#5 - Delta Air Lines (NYSE:DAL)
Delta Air Lines (NYSE: DAL) - Airline stocks are always somewhat hard to forecast, but after a share price that dropped below $50 per share and still continues to trade about 10% off its year-to-date high near $60, it may be time for a closer look. One of the issues suppressing the stock, along with investor patience, is fuel prices. As crude oil prices continue to increase, investors have some reason to question whether or not the stock will grow. As a result, despite Delta’s optimistic projection of a significant increase in revenue per available seat mile (RASM) for the third quarter, some analysts are more concerned about the bigger picture for the stock. With higher fuel costs, at least in the short term, Delta will be hard pressed to meet its goal of a flat pre-tax margin (it had been negative). However, with a recently renovated fleet and the company's ability to keep non-fuel costs in line, investors who have the patience to ride this stock out until oil prices level out, or start to decline, may be rewarded with a stock that is looking to be selling at a nice discount.
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
- $48.79
- Consensus Rating
- Buy
- Ratings Breakdown
- 12 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $59.85 (22.7% Upside)
