2024-07-03 05:24:53 ET
Summary
- Delta Air Lines stock is cheap, trading at just 7 times earnings.
- Its earnings grew 162% in the trailing 12-month period.
- Despite the COVID-19 pandemic having nearly ruined the company in 2020 and 2021, Delta's earnings increased in the trailing 5-year period.
- I strongly suspect that much of the continuing bearishness on airline stocks is "COVID shell shock," as it is inexplicable based on fundamentals.
- A very extreme increase in oil prices could make things complicated for DAL, which is why I consider it just a buy, not a strong buy. If I were going off historical financials alone, I'd consider it a strong buy.
Delta Air Lines ( DAL ) has been one of the worst-performing large cap stocks of the last five years. Having gone from $62 in 2019 to $19 by the COVID-era lows, it fell a whopping 70% from top to bottom. And, the stock still hasn’t recovered to its 2019 high, being currently down 18.8% from that level!...
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For further details see:
Delta Air Lines: The Ultimate Contrarian Buy