1-Star Stocks Poised to Plunge: Delta Air Lines?
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.
Deltafacts
Headquarters (founded) | Atlanta (1924) |
Market Cap | $8.9 billion |
Industry | Airlines |
Trailing-12-Month Revenue | $35.8 billion |
Management | CEO Richard Anderson (since 2007) |
Return on Capital (average, past 3 years) | 7.8% |
Cash/Debt | $3.9 billion / $13.5 billion |
Competitors | AMR |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 42% of the 930 members who have rated Delta believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, addikt06, cautioned Fools about getting too excited over Delta's recent move into oil refining:
Expensive stock in volatile industry and an even more volatile economy ... also I am not convinced by this massive investment in a refinery -- [in my opinion] this would work out well if a) Delta had the know how to run a refinery b) demand was high ... but in this volatile industry demand is as random as it can get and if I am reading this right the consumer is going to be hurting again so in the short term this stock is going down going down.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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