Delta (DAL) has been disciplined with its capacity, which is helping the company hold onto more of its earnings, Syth said.
She considers Delta a buy because the company has plans to fix its weak balance sheet. Delta has $13.5 billion in adjusted net debt, which includes debt and plane leases, and it plans to cut that number by $3.5 billion to $10 billion in 2013. Syth is expecting the company to have $1.20 in earnings per share this year and $2.05 for 2012.
Delta's operating revenue in the September quarter rose 10% from a year earlier to $866 million. The airliner's passenger revenue was also up 10% to $793 million.Shares of Delta are down more than 35% year to date.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV