Republic Airways Holdings Inc. (RJET) Making the Right Moves

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As with every airline stock, this group trades at earnings multiples below the market. Allegiant Travel Company (NASDAQ:ALGT) is about the closest at 16 times forward earnings while Spirit only trades at 13 times forward earnings with growth exceeding 22%. Republic, though, trades at a paltry 7 times forward earnings.

Bottom line

Republic Airways Holdings Inc. (NASDAQ:RJET) has made several positive moves to improve profitability and reduce pricing competition in the airlines sector. The company trades at a below-market multiple though it hasn’t proven that the stock should be bought over some of the cheap major airlines that trade at similar earnings multiples. Allegiant Travel Company (NASDAQ:ALGT) appears on the expensive side compared to Spirit Airlines Incorporated (NASDAQ:SAVE). Investors might want to stick with Spirit in the ULCC sector, though keeping an eye on the turnaround at Frontier should keep Republic on investors’ radar for now.

The article Republic Airways Making the Right Moves originally appeared on Fool.com.

Mark Holder and Stone Fox Capital Advisors, LLC have no positions in any stocks mentioned. The Motley Fool owns shares of SPIRIT AIRLINES INC. (NASDAQ:SAVE). The article Republic Airways Making the Right Moves originally appeared on Fool.com.

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