Everything is overvalued in this market. I gotta say DAL is a buy down here with a PE of 9. They make money. Labor is happy. They were the only ones to not whine about the hurricanes... and still beat estimates.... damn. And lets not forget the CEO of UAL (or was it American) said "the airline business has changed forever" due to technology. This is not your fathers airline stock. Or so they say. Who knows. But at a PE that low...and no other value out there thats making money without some exorbitant PE... I gotta think DAL is a screaming buy at $49. Capitulation after earnings maybe? Guess it takes patience. Buy the 2018 calls and sell the puts eh?
Trump says company's can expense new equipment in one year. Is buying an airplane "new equipment"? If it is... This outta be good for a 10% pop from here lol.
$50.15 today. People still hate airlines apparently. This thing should be way more. Geez... can we get a PE of 11 at least? Noooo. Lets chase TTWO that loses money, trades at 85 times book and 27 times cash-flow. Makes sense to me.
Barron’s 10 favorite stocks for 2018. Google parent Alphabet (ticker: GOOG) and Delta Air Lines (DAL)—plus Berkshire Hathaway (BRK.A) and Volkswagen (VLKAY). The other six companies are Pioneer Natural Resources (PXD), Applied Materials (AMAT), Enterprise Products Partners (EPD), Ally Financial (ALLY), Anthem (ANTM), and US Foods Holding (USFD).