GM - Delta Air Lines: Positives Outweigh The Risks
2024-04-24 16:52:57 ET
Summary
- Delta stock has seen a robust price rise year-to-date after a 22% price rise in 2023 thanks to the travel industry recovery, healthy revenue growth and profits.
- However, there are risks ahead stemming from a likely slowdown, elevated interest expenses as rates stay higher for longer, and higher costs due to labor action.
- Even considering the worst-case scenario, DAL's forward P/E still indicates price upside, and dividends can rise too.
Much has gone in favor of Delta Air Lines ( DAL ) in the recent past, driving its price up by ~20% year-to-date after a 22% increase in 2023. Continued improvements in travel demand, an easing in inflation impacting costs positively, the resulting profits, and a positive outlook all support the DAL stock....
Delta Air Lines: Positives Outweigh The Risks