Delta Air Lines Inc (DAL): Today's Featured Transportation Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Delta Air Lines ( DAL) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day up 0.2%. By the end of trading, Delta Air Lines rose 33 cents (3.6%) to $9.46 on average volume. Throughout the day, 14.6 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.2 million shares. The stock ranged in a price between $9.10-$9.50 after having opened the day at $9.10 as compared to the previous trading day's close of $9.13. Other companies within the Transportation industry that increased today were: DryShips ( DRYS), up 6.3%, United Continental Holdings ( UAL), up 5.7%, US Airways Group ( LCC), up 5.1%, and YRC Worldwide ( YRCW), up 4.9%.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $7.98 billion and is part of the services sector. The company has a P/E ratio of 8.2, below the average transportation industry P/E ratio of 8.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Delta Air Lines as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

On the negative front, Seanergy Maritime Holdings ( SHIP), down 5.3%, Swift Transportation ( SWFT), down 4%, DS Torm ( TRMD), down 3.7%, and Quality Distribution ( QLTY), down 3.3%, were all laggards within the transportation industry with J.B. Hunt Transport Services ( JBHT) being today's transportation industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).
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