Delta Story

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DAL -- USA Stock  

USD 39.98  1.49  3.59%

Delta Air Lines is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 13th of October 2020. The stock continues to experience above-average trading activities. As many millenniums are getting excited about industrials space, it is only fair to summarize the feasibility of shorting Delta Air Lines. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three months ago
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Will analysts have more confidence in Delta Air (NYSE:DAL) November?
The company has 34.38 B in debt with debt to equity (D/E) ratio of 3.96, meaning that the entity heavily relies on borrowing funds for operations.
What is the right price you would pay to acquire a share of Delta Air? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Delta Air Lines this year

Annual and quarterly reports issued by Delta Air Lines are formal financial statements that are published yearly and quarterly and sent to Delta stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Delta Air often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Delta utilizes its cash?

To perform a cash flow analysis of Delta Air, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Delta Air is receiving and how much cash it distributes out in a given period. The Delta Air cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Delta Air Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 8.18 Billion

Breaking down Delta Air Indicators

Earning per share calculations of the firm is based on official Zacks consensus of 8 analysts regarding Delta Air's future annual earnings. Given the historical accuracy of 97.53%, the future earnings per share of the company is estimated to be -9.8431 with the lowest and highest values of -12.64 and -8.04, respectively. Please note that this consensus of annual earnings estimates for Delta Air Lines is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Delta a risky opportunity?

Let's check the volatility. Delta is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Delta (NYSE:DAL) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Delta Air stock makes you a part-owner of that company.

Delta Air Lines Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Delta Air Lines. The Delta consensus assessment is calculated by taking the average estimates from all of the analysts covering Delta Air

Strong Buy
Strong Buy758.33
Strong Sell00.0

Possible November bounce-back of Delta?

New standard deviation is at 3.19. Delta Air Lines currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.4. However, we do advice investors to further question Delta Air Lines expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Delta Air

While other entities within the airlines industry are still a little expensive, even after the recent corrections, Delta Air may offer a potential longer-term growth to stakeholders. To conclude, as of the 9th of October 2020, our analysis shows that Delta Air almost neglects market trends. The company is fairly valued and projects below average probability of distress for the next 2 years. Our overall 30 days buy-or-sell advice on the company is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Delta Air Lines. Please refer to our Terms of Use for any information regarding our disclosure principles.

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