U.S. markets closed
  • S&P 500

    3,768.47
    -51.25 (-1.34%)
     
  • Dow 30

    30,924.14
    -345.95 (-1.11%)
     
  • Nasdaq

    12,723.47
    -274.28 (-2.11%)
     
  • Russell 2000

    2,146.92
    -60.87 (-2.76%)
     
  • Crude Oil

    64.31
    +0.48 (+0.75%)
     
  • Gold

    1,694.70
    -6.00 (-0.35%)
     
  • Silver

    25.42
    -0.04 (-0.14%)
     
  • EUR/USD

    1.1970
    -0.0097 (-0.80%)
     
  • 10-Yr Bond

    1.5500
    +0.0800 (+5.44%)
     
  • GBP/USD

    1.3895
    -0.0058 (-0.42%)
     
  • USD/JPY

    107.9710
    +0.9690 (+0.91%)
     
  • BTC-USD

    48,609.13
    -2,318.41 (-4.55%)
     
  • CMC Crypto 200

    968.73
    -18.48 (-1.87%)
     
  • FTSE 100

    6,650.88
    -24.59 (-0.37%)
     
  • Nikkei 225

    28,930.11
    -628.99 (-2.13%)
     

Here's Why Hawaiian Holdings Tanks 51.3% in the Past 6 Months

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Shares of Hawaiian Holdings HA, the holding company of Hawaiian Airlines, have lost 51.3% compared with the industry’s 45.1% decline in the past six months.

 

Reasons for This Dismal Performance

Even though all the carriers are reeling under the coronavirus pandemic crisis, Hawaiian Holdings has been one of the hard-hit stocks in the space. This is because it depends significantly on tourism to Hawaii, which has taken a huge beating in the current scenario due to travel restrictions and quarantine measures imposed by the authorities.

The demand scenario, which started deteriorating in late January, began to worsen in mid-March. Due to sagging passenger revenues (down 57.5% in first-half 2020), the carrier incurred wider-than-expected loss in each of the first two quarters of 2020.  With waning demand, the company has been running a very limited schedule since spring. Hawaiian Holdings expects its August capacity to plunge 85% from the year-ago period’s reading.

With the global health peril still persisting, tourism to Hawaii is likely to be virtually non-existent at least in the near term. This implies that near-term prospects of this currently Zacks Rank #4 (Sell) stock remain bleak. Consequently, the Zacks Consensus Estimate for 2020 bottom line is currently pegged at a loss of $9.86 cents, moving south from a loss of $7.62 over the past 30 days.

Key Picks

Some better-ranked stocks in the Zacks Transportation sector are Canadian Pacific Railway Limited CP, Landstar System, Inc. LSTR and Werner Enterprises WERN. Werner sports a Zacks Rank #1 (Strong Buy) while Canadian Pacific and Landstar stocks carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings (three to five years) growth rate for Canadian Pacific, Landstar and Werner is estimated at 8%, 12% and 8.5%, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
 
Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
 
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
 
Werner Enterprises, Inc. (WERN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research