This Airline Stock is Primed for Take Off

This Airline Stock is Primed for Take Off

Many investors have overlooked the travel industry and are missing out some nice gains. Airline stocks have had a good run recently and I expect that trend to continue…

In case you haven’t noticed, airline stocks have been red hot. With the economy improving, consumer sentiment rising, and an increase in leisure spending, the travel industry has seen a boost.  The travel forecasts for the next few years looks pretty bright as well.  As the economy continues to recover and consumers have more money to spend, the travel industry, especially the airlines should continue to see impressive growth.

I recently added an airline stock to my Tomorrow’s Treasures Portfolio.

This company recently raised its fourth quarter earnings guidance easily trumping analyst expectations. Better yet, I expect it to post double-digit earnings growth in 2014 as well.  The reason I like really like this airline over its competitors is the fact that it is a small company with lots of growth potential.  It caters to low-cost travelers and offers a $9 Fare Club program that is just $59.95 per year and on average its customers save over $75 per booking.  The program provides access to reduced fares as well as other travel deals.

save logoThe company I am referring to is Spirit Airlines (NASDAW: SAVE). Spirit operates approximately 250 flights to 50 travel destinations in the United States, the Caribbean and Latin America.  It is also one of the few airlines that travel from the U.S. to Panama and Colombia, two travel destinations that are becoming more popular. Take a look at the chart:

save chart 

The stock had an impressive run in 2013 and it’s just getting started!

 

Its next earnings report is in February and Spirit has a stellar record of positive surprises. Since it went IPO in 2011, it hasn’t missed earnings. Even though its share price has soared its valuation is still reasonable.  It has a forward P/E of just 16.4, compared to an industry average of 22.5.  With its impressive earnings growth and relatively low P/E, the stock presents both a good value and great growth potential.

Here is my 5-Point Stock Inspection on SAVE:

Financial Strength:            Positive

Valuation:                                     Positive – Buy up to $55

Momentum:                         Positive

Risk:                                     Neutral

Earnings Trend:                          Positive

12-month price target:      $65-$70

 

Bottom Line:

Spirit Airlines (NASDAQ: SAVE) is a good buy up to $55 per share. My 12-month price target is $65-$70, representing a 30-40% potential gain from here.

 

Need help with your investments?

Jay can help you map out your investments and help you set up a plan to achieve your goals! Give Jay Peroni, CFP® a call today at 866-594-9919 for a FREE 30 minute consultation.

 

 

YY Inc (ticker YY)

YY Inc (ticker YY)

[private]

Company: YY Inc.
Ticker Symbol: YY
Action: Buy up to $66

2/10/14 Update… Trade Alert:
Buy 10% YY

Here is my five point inspection:

Financial Strength: Positive
Earnings: Positive
Momentum: Positive
Risk: High – Negative
Valuation: Positive (buy up to $66)

YY Inc. (YY) is a play heading into earnings in early March, which could boost the stock much higher or lower. It is on my strong buy list and option activity remains very bullish. YY Inc. (YY) is a communication social platform, which engages users in online group activities through voice, text and video. The Company’s Platform consists of YY Client, the YY.com and Duowan.com web portals, Mobile YY and Web-based YY. YY Inc. is based in Guangzhou, the People’s Republic of China. It is a buy up to $66. I will place a 20% stop.

[/private]

Green Technology and Science

[private]

Here is the current allocation for our Green Technology and Science Portfolio:

As of 1-25-14

 

Symbol Security Weight
AYI  ACUITY BRANDS 4%
BWA  BORG WARNER 4%
CSIQ  CANADIAN SOLAR 4%
CSUN  CHINA SUNERGY 4%
CREE  CREE INC 4%
ETN  EATON CORP 4%
ENS  ENERSYS 4%
FSLR  FIRST SOLAR INC 4%
GPRE  GREEN PLAINS 4%
HAIN  HAIN CELESTIAL 4%
HXL  HEXCEL CORP 4%
JASO  JA SOLAR 4%
JKS  JINKOSOLAR HLDG 4%
JCI  JOHNSON CTLS 4%
KNDI  KANDI TECH 4%
LKQ  LKQ CORP 4%
MIDD  MIDDLEBY CORP 4%
SCTY  SOLARCITY CORP 4%
STKL  SUNOPTA INC 4%
SPWR  SUNPOWER CORP 4%
TEN  TENNECO INC 4%
TSLA  TESLA MTRS 4%
UNFI  UNITED NAT FOOD 4%
OLED  UNIVERSAL DISPL 4%
ECOL  US ECOLOGY INC 4%

 

[/private]

Don’t miss out on This Green Stock!

Don’t miss out on This Green Stock!

Green Technology and Science                 

Green techLast year our Green Technology & Science strategy was up 68% and was my top portfolio. The portfolio focuses on companies that are improving the world around us through alternative energies.  In our holdings you will find companies that are involved in areas such as electric cars, biofuels, clean technology, energy efficiency, energy storage, natural and organic foods, and amazing life saving medicines.

The Green Tech & Science portfolio was our top strategy in 2013 and it is off to a great start again in 2014.

Strategy  2013 Return 2014 YTD
FBI Green Tech & Science +68.99% +4.98%

As of Jan 15, 2014

We started 2013 with $100,000 in the portfolio and it is up to

Total Gain: 75.2% $175,215.03

Even more impressive is the portfolio has produced 6 triple digit winners so far:

Symbol Security Gain
GPRE GREEN PLAINS 115.39%
FSLR FIRST SOLAR 116.03%
MIDD MIDDLEBY CORP 158.15%
JKS JINKOSOLAR HLDG 242.23%
CSIQ CANADIAN SOLAR 187.58%
TSLA TESLA MTRS 327.33%

 

And 7 stocks have returned at least 50%!

 

I still believe there is still much more opportunity in the days ahead! The portfolio has many fast growing companies that are in the midst of a mega trend explosion.  Think about it: Similar to the baby boomer megatrend, the world is becoming increasingly focused on the environment and green living. Green investing means investing in companies that develop, produce or deliver products, services or technology that meet marketplace demands without placing undue stress on the environment or using natural resources inefficiently.

 

One company is leading the way when it comes to energy efficiency. It is one of the world’s leading providers of lighting solutions for both indoor and outdoor applications.

Its innovative lighting solutions cover both conventional fixtures and advanced solid-state technology that can seamlessly integrate with powerful digital controls and day-lighting to create greater energy efficiencies and a higher quality of light.



The company I am referring to today is Acuity Brands (NYSE: AYI). It designs, produces, and distributes lighting solutions, components, and services for commercial, institutional, industrial, infrastructure, and residential applications in North America and internationally.

 

Here is my 5-Point Stock Inspection on AYI:

 

Financial Strength:            Positive

Valuation:                                     Positive – Buy up to $140

Momentum:                         Positive

Risk:                                     Positive

Earnings Trend:                          Positive

12-month price target:      $183

 

Bottom Line:

Acuity Brands (NYSE: AYI) is a good buy up to $140 per share. My 12 month price target is $183, representing a 40% potential gain from here.

 

Need help with your investments?

Join our VIP Program Today!