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Hawaiian Holdings Ranks the Highest in Terms of Earnings Yield in the Airlines Industry (HA, LCC, DAL)

Published on Tue, 03/26/2013 - 10:18
By Peter Chu

Below are the three companies in the Airlines industry with the highest earnings yields. Earnings yield is useful to compare the relative benefit of owning a stock vs. owning other yield assets such as bonds. If the earnings yield is higher, stocks may be considered undervalued.

Hawaiian Holdings (AMEX:HA) is highest with an earnings yield of 18.0%. Hawaiian Holdings, Inc. provides scheduled and charter air transportation of passengers, cargo, and mail. The Company provides its services among the islands of Hawaii and between Hawaii and several West Coast gateway cities and destinations in the South Pacific.

Hawaiian Holdings (AMEX:HA) has potential upside of 44.8% based on a current price of $5.87 and analysts' consensus price target of $8.50. The stock should run into initial resistance at its 50-day moving average (MA) of $6.09 and subsequent resistance at its 200-day MA of $6.11.

US Airways Group (NYSE:LCC) is next with an earnings yield of 16.4%.

Finishing up the top three is Delta Air Lines (NYSE:DAL), with an earnings yield of 11.0%.

By Peter Chu