Delta Air Lines Inc (DAL): Today's Featured Transportation 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 Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 1.2%. By the end of trading, Delta Air Lines fell 26 cents (-1.9%) to $13.56 on heavy volume. Throughout the day, 21.1 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.1 million shares. The stock ranged in price between $13.16-$13.99 after having opened the day at $13.96 as compared to the previous trading day's close of $13.82. Other companies within the Transportation industry that declined today were: FreeSeas ( FREE), down 11.8%, International Shipholding Corporation ( ISH), down 10.5%, DS Torm ( TRMD), down 5.1%, and Echo Global Logistics ( ECHO), down 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 $12.18 billion and is part of the services sector. The company has a P/E ratio of 12, below the S&P 500 P/E ratio of 17.7. Shares are up 20.5% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Delta Air Lines a buy, one analyst rates it a sell, and none 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 solid stock price performance and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

On the positive front, TOP Ships ( TOPS), up 4.3%, Diana Containerships ( DCIX), up 3.6%, StealthGas ( GASS), up 3.6%, and Seanergy Maritime Holdings ( SHIP), up 2.9%, were all gainers within the transportation industry with Copa Holdings ( CPA) being today's featured transportation industry leader.

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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