Delta Air Lines still has plenty of value in a market that trades significantly above historical valuation levels.
Delta's refinery operations and strong focus on customer loyalty give the company a competitive advantage.
DAL increased the dividend every year since 2013.
There may not be many profitable stocks in this market with low bargain valuations, but Delta Air Lines (DAL) is one of the exceptions. In fact, many of the major and regional airlines are trading with forward PE ratios in the single digits. In addition to the low valuation, Delta has competitive advantages with its refinery operations and recognition for customer loyalty.
While I typically write about above-average growth stocks, I occasionally write about low growth dividend stocks as well. Delta's earnings growth is expected to be a little below average in 2020 (consensus). Delta is expected to grow revenue at close to 4% and earnings at about 5% in 2020 as compared to the expected revenue growth of 5.2% and earnings growth of 9.1% for the S&P 500 (SPY).
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
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