DAL - Is Delta Stock a Buy Right Now?
2024-05-23 05:10:00 ET
Delta Air Lines (NYSE: DAL) recently closed the books on a record-setting quarter. The quarter follows a successful 2023 that marked a full return to normal operations following the impacts of the COVID-19 pandemic. Like many consumer-facing businesses, Delta was forced to borrow money to stay in business thanks to pandemic- and shutdown-related pressures. Persistent inflation and economic uncertainty throughout 2022 kept the brakes on Delta's recovery, but the full-year 2023 and first-quarter 2024 results are a relief to investors who held on through the lows of 2020-2022.
For 2023, Delta earned net income of $6.25 per share on an adjusted basis, up from $3.20 in 2022. Based on a recent closing price of $52.99 per share, the price-to-earnings ratio (P/E) was 8.48 based on trailing earnings.
P/E ratios lower than 15 are widely regarded as representing value, giving investors the opportunity to own a share of earnings at lower prices than companies with higher P/E ratios. The increased net income was generated from record annual revenue of $54.7 billion. Full-year 2023 free cash flow was $2 billion, or $3.11 per share.
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Is Delta Stock a Buy Right Now?