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Jim Cramer Talks Delta Air Lines, Off-Price Retailers

Jim Cramer Talks Delta Air Lines, Off-Price Retailers

Delta Air Lines, Inc. (NYSE: DAL) said in an investor presentation on Monday that it plans on reducing its capacity plan for the bottom half of 2016. Specifically, the company plans on removing around 1 point of planned capacity growth for the fourth quarter and for overall capacity growth to slow below 2 percent in the bottom half of 2016.

Jim Cramer discussed Delta's outlook during Monday's edition of "The Mad Dash."

According to Cramer, airline stocks have been "horrendous" at a time when investors look towards the transportation sector for "leadership." However, Delta's outlook is actually "good news" because the capacity expansion has been "as bad as the old days."

"This could be what is needed in terms of being able to make it so the price wars stop," Cramer said. "And Southwest Airlines Co (NYSE: LUV) has been winning the price war."

"Just be careful if you are short these - which everyone I know is in the hedge fund world," he concluded.

Related Link: Goldman Concerned Over Retail Stocks, Where To Park The Money

Switching over to the off-price retailing space, Cramer noted that analysts at Bernstein recommended investors buy TJX Companies Inc (NYSE: TJX) and Ross Stores, Inc. (NASDAQ: ROST).

Cramer demonstrated a similar bullish sentiment, stating that TJX and Ross Stores are two stores that benefit directly when traditional department stores are carrying too much inventory.

"They come in, and buy the stuff low and mark it up," Cramer explained. "They are the winners from the department stores problems - not the losers."

Posted-In: Airline CApacity Airline Price Wars airline stocks airlines CNBC Delta Air Lines Department StoresMedia


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