We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
6 Reasons Why Investors Should Bet on Delta Air (DAL) Stock
Read MoreHide Full Article
Delta Air Lines, Inc. (DAL - Free Report) is benefiting from improved air-travel demand and strength across cargo business.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Delta Air an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse so far this year. Shares of Delta Air have gained 12.4% over the past three months, outperforming 9.6% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Delta Air currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Delta Air’s fourth-quarter 2022 earnings has moved up 31.6% year over year. For 2022, the company’s earnings are expected to increase 8.7% year over year.
Positive Earnings Surprise History: Delta Air has an impressive earnings surprise history. The company delivered an earnings surprise of 7.90% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter and full-year 2022 each, Delta Air’s earnings are expected to register more than 100% growth.
Growth Factors:Improved air-travel demand, particularly on the domestic front, is aiding Delta Air. The uptick in air-travel demand in the United States can be gauged from the fact that 71.1% of third-quarter 2022 passenger revenues came from the domestic markets. Operating revenues increased 11% from the third quarter of 2019, reflecting the buoyancy in air-travel demand. The uptick in cargo revenues (up 27% year over year in third-quarter 2022) is a positive too. DAL expects revenues in fourth-quarter 2022 to increase in the 5-9% band. Delta Air’s sound liquidity position is an added positive.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are as follows:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
CVLG currently sports a Zacks Rank #1. The gradually improving freight market scenario is a tailwind for Covenant. CVLG’s cost-control efforts are also appreciated. The Zacks Consensus Estimate for 2022 earnings has been revised 10.1% upward in the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. However, high fuel costs are weighing on the bottom line.
Teekay Tankers currently flaunts a Zacks Rank #1. TNK’s shares have soared 171% in a year. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
6 Reasons Why Investors Should Bet on Delta Air (DAL) Stock
Delta Air Lines, Inc. (DAL - Free Report) is benefiting from improved air-travel demand and strength across cargo business.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Delta Air an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse so far this year. Shares of Delta Air have gained 12.4% over the past three months, outperforming 9.6% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Delta Air currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Delta Air’s fourth-quarter 2022 earnings has moved up 31.6% year over year. For 2022, the company’s earnings are expected to increase 8.7% year over year.
Positive Earnings Surprise History: Delta Air has an impressive earnings surprise history. The company delivered an earnings surprise of 7.90% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter and full-year 2022 each, Delta Air’s earnings are expected to register more than 100% growth.
Growth Factors:Improved air-travel demand, particularly on the domestic front, is aiding Delta Air. The uptick in air-travel demand in the United States can be gauged from the fact that 71.1% of third-quarter 2022 passenger revenues came from the domestic markets. Operating revenues increased 11% from the third quarter of 2019, reflecting the buoyancy in air-travel demand. The uptick in cargo revenues (up 27% year over year in third-quarter 2022) is a positive too. DAL expects revenues in fourth-quarter 2022 to increase in the 5-9% band. Delta Air’s sound liquidity position is an added positive.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are as follows:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
CVLG currently sports a Zacks Rank #1. The gradually improving freight market scenario is a tailwind for Covenant. CVLG’s cost-control efforts are also appreciated. The Zacks Consensus Estimate for 2022 earnings has been revised 10.1% upward in the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. However, high fuel costs are weighing on the bottom line.
Teekay Tankers currently flaunts a Zacks Rank #1. TNK’s shares have soared 171% in a year. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.