Breakout Expert Visits Hawaii

10/15/2015 7:00 am EST


Leo Fasciocco

Investment Columnist and Publisher, Ticker Tape Digest

This featured breakout stock, based in Honolulu, operates Hawaiian Airlines; the stock has broken out from a six-month flat base moving to a new all-time high, explains Leo Fasciocco, editor of Ticker Tape Digest.

Hawaiian Holdings (HA) provides daily service between Hawaii and Las Vegas, Nevada and the four key west coast gateway cities of Los Angeles, San Francisco, Seattle, and Portland.

It also provides daily service among the major islands of Hawaii and bi-weekly service to Pago Pago, American Samoa, and Tahiti.

Over the last 12 months the stock has appreciated 108% versus a 3% gain for the S&P 500 index. HA just set a new all time high of $27.75. That is bullish.  

Institutional sponsorship is excellent. The largest fund holder is the 4-star rated Vanguard Strategic Equity Inv. Fund with a 2.5% stake. It was a recent buyer of 608,500 shares.

Also, the 5-star rated Primecap Odyssey Aggressive Growth Fund was a recent purchaser of 15,000 shares. It has a 1.1% stake.

HA is poised to show strong earnings this year. The Street is forecasting a 76% surge in net to $2.73 a share from $1.55 a year ago. The stock carries a price:earnings ratio of just 9.

Net for the upcoming third quarter is expected to jump 41% to $1.11 a share from 79 cents a year ago. The company has topped the consensus estimate six out of the past seven quarters.

Going out to the fourth quarter net is projected to jump 57% to 63 cents a share from 40 cents the year before.

For 2016, analysts predict an 8% gain in net to $2.94 a share from the anticipated $2.73 this year.

The breakout is impressive coming with a widening of the daily spread; the stock's momentum indicator is strongly bullish. We are targeting HA for a move to $32. A protective stop can be placed near $25 after this breakout.

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