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By Aina Ster

October 18, 2018

In this article we break down 5 Airlines equities to potentially sell in November 2018. We will cover Delta Air Lines, International Consolidated Airlines Group S A, Virgin Australia Holdings Limited, GOL Linhas Areas Inteligentes S A, and LATAM Airlines Group S A
5 Airlines stocks to get rid of in November 2018

This list of potential positions covers Major domestic and international airlines. Domestic and international airlines and airline services in USA. Please note, we provide buy hold or sell recommendation only in the context of selected investment horizon assuming investor has average attitude towards taking risk. Please also consider using Portfolio Positions Ratings and Equity Ratings tools to further calibrate your research.


Delta Air Lines (DAL)

The company has Net Profit Margin of 9.88 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is very large. In the same way, it shows Net Operating Margin of 17.91 % which entails that for every 100 dollars of revenue it generated 0.18 of operating income. The entity currently falls under 'Large-Cap' category with total capitalization of 38.71B. Delta Air Lines shows prevailing Real Value of $64.2219 per share. The current price of the firm is $58.04. At this time the firm appears to be undervalued. This module computes value of Delta Air Lines from reviewing the firm fundamentals such as Current Valuation of 53.99B, Shares Outstanding of 654.65M and Profit Margin of 9.88% as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise to go long with undervalued instruments and to sell out overvalued instruments since at some point assets prices and their ongoing real values will submerge. Delta Air competes with Gol Linhas, LATAM Airlines, Southwest Airlines, Alaska Air, China Eastern, Copa Holdings, Avianca Holdings, and American Airlines. Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia. Delta Air operates under Airlines classification in USA and is traded on BATS Exchange. It employs 80000 people.

INTERNATIONAL CONSOLIDATED AIRL (ICAGY)

The company has return on total asset (ROA) of 7.53 % which means that it generated profit of $7.53 on every $100 spent on asset. This is normal as compared to the sector avarege. Similarly, it shows return on equity (ROE) of 31.83 % meaning that it generated $31.83 on every $100 dollars invested by stockholders. The entity currently falls under 'Large-Cap' category with current market capitalization of 11.26B. INTERNATIONAL CONSOLIDATED competes with China Southern, AIR CHINA, Ryanair Holdings, Ryanair Holdings, INTERNATIONAL CONSOLIDATED, AIR CHINA, Delta Air, Southwest Airlines, and INTERNATIONAL CONSOLIDATED. International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world. The company was incorporated in 2010 and is based in Madrid, Spain. International Consolidated is traded on OTC Market in USA.

VIRGIN AUSTRALIA HOLDINGS LTD (VBHLF)

The company has return on total asset (ROA) of 1.99 % which means that it generated profit of $1.99 on every $100 spent on asset. This is way below average. Similarly, it shows return on equity (ROE) of (44.03) % meaning that it generated substantial loss on money invested by shareholders. The entity currently falls under 'Mid-Cap' category with current market capitalization of 1.05B. VIRGIN AUSTRALIA seems to be overvalued based on Macroaxis valuation methodology. This module measures value of VIRGIN AUSTRALIA HOL from evaluating the company fundamentals such as Price to Earning of (6.94)X and Return On Equity of (44.03)% as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we recommend to buy undervalued stocks and to dispose of overvalued stocks since at some point in time securities prices and their ongoing real values will draw towards each other. VIRGIN AUSTRALIA seems to be overvalued based on Macroaxis valuation methodology. This module measures value of VIRGIN AUSTRALIA HOL from evaluating the company fundamentals such as Return On Equity of (44.03)% and Price to Earning of (6.94)X as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we recommend to buy undervalued stocks and to dispose of overvalued stocks since at some point in time securities prices and their ongoing real values will draw towards each other.

Gol Linhas Aereas Inteligentes (GOL)

About 14.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.08. The entity recorded loss per share of 2.39. The entity last dividend was issued on 2011-05-05. The firm had 2:1 split on 2017-11-22. This firm currently falls under 'Mid-Cap' category with total capitalization of 3.38B.
Total Debt
Gol Linhas competes with LATAM Airlines, Southwest Airlines, Alaska Air, China Eastern, Copa Holdings, Delta Air, Avianca Holdings, and American Airlines. GOL Linhas Areas Inteligentes S.A. provides air passenger transportation services in Brazil and rest of South America, the Caribbean, and the United States. GOL Linhas Areas Inteligentes S.A. was founded in 2001 and is headquartered in So Paulo, Brazil. Gol Linhas operates under Airlines classification in USA and is traded on BATS Exchange. It employs 15328 people.

LATAM Airlines Group S A (LTM)

The company has Net Profit Margin of 0.31 % which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 13.84 % which entails that for every 100 dollars of revenue it generated 0.14 of operating income. This firm currently falls under 'Mid-Cap' category with total capitalization of 5.95B. LATAM Airlines Group secures last-minute Real Value of $9.734 per share. The latest price of the entity is $8.84. At this time the entity appears to be undervalued. This module forecasts value of LATAM Airlines Group from inspecting the entity fundamentals such as Current Valuation of 14.84B and Profit Margin of 0.31% as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend to purchase undervalued stocks and to get rid of overvalued stocks since at some point future time entities prices and their ongoing real values will merge together. LATAM Airlines Group secures last-minute Real Value of $9.734 per share. The latest price of the entity is $8.84. At this time the entity appears to be undervalued. This module forecasts value of LATAM Airlines Group from inspecting the entity fundamentals such as Profit Margin of 0.31% and Current Valuation of 14.84B as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend to purchase undervalued stocks and to get rid of overvalued stocks since at some point future time entities prices and their ongoing real values will merge together.

Current 5 Airlines Recommendations

Competition Technical Indicators

Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
 2.63  0.22  0.07  0.17  2.96  0.05 (2.95)  5.51 (4.86)  24.14 
 2.05 (0.01)  0.00 (0.03)  0.00 (0.0109)  0.00  5.26 (5.31)  15.60 
 0.92 (0.07)  0.00 (0.10)  0.00 (0.0473)  0.00  1.95 (2.32)  6.01 
 1.35 (0.07)  0.00 (0.09)  0.00 (0.0387)  0.00  2.27 (2.86)  6.72 
 1.75 (0.31)  0.00 (0.27)  0.00 (0.12)  0.00  3.66 (5.35)  14.72 
 1.67  0.26  0.14  0.22  1.62  0.1 (2.06)  3.74 (2.15)  16.36 
 1.06  0.11  0.06  0.07  1.50  0.07 (1.02)  2.37 (2.74)  6.78 
 2.51  0.22  0.09  0.18  2.29  0.07 (3.65)  5.72 (3.35)  14.17 
 1.72 (0.48)  0.00 (0.43)  0.00 (0.22)  0.00  2.27 (3.96)  10.99 
 2.06 (0.08)  0.00 (0.08)  0.00 (0.0321)  0.00  3.95 (4.67)  13.22 

About Contributor

Aina Ster
   Aina Ster is a Member of Macroaxs Editorial Board. Aina delivers weekly prospective on ongoing market and economic tren
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