Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Aug 31, 2019
Well-defined trend line helping move Delta Air Lines higher

Well-defined trend line helping move Delta Air Lines higher

Over the last eight months a trend channel has formed on Delta Air Lines (NYSE: DAL). The channel is very well defined and the lower rail connects the lows for 2019 while the parallel upper rail connects the highs from April and July. The stock is hovering just above the lower rail at this time and it looks like it is ready to rally again.

The daily stochastic readings have been hovering in the bottom half of their range since the beginning of August. The indicators did make a bullish crossover on August 28 and that could be a positive sign for the stock. We see that the indicators were also in the lower half of the range for most of May also before a bullish crossover came just before the stock rallied sharply.

It is also worth noting that the 10-day RSI was just above the 30 level and the lowest it had been since the end of May before the stock turned higher.

In addition to the bullish crossover from the stochastic readings, the Tickeron Trend Prediction Engine generated a bullish signal for Delta on August 27. The signal showed a confidence level of 70% and calls for a gain of at least 4% within the next month. Past predictions on Delta have successful 81% of the time.

From the Tickeron Technical Analysis Overview we see that the lower Bollinger Band was broken and a price increase is expected as the ticker heads toward the middle band. This indicates a buy or call consideration for traders. In 27 of 39 cases where Delta’s price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 69%.

On the fundamental side, Delta saw a nice jump in earnings growth for the second quarter and earnings are expected see a nice jump for the year. The EPS jumped by 32% in the second quarter of 2019 compared to the second quarter of 2018. Analysts expect earnings to grow by 27% for 2019 as a whole.

Revenue has not been growing as fast as earnings, but it has been growing never the less. In the last three years sales have increased by an average of 5% per year and they jumped by 6% in the second quarter.

The Tickeron SMR rating for this company is 51, 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 return on equity for Delta is at 29.7% and the profit margin is at 11.4%.

The Tickeron Valuation Rating of 38 indicates that the company is fair valued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. Delta’s current P/E ratio is only 8.38.

The Tickeron Profit vs. Risk Rating for Delta is 39, indicating well-balanced risk and returns. The average Profit vs. Risk Rating for the industry is 77, placing this stock slightly better than average.

Looking at the sentiment toward Delta we see average readings. There are 20 analysts following the stock with 14 “buy” ratings and six “hold” ratings. This puts the buy percentage at 70% and right in the middle of the average range between 65% and 70%.

The put/call ratio is at 3.7 currently and that is slightly skewed toward the pessimistic side. The short interest did jump by almost four million shares in the first half of August which indicates increasing pessimism.

With the technical picture and the fundamentals looking good, I don’t see why Delta won’t move higher in the coming month.

Related Tickers: DAL
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.