Delta Air Lines (DAL) Down In After-Hours Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Delta Air Lines ( DAL) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Delta Air Lines as such a stock due to the following factors:

  • DAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $373.5 million.
  • DAL is down 2.9% today from today's close.

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More details on DAL:

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. Its route network comprises various gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. The stock currently has a dividend yield of 1%. DAL has a PE ratio of 2.9. Currently there are 11 analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Delta Air Lines has been 11.6 million shares per day over the past 30 days. Delta Air Lines has a market cap of $30.8 billion and is part of the services sector and transportation industry. The stock has a beta of 0.71 and a short float of 2.2% with 1.75 days to cover. Shares are up 31.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Delta Air Lines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Compared to other companies in the Airlines industry and the overall market, DELTA AIR LINES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 53.96% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DAL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The revenue growth significantly trails the industry average of 45.5%. Since the same quarter one year prior, revenues slightly increased by 9.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.41 is very weak and demonstrates a lack of ability to pay short-term obligations.

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