Stock Price & Analysis

Based on the analysis of Delta Air Lines (DAL) stock, considering both technical and fundamental factors, here is the recommendation:

Buy DAL stock as it shows potential for a rebound with oversold conditions and positive analyst sentiment, but monitor market trends closely.

The price prediction for DAL stock in 2025 is approximately $53 per share, with potential upside to $56 if it breaks through resistance levels. This forecast is based on strong earnings, positive analyst sentiment, and the stock being undervalued despite recent market declines.

The S1 support level for DAL Stock is $42.18 ,The R1 resistant level for DAL Stock is $49.21.

As of the end of day on 2025-04-01, the price of DAL Stock was $42.57.

The target price for DAL Stock according to analyst rating is 79.07, with the highest price target at 100.00 and the lowest at 65.00. Analysts have a Strong Buy rating on DAL Stock overall.

The market cap of DAL is $27.4B.

Analysis and Insights

Valuation Metrics:

Delta Air Lines (DAL) currently exhibits a mix of valuation metrics that suggest it may not be overvalued. Key metrics include:

• Price-to-Earnings (P/E) Ratio: Ranges between 6.14 and 11.34, indicating undervaluation compared to historical averages for the airline industry.
• EV/EBITDA: At 5.19–6.13, this is lower than peer averages, suggesting undervaluation.
• Price-to-Sales (P/S) Ratio: 0.52–0.64, which is favorable and indicates undervaluation.
• Price-to-Book (P/B) Ratio: 2.4–2.77, slightly above the industry average but not significantly overvalued.
• Dividend Yield: 0.63%–0.83%, relatively low but not indicative of overvaluation.

Market Trends:

• Stock Price Movement: DAL's stock has shown a recent increase, with a 4.23% gain in regular market hours, reflecting positive market sentiment.
• Analyst Sentiment: Despite some target price adjustments, analysts maintain a "Strong Buy" rating, indicating confidence in DAL's outlook.

Industry Context:

• Operational Efficiency: The airline industry is sensitive to economic conditions and fuel prices. DAL's position as a full-service carrier may provide advantages over discount airlines.
• Recent News: While other airlines face operational challenges, DAL's strategic adjustments and analyst optimism suggest stability.

Conclusion:

Based on the analysis, Delta Air Lines (DAL) does not appear to be overvalued. The combination of favorable valuation metrics and positive analyst sentiment supports this assessment.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel, as well as non-jet fuel products.

The price prediction for Delta Air Lines (DAL) stock in 2030 is $75 per share. This forecast is based on the company's strong financial performance, including revenue growth and improved margins, as well as its focus on premium products and debt reduction efforts. Analysts expect continued growth driven by demand for travel and operational efficiency.

DAL has a total of 103000 employees.