Spirit (NASDAQ: SAVE) has established itself as one of the best airlines along with Southwest Airlines (NYSE: LUV) and Delta Airlines (NYSE: DAL), among few others.
That is certainly the tale of the stock market performance of Spirit Airlines.
It is up for the last month, quarter, six months, and year of trading. For 2014, Spirit Airlines has risen by over 43 percent. Over the last 12 months of market action, Spirit airlines has surged more than 90 percent (chart below).
Wall Street expects it to keep rising.
Next year, earnings-per-share growth is projected to be 26.80 percent for Spirit Airlines. Over the next five years, it is estimated to be 28 percent. That is a bullish trend. Those are very attractive indicators for investors looking for a growth stock!
It has no debt.
That gives Spirit Airlines much more flexibility than other airlines. It can move forward on acquisitions. There will always be enough money to improve operations rather than pay off creditors. This is a tremendous advantage for an airlines as the industry is very cash-intensive.
Spirit Airlines has a business model that is catering to the industry as it evolves.
Ticket prices are going up. Spirit Airlines prides itself on being cheap so it can attract flyers looking for a bargain. More airlines are moving that way. There is always an enterprise advantage to being there first and having it built into your business model.
There are few on Wall Street betting that the share price of Spirit Airlines will fall.
At present, Southwest Airlines has a short float of 1.69 percent. There is a short float of 1.81 percent for Delta Air Lines. Spirit Airlines has a short float of 2.83 percent. A short float of 5 percent is considered to be troubling for a publicly traded company. Even after almost doubling in price over the last year, few are willing to place money to profit from a fall in the stock price of Spirit Airlines!