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Delta Air Lines, Inc. (DAL), headquartered in Atlanta, Georgia, is a global aviation industry leader committed to connecting people and communities worldwide. With a market cap of $39.7 billion, the company provides comprehensive air travel services, combining operational excellence and customer-focused innovations.
Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Delta Air fits this category. Delta delivers reliable and customer-focused air travel solutions by combining operational excellence, technological innovation, and a strong commitment to sustainability.
Shares of the airline company have fallen 9.6% from its 52-week high of $67.50, hit on Dec. 5. The stock is up 34.7% over the past three months, significantly outperforming the broader Nasdaq Composite’s ($NASX) 14.7% gain during the same time frame.
Over the long term, DAL has achieved a YTD gain of 51.8% and a 44.2% increase over the past 52 weeks. In comparison, the NASX has risen 34.4% in 2024 and 36.2% over the same period.
Since September, DAL has been trading above its 50-day and 200-day moving averages, indicating a bullish trend.
Delta Air Lines reported its Q3 earnings on Oct.10, showcasing strong financial performance. The company posted an operating revenue of $14.6 billion and an operating income of $1.4 billion, with a solid operating margin of 9.4%. Earnings per share reached $1.50, driven by robust operating cash flow of $1.3 billion and free cash flow of $95 million, bringing year-to-date free cash flow to $2.7 billion.
Following the announcement, Delta’s shares climbed 2.1% on Oct. 11, reflecting investor confidence. Looking ahead to Q4, the company projects year-over-year total revenue growth between 2% and 4%, an operating margin between 11% and 13%, and EPS in the range of $1.60 to $1.85.
DAL’s top rival, Southwest Airlines Co. (LUV), has underperformed, showing a 13.2% increase on a YTD basis and 12.7% gains over the past 52 weeks.
Wall Street analysts hold an optimistic view of DAL's prospects. Of the 20 analysts covering the stock, the consensus rating is “Strong Buy,” with a mean price target of $75.42, indicating a potential upside of 23.5% from its current level.
