Last Updated: 18 Sep 2024
Executive Summary
Delta Air Lines Inc. (DAL) is a leading U.S. airline with a strong financial performance and positive industry outlook. The company's recent quarterly results showed modest revenue growth and a slight decline in earnings, but overall fundamentals remain solid. Technical analysis suggests a potential upward trend in the near term, while long-term prospects are favorable due to increased travel demand and industry tailwinds.
Company Overview
Delta Air Lines is headquartered in Atlanta, Georgia, and operates a fleet of over 900 aircraft. The company serves over 300 destinations worldwide and is a member of the SkyTeam global airline alliance. Delta is known for its strong customer service, operational efficiency, and financial stability.
Fundamental Analysis
Revenue: Revenue for the latest quarter was $60.1 billion, up 0.069% year-over-year.
Earnings: Diluted EPS for the latest quarter was $6.97, down 0.292% year-over-year.
Profitability: Profit margin is 0.0746, operating margin is 0.133, return on assets is 0.0503, and return on equity is 0.438.
Valuation: The stock is currently trading at a trailing PE of 6.7 and a forward PE of 6.38. The price-to-sales ratio is 0.501 and the price-to-book ratio is 2.432.
Technical Analysis
Trend: The stock is currently in a sideways trend, with the 50-day moving average at $42.33 and the 200-day moving average at $44.26.
Support and Resistance: Support is at $45 and $43, while resistance is at $48 and $50.
Momentum: The relative strength index (RSI) is at 52, indicating neutral momentum.
Short Term Outlook
In the short term, the stock is expected to trade within a range of $45-$50. The 50-day moving average is acting as support, while the 200-day moving average is acting as resistance. A break above $50 could signal a bullish trend, while a break below $45 could indicate a bearish trend.
Long Term Outlook
The long-term outlook for Delta Air Lines is positive. The company is well-positioned to benefit from increased travel demand as the global economy recovers from the pandemic. The airline's strong financial position and operational efficiency should allow it to continue to generate strong returns for shareholders.
Analyst Recommendations
Analysts have a bullish view on Delta Air Lines. The consensus analyst target price is $60.3, with 7 analysts rating the stock as a "Strong Buy," 13 as a "Buy," and 1 as a "Hold." No analysts rate the stock as a "Sell" or "Strong Sell."
