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 up 0.3%. By the end of trading, Delta Air Lines fell $0.25 (-1.5%) to $16.47 on average volume. Throughout the day, 10,721,953 shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13,511,000 shares. The stock ranged in price between $16.32-$16.75 after having opened the day at $16.62 as compared to the previous trading day's close of $16.72. Other companies within the Transportation industry that declined today were: Globus Maritime ( GLBS), down 15.8%, Paragon Shipping ( PRGN), down 8.1%, Hawaiian Holdings ( HA), down 7.1% and Seanergy Maritime Holdings ( SHIP), down 6.0%.
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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 $12.9 billion and is part of the services sector. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 40.9% year to date as of the close of trading on Tuesday.

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, Newlead Holdings ( NEWL), down 9.6%, Sino-Global Shipping America ( SINO), down 7.2%, Providence & Worcester Railroad Company ( PWX), down 6.1% and Genco Shipping & Trading ( GNK), down 5.1% , 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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