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Delta Air Lines, Inc. (DAL), headquartered in Atlanta, Georgia, operates a robust global network, connecting passengers and cargo across the U.S. and internationally. With a market cap of $31.9 billion, the company also offers a range of services, from ticket sales through delta.com and mobile apps to aircraft maintenance and vacation packages. Delta has been a pivotal player in air transportation since its founding in 1924.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Delta Air Lines fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the airline industry.
Despite its strengths, Delta Air Lines slipped 8.3% from the 52-week high of $53.86 achieved on May 13. DAL stock has gained 22.8% over the past three months, significantly outperforming the US Global Jets ETF (JETS), which declined 2.6% over the same time frame.
In the longer term, Delta Air Lines gained 22.8% on a YTD basis and returned 15.3% over the past 52 weeks, substantially outperforming JETS, which rose 4.1% on a YTD basis and dipped 2% over the past 52 weeks.
To confirm the bullish price trend, DAL stock has traded above its 50-day and 200-day moving averages since late January, with a few fluctuations.
Delta Air Lines has surged ahead of its peers thanks to booming leisure air travel demand and strategic fleet enhancements. The airline's decision to bolster its fleet with 20 Airbus A350-1000 jets underscores its commitment to modernization, impressing investors with future growth prospects. The airline company's stellar operational reliability and robust earnings result reported on April 10, highlighted by earnings beat by 25% and record-breaking Q1 revenue, have further bolstered its stock. Since its strong Q1 earnings report, Delta's stock has maintained a steady upward trajectory, reflecting market confidence in its strategic initiatives and solid financial outlook.
Delta Air Line has also outperformed its rival, United Airlines Holdings, Inc. (UAL). While UAL stock is down 6.6% over the past 52 weeks, and despite gaining 19.2% on a YTD basis, it lags behind DAL’s double-digit returns.
Wall Street analysts are bullish on DAL’s prospects. The stock has a unanimous “Strong Buy” rating from all the 18 analysts covering it. The mean price target of $61.25 suggests a potential upside of 24% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
