Here's Why Investors Should Avoid Hawaiian Holdings (HA) Now
Hawaiian Holdings, Inc. HA is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revisions: The Zacks Consensus Estimate for the current quarter has widened from a loss of $2.31 per share to a loss of $2.35 over the past 60 days.
For the current year, the consensus mark has moved from a loss of $3.31 to a loss of $3.29. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Weak Zacks Rank and Style Score: Hawaiian Holdings currently carries a Zacks Rank #4 (Sell). Moreover, the company’s current Momentum Score of F shows its short-term unattractiveness.
Other Headwinds: The current scenario of rising fuel costs does not bode well for the airline and is hurting its bottom line. The northward movement in crude price is primarily due to the extension of production cut by Saudi Arabia and Russia through the end of the current year. Fuel price per gallon is anticipated to be $2.89 (prior view: $2.78) for full-year 2023.
HA's liquidity position is a concern. Cash and cash equivalents of $110.67 million at third-quarter 2023 end was lower than $1,534.87 million of long-term debt. This implies that the company does not have enough cash to meet its debt burden.
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like Ryanair Holdings RYAAY and SkyWest SKYW, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RYAAY is benefiting from buoyant air-traffic scenario post-Covid. Traffic grew 11% to 105.4 million during the first half of fiscal 2024. On the back of robust traffic scenario, RYAAY’s profit after tax was €2.18 billion during the first half of fiscal 2024, up 59% year over year. Ryanair expects fiscal 2024 traffic to be 183.5 million.
SKYW's fleet modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for 2024 earnings increased 3.5% in the past 60 days.
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
