Investors in Spirit Airlines Incorporated (NYSE:SAVE) are awaiting fourth-quarter results from the airline in early February.
Ahead of the earnings report, here's a look at a few top reasons two analysts are bullish on the stock:
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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- Although the company is sizable, it still has a lot of potential for growth. Historically, the larger a company gets, the slower it grows. The company expects to grow 17-19% in just in 2020 alone.
- It has no exposure to the 737 Max grounding. A lot of other airlines bought a fleet of Boeing Co (NYSE:BA)'s grounded 737 Max, including American Airlines Group Inc (NASDAQ:AAL) and Southwest Airlines Co (NYSE:LUV), which impacted their profits.
- Future M&A is likely. A potential merger with Frontier Airlines could happen, according to Buckingham analyst Daniel McKenzie.
- While nothing is imminent, the two teamed up, the combined company would be a formidable competitor, the analyst said.
- Loyalty is everything. The company is rolling out a new loyalty program that will hopefully bring in more repeat customers.
- The cost performance of the airline is improving. The trend in revenue per available seat mile minus cost per available seat mile excluding fuel is coming in stronger than anticipated, according to Citigroup analyst Stephen Trent, meaning profit efficiency is improving.
Spirit shares were trading 7.7% higher at $42.74 at the time of publication Thursday.
Benzinga file photo by Dustin Blitchok.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.