Delta Air Lines earnings growth has cooled this past year from a massive 573% leap in the December 2022 quarter to "just" a 34% hike last quarter. The initial travel surge after the pandemic, known as "revenge travel" cooled this past year. But surprisingly, Delta stock is rising rapidly. The Relative Strength (RS) Rating for Delta stock moved up into a higher percentile Wednesday, as it got a lift from 69 to 75.
Delta Stock Up 7 Weeks In A Row
The upgraded 75 RS Rating means that Delta stock tops 75% of all other stocks for price performance this past year. It's a good but not yet great number. Market research shows that the market's biggest winners typically have an RS Rating north of 80 as they launch their largest price moves. See if Atlanta-based Delta Air Lines can continue to rebound and hit that benchmark.
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Delta stock soared in the year after the Covid market crash, from 17.51 in May 2020 to 52.28 on March 19, 2021. It mostly moved sideways from there and closed at 41.19 Wednesday. It built a couple of bases but wasn't able to break out.
However, it's showing new life. Its stock has closed higher for the last seven weeks and it's building a cup-without-handle base with a 49.81 entry. See if it can break out in heavy trade.
Delta Air Lines reported 34% earnings growth last quarter, to $2.03 per share, on an 11% increase in sales to $15.5 billion. The next quarterly results are expected on or around Jan. 11.
No. 2 In Airlines Group
Delta stock holds the No. 2 rank among its peers in the 20-stock Transportation-Airline industry group. Ireland's Ryanair is No. 1 and Panamanian airline Copa Airlines is No. 3 among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
Investor's Business Daily's Relative Strength Rating measures price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
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