Back to top

Image: Bigstock

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

Read MoreHide Full Article

Shares of Hawaiian Holdings , 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 - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Werner Enterprises (WERN - Free Report) . 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>>

 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Canadian Pacific Kansas City Limited (CP) - free report >>

Landstar System, Inc. (LSTR) - free report >>

Werner Enterprises, Inc. (WERN) - free report >>

Published in