Delta Air Lines Inc (DAL): Today's Featured Services Laggard

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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Delta Air Lines fell 16 cents (-1.7%) to $9.33 on average volume. Throughout the day, 9.6 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in price between $9.21-$9.54 after having opened the day at $9.49 as compared to the previous trading day's close of $9.49. Other companies within the Services sector that declined today were: Dial Global ( DIAL), down 76.7%, Grupo Casa Saba S.A.B. de C.V ( SAB), down 59.1%, China Auto Logistics ( CALI), down 21.4%, and CIBT Education Group ( MBA), down 20.8%.
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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 $8.13 billion and is part of the transportation industry. The company has a P/E ratio of 5.7, below the S&P 500 P/E ratio of 17.7. Shares are up 17.3% year to date as of the close of trading on Thursday. Currently there are 10 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.

On the positive front, Schiff Nutrition International ( SHF), up 29%, Penn National Gaming ( PENN), up 28.2%, Swisher Hygiene ( SWSH), up 24.4%, and China Jo-Jo Drugstores ( CJJD), up 19.7%, were all gainers within the services sector with Lowe's Companies ( LOW) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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