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ULCCFrontier Group Holdings, Inc.Sell4.7·$7.11-3.40%
SellModerate Confidence
Investment thesis

ULCC screens as statistically cheap and has beaten earnings estimates in three of the last four quarters, but a quality-floor breach, a failed momentum gate, negative calculated asymmetry, and bearish insider selling alongside elevated options skew have pushed the engine to recommend exiting the position.

Thesis pillars

  • Deep Value Earnings PeStable
  • Quality Floor Breach PiotroskiStable
  • Overbought Momentum Gate FailureStable
  • +2 more pillars — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Frontier Group Holdings, Inc. (ULCC) Stock Analysis

Range Bound setup · Catalyst-Driven edge

SellVALUE-TRAP 1/5GrowthModerate Confidence

Industrials · Airlines

Sell if holding. Engine safety override at $7.11: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: High short interest: 41%; Below-average business quality.

Frontier Group Holdings is the parent of Frontier Airlines, an ultra low-cost carrier operating a fleet of 176 Airbus single-aisle aircraft across U.S. domestic routes and select international destinations in the Americas. The company earns revenue from low base fares plus... Read more

$7.11+14.9% A.UpsideScore 4.7/10#14 of 16 Airlines
QualityF-score3 / 9FCF yield-13.66%
Stop $6.66Target $8.23(resistance)A.R:R -1.7:1
Analyst target$6.17-13.3%9 analysts
$8.23our TP
$7.11price
$6.17mean
$4
$9

Sell if holding. Engine safety override at $7.11: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: High short interest: 41%; Below-average business quality. Chart setup: RSI 58 mid-range, Bollinger mid-band. Score 4.7/10, moderate confidence.

Passes 4/7 gates (clean insider activity, earnings proximity 28d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

10-K grounded · weekly refresh

About Frontier Group Holdings, Inc.

About Frontier Group Holdings, Inc.

Frontier Group Holdings operated a fleet of 176 Airbus single-aisle aircraft as of December 31, 2025, serving roughly 100 airports across the United States and international destinations in the Americas. Total revenue per passenger reached $112.17 in 2025, split between $44.60 in fare revenue and $67.57 in ancillary revenue from bags, seat selection, and membership programs. The company has a firm commitment with Airbus for 168 additional A320neo family aircraft through 2031.

Frontier earns revenue through low base fares supplemented by unbundled ancillary services — baggage, advance seat selection, extended-legroom seating, and priority boarding — plus subscription products like Discount Den and the GoWild! All-You-Can-Fly Pass, and its FRONTIER Miles co-branded credit card program. Approximately 70% of tickets are sold directly through the company's website, mobile app, and contact centers, with the remaining roughly 30% booked through travel agencies and online travel agencies such as Priceline and Expedia. Aircraft fuel is one of the company's largest operating expenses, representing 24% of total operating costs in 2025, down from 28% in 2024, and the company held no outstanding fuel hedges as of year-end. Frontier's principal competitors include the U.S. 'Big Four' network carriers as well as fellow ultra-low-cost carriers such as Spirit Airlines and Allegiant Travel Company.

Show full overview

Frontier's entire operating fleet is a single aircraft family from one manufacturer, Airbus, a structural choice that lowers costs through crew and maintenance commonality but leaves the airline's growth plan tied to one supplier's production and delivery schedule; the 10-K notes Airbus has experienced delivery delays that may persist. The company also carried no fuel hedges as of December 31, 2025, leaving its second-largest cost line fully exposed to spot jet fuel prices even as fuel already consumed 24% of operating costs in 2025. Combined with a leisure-heavy, price-sensitive customer base, these structural choices could concentrate Frontier's earnings volatility in aircraft delivery timing and unhedged commodity price swings rather than in any single customer or geographic market.

See also: Industrials · Airlines

From Frontier Group Holdings, Inc.'s most recent 10-K filing, extracted July 6, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-08

Recent Developments — Frontier Group Holdings, Inc.

Generated 2026-07-08T22:53:48Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Aug 5, 202628d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Supplier: Airbus
Target reached (-25.1% upside)
Quality below floor (1.1 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)33.1
Mkt Cap$1.8B
EV/EBITDA-10.8
Profit Mgn-9.6%
ROE-92.4%
Rev Growth8.8%
Beta2.57
DividendNone
Rating analysts17

Quality Signals

Piotroski F3/9

Options Flow

P/C0.55bullish
IV96%elevated

Concentration Risks(10-K Item 1A)

  • HIGHSupplierAirbus
    10-K Item 1: 'We fly only Airbus A320 family aircraft, which provides us significant operational and cost advantages compared to airlines that operate multiple fleet types.'

Material Events(8-K, last 90d)

  • 2026-06-12Item 5.02LOW
    Director Andrew Broderick resigned from the Board effective June 15, 2026, citing no disagreement with the company; the Board appointed Barron Steele as a Class II director the same day to fill the resulting vacancy.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

Show full disclosure ▾

About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers

Unprofitable operations — net margin -9.6%. Quality floor flags this regardless of sector context.static

Roe
0.0
Roa
0.0
Operating Margin
0.0
Net Margin
0.0
Fcf Quality
0.0
Current Ratio
2.0
Piotroski F
3.3
Moat
3.6
Cash-burning: FCF -6% of revenueNo competitive moatWeak Piotroski F-Score: 3/9Quality concerns

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
0.0
Growth Rank
3.1
Value Rank
5.6

Volatile — 7.0% daily ATR makes tight stops impractical. Position-size conservatively.static

Short Interest
0.0
Volatility
0.0
Implied Vol
0.0
Debt Equity
0.0
Beta
1.5
Days To Cover
5.4
Put Call
9.7
High short interest justified: 41%High IV: 96%Concentration risks: 1 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
GatesMomentum 4.3<4.5A.R:R -1.7=NEGATIVEExecutive change: officer departure/appointmentInsider activity: OKEARNINGS PROXIMITY 28d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
58 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $5.31Resistance $8.40

Price Targets

$7
$8
A.Upside+15.8%
A.R:R-1.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-25.1% upside)
! Quality below floor (1.1 < 4.0)
! momentum at 4.3 (below the engine's 4.5 threshold)

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-05 (28d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ULCC stock a buy right now?

Sell if holding. Engine safety override at $7.11: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: High short interest: 41%; Below-average business quality. Chart setup: RSI 58 mid-range, Bollinger mid-band. Prior stop was $6.66. Score 4.7/10, moderate confidence.

What is the ULCC stock price target?

Take-profit target: $8.23 (+14.9% upside). Prior stop was $6.66. Stop-loss: $6.66.

What are the risks of investing in ULCC?

Concentration risk — Supplier: Airbus; Target reached (-25.1% upside); Quality below floor (1.1 < 4.0).

Is ULCC overvalued or undervalued?

Frontier Group Holdings, Inc. trades at a P/E of N/A (forward 33.1). TrendMatrix value score: 7.3/10. Verdict: Sell.

What do analysts say about ULCC?

17 analysts cover ULCC with a consensus score of 2.5/5. Average price target: $6.

What does Frontier Group Holdings, Inc. do?Frontier Group Holdings is the parent of Frontier Airlines, an ultra low-cost carrier operating a fleet of 176 Airbus...

Frontier Group Holdings is the parent of Frontier Airlines, an ultra low-cost carrier operating a fleet of 176 Airbus single-aisle aircraft across U.S. domestic routes and select international destinations in the Americas. The company earns revenue from low base fares plus ancillary services such as baggage, seat selection, and Discount Den and GoWild! membership programs, generating total revenue per passenger of $112.17 in 2025.

Related stocks: LTM (LATAM Airlines Group S.A.) · CPA (Copa Holdings, S.A.) · RJET (Republic Airways Holdings Inc.) · AZUL (Azul S.A.) · AERO (Grupo Aeromexico, S.A.B. de C.V)
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