What are the chances of Delta Air (USA Stocks:DAL) to slide in July?

The asset utilization indicator reflects the revenue generated per dollar of a company's reported assets. Delta Air Lines has an asset utilization ratio of 78.82 percent, implying that the company earns $0.79 for each dollar of assets. An increase in asset utilization suggests that Delta Air Lines is enhancing its efficiency in using each dollar of assets for daily operations.

Main Points

With a Jensen Alpha of 0.22, Delta Air Lines (USA Stocks:DAL) demonstrates a potential for significant excess return, suggesting that the stock could soar in July. Despite a recent price change of a loss of 0.13, the company's Sortino Ratio of 0.15 indicates that it has been effectively managing its risky investments, further bolstering the likelihood of a positive performance in the coming month.
Published over a month ago
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Reviewed by Michael Smolkin

The sky's the limit for Delta Air Lines (DAL) as we head into July. With a strong buy consensus from analysts, the potential for this airline stock to soar is palpable. Out of 20 analysts, 15 have given a strong buy recommendation, while only one suggests selling. This overwhelming confidence in the stock is further supported by the analyst target price estimated value of $53.94, indicating a potential upside from the current market valuation of $49.58. The naive expected forecast value for Delta Air Lines stands at $50.99, suggesting a positive outlook for the stock. Moreover, the accumulation distribution index, a measure of the cumulative flow of money into and out of a security, stands at 0.0148, indicating a strong buying pressure. However, it's not all clear skies ahead. The daily balance of power, a measure of market strength, stands at -0.18, indicating a slight bearish trend. Additionally, the period momentum indicator is at -0.13, suggesting some resistance to upward movement. Despite these headwinds, the potential upside price of $52.59 and the highest estimated target price of $59.87 by analysts provide a promising outlook for Delta Air Lines. As we buckle up for July, investors should keep a close eye on this high-flying stock in the industrials category, specifically within the passenger airlines service category. We utilize predictive indicators to assess Delta Air Lines, aiding investors in analyzing its daily demand, supply, volume, patterns, and price fluctuations to ascertain its true value. We employ various methods to derive Delta's intrinsic value based on widely accepted predictive technical indicators. Amid extraordinary political and economic uncertainty, let's attempt to summarize Delta Air's current situation.
The successful prediction of Delta Air stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Delta Air Lines, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Delta Air based on Delta Air hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Delta Air's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Delta Air's related companies.

Use Technical Analysis to project Delta expected Price

Delta Air technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Delta Air technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Delta Air trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

Delta Air Gross Profit

Delta Air Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Delta Air previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Delta Air Gross Profit growth over the last 10 years. Please check Delta Air's gross profit and other fundamental indicators for more details.

Breaking down Delta Air Indicators

The modest gains experienced by current holders of Delta Air could raise concerns from institutional investors as the firm is trading at a share price of 49.58 on very low momentum in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in May. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.6. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Current Deferred Revenue Breakdown

Delta Air Current Deferred Revenue yearly trend continues to be quite stable with very little volatility. The value of Current Deferred Revenue is projected to decrease to about 2.3 B. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. At this time, Delta Air's Current Deferred Revenue is quite stable compared to the past year.
2017
2018
2019
2020
2021
2022
2023
2024
20171.82 Billion
20182.99 Billion
20193.22 Billion
20201.78 Billion
20212.71 Billion
20223.43 Billion
20233.91 Billion
20242.34 Billion
As the saying goes, 'buy low, sell high', and this could be an opportune moment for investors to consider Delta Air Lines (DAL). Despite a challenging industry environment due to COVID-19, Delta's strong fundamentals, including a robust EBITDA of $7.58B and substantial cash flow from operations standing at $6.46B, suggest potential for recovery. The company's shares owned by institutions is a promising 75.52%, indicating confidence among professional investors. With a target price of $61.7, significantly above the current typical day price of $49.56, the upside potential for Delta Air Lines is evident. However, investors should be mindful of the airline's high total debt of $27.28B and the probability of bankruptcy standing at 39.72%.

Delta Air is epected to finish above $49 in July

Delta Air Lines' stock is demonstrating promising signs of positive performance, with a current skewness of 0.19. This statistical measure suggests a more symmetrical distribution of returns, indicating less risk of extreme values and more predictable performance. Given this trend, it's reasonable to expect the stock to finish above $49 in July, based on current market conditions and the company's strong recovery strategies amid the pandemic. However, investors should monitor the stock closely as market conditions can change rapidly. Delta Air Lines' stock has relatively low volatility, with a skewness of 0.19 and kurtosis of -0.23. Understanding market volatility trends can help investors time the market.
Using volatility indicators properly allows traders to measure Delta Air's stock risk against market volatility during both bullish and bearish trends. High volatility in bear markets can impact Delta Air's stock price and stress investors, often prompting portfolio rebalancing.In conclusion, despite the recent slide, Delta Air Lines (DAL) still presents a compelling investment opportunity. The analyst overall consensus rates the stock as a Strong Buy, with 15 strong buys, 5 buys, and only 1 sell. The possible upside price is $52.59, significantly higher than the possible downside price of $49.39. Furthermore, the analyst target price estimated value stands at $53.94, indicating a potential for substantial growth. However, investors should also consider the valuation real value of $41.53, which is lower than the current market value. In light of these factors, it's advisable for investors to carefully consider their risk tolerance and investment goals before making a decision..

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Editorial Staff

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