Delta Air Lines Inc. (DAL) stock is nearly perfect except the valuation

Delta Air Lines Inc. (NYSE: DAL) closed the day trading at $33.71 up 1.44% from the previous closing price of $33.23. In other words, the price has increased by $+0.48 from its previous closing price. On the day, 13428748 shares were traded. DAL stock price reached its highest trading level at $33.89 during the session, while it also had its lowest trading level at $32.63.

From Robots to Self-Driving Cars: 5 AI Stocks to Consider for Your Portfolio

The artificial intelligence (AI) revolution is already here and it's about to change everything we know about everything. With the global market for AI projected to grow from $137 billion in 2022 to over $1.81 trillion by 2030, there's never been a better time to invest in this burgeoning industry. That's why we've compiled a list of the Top 5 AI Stocks to Buy for 2023. These companies are at the forefront of the AI revolution, and have the potential to deliver huge returns to investors like you.

Get our free report, "Top 5 AI Stocks to Buy for 2023".



For a better understanding of DAL, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 3.42 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 4.97. For the most recent quarter (mrq), Quick Ratio is recorded 0.40 and its Current Ratio is at 0.50. In the meantime, Its Debt-to-Equity ratio is 3.50 whereas as Long-Term Debt/Eq ratio is at 3.14.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Evercore ISI on March 07, 2023, Upgraded its rating to Outperform and sets its target price to $47 from $40 previously.

On February 08, 2023, Redburn Upgraded its rating to Buy which previously was Neutral but kept the price unchanged to $55.

Argus Upgraded its Hold to Buy on January 05, 2023, while the target price for the stock was maintained at $39.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Feb 28 when Smith Joanne D sold 4,846 shares for $38.43 per share. The transaction valued at 186,232 led to the insider holds 115,295 shares of the business.

HAUENSTEIN GLEN W sold 5,000 shares of DAL for $189,325 on Feb 27. The President now owns 278,712 shares after completing the transaction at $37.87 per share. On Feb 14, another insider, Samant Rahul D, who serves as the EVP & Chief Info Officer of the company, sold 13,124 shares for $38.77 each. As a result, the insider received 508,844 and left with 57,383 shares of the company.

Valuation Measures:

As of this moment, Delta’s Price-to-Earnings (P/E) ratio for their current fiscal year is 16.45, and their Forward P/E ratio for the next fiscal year is 4.91. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.44. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.44 while its Price-to-Book (P/B) ratio in mrq is 3.27.

Stock Price History:

Over the past 52 weeks, DAL has reached a high of $46.27, while it has fallen to a 52-week low of $27.20. The 50-Day Moving Average of the stock is 38.06, while the 200-Day Moving Average is calculated to be 34.05.

Shares Statistics:

Over the past 3-months, DAL traded about 9.80M shares per day on average, while over the past 10 days, DAL traded about 10.81M shares per day. A total of 641.24M shares are outstanding, with a floating share count of 639.00M. Insiders hold about 0.20% of the company’s shares, while institutions hold 67.50% stake in the company. Shares short for DAL as of Jan 30, 2023 were 20.84M with a Short Ratio of 21.77M, compared to 19.53M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 3.25% and a Short% of Float of 3.66%.

Earnings Estimates

Current recommendations for the stock of the company come from 15 analysts. On average, analysts expect EPS of $0.32 for the current quarter, with a high estimate of $0.4 and a low estimate of $0.2, while EPS last year was -$1.23. The consensus estimate for the next quarter is $1.57, with high estimates of $1.9 and low estimates of $0.53.

Analysts are recommending an EPS of between $6.15 and $4.08 for the fiscal current year, implying an average EPS of $5.19. EPS for the following year is $6.93, with 17 analysts recommending between $7.95 and $5.35.

Revenue Estimates

7 analysts predict $12.06B in revenue for the current quarter. It ranges from a high estimate of $12.16B to a low estimate of $11.98B. As of the current estimate, Delta Air Lines Inc.’s year-ago sales were $8.16B, an estimated increase of 47.70% from the year-ago figure. For the next quarter, 7 analysts are estimating revenue of $14.18B, an increase of 15.20% less than the figure of $47.70% in the same quarter last year. There is a high estimate of $14.31B for the next quarter, whereas the lowest estimate is $14.06B.

A total of 9 analysts have provided revenue estimates for DAL’s current fiscal year. The highest revenue estimate was $54.75B, while the lowest revenue estimate was $52.68B, resulting in an average revenue estimate of $53.77B. In the same quarter a year ago, actual revenue was $45.6B, up 17.90% from the average estimate. Based on 10 analysts’ estimates, the company’s revenue will be $56.08B in the next fiscal year. The high estimate is $60.18B and the low estimate is $52.35B. The average revenue growth estimate for next year is up 4.30% from the average revenue estimate for this year.