Trade-Ideas: Delta Air Lines (DAL) Is Today's Pre-Market Laggard Stock

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 $567.1 million.
  • DAL traded 108,136 shares today in the pre-market hours as of 9:20 AM.
  • DAL is down 2% today from Friday'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 3. Currently there are 12 analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Delta Air Lines has been 12.4 million shares per day over the past 30 days. Delta Air Lines has a market cap of $35.0 billion and is part of the services sector and transportation industry. The stock has a beta of 1.05 and a short float of 2.3% with 1.29 days to cover. Shares are down 12.8% year-to-date as of the close of trading on Friday.

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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, good cash flow from operations, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • DAL's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 5.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DELTA AIR LINES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in 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 ($4.56 versus $0.75).
  • Net operating cash flow has significantly increased by 72.02% to $1,636.00 million when compared to the same quarter last year. Despite an increase in cash flow, DELTA AIR LINES INC's average is still marginally south of the industry average growth rate of 75.22%.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Airlines industry average, but is greater than that of the S&P 500. The net income increased by 250.2% when compared to the same quarter one year prior, rising from $213.00 million to $746.00 million.
  • The gross profit margin for DELTA AIR LINES INC is currently lower than what is desirable, coming in at 29.36%. Regardless of DAL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DAL's net profit margin of 7.94% compares favorably to the industry average.

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