Delta Airlines; Please Fasten Your Seatbelts.

After the Ebola Crisis hit the airline stocks, Delta Airlines (DAL) again became a hot prospect. At 13th of October Delta Airlines stock hit the bottom. In just 10 days, stock downed from $36 to $30.90 because of the market pressure. People panicked plus some analysts said that ` You should sell all the airline stocks` hit airline stocks. However, at the end who were calm in that period, won the fight. Because Delta Airlines started to rebound.


From Mid-September to Mid-October, the stock lost 20% of the value because of Ebola panic. But they recovered nicely. First of all, Their revenue is growing every quarter and they announced $11 billion revenue in this quarter which is %4 more than September 2013. Not only DAL's revenue is growing, also company's itself is growing. Now they are replacing jets and adding new routes such as Shanghai and Seoul.

Of course one other advantage for them is crude oil prices.While oil prices are getting lower and affects negatively to oil companies. In the market there are some winners such as Delta Airlines. Logically, they use cheaper oil and make more profit than last years. As I mentioned in Price of Crude Oil Falling article, the oil prices will be like that at 2015 which is a big advantage for Delta Airlines.

Growth 8/10

Company's current P/E is 3.5 which means stock is still undervalued. After rebound company is at the level of price such as $40.40 and price target is $51. After recovery, still the price level is at good point. Of course, not only P/E is a good criteria but also their PEG ratio is 0,07 which makes the company stock 2 times undervalued.

 P/E - PEG Ratio 10/10

Delta Airlines is a cash-rich company which makes them strong and they have a target to increase this cash flow. Their short and long term debts are decreasing year by year with the help of that cash and when we compare them with competitors they have a big advantage.

Cash Flow 8/10

Delta Airlines' market cap is $35 billion and they are the market leader in Airlines Industry. They grow as the market grows which is a big advantage. Delta's profitability is more than the competitors such as American Airlines or United Continental.

Market Cap 10/10
Conclusion

Delta Airlines is growing and managing nicely. They are the market leaders and with their growing earnings they will continue to be. They have achievable targets which will make their performance continue (Also Crude Oil prices are helping them). All in all, they are undervalued, strong and growing. My final grade is 9/10 which makes it STRONG BUY.