Delta Air Lines
DAL
$89.00
+1.96%
Delta Air Lines is one of the world's largest airlines, operating a hub-and-spoke network across over 300 destinations in more than 50 countries, with its primary hub in Atlanta. As a legacy carrier, Delta holds a strong competitive position through its extensive route network, premium service offerings, and strategic alliances, distinguishing it from low-cost competitors. The current investor narrative centers on Delta's unique competitive advantage from owning an oil refinery, which provides a natural hedge against rising jet fuel costs amid geopolitical tensions, as highlighted by Berkshire Hathaway's recent investment. Additionally, the stock is gaining attention for its strong operational performance and potential for margin expansion as industry consolidation and fuel cost pressures create winners and losers.…
DAL
Delta Air Lines
$89.00
Related headlines
DAL 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Delta Air Lines's 12-month outlook, with a consensus price target around $115.70 and implied upside of +30.0% versus the current price.
Average Target
$115.70
7 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
7
covering this stock
Price Range
$71 - $116
Analyst target range
Delta Air Lines is covered by 5 analysts, with a consensus leaning bullish. All recent ratings from major firms (UBS, Citigroup, Wells Fargo, Jefferies, Evercore ISI, TD Cowen) are Buy or Outperform, with no Hold or Sell ratings in the recent data. The average estimated EPS for the current fiscal year is $10.63, with a low of $9.85 and a high of $11.27. The average estimated revenue is $78.23 billion, with a range of $73.81 billion to $81.87 billion. Based on the current price of $92.75 and the average EPS estimate of $10.63, the forward P/E would be 8.73x, which is below the trailing P/E, implying potential upside if earnings materialize. The implied upside to the average target is not directly provided, but using the average EPS and a conservative P/E of 10x would yield a target of $106.30, representing about 14.6% upside. The high EPS estimate of $11.27 and a 10x multiple would give $112.70 (21.5% upside), while the low estimate of $9.85 gives $98.50 (6.2% upside). The tight range of EPS estimates (9.85 to 11.27) suggests relatively high conviction among analysts. The recent purchase by Berkshire Hathaway's Greg Abel adds a strong vote of confidence, and the consistent Buy ratings from multiple firms indicate a bullish consensus. However, the lack of Hold or Sell ratings may reflect a lack of bearish voices, which could be a contrarian indicator if risks materialize.
DAL Technical Analysis
Delta Air Lines is in a powerful sustained uptrend, with the stock price surging 85.0% over the past year, dramatically outperforming the S&P 500's 19.1% gain. The current price of $92.75 sits at 96.9% of its 52-week range (52-week low of $49.19, high of $95.68), indicating strong momentum and near-term overextension but also reflecting robust investor confidence. Short-term momentum is accelerating sharply, with the stock up 15.9% in the past month and 38.9% over the past three months, far outpacing the S&P 500's 1-month decline of 1.25% and 3-month gain of 13.6%. This divergence between Delta's accelerating short-term trend and the broader market's more muted performance suggests company-specific catalysts are driving the rally, potentially signaling a sustained breakout rather than a temporary pullback. The stock's beta of 1.288 indicates it is about 29% more volatile than the market, amplifying both upside and downside moves. Key resistance sits at the 52-week high of $95.68, a breakout above which would signal a continuation of the uptrend toward new highs, while support is at the 52-week low of $49.19, though the stock is far from that level. A breakdown below recent support near $80 could signal a trend reversal, but given the strong momentum, the path of least resistance remains higher.
Beta
1.29
1.29x market volatility
Max Drawdown
-23.1%
Largest decline past year
52-Week Range
$50-$96
Price range past year
Annual Return
+75.5%
Cumulative gain past year
| Period | DAL Return | S&P 500 |
|---|---|---|
| 1m | +9.6% | +2.0% |
| 3m | +31.2% | +10.6% |
| 6m | +23.1% | +8.3% |
| 1y | +75.5% | +20.4% |
| ytd | +28.9% | +10.2% |
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DAL Fundamental Analysis
Delta's revenue trajectory is growing but decelerating, with the most recent quarter (Q4 2025) reporting $16.003 billion, up 2.85% year-over-year from $15.559 billion in Q4 2024. However, this growth rate has slowed from the 6.9% YoY growth seen in Q2 2025 ($16.648 billion vs. $16.658 billion in Q2 2024) and the 7.1% growth in Q3 2025 ($16.673 billion vs. $15.677 billion in Q3 2024). The Airline segment generated $14.605 billion in revenue, while the Refinery segment contributed $1.748 billion, with intersegment eliminations of -$986 million. The deceleration suggests that post-pandemic pent-up demand is normalizing, but Delta's refinery provides a unique cost advantage that could support margins even as revenue growth moderates. Delta is solidly profitable, with net income of $1.219 billion in Q4 2025 and a trailing twelve-month net income of $5.009 billion. Gross margin for Q4 2025 was 22.36%, down from 28.56% in Q4 2024, reflecting higher fuel costs and operational expenses. Operating margin was 9.17% in Q4 2025, compared to 11.04% in the year-ago quarter, indicating margin compression. However, the company's net margin of 7.62% in Q4 2025 is still healthy, and the full-year net margin of 7.90% is above the industry average for airlines, which typically hovers around 5-7%. The balance sheet shows improving financial health, with free cash flow of $1.352 billion in Q4 2025 and $3.841 billion in trailing twelve months, providing ample liquidity for debt reduction and capital returns. Debt-to-equity ratio stands at 1.016, down from 1.489 in Q4 2024, indicating deleveraging. Return on equity (ROE) is a robust 24.12%, reflecting strong profitability relative to shareholder equity, while the current ratio of 0.396 is low but typical for airlines given high advance ticket sales (liabilities).
Quarterly Revenue
$16.0B
2025-12
Revenue YoY Growth
+2.85%
YoY Comparison
Gross Margin
22.36%
Latest Quarter
Free Cash Flow
$3.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is DAL Overvalued?
Since Delta has positive net income, the primary valuation metric is the P/E ratio. The trailing P/E is 8.99x, while the forward P/E is 11.43x, implying that the market expects earnings to decline slightly or that the current earnings are elevated. The gap between trailing and forward P/E suggests that the market is pricing in a normalization of earnings from the current high levels. Compared to the industry average P/E (not provided, but airlines typically trade at 10-15x), Delta's trailing P/E of 8.99x appears cheap, but the forward P/E of 11.43x is more in line with historical norms. The PEG ratio of 0.208 indicates that the stock is undervalued relative to its earnings growth rate, assuming growth continues. Historically, Delta's trailing P/E has ranged from as low as 3.16x (Q4 2023) to as high as 208.5x (Q1 2024, when earnings were depressed). The current trailing P/E of 8.99x is near the lower end of its historical range, suggesting the stock is not overvalued relative to its own history. The price-to-sales ratio of 0.71x is also low, reflecting the market's cautious view on airline cyclicality. Overall, the valuation appears attractive, with the market pricing in conservative expectations that could be exceeded if Delta maintains its profitability.
PE
9.0x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range -15x~209x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
7.7x
Enterprise Value Multiple