Is Delta Air Stock Outperforming the Nasdaq?
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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.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.