Delta Air Lines (DAL – Free Report) may be a terrific carrier and a good value, but recent downward EPS revisions have pushed the stock into the cellar of the Zacks Rank.

In the past 60 days, full-year 2016 earnings estimates have dropped 8% from $5.71 to $5.25, bringing this year’s profit picture down to a still-respectable 14% growth.

But 2017 profit projections dropped 10% from $5.60 to $5.04, representing minus 4% “growth.” Investors with good long-term gains in Delta may want to consider lightening their cargo in this name.

Transports Confirm Dow Theory Rally

Wednesday December 7 brought big bullish smiles to the faces of investors as the main indexes launched to record highs. The S&P 500 Index surged 1.3% to all-time highs above 2240 and the Dow Jones Industrials grabbed nearly 300 points, or 1.55%, to close above 19,550 for the first time.

And the Dow Jones Transportation Average – a price-weighted average of 20 U.S. transportation securities – ended the day 2.54% higher, closing at 9,371.61. The index includes railroads, truckers, marine transportation, delivery services and logistics companies, apart from airlines.

According to the Dow Theory, the Dow Jones Industrial Average governs the movement of the Dow Jones Transportation Average in normal market conditions. In the event of the industrial average scaling a new high, transports must follow suit.

The Dow Jones Transportation Average Index includes six airline stocks – Delta, United Continental Holdings (UAL – Free Report) , American Airlines Group (AAL – Free Report) , JetBlue Airways Corp. (JBLU – Free Report) , Alaska Air Group (ALK – Free Report) and Southwest Airlines (LUV – Free Report) .

With the Dow Jones Transportation Average Index performing exceptionally well, it was no surprise that airlines had a field day. Shares of all the airline companies present in the Dow Jones Transportation Average Index gained last week. The TRAN closed above 9400 to end the week.