Delta Air Lines
"Airline stocks sold off yesterday on the heels of headline that DAL surprised investors with a 5% capacity reduction post labor day," Sterne Agee analysts wrote in a May 18 report. "Talk about a market hearing what it wanted to hear...we took away that pricing was strong, and the company was better managing slow-season capacity in international markets...to us, this appears to be a market overreaction - Buy the weakness."Shares of Delta hit a 52-week high Tuesday of $11.75. The stock's 52-week low of $6.41 was set on Aug. 8. Delta's forward P/E is 4.4 times; the average for airline companies is 6.08. For comparison, Southwest Airlines (LUV) has a higher forward P/E of 9.1. Thirteen of the 15 analysts who over Delta rated it buy; two analysts gave the stock a hold rating. The stock has risen 44.38% year to date.
Brinker International "We expect to see multiple expansion in coming quarters as Brinker is one of the few restaurant companies poised to maintain SSS momentum and deliver margin expansion over the balance of 2012 heading into 2013," Wells Fargo analysts wrote in a May 10 report. Shares of Brinker International hit a 52-week high on Tuesday of $32.96. The stock's 52-week low of $19.50 on Sept. 12. Brinker International's forward P/E is 14.33; the average for restaurant and bar companies is 16.77. For comparison, Panera Bread (PNRA) has a higher forward P/E is 21.82. Ten of the 18 analysts who cover Brinker International rated it hold. Six analysts gave the stock a buy rating and two rated it sell. The stock has risen 21.56% year to date.
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