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.

Trade-Ideas LLC identified Delta Air Lines ( DAL) as a pre-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 $531.6 million.
  • DAL traded 31,047 shares today in the pre-market hours as of 9:16 AM.
  • DAL is down 2.2% today from yesterday's close.

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More details on DAL:

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. The company operates in two segments, Airline and Refinery. Its route network comprises various gateway airports in Amsterdam, Detroit, Los Angeles, Minneapolis-St. The stock currently has a dividend yield of 0.8%. DAL has a PE ratio of 57.6. Currently there are 13 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 12.2 million shares per day over the past 30 days. Delta Air Lines has a market cap of $37.1 billion and is part of the services sector and transportation industry. The stock has a beta of 0.59 and a short float of 1.9% with 1.25 days to cover. Shares are down 12.1% year-to-date as of the close of trading on Wednesday.

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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 revenue growth and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • DAL's revenue growth trails the industry average of 22.1%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • DELTA AIR LINES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, DELTA AIR LINES INC reported lower earnings of $0.75 versus $12.29 in the prior year. This year, the market expects an improvement in earnings ($4.77 versus $0.75).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Airlines industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.39 is very low and demonstrates very weak liquidity.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Airlines industry and the overall market, DELTA AIR LINES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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