Delta Air Lines Inc. (DAL:NYE) Analysts rate as a Strong Buy, $52

STA Research
by: STA Research
Delta Air Lines Inc.

Based on the Delta Air Lines Inc. (dal stock forecast) stock forecasts from 14 analysts, the average analyst target price for Delta Air Lines Inc. is USD 51.72 over the next 12 months. Delta Air Lines Inc.’s (dal stock forecast) average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Delta Air Lines Inc. is Slightly Bearish, based on 6 positive and 8 negative signals. At the last closing, Delta Air Lines Inc.’s stock price was USD 30.09. Delta Air Lines Inc.’s stock price has changed by +0.37% over the past week, +0.51% over the past month and -24.89% over the last year.

In the United States and abroad, Delta Air Lines, Inc. offers scheduled air service for people and cargo. The business is divided into the airline and refinery businesses. A fleet of about 1,200 aircraft powers the company’s operations. Atlanta, Georgia is the home base of Delta Air Lines, Inc., which was established in 1924.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price-to-earnings basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peer’s median on a price-to-book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price-to-free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

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