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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 8.85 % 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 17.07 % which entails that for every 100 dollars of revenue it generated 0.17 of operating income. The entity currently falls under 'Large-Cap' category with total capitalization of 34.47B. Delta Air Lines prevailing Real Value cannot be determined due to lack of data. The current price of Delta Air Lines is $51.24. Based on Macroaxis valuation methodology, the firm cannot be evaluated at this time. Macroaxis computes value of Delta Air Lines from reviewing the firm fundamentals such as Shares Outstanding of 683.02M, Current Valuation of 50.15B and Profit Margin of 8.85% 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.

International Consolidated Airlines Group S A (ICAGY)

The company has return on total asset (ROA) of 6.81 % which means that it generated profit of $6.81 on every $100 spent on asset. This is normal as compared to the sector avarege. Similarly, it shows return on equity (ROE) of 42.94 % meaning that it generated $42.94 on every $100 dollars invested by stockholders. The firm currently falls under 'Large-Cap' category with current market capitalization of 16.93B. International Consolidated competes with Ryanair Holdings, Japan Airlines, and Deutsche Lufthansa. 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 Limited (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 1.18B. Virgin Australia seems to be fairly valued based on Macroaxis valuation methodology. Macroaxis measures value of Virgin Australia Hol from inspecting the company fundamentals such as Return On Equity of (44.03)%, Price to Earning of (6.94)X and Current Valuation of 1.25B as well as reviewing 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 securities prices and their ongoing real values will draw towards each other. Virgin Australia seems to be fairly valued based on Macroaxis valuation methodology. Macroaxis measures value of Virgin Australia Hol from inspecting the company fundamentals such as Return On Equity of (44.03)%, Price to Earning of (6.94)X and Current Valuation of 1.25B as well as reviewing 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 securities prices and their ongoing real values will draw towards each other.

GOL Linhas Areas Inteligentes S A (GOL)

The company has Return on Asset of 5.32 % which means that on every $100 spent on asset it made $5.32 of profit. This is considered to be average in the sector. In the same way, it shows return on shareholders equity (ROE) of 33.5 % implying that it generated $33.5 on every 100 dollars invested. The entity currently falls under 'Mid-Cap' category with total capitalization of 2.45B. GOL Linhas competes with China Eastern, Copa Holdings, LATAM Airlines. GOL Linhas Areas Inteligentes S.A. provides scheduled air transportation services for passengers cargoes, and mailbags in Brazil and internationally. GOL Linhas Areas Inteligentes S.A. was founded in 2001 and is based in Sao Paulo, Brazil. GOL Linhas operates under Airlines classification in USA and is traded on BATS Exchange. It employs 15115 people.

LATAM Airlines Group S A (LTM)

The company has Net Profit Margin of 1.02 % 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 16.89 % which entails that for every 100 dollars of revenue it generated 0.17 of operating income. The entity currently falls under 'Mid-Cap' category with total capitalization of 6.72B. LATAM Airlines Group secures last-minute Real Value of $39.7463 per share. The latest price of the entity is $11.72. At this time the entity appears to be undervalued. Macroaxis forecasts value of LATAM Airlines Group from inspecting the entity fundamentals such as Profit Margin of 1.02% and Current Valuation of 13.58B 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 $39.7463 per share. The latest price of the entity is $11.72. At this time the entity appears to be undervalued. Macroaxis forecasts value of LATAM Airlines Group from inspecting the entity fundamentals such as Profit Margin of 1.02% and Current Valuation of 13.58B 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
 2.44  0.14  0.02 (7.84)  3.00  0.0198 (2.38)  5.36 (4.59)  14.79 
 2.49  0.11  0.05  0.15  2.83  0.0389 (2.82)  6.35 (4.13)  20.12 
 1.43  0.17  0.05  1.58  1.85  0.0487 (1.38)  3.23 (3.06)  14.43 
 2.42 (0.02) (0.02)  0.02  2.62 (0.021) (2.98)  5.67 (3.73)  10.78 
 1.66  0.12  0.01 (0.48)  2.21  0.016 (1.70)  3.63 (4.11)  8.99 
 1.93  0.47  0.19 (2.13)  1.65  0.16 (2.47)  4.70 (3.36)  9.21 
 1.56 (0.26)  0.00 (2.95)  0.00 (0.13)  0.00  4.25 (3.11)  17.42 
 2.50  0.65  0.16  2.73  3.13  0.18 (2.79)  6.05 (4.94)  14.33 
 1.24  0.40  0.16 (1.61)  1.10  0.17 (2.00)  3.63 (2.36)  10.01 
 1.64  0.30  0.12  3.46  1.58  0.1 (1.94)  4.93 (3.37)  12.28 

About Contributor

Aina Ster
   Aina Ster is a Member of Macroaxs Editorial Board. Aina delivers weekly prospective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Macroaxis. Please refer to our Terms of Use for any information regarding our disclosure principles.
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