|Bid||89.55 x 1000|
|Ask||89.81 x 1200|
|Day's Range||88.96 - 90.09|
|52 Week Range||77.02 - 96.03|
|Beta (5Y Monthly)||1.12|
|PE Ratio (TTM)||8.37|
|Earnings Date||Jan 20, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jan 05, 2008|
|1y Target Est||111.06|
United Airlines (UAL) is likely to have canceled 5,100 flights in November and December due to the grounding of Boeing 737 MAX jets in its fleet.
American Airlines Group Inc. ("Parent" and, together with American Airlines, Inc. "American") will guarantee the new loan. The Parent's Ba3 corporate family rating reflects American's scale and competitive position as the world's second largest airline based on revenue, balanced by elevated financial leverage above 5x from a historically aggressive financial policy and an operating margin that continues to trail industry peers. Leverage remains elevated because of the heavy reliance on debt for repurchasing more than $11 billion of its shares while funding the majority of almost $26 billion of capital investment mainly from operating cash flow over the most recent five years.
United Airlines is ramping up the Boeing Dreamliner's presence on two international routes from Chicago to China.
January has already seen impressive gains in broader markets, and shareholders in the Atlanta-based airline Delta (NYSE:DAL) stock have also enjoyed a year-to-date gain of about 6%.Source: VanderWolf Images/Shutterstock.com In the U.S, four major carriers -- American Airlines (NASDAQ:AAL), United Continental Holdings (NASDAQ:UAL), Delta and Southwest Airlines (NYSE:LUV) -- control about 70% of the domestic market. Furthermore, prices of airline stocks -- including DAL -- have strongly increased over the past decade.If you had invested $1,000 on Delta shares in mid-January 2010, you would now have about $5,270. This change equates to more than 18% in terms of the compound annual growth rate (CAGR). And the calculation does not take into consideration the actual dividend or further return through the reinvestment of that income.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow, investors are wondering whether the growth story of Delta stock may take a pause, or if they should stay invested Delta shares. Although I believe DAL stock is a good long-term investment, there is likely to be short-term profit-taking in the airline. * The Top 5 Dow Jones Stocks to Buy for 2020 With that said, let's take a closer look. A Closer Look at Delta Stock's Recent EarningsOn Jan. 14, Delta stock reported fourth-quarter earnings that exceeded expectations. Revenue reached $11.4 billion, a 7% year-over-year increase. Additionally, adjusted earnings per share came at $1.70, a 31% increase YoY, and it was above the guidance of $1.20 to $1.50This year, the International Air Transport Association (IATA) expects 1% of global GDP to be spent on air travel. Over the next two decades, the forecast also anticipates about 3.5% CAGR growth. A strong economy, low unemployment and increased consumer spending both in the U.S. and worldwide have been the recent tailwinds for the industry.Additionally, Delta's Q4 results have confirmed these industry-wide trends. CEO Ed Bastian said that last year was "the best in Delta's history operationally, financially and for our customers."Another reason for the airline's strong earnings has been the fact Delta doesn't fly Boeing's (NYSE:BA) 737 MAX. Therefore, the group has not been affected by various adverse developments following the two crashes of the aircraft.Looking forward, Delta management now anticipates an annual revenue growth of 5% to 7% in Q1 2020. Latin American Developments Could Be a Further CatalystWhen evaluating stocks, in addition to looking at various fundamental metrics, I also pay attention to possible future changes and trends within a geography or society.Last year, Delta announced an upcoming partnership with LATAM Airlines Group (NYSE:LTM). This will involve an investment of $1.9 billion by Delta in common shares of LATAM, as well as an additional $350 million to support the partnership.In 2012, LAN Airlines and TAM Linhas Aereas had merged to form LATAM Airlines. The Chile-based group now serves 146 destinations in 26 countries, operating more than 1,300 flights a day and transporting 69 million passengers per year. In other words, LATAM's management has been able to increase operational efficiencies through this merger, and created a brand that has caught the attention of Latin American customers.Now eight years later, Delta is able to access routes to South America that wouldn't have been possible without the partnership.As travel demand in Latin America grows due to demographic developments, LATAM will be in a robust position to capitalize on its current market dominance. And that long-term growth should bode well both Delta and LATAM stocks. Valuation and Dividend Are on the Side of Delta StockDespite the decade-long increase in the price of DAL shares, Delta stock currently trades at a forward price-earnings ratio of 8.5 -- a number that should catch the attention of value investors. In other words, the price appreciation is well-deserved.In November 2016, Warren Buffett's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) revealed that the group had taken a stake in the four major domestic airlines. At the time, this rather unexpected investment by the legendary investor had brought the industry into the limelight.Moreover, in March 2019, Berkshire Hathaway upped its investment in Delta stock. So if Buffett believes in DAL stock long-term, maybe you should too.And, anyone who buys Delta shares can enjoy dividend income, which now stands at a yield of 2.6%.Also, the airline has plenty of cash, as its adjusted free cash flow (FCF) hit $4.2 billion in 2019. Management is confident of generating similar FCF in 2020, and therefore, the annual cash flow would strong enough to cover current payouts and future dividend raises. As the name implies, the airline would be "free" to do whatever it wants with this free cash flow. Most companies would decide to return a good portion of it to investors. Indeed, earlier in 2019, Delta had increased its quarterly dividend by 15%. Could we possibly expect a similar dividend increase from the airline in 2020 or by 2021 at the latest? What Could Derail Delta Stock in 2020?Many analysts regard transportation companies, such as Delta, as the backbone of an economy. There are several crucial drivers of change that affect the industry, as well as airline management. These factors include: * Societal developments, such as urbanization and demographic changes. * Economy, such as the price of oil, business cycles and volatility. * Technology, such as aircraft development, cybersecurity or the role of social media in customer engagement. * Environment, such as regulation of emissions and noise pollution. * Politics, such as regulatory changes, trade protection and response to terrorist threats.Within this context, airlines such as Delta are under constant pressure to improve performance, ensure passenger safety, increase efficiency, become technologically advanced and -- at the same time -- excel in customer satisfaction.Overall, the economics of running an airline like Delta are quite complex. However, at the end of the day -- like any other company -- DAL stock needs revenues to cover operating costs and become profitable.Delta stock's two largest operating costs are fuel and labor. In 2020, if there is an unexpected and permanent increase in the price of oil, then DAL shares may suffer.Currently, the international benchmark Brent crude is hovering around $64. Yet, over the past 20 years, the price of oil has fluctuated between from as low $28 per barrel to as high as almost $165.Therefore, long-term DAL stock investors would need to keep in mind that the airline industry is cyclical -- meaning profits could stall or drop in a slowing economy. And oil prices do matter for Delta stock. The Bottom Line on DAL StockI believe Delta is a solid income and value stock to round out long-term portfolios.Yet, as the earnings season gets underway in the coming weeks, I expect volatility in broader markets that may also affect the price of DAL stock.Also, Delta's technical momentum indicators -- which describe the speed at which prices move over a given period -- are currently in overbought territory. Although these indicators can stay overbought for quite a long time, short-term profit taking in the company's stock is probably around the corner.There could easily be a move back below $60 in Delta stock in the near future. However, long-term investors may regard any such dip as opportunity to buy into the Delta share price.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Can Delta Stock Fly Higher in 2020 With These Catalysts? appeared first on InvestorPlace.
United became the first U.S.-based carrier to operate the new Bombardier jet last fall, and now the carrier is putting the plane on a well-traveled route flown by some of the carrier's most demanding high-margin customers.
United (UAL) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
United Airlines today announced a new hourly shuttle service between Washington's Reagan National Airport and New York/Newark Liberty International Airport. United will operate the world's only two-cabin 50-seat regional aircraft – the Bombardier CRJ-550 on most flights. The CRJ-550 is designed for business and leisure travelers who want true-first-class seating, Wi-Fi, more leg room and enough space for every customer to bring a roller bag on board.
Have a tight window to get from D.C. to Newark, New Jersey? United Airlines will soon have a flight for you. Starting March 29, United (NASDAQ: UAL) announced Friday, the airline will run hourly weekday shuttle flights between Reagan National Airport and New York/Newark Liberty International Airport.
Airfares at Piedmont Triad International Airport declined by 6.2% in 2019, ranking it fourth in round-trip cost among all North Carolina airports.
A look at the phase-one trade deal the U.S. and China signed Wednesday. An S&P 500 streak, early Q4 earnings results, and what to expect going forward. Plus why Applied Materials is a Zacks Rank 1 (Strong Buy) stock right now...
Rating Action: Moody's affirms United Airlines Holdings' Ba2 corporate family rating, changes outlook to positive. Global Credit Research- 15 Jan 2020. New York, January 15, 2020-- Moody's Investors Service ...
In what was an expected move, Southwest Airlines again pushed back the projected return of the 737 Max to its schedule. The beleaguered plane is now out of Southwest's network through June 6, the Dallas-based carrier said Thursday. This latest pushback in the jet's projected return to service puts Southwest Airlines Co. (NYSE: LUV) in line with American Airlines Group Inc. (Nasdaq: AAL) and United Airlines Holdings Inc. (Nasdaq: UAL), which both have the plane off their schedules until June.
The route announcement comes as Alaska this week boosted its fourth quarter 2019 financial guidance and revealed it bought back $22 million of its shares during the period.
"The part of last year that I want to remember is really the first month and the last four," one American executive said.
Shares of Delta Air Lines Inc. rose 0.3% and United Airlines Holdings Inc. gained 0.4%, after upbeat comments by credit rating agency Moody's Investors Service on the outlooks for the air carriers. For Delta, Moody's affirmed the senior unsecured rating at Baa3, which is Moody's lowest investment grade rating, but revised the outlook to positive from stable, suggesting the next rating move is more likely to be an upgrade. "The positive outlook anticipates sustained reliability of operations, and competitive operating margin and free cash flow over the cycle," Moody's said. Meanwhile, Moody's affirmed United's Ba2 corporate family rating, which is two notches below investment grade, while raising the rating outlook to positive from stable, citing "expected benefits of United's strong business profile and execution of its current network strategy which should sustain good operating cash flow in upcoming years." Separately, Moody's said it expects "US airlines will continue to emphasize earning acceptable returns on invested capital, which will lead to capacity reductions and cost management when economic growth slows to mitigate downwards pressure on earnings and cash flows." The NYSE Arca Airline Index has tacked on 7.3% over the past three months while the S&P 500 has gained 10.0%.
The Zacks Analyst Blog Highlights: Delta Air Lines, United Airlines, American Airlines and Southwest
Low fuel prices are expected to have lifted United Airlines' (UAL) bottom line in Q4. However, numerous flight cancellations due to the MAX groundings might mar results.
On Delta's Q4 2019 earnings call, CEO Ed Bastian talked about the advantages and disadvantages of Delta's aging fleet.
The new set of Carhartt outfits is part of a larger United uniform project that is proceeding at a slower-than-originally-anticipated pace.
Fourth quarter earnings results from JPMorgan, Delta, and other giants, as well as rough Boeing numbers. Plus, why KB Home (KBH) is a Zacks Rank 1 (Strong Buy) stock right now...
Orlando's top 10 revenue-generating flights provide a combined $1.5 billion-plus in revenue for Orlando International Airport between October 2018 and September 2019, according to OAG data. The top airlines for those 10 flights were almost evenly split between five carriers, with Delta Air Lines (NYSE: DAL) taking the top spot with three of the flights.