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 14 cents (1.4%) to $10.28 on light volume. Throughout the day, 7.1 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 12 million shares. The stock ranged in a price between $10.13-$10.48 after having opened the day at $10.24 as compared to the previous trading day's close of $10.14. Other companies within the Transportation industry that increased today were: DS Torm ( TRMD), up 9.8%, Newlead Holdings ( NEWL), up 7.8%, Air T ( AIRT), up 5.6%, and Danaos Corporation ( DAC), up 4.8%.
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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 $8.64 billion and is part of the services sector. The company has a P/E ratio of 9.2, equal to the average transportation industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Thursday. 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 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.

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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