Stock Rating Downgrade
The Value Trend Rating for Controladora Vuela Compania de A (NYSE: VLRS) fell significantly in recent days from A to C reflecting eroding fundamentals and low Appreciation Potential. Details supporting this lower rating are included in our next report.
Recent Price Action
Controladora Vuela Compania de A (NYSE: VLRS) stock closed at $8.75 on 3/6/20 after a very large decline of -6.6%. NORMAL trading volume accompanied the decline. The stock has declined -17.5% during the last week but has been exceptionally strong relative to the market over the last nine months.
Current PriceTarget Research Rating
VLRS is expected to be a Value Eraser reflecting capital returns that are forecasted to fall short of the cost of capital.
VLRS has a current Value Trend Rating of C (Low Neutral). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing very contradictory signals. VLRS has a very low Appreciation Score of 6 but a good Power Rating of 85, resulting in the Low Neutral Value Trend Rating.