Month: March 2014

Is Delta a Favorable Opportunity for Investors?

Delta Air Lines, Inc. is a leading transportation company operating in U.S. The company provides the scheduled air transportation services to its passengers around the world. The route network of the company is present everywhere, which gives the company access to most of the busier airports in the world. This is the reason that Delta has grabbed a major market share in airline industry. This also gives a favorable prospect to the investors in terms of putting more money into the DAL stock so as to reap higher dividend yield in future. The current Delta Airlines stock price is $33.53 with an average change of -1.76%. The high and low stock prices in the past 52 weeks have been recorded as $35.83 and $13.95 respectively. This shows that the stock price has been fluctuating much in the last year and confusion has surrounded the investors as to when the stocks should be bought or sold. Additionally, the stock price history suggests that the stock price increased since the last quarter, where as it also increased in the one year period. The price also kept increasing in the last 5 years. This analysis shows that the Delta Airlines stocks have been in higher demand and considering its widespread business, investors have been considering it a favorable opportunity to invest in this company.

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The Expanding Business of Boeing Company And Investors’ Confidence

 

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  • Boeing is an aerospace company that was incorporated in 1934. There are five segments into which the Boeing Company is divided, namely: Boeing military aircraft, commercial airplanes, network & space systems, Boeing capital corporation, and global services and support. When we look into the Boeing airplanes, not only the commercial but military aircrafts are also taken into consideration but the governments, private organizations, and militaries. The commercial airplanes are offering models that can accommodate 100 to 500 passengers at a time. The complete line of the cargo freighters can also be accommodated in a commercial Boeing airplane.

    The airline services all around the world are purchasing the Boeing commercial airplanes. The Boeing airplane sales in the recent past have therefore skyrocketed due to the expanding commercial usage of the airplanes and more demand of passengers for air travel in the current times. These sales and other trends have also made a positive mark on the Boeing Company stocks. The investors regard the company as evergreen and they realize that maximum profits will always be guaranteed if they are investing in Boeing. This is the reason that the stock price of the Boeing Company has increased since the last 5 or 10 years.

 

FEDEX Annual Changes in Segments’ Revenue Shares

The four existing segments of FEDEX have been holding relatively stable shares in the total revenue from Financial Year 2008 to 2013, with FEDEX Express dominating the charts significantly with relatively low variations in the revenue shares throughout the years. The other segments of the company are substantial contributors to the total revenue of the Company as well but comparatively the shares of FEDEX Services and FEDEX Freight have been fluctuating substantially, enough to reduce the share of FEDEX services over the financial years. This may be a reason due to the lack of capital investment activities carried out for market growth and capitalization.
FEDEX Ground had a decreased share in the FY 2008 its share in the next 2 years has remained constant. Significant variations between the company’s segments can be seen in the Financial Years 2011 to 2013 where FEDEX ground has achieved a higher share in revenue of approximately 5%, give or take, in FY 2010 and FY 2013.
Generally a decrease or an increase in the revenue share of divisions and segments can be traced down to the cash flow projections and operating activities carried out by that particular function or other external factors not in control of the business function. This can be further explained by the fact that the segment, FEDEX Freight incurred a decrease in revenue share in the FY 12 and 13, a probable possibility of this situation being the increase in Global average crude oil prices.
Likewise, the increase in the shares of FEDEX Ground can be supported by the evident possibility of customers preferring ground services and logistics to air and sea freight which can be further supported by the fact that since 2012 the average crude oil prices globally have experienced substantial volatility.