $68 per share within the next few months, or sooner. A protective stop can be placed near the $55 level. The stock is most suitable for aggressive bulls.
