Out Fox The $treet

Update - Dec. 19  The market is so off on airline stocks that Citi increased the PT on a stock already providing 67% upside. Most of the other legacy airlines are even cheaper. The market is so focused on recession fears, investors are missing the massive opportunity.  Citi analyst Stephen Trent raised the firm's price target on Delta Air Lines to $59 from $55 and keeps a Buy rating on the shares. Delta's combination of international route exposure, seat mile cost dilution and relatively stable fuel prices should support the shares over the next year, Trent tells investors in a research note. The analyst continues to view Delta as his favorite U.S. carrier. As the recovery on several international corridors seems to be six- to nine months behind the U.S. domestic recovery, Delta's passenger volumes could benefit "from this momentum," writes Trent. Read more at:  https://thefly.com/n.php?id=3634887 Update - Dec. 15 The  airline stocks remain absurdly cheap. One can...

  After solid traffic demand during the Thanksgiving holiday, Delta Air Lines appears on pace to generate strong profits in Q4'22. The airline continues to trade like the future is cloudy and not represented by ~$4.50 in per share profits over the last 3 quarters. The stock is a gift here trading below 5x 2024 EPS targets. After a strong Thanksgiving holiday, investors should have no doubt about the rebound in airlines and specifically  Delta Air Lines  ( NYSE: DAL ). The company has produced a remarkable rebound in profits, yet the stock is still valued  as if a profitable rebound remains in doubt. My  investment thesis  remains ultra-Bullish on the airline stock with an expectation for a full profit rebound for a stock that was once considered cheap at $60 and now trades below $35. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Delta Air Lines entered the crisis already trading at a disaster discount. The airlines are quickly approaching load factors where average flights are break-even. The stock has upside from the 52-week high of $63 due to eventual multiple expansion. Delta Air Lines  (NYSE: DAL ) continues to rebound from the Buffett lows as airline traffic rises off the April lows. One of the most crucial metrics for valuing the airlines going forward is the load factor. My  investment thesis  is highly bullish on the airlines even with this recent rally in the stock as the load factors are rising and the potential for eliminating the disaster discount coming out of this down cycle improves the long-term potential of Delta. Read the full article on Seeking Alpha.  Disclosure: Long AAL, UAL. Please review the disclaimer page for more details. 

Delta Air Lines obtained $5.4 billion in government aid. The airline stocks trade at constant discounts to the troubled cruise liners despite better business prospects. The stock trades at a substantial discount to the market at only 4.8x drastically reduced forward EPS estimates. For years now,  Delta Air Lines  ( DAL ) has been the best-run legacy airline, yet the stock was never loved by the markets. The airline always traded at far lower ratios than the other transport stocks and now the lack of love is apparent compared to the cruise lines. My  investment thesis  remains highly bullish on the airlines and particularly Delta as a safe bet for an eventual rebound in air passenger traffic rebound. Read the full article on Seeking Alpha.  Disclosure: Long UAL. Please review the disclaimer page for more details. 

More evidence continues to show that the strikes on Saudi oil facilities actually came from Iranian missles, not Yemen drones. Not even sure, if it matters, because the whole world knows that Iran was involved.  Dion Nissenbaum ✔ @DionNissenbaum US looking to declassify satellite imagery to bolster contentions that Iran was origin of weekend attack on Saudi oil industry as mounting evidence points to cruise missiles fired from Iran or Iraq, not Houthi drones launched from Yemen: https://www. wsj.com/articles/iran- rejects-u-s-accusations-over-saudi-oil-facility-attacks-11568544181?mod=hp_lead_pos1  … w/ @ summer_said Iran Rejects U.S. Accusations Over Saudi Oil-Facility Attacks Iran denied American accusations that it was behind Saturday’s strikes on Saudi oil facilities, as the kingdom rushed to contain the fallout from attacks that could disrupt global petroleum supplies. wsj.com 437 8:35 AM - Sep 15, ...

The question investors need to ask is why are they sold the legacy airlines based on one number and not the complete picture. This interview with the Delta Air Lines (DAL) CEO should've had investors rushing back into the stock today. Ironically though, the stocks didn't gain until oil prices rose. My Net Payout Yields portfolio continues to hold American Airlines Group (AAL) and United Airlines (UAL) due to massive stock buybacks. These dips in the sector are actually good for those stocks. The cheaper the better for the stock buyback plans. Disclosure: Long AAL and UAL. Please review the disclaimer page for more details. 

Delta Air Lines continues to tell anybody that will listen the purchase prices for used 777s.  Along with a downgrade, Boeing is down sharply on the news.  The recommendation is for investors to continue focusing on the order book for narrow-body planes and ignore the noise generated by a customer looking for cheaper planes.  In an interesting news twist, Asia's largest carrier agreed to purchase 110 Boeing (NYSE: BA ) airplanes, yet the market appeared more interested in the cost of one used plane. The news bits continued a spate over the last several months regarding a glut in the airplane market and specifically the wide-body jets. See my original research on the issue here . Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Summary Delta Air Lines easily surpassed analyst estimates for Q2'15. The airline ramped up the capital return plan by returning $1 billion to shareholders during the quarter. The stock remains inexpensive at 10x current year EPS estimates and catalysts for higher earnings going forward.   Another strong quarter by Delta Air Lines (NYSE: DAL ) is apparently not appreciated by the market. The stock initially dropped over a $1 before rebounding. Not only did the airline beat analyst estimates, but also the company produced several financial metrics typically associated with much higher stock prices.  Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please read the disclaimer page for more details .

The airline sector reached new 2015 lows. IATA raised the projections for 2015 airline profits. Raymond James downgrades hit the legacy airline stocks hard, but the forecasts are actually very bullish for the stocks. At the same time that the IATA dramatically raised its estimate for global airline profits, an analyst firm downgraded the legacy airline stocks crashing them to recent lows. While some capacity concerns have propped up this year, one has to wonder why so much fear exists in stocks trading at exceptionally low PE multiples. Read the full article on Seeking Alpha. Disclosure: Long AAL. Please review the disclaimer page for more details. 

Delta Air Lines announces an increased capital return plan. The new plan includes a major boost to the dividend and stock buyback plan. The new Delta Air Lines plan still fails to push the yield to the highest in the market unless the airline accelerates the plan. Prior to the open, Delta Air Lines (NYSE: DAL ) announced a major increase to their capital return plan. The airline was already ahead of the industry and especially the legacy airlines in returning capital to shareholders. This new plan greatly expands the previous plan. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Summary Delta Air Lines reported Q1'15 earnings that beat the estimates despite losses associated with fuel hedges. The airline continues to face more headwinds than perceived by a market only focused on lower market fuel costs. Delta continues to trade at valuation multiples substantially below other companies. While currency headwinds and a few fare wars grab market attention, airlines like Delta Air Lines (NYSE: DAL ) continue to report exceptional numbers. The market appears more concerned with the potential for rebounding fuel costs than the exceptional value presented by the stock. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Summary Delta released disappointing August traffic numbers. Stock remains a strong buy. The original investment thesis anticipated hiccups from Russia and Ebola. Delta Air Lines (NYSE: DAL ) plunged on Wednesday following the release of traffic and operational numbers for August. While the numbers were at the low-end of previous guidance, the market should've already adjusted for an expected impact from the ongoing hostilities in Ukraine and the Ebola outbreak in Africa. With the expected headwinds and a stock trading sideways during the strong summer travel season, the sell-off suggests the market over reacted. Read the full update here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Summary Travel fears with limited long-term impact have hit airline shares. Operating margins, new airplanes, and refinery success provide Delta Air Lines with an attractive stock price. Investors should continue holding Delta stock until it reaches a market multiple. When reviewing the stock gains of Delta Air Lines (NYSE: DAL ) over the last two years, one probably questions whether it is too late to invest in this airline or the sector in general. The stock has seen phenomenal gains, yet it still trades at an appalling low multiple of earnings. The recently reported second-quarter earnings were chock full of numbers that suggest the stock has a much longer runway for improving the bottom line. Read the full article at Seeking Alpha. Disclosure: Long AAL. Please review the disclaimer page for more details. 

Don't look now, but the airlines have become massive cash-flow generators. Delta Air Lines ( NYSE: DAL     ) is leading the industry, and it's forecasting an incredible operating cash flow for 2014 of over $5 billion. Most investors see cash flow as the ultimate financial indicator of corporate success, as it accurately shows how the business is performing over time. Companies can't mask the shifts in cash balances like they can with income statements; therefore, looking at cash flow provides a cleaner view of how the company is actually operating. The amazing part about the airlines is that their vast cash flows are being generated despite high fuel costs and a sluggish economy. Delta isn't exactly experiencing roaring passenger demand, but the industry as a whole is benefiting from improved operational efficiency and reduced capacity due to mega mergers, including the recently finalized one that created American Airlines Group ( NASDAQ: AAL     ...

After reading the November traffic results from the major legacy airlines, one would've assumed that the month was a throwaway for all airlines. The timing of the Thanksgiving holiday pushed passenger return traffic into December. All of the major airlines reported declining load factors, with Delta Air Lines ( NYSE: DAL     ) and US Airways, now part of American Airlines Group ( NASDAQ: AAL     ) , blaming the late Thanksgiving and proclaiming that December will be strong. But, along came Spirit Airlines ( NASDAQ: SAVE     ) with some surprisingly positive numbers. The company did note a small decline in load factor, but the other traffic totals suggest that November was a normal month to the airline. Read the full article here . Disclosure: Long AAL. Please review the disclaimer page for more details. 

At the end of last week, Alaska Air Group , ( NYSE: ALK     ) jumped on speculation that Delta Air Lines ( NYSE: DAL     ) was interested in buying the airline. Investors should not buy the stock based on these rumors; instead, the shares of Alaska are attractive based on the company's strong fundamentals and value proposition. While the stock popped due to the actions of typical momentum investors jumping in and hoping for a quick buck, the long-term investor should ignore the hype. After the regulatory issues surrounding the American Airlines Group merger, it appears highly unlikely that the regulators would allow another merger involving the three major legacy airlines consolidating the industry. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

When reviewing the numbers of Delta Airlines ( NYSE: DAL     ) , you might be shocked that it's, well, an airline. The domestic airline with the largest market cap is starting to act like a real corporate citizen: paying down debt, paying a dividend, and actually buying back company stock. And amazingly, it's achieved this success despite stubbornly high oil prices. Just last year, Delta bought a refinery in an attempt to dramatically reduce the costs of jet fuel. What originally looked like a desperate, ill-conceived move has become almost an afterthought, with Delta and other airlines reporting strong profits despite the high price of fuel. Even bankrupt  AMR (NASDAQOTH: AAMRQ) and its prospective partner  US Airways ( NYSE: LCC     ) are generating huge gains, despite fuel costs and a merger blocked by the Department of Justice. Read the full article here . Disclosure: Long LCC. Please review the disclaimer page for more details....

If you're looking for further signs of maturity in the airline industry, consider Delta Air Lines '   ( NYSE: DAL     )   plans to lower costs by $300 million a year via a mix of old and new planes. That savings might not seem significant to an airline with a revenue base of around $37 billion, but investors need to remember that Delta only has a market cap of $20 billion, and annual profits approaching $2 billion. Read the full article here . Disclaimer: Long LCC. Please review the disclaimer page for more details. 

The shocking suit to block the AMR Corp ( AAMRQ.PK ) and U.S. Airways ( LCC ) merger roiled the market, sending Delta Air Lines ( DAL ) tumbling 7%. While a big part of the incentive for buying airlines has been the benefits of industry consolidation, it doesn't appear that the Department of Justice blocking this merger will prevent the intent of reduced competition. Over the last few years, the airlines appear more cognizant that focusing on profits is paramount over increasing competition. Does blocking this merger change that incentive? Ultimately, all of the airlines can probably be bought outside of American Airlines, whether based on the potential for further consolidation in the smaller, regional airlines or the potential that the third largest airline, American, struggles to emerge from bankruptcy. Delta could ultimately be the biggest beneficiary, as the airline won't face strong competition from the combined entity allowing it and United Airlines to...

One of the biggest surprises this month had to be the announcement by Delta Air Lines (NYSE: DAL ) that it planned to return as much as $1 billion to shareholders over the next three years. How could it be possible that one of the worst industries around is now able to return cash to shareholders? The airline sector has seen a major shift towards profitability after the financial crisis forced more » Disclosure: No positions mentioned. Please review the disclaimer page for more details.