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 0.1%. By the end of trading, Delta Air Lines fell $0.20 (-1.1%) to $17.81 on light volume. Throughout the day, 9,866,351 shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13,853,100 shares. The stock ranged in price between $17.55-$18.36 after having opened the day at $18.12 as compared to the previous trading day's close of $18.01. Other companies within the Transportation industry that declined today were: Paragon Shipping ( PRGN), down 7.1%, Euroseas ( ESEA), down 5.0%, Gol Intelligent Airlines ( GOL), down 4.7% and Danaos Corporation ( DAC), down 4.6%.
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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 $15.5 billion and is part of the services sector. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 51.7% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Delta Air Lines a buy, 1 analyst rates it a sell, and 1 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, revenue growth and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Globus Maritime ( GLBS), down 9.0%, Quality Distribution ( QLTY), down 7.2%, PHI Incorporated Non Voting ( PHIIK), down 7.0% and Rand Logistics ( RLOG), down 6.8% , were all gainers within the transportation industry with Canadian National Railway ( CNI) 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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