#5 - Delta Airlines (NYSE:DAL)
Another industry that is a favorite of Warren Buffett is the airline industry. For years, Buffett expressed criticism of the industry as a whole. However, ever since 2016, Berkshire-Hathaway has been actively investing in the four largest U.S. airlines. Delta (DAL) is the smallest of the four, however, it is the only airline in which Berkshire has increased its investment in 2018, buying approximately $26 million worth of the stock and raising its ownership to 7.6 percent.
Like all airline stocks, Delta has been stung by higher oil prices that have lowered its stock price by 10 percent. However, Delta reported second-quarter revenues that increased eight percent year-over-year and saw total revenue per available seat mile (TRASM) increase 4.6% in the quarter and is now up 4.8% for the year. Analysts see Delta as being well-positioned for the trend that has consumers valuing the experience of travel to the extent that they are continuing to make travel plans despite higher oil prices.
Additionally, some industry analysts are speculating that Berkshire may be purchasing Delta and other airline stocks as a precursor to acquiring an airline of its own. And now for a few stocks that Berkshire continues to hold and shows no signs of letting go.
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
- $51.04
- Consensus Rating
- Buy
- Ratings Breakdown
- 12 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $59.85 (17.3% Upside)
