Delta Air Lines, Inc. (DAL), Travelers Companies Inc (TRV), Coach, Inc. (COH): Three Stocks I’m Buying After Tuesday’s Earnings

Page 1 of 2

In this article I am separating the good from the bad, not in terms of stock performance, but rather fundamentals compared to valuation following earnings. This is one of the best times of the year to capitalize on value, and in this piece I am looking at three stocks that are presenting large upside.

Delta Air Lines, Inc. (NYSE:DAL),Best Q1 in More than a Decade

As the price of fuel has declined, shares of Delta Air Lines, Inc. (NYSE:DAL) have traded higher, and on Tuesday, speculation of strong fundamental performance was made valid. The company reported what it called, “its best Q1 in over a decade,” as revenue was in-line with expectations and its bottom line exceeded expectations by more than 35%. The company did see lower capacity on regional flights, yet reported a 4.1% gain in revenue per mile to indicate that further upside is present.

There are several points that I find highly encouraging about Delta Air Lines, Inc. (NYSE:DAL)’s quarter, with one being its operating cash-flow of $1.10 billion! This is a company that saw significant operational improvements, despite a loss in capacity.

When you break down its revenue by region you can really see this difference, as revenue growth outperformed capacity by a minimum two-to-one ratio in six different categories (as seen here). Furthermore, despite its large gains, this is still a stock that is very cheap, trading at just 5.50 times next year’s earnings and a price/sales ratio of 0.35. Both ratios are far below the S&P 500 average, and because of its improvements, I say “Buy” this stock!

A Good Long-Term Investment

Travelers Companies Inc (NYSE:TRV) closed on Tuesday with gains of 2.09% and is now trading at $86.35. In my opinion, it’s a stock trading with about a 15% discount to the market, with a forward P/E ratio of 11.40 and a price/sales of 1.24. It is a zero growth company, yet despite zero growth, the stock is cheap compared to current fundamentals, and it’s improving in other fundamental areas of the business. For example, the company achieved 11% income growth, despite a 1% loss in revenue, indicating a massive gain in margins.

Travelers Companies Inc (NYSE:TRV) is a large company, and it’s not an investment that will return massive gains from this point forward. However, because it’s cheap with improved fundamentals, it would make a good long-term dividend investment. When you incorporate its large buyback program and its 9% dividend hike, then I believe Travelers Companies Inc (NYSE:TRV) is a safe low beta large cap stock that could add to a nicely diversified portfolio.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!