Comment
0
Tweet
0
Print
RSS Feeds

Why Delta Air Lines Is Poised to Pull Back

Tuesday - 4/2/2013, 11:40am  ET

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.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

This article was originally published as Why Delta Air Lines Is Poised to Pull Backon Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.