Delta Air Lines Inc (DAL) In The Transportation Spotlight Today

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 down 0.2%. By the end of trading, Delta Air Lines rose 19 cents (1.3%) to $14.75 on average volume. Throughout the day, 16.1 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.4 million shares. The stock ranged in a price between $14.41-$14.85 after having opened the day at $14.46 as compared to the previous trading day's close of $14.56. Other companies within the Transportation industry that increased today were: Danaos Corporation ( DAC), up 5.8%, Frozen Food Express Industries ( FFEX), up 5.4%, JetBlue Airways Corporation ( JBLU), up 5.4%, and DS Torm ( TRMD), up 3.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $12.72 billion and is part of the services sector. The company has a P/E ratio of 12.6, below the S&P 500 P/E ratio of 17.7. Shares are up 22.7% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Delta Air Lines a buy, one analyst rates it a sell, and one rates 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 negative front, Paragon Shipping ( PRGN), down 8.6%, Baltic Trading ( BALT), down 7.6%, Vitran Corporation ( VTNC), down 7.6%, and Excel Maritime Carriers ( EXM), down 7.4%, were all laggards within the transportation industry with Norfolk Southern Corporation ( NSC) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Here Are the Best Elite Airline Status Programs

Here's Why New York Area Airports Score Low With Travelers

Stocks Dad Would Have Loved, And Why He Was Right

United Airlines Might Be Having an Identity Crisis That Is Worrying Wall Street