1-Star Stocks Poised to Plunge: Delta Air Lines?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, airline operator Delta Air Lines (NYS: DAL) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Delta's business and see what CAPS investors are saying about the stock right now.

Delta facts

Headquarters (Founded)Atlanta (1924)
Market Cap$8.0 billion
IndustryAirlines
Trailing-12-Month Revenue$36.4 billion
ManagementCEO Richard Anderson (since September 2007)
CFO Paul Jacobson (since March 2012)
Return on Equity (Average, Past 3 Years)8.9%
Cash/Debt$3.5 billion / $13.1 billion
CompetitorsAMR
Deutsche Lufthansa
United Continental Holdings

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 42% of the 932 members who have rated Delta believe the stock will underperform the S&P 500 going forward.

Earlier this summer, one of those Fools, colleague Justin Loiseau (TMFJLo), succinctly summed up the Delta bear case for our community:

Delta suffers from the worst fuel efficiency of any airline. It suffers from lackluster customer confidence and has the oldest fleet of any major airline. It is reinvesting too slowly and its corner-cutting will continue to push it further behind competition.

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The article 1-Star Stocks Poised to Plunge: Delta Air Lines? originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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