NYSE:DAL
Delta Air Lines Inc (DAL)
Financials 
Technical Analysis 
It's a short-term rental and based on momentum, not fundamentals, but he's starting to change his mind. Why? Delta commands high passenger capacity despite high prices.
Joe TerranovaIt is still cheap at a 15% free cash flow yield. The business travel component is back to pre-pandemic levels, at least for Delta. Trades at 6 1/2X expected earnings.
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Premium contentAs management reaffirms Q1 profit projections as international travel demand returns along with a stronger US dollar, we again reiterate DAL as a TOP PICK. It’s trading at 6x earnings, 2.5x book and supports a robust 52% ROE. Quarterly cash flow is growing, while debt is retired. We recommend trailing up the stop (from $30) to $39, looking to achieve $54 — upside potential of 27%. Yield 0.9%
(Analysts’ price target is $54.53)
Premium contentWe again reiterate DAL as a TOP PICK. With management expecting a sizable resurgence in travel, the company has announced additions in flights, totaling up to 1000 weekly flights to sunny destinations. We like that quarterly cash flow is growing, while debt is retired. It trades at 6x earnings, 2.3x book and supports a robust 52% ROE. We continue to recommend a stop at $30, looking to achieve $54 -- upside potential of 33%. Yield 0.5%
(Analysts’ price target is $54.24)Premium contentWe reiterate DAL as a TOP PICK as it expects 9 million passengers to have flown this holiday season with November setting a record high. It trades at 8x earnings, under 3x book and supports a 49% ROE. Quarterly cash flows were up, while debt was being reduced. We continue to recommend a stop at $30, looking to achieve $53 -- upside over 25%. Yield 0.5%
(Analysts’ price target is $53.47)Premium contentAs the US just achieved the busiest air travel day in history, we reiterate DAL as a TOP PICK. It trades at 7x earnings and supports a ROE of 49%. Quarterly cash reserves are growing as debt is retired and shares bought back. We recommend trailing up the stop (from $26) to $30, looking to achieve $53 -- upside potential of 40%. Yield 0.5%
(Analysts’ price target is $53.47)There is lots of pessimism in airlines now and airlines are trading at 2020 prices even though the situation is much better. It is the best managed airline in North America and rated the number one airline for the past several years by the wall Street Journal. It is trading at 5 1/2X this year's and next year's earnings.
He also talked about Air Canada which is also at an attractive price. The demand is roaring back but the capacity is well down from 2019. Advance ticket sales are way up. In general the airlines are keeping the supply tight.
Buy 22 Hold 0 Sell 0
Teal LindePremium contentAs passenger demand returns, DAL is a premium brand with significant free cash flow generation that is offering good value here. It trades at 6x earnings, 2.2x book and supports a 49% ROE. Quarterly cash reserves are growing again, while the company retires debt. We recommend placing a stop-loss at $26, looking to achieve $42 -- upside potential of 31%. Yield 0.6%
(Analysts’ price target is $53.94)
He wouldn't sell a share. Operations and results vs. two years are much much higher. Earnings estimates for 2023 are 30% higher than when the year started. Trades at 6x forward.
Jim Lebenthal
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The ongoing travel boom and today's stronger employment numbers means giving this a try, though he normally doesn't recommend buying stock before they report (DAL on Wednesday).