Delta Air Lines (DAL) Down In Post-Market Activity

Trade-Ideas LLC identified Delta Air Lines (DAL) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Delta Air Lines

(

DAL

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Delta Air Lines as such a stock due to the following factors:

  • DAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $357.3 million.
  • DAL is down 2% today from today's close.

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More details on DAL:

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. The company operates in two segments, Airline and Refinery. Its route network comprises various gateway airports in Amsterdam, Detroit, Los Angeles, Minneapolis-St. The stock currently has a dividend yield of 1.1%. DAL has a PE ratio of 14. Currently there are 11 analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Delta Air Lines has been 9.3 million shares per day over the past 30 days. Delta Air Lines has a market cap of $39.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.28 and a short float of 2.4% with 2.64 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Delta Air Lines as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 268.3% when compared to the same quarter one year prior, rising from $357.00 million to $1,315.00 million.
  • DELTA AIR LINES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DELTA AIR LINES INC reported lower earnings of $0.75 versus $12.29 in the prior year. This year, the market expects an improvement in earnings ($4.63 versus $0.75).
  • The debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.35 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Net operating cash flow has significantly increased by 52.20% to $2,067.00 million when compared to the same quarter last year. Despite an increase in cash flow, DELTA AIR LINES INC's cash flow growth rate is still lower than the industry average growth rate of 92.12%.

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