Why Delta Air Lines Is Poised to Pull Back
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 has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Delta and see what CAPS investors are saying about the stock right now.
Delta facts
Headquarters (founded) | Atlanta (1924) |
Market Cap | $13.8 billion |
Industry | Airlines |
Trailing-12-Month Revenue | $36.7 billion |
Management | CEO Richard Anderson (since 2007) CFO Paul Jacobson (since 2012) |
Return on Capital (average, past 3 years) | 11.1% |
Cash/Debt | $3.4 billion / $13.2 billion |
Competitors | Southwest Airlines United Continental US Airways |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 41% of the 937 members who have rated Delta believe the stock will underperform the S&P 500 going forward.
Just last month, one of those Fools, gameguru, succinctly summed up the Delta bear case for our community:
The recent run-up seems unsupported by fundamentals. Oil prices likely can and will go higher. TSA delays and FAA furloughs may reduce traffic. Recent weather problems will hurt traffic. Delta continues trying to expand its already expansive routes, which is usually a recipe for capital loss in this space.
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The article Why Delta Air Lines Is Poised to Pull Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Southwest Airlines. 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 Motley Fool has a disclosure policy.
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