Delta Air Lines Airbus A350-900 (N512DN) passenger plane. viper-zero
Delta Air Lines (NYSE:DAL) has been one of the worst-performing large cap stocks of the last five years. Having gone from $62 in 2019 to $19 by the COVID-era lows, it fell
Delta Air Lines: The Ultimate Contrarian Buy
Summary
- Delta Air Lines stock is cheap, trading at just 7 times earnings.
- Its earnings grew 162% in the trailing 12-month period.
- Despite the COVID-19 pandemic having nearly ruined the company in 2020 and 2021, Delta's earnings increased in the trailing 5-year period.
- I strongly suspect that much of the continuing bearishness on airline stocks is "COVID shell shock," as it is inexplicable based on fundamentals.
- A very extreme increase in oil prices could make things complicated for DAL, which is why I consider it just a buy, not a strong buy. If I were going off historical financials alone, I'd consider it a strong buy.
Financial journalist. Passed CFA Level 1. Seeking value and dividend growth opportunities, and sharing what I find on Seeking Alpha.
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