#1 - Delta Air Lines (NYSE:DAL)
Delta Air Lines Inc. (NYSE: DAL) is one travel stock that can fit into any investor’s portfolio. By many accounts, Delta is simply the most well-run airline. The company took aggressive steps (and took on debt) to protect the bottom line in 2020. Those steps are paying off today as the company is seeing revenue and earnings return to 2019 levels. Delta is increasing free cash flow while purposefully paying down its debt.
One attribute that Delta has that many investors overlook is multiple revenue streams. In addition to its legacy business, the airline generates about 10% of its revenue from cargo. It generates an added 10% of revenue from its service business, which includes servicing airlines of other carriers.
And then there’s the company’s valuation. Delta trades at 7.99x forward earnings, and analysts have a consensus price target of $59.25, which offers an 11% upside. Plus, Delta reinstated its dividend in 2023 and will likely raise it in the coming quarters.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.
Read More - Current Price
- $42.03
- Consensus Rating
- Buy
- Ratings Breakdown
- 12 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $60.70 (44.4% Upside)
