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Spirit (SAVE) Gains As Market Dips: What You Should Know

Zacks Equity Research
Agree Realty (ADC) delivered FFO and revenue surprises of 1.35% and 1.97%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, Spirit (SAVE) closed at $53.70, marking a +1.61% move from the previous day. This change outpaced the S&P 500's 0.01% loss on the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.12%.

Coming into today, shares of the airline had lost 14.3% in the past month. In that same time, the Transportation sector lost 0.63%, while the S&P 500 gained 2.24%.

Investors will be hoping for strength from SAVE as it approaches its next earnings release. In that report, analysts expect SAVE to post earnings of $0.90 per share. This would mark year-over-year growth of 104.55%. Meanwhile, our latest consensus estimate is calling for revenue of $852.18 million, up 21.02% from the prior-year quarter.

SAVE's full-year Zacks Consensus Estimates are calling for earnings of $6.57 per share and revenue of $3.91 billion. These results would represent year-over-year changes of +49.32% and +17.52%, respectively.

Investors should also note any recent changes to analyst estimates for SAVE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% lower. SAVE is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, SAVE is currently trading at a Forward P/E ratio of 8.05. This represents a discount compared to its industry's average Forward P/E of 9.56.

Investors should also note that SAVE has a PEG ratio of 0.26 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry currently had an average PEG ratio of 0.52 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
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