Should I Buy Delta Air Lines (DAL)? Finance YouTuber Analysis

Similar to United, the analyst is wary of buying Delta Air Lines, despite its strong quarterly profit and potential for bounceback. He characterizes airline stocks as short-term trades due to the industry's inherent instability, despite current benefits from lower jet fuel prices.

“Both Delta and United are well-run airlines, and the industry is benefiting from a drop in jet fuel pricing. But it's also an industry that seems constantly on the verge of bankruptcy.”

The YouTuber is not confident in Delta Airlines despite analyst recommendations and a strong summer travel season. He points to expected low sales growth (4-5%) and a forecast 2% drop in earnings this year. The airline industry as a whole is struggling with high wage pressures and inefficiency, suggesting limited upside for DAL.

“I'm not so sure here though as the shares approached their 52- week high and are up 38% over the year despite this enthusiasm and the record Summer travel season companies expected to grow sales by just 45% this year and 5% next earnings are forecast actually 2% lower this year before rebounding next year.”

The analyst recommends Delta Airlines, noting that despite widespread flight cancellations, travel demand remains strong. The stock is trading near one-year lows and has not benefited from recent market rallies. Cost-cutting measures and charging for services could lead to a surprise in profits, making it an attractive buy at its current valuation of 10 times earnings.

“A lot of them are trading around one year lows right so this is something I would watch the group has continued to trim its services cut unprofitable routes uh charging passengers extra right you don't you don't get anything for free on the airlines anymore all of which just leads me to believe that they could surprise on profits on the quarter.”

The analyst suggests Delta as a well-run airline that could be a good investment. They note that the airline industry has consolidated and become more disciplined, making well-managed companies like Delta more attractive.

“I do like the parts of players I like I do think you can buy well-run Airlines and do well with well run I would say Delta I would say United is growing on my list”