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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!