We’re fast approaching the Holiday season, and you know what that means…
Millions of Americans will be traveling to visit friends and family to partake in the festivities.
Will you be one of them?
If so, do you plan on driving or flying?
Both come with their pros and cons – but the fact is – if you want to get the most time out of your visit…
You’re most likely planning on flying – making airline companies very VERY happy.
It’s been a weird year for the airline industry to say the least, and as the year comes to a close – the airline industry braces for turbulence and tailwinds alike…
But one carrier, in particular, seems to be betting big on a smooth landing.
Any guesses?
I’ll give you a hint: they’re second in fleet size – but number ONE in revenue.
Still not ringing any bells?
Well, keep reading to see who’s going to be soaring into 2025 on a high note.
Don’t worry, I won’t keep you in suspense…
Delta Air Lines (DAL) has made an announcement that has investors perking up – or at least raising an eyebrow…
Without giving away too much, let’s just say they’re confidently eyeing the holiday season like it’s their golden ticket.
But is this optimism warranted? Or are they just hoping to coast on autopilot?
Let’s dive in, shall we?
Delta Air Lines has announced that it’s planning to end the year on a high note – forecasting a profitable fourth quarter thanks to what they expect will be strong holiday season bookings.
I mean, what company isn’t hoping for a little holiday magic to push their profits skyward?
But Delta has a track record of ending the year on a high note.
Delta is cheerfully predicting that their year-end profits will be carried on the wings of strong holiday travel demand and initiatives designed to pack those flights to the brim.
They’ve projected adjusted earnings in the range of $1.60 to $1.85 per share for the quarter – with revenue expected to rise by 2% – 4% compared to the same period last year.
And that’s even while acknowledging a potential 1% dip in average seat prices due to – you guessed it – the US presidential election.
The airline’s optimism seems to be supported by an overall return to pre-pandemic travel demand – which Delta believes will drive their strong performance.
Plus, a 25% drop in North American jet fuel prices has been like throwing fuel on the fire (in a good way) for Delta’s bottom line.
Since August, this price drop has contributed to a 34% boost Delta’s stock value since August.
That, in turn, has, well… fueled a 25% rise in the NYSE Arca Airline index (the index that tracks U.S. airlines).
It’s like a holiday gift for investors who’ve been waiting for the airline industry to finally… take off (pun absolutely intended).
Delta’s focus on the future is understandable – especially given that its recent past has been – shall we say, less than first-class.
The airline was on track to beat investor expectations for both revenue and profit in the third quarter, but then – bam! – the CrowdStrike outage hit in July.
If you missed that drama, here’s the gist: a cybersecurity incident knocked out Delta’s computer systems – leading to canceled flights, angry travelers, and a $380 million hit to sales.
All that turbulence wiped out 30% of their quarterly profit.
So, it’s safe to say that Delta’s looking ahead to the holiday season like a kid waiting for Santa Claus to show up with their favorite toy.
Here’s the best part…
Delta’s stock valuation – judged by its price-to-earnings ratio and enterprise value to sales ratios – sits comfortably in line with its airline peers. Nothing flashy there.
But here’s the kicker: Delta’s sales growth and profit margins are leading the pack – which means there’s a case to be made for its shares to be worth more than those of the average airline.
It’s kind of like comparing a first-class upgrade to sitting in coach.
What’s more, Delta has a reputation for being one of the least volatile airlines in the U.S. market – which, in investor speak – is basically the equivalent of “less likely to crash and burn.”
No wonder so many analysts have given Delta a thumbs-up with a “buy” rating.
They’re banking on the airline to navigate these choppy economic skies smoothly – making it a relatively safe bet compared to its more erratic competitors.
But are they a good fit for you?
Well, that all depends on the timing…
If you want to know the best time to get in (or even IF to get in) then you should consider becoming a member of GorillaTrades today.
Our entire system is based in making quality recommendations from hard data…
Meaning, if a company is worth buying, they’ll have the numbers to back it up. Does Delta? Time will tell…
If you REALLY want to know, I urge you to join us for our next round of picks.
Of course, we understand that GorillaTrades system isn’t for everybody – as there are people that love to do all the work themselves…
But if you’re tired of making educated guesses – it’s time to give us a try.
Regardless, you may want to keep a close eye on Delta – they could put $$$ in your pocket before the New Year!
“The higher we soar the smaller we appear to those who cannot fly.” – Friedrich Nietzsche
