#2 - Delta Air Lines (NYSE:DAL)
The bullish case for Delta Air Lines (NYSE:DAL) is nearly identical to that of Southwest. This is a company with a healthy balance sheet that is poised for air traffic to return in full. And according to CEO Ed Bastian, that growth is imminent, “…we are confident in a strong spring and summer travel season with significant pent-up demand for consumer and business travel.”
If Bastian is right, then, as MarketBeat contributor Sean Sechler points out, Delta may be better positioned to capitalize on that growth than due to their premium experiences and credit card reward programs.
Like Southwest, Delta has a high forward price/earnings ratio that would suggest the stock is overvalued. But with strong earnings and revenue numbers expected over the next few years, the company is likely to grow into that valuation and have the stock push even higher. Analysts give the stock an 18% upside ($51.25) from its price at the time of this writing. However, analysts have not weighed in since many states began announcing the removal of some pandemic restrictions.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.
Read More - Current Price
- $49.90
- Consensus Rating
- Buy
- Ratings Breakdown
- 11 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $58.29 (16.8% Upside)
