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Delta Air Lines (DAL), headquartered in Atlanta, Georgia, boasts a market cap of $24.66 billion and is known for its comprehensive domestic and international flight network. DAL is one of the largest airlines in the U.S., serving millions of passengers annually through its extensive fleet and numerous global destinations.
DAL stock has significantly underperformed the broader market over the last year. The stock has declined 14.5% over this time frame, while the broader S&P 500 Index ($SPX) rallied nearly 17%. In 2024, Delta stock fell 3.8% compared to SPX's 9.9% gains on a YTD basis.
Narrowing the focus, DAL has marginally outperformed the US Global Jets (JETS). JETS has declined 16.8% over the past year and 10.4% on a YTD basis.
DAL reported its Q2 earnings on Jul. 11. The company missed the earnings estimate but surpassed the revenue estimates. Delta forecasts Q3 earnings per share between $1.70 and $2, with full-year earnings projected at $6 to $7 per share. The stock declined 4% on the earnings release day.
For the current fiscal year, ending in December 2024, analysts expect EPS to grow marginally year over year to $6.26 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 19 analysts covering DAL stock, the consensus rating is a “Strong Buy.” That’s based on 19 “Strong Buys.”
This configuration is more bullish than three months ago, with 17 analysts suggesting a “Strong Buy.”
On Aug. 5, Bank of America Securities analyst Andrew Didora reiterated a “Buy” rating on Delta Air Lines with a price target of $55, implying a potential upside of 42.2% from current levels.
The mean price target of $60.59 represents a 56.6% premium to DAL’s current price levels. The Street-high price target of $85 suggests an ambitious upside potential of 119.8%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
