Stocks Under $10: Delta, Jetblue and Southwest Airlines Lead Undervalued Plays

Richard Suttmeier |

Stocks Under $10: Delta, Jetblue and Southwest Airlines Lead Undervalued PlaysThe Transportation Sector is 3.0% undervalued according to www.ValuEngine.com in an environment where thirteen of sixteen sectors are overvalued, five by double-digit percentages.

For today’s report I screened through 65 transportation stocks that are trading below $10 but above one buck. I culled the list down to 10 stocks by eliminating stocks that had either incomplete ValuEngine data, or did not have the pricing history to calculate the full range of value levels, pivots and risky levels.

Transport Stocks Under 10(Click to Enlarge)

Reading the Table

OV / UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. BZH is the most undervalued by 59.1%. GFA is the most overvalued by 65.7%.

VE Rating: A “1-Engine” rating is a Strong Sell, a “2-Engine” rating is a Sell, a “3-Engine” rating is a Hold, a “4-Engine” rating is a Buy and a “5-Engine” rating is a Strong Buy. <P/> 3 stocks are rated Strong Sell, 5 are rated Sell, six are rated Hold, and only one, CX, is rated Buy.

Last 12-Month Return (%): Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage. The best performer over the past twelve months is HOV with a gain of 262.1%. The worst performer over the past twelve months is SKY with a loss of 43.2%.

Forecast 1-Year Return: Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. The best projected gain is 6.8% CX. The worst projected loss is SKY 19.6%.

P/E Ratios: Only ICA has a reasonable P/E ratio, while the others don’t have one, or the P/E ratio is extremely elevated.

Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.

Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.

Where to Buy and Where to Sell

A “Value Level” is a price at which buyers should add to positions on market price weakness. A “Risky Level” is a price at which sellers should reduce holdings on market price gains. A "Pivot" is a support or resistance (Value Level or Risky Level) that was violated in its time horizon, acting as a magnet during the remainder of that time horizon.  These levels are calculated in weekly (W), monthly (M), quarterly (Q), semiannual (S) and annual (A) time horizons, based on the past nine closes in each time horizon. My theory is that the closes over a nine-year period are the summation of all bullish and bearish events for that market or specific stock. These levels are the most important element of my Buy and Trade Strategy.

Buy and Trade Guidelines:  Investors should consider entering good until cancelled (GTC) orders to buy weakness to a value level, or to sell strength to a risky level.

If you have any questions, please contact me at Rsuttmeier@gmail.com.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CRS Carpenter Technology Corporation 41.99 1.70 4.22 418,942
CVTI Covenant Transportation Group Inc. 19.37 0.67 3.58 68,886
DAL Delta Air Lines Inc. 39.23 0.02 0.05 10,552,432
HA Hawaiian Holdings Inc. 48.50 -0.02 -0.04 1,108,362
JBLU JetBlue Airways Corporation 17.56 0.23 1.30 9,333,322
LUV Southwest Airlines Company 38.07 -0.47 -1.22 7,121,076
RJET Republic Airways Holdings Inc. n/a n/a n/a 0
RLOG Rand Logistics Inc. 0.76 -0.02 -1.95 30,058
STB Student Transportation Inc 6.02 0.04 0.61 131,467
SWFT Swift Transportation Company Class A 21.47 0.26 1.23 2,180,922
TEU null n/a n/a n/a 0

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