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Dec 29, 2022
Airline stocks drop, on US requirement of negative COVID test for travelers from China

Airline stocks drop, on US requirement of negative COVID test for travelers from China

U.S. airline stocks plunged on Wednesday, following health officials’ indication that travelers from China will require a negative Covid test before entering the U.S.

The testing directive will include travelers coming directly from China as well as those who visited the nation ten days before their departure to the U.S. Health officials will ask for either a negative antigen or PCR test. The requirement is set to take effect on January 5.

China has relaxed  nearly all of its Zero-Covid policy-related restrictions over the past week, including quarantine requirements for foreign travelers. However, the spread of new infections continue to be a concern. Earlier this week, China's top health authority estimated that infections may be spreading at a rate of 1 to 2 million people per day.

Related Ticker: DAL

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


DAL in downward trend: 10-day moving average moved below 50-day moving average on August 21, 2026

The 10-day moving average for DAL crossed bearishly below the 50-day moving average on August 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on August 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DAL as a result. In of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for DAL turned negative on August 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .

DAL moved below its 50-day moving average on August 18, 2026 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where DAL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for DAL entered a downward trend on August 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DAL's RSI Indicator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DAL advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .

DAL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.484) is normal, around the industry mean (3.817). DAL has a moderately high P/E Ratio (82.000) as compared to the industry average of (26.565). DAL's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (3.228). Dividend Yield (0.009) settles around the average of (0.021) among similar stocks. DAL's P/S Ratio (4.753) is very high in comparison to the industry average of (0.806).

Notable companies

The most notable companies in this group are Delta Air Lines (NYSE:DAL), United Airlines Holdings (NASDAQ:UAL), Southwest Airlines Co (NYSE:LUV), American Airlines Group (NASDAQ:AAL), JetBlue Airways Corp (NASDAQ:JBLU).

Industry description

Airlines industry comprises passenger air transportation, including scheduled and non-scheduled routes. This can include charter airlines, as well as regular commuter ones. Discount pricing and the rise of low-cost carriers over recent decades have expanded the industry by making its services accessible to a much larger global population, compared to the older days when airline travel was a relative luxury for many people in the world. Delta Air Lines Inc., Southwest Airlines Co and United Continental Holdings, Inc. are some of the airlines with the largest stock market capitalizations in the U.S.

Market Cap

The average market capitalization across the Airlines Industry is 10.45B. The market cap for tickers in the group ranges from 9.36K to 1.51T. AZULD holds the highest valuation in this group at 1.51T. The lowest valued company is KLMR at 9.36K.

High and low price notable news

The average weekly price growth across all stocks in the Airlines Industry was -7%. For the same Industry, the average monthly price growth was -4%, and the average quarterly price growth was -20%. FLYX experienced the highest price growth at 4%, while JBLU experienced the biggest fall at -13%.

Volume

The average weekly volume growth across all stocks in the Airlines Industry was 47%. For the same stocks of the Industry, the average monthly volume growth was -31% and the average quarterly volume growth was -2%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 48
P/E Growth Rating: 56
Price Growth Rating: 56
SMR Rating: 65
Profit Risk Rating: 74
Seasonality Score: -23 (-100 ... +100)
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General Information

a provider of scheduled air transportation for passengers, freight, and mail services

Industry Airlines

Profile
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Industry
Airlines
Address
Post Office Box 20706
Phone
+1 404 715-2600
Employees
103000
Web
https://www.delta.com
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