Important note

This AI stock analysis for Delta Air Lines is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Delta Air Lines - AI Stock Analysis

Analysis generated January 8, 2025

Delta Air Lines, Inc. (NYSE: DAL) is one of the major players in the global airline industry. It operates an extensive domestic and international network, offering services to millions of customers each year. With a rich history dating back to its founding in 1924, Delta has solidified its position as a leading carrier by providing reliable and quality services. Based in Atlanta, Georgia, the airline has a substantial fleet and an extensive route network, connecting travelers to over 300 destinations in more than 50 countries. Delta remains a crucial component of the U.S. travel and transportation infrastructure.

Fundamental Analysis

Looking at Delta's recent financial performance, the company generated $15.7 billion in revenue last quarter. This marks a 5.71% decrease compared to the previous quarter, suggesting some headwinds. However, year-over-year, revenue increased by 2.60%, indicating overall positive growth.

Net income for the last quarter was $1.27 billion, a 2.53% decrease from the prior quarter, which is concerning. Yet, compared to the same quarter last year, net income saw a significant increase of 14.80%, reflecting strong annual growth.

EBITDA stands at $2.38 billion for the last quarter, with a notable decrease of 16.30% quarter-over-quarter. Despite this, there is an impressive year-over-year growth of 22.78%, showing improved operational efficiency.

The current Price to Earnings (P/E) ratio is 8.18, which is relatively low. A low P/E ratio can indicate that the stock is undervalued, suggesting a potentially favorable outlook for investors.

However, insider selling activity in the last couple of months could signal potential concerns from within the company, which is often viewed as a bearish indicator.

Technical Analysis

Delta’s stock price is currently at $61.42, experiencing a decrease of 4.82% over the past month. While this short-term decline is concerning, the stock price has increased by 46.69% over the past year, indicating a strong long-term bullish trend.

The trend remains bullish with the current Simple Moving Average (SMA10) at 60.04, compared to the previous 60.03. This suggests that the price movement has a potential upward trend.

Additionally, the Relative Strength Index (RSI) is at 24.8. This indicates that the stock is potentially oversold, which could be seen as a bullish signal, pointing to a possible uptrend.

Alternative Data Analysis

From an alternative data standpoint, Delta Air Lines currently has 180 open positions, a decrease of 8% in recent months. This suggests the company might be focusing on margin improvement or cost-cutting, an approach that can be positive for profitability but may raise concerns about growth potential.

Employee sentiment remains very high, with 81% of employees having a positive outlook on the company. This is a strong indicator of internal morale and productivity.

However, customer acquisition data reveals a 19% decrease in webpage visitors over the last couple of months, a negative sign that could indicate waning customer interest or market share loss. The daily download rate of the mobile apps remains steady at 12,000, showing no significant change.

Customer engagement on social media shows Delta with 1.5 million followers on Instagram and 1.6 million followers on Twitter. The number of Twitter followers has decreased by 1%, signaling a slight decline in online interest.

According to AltIndex's AI score, which synthesizes various data points to predict stock performance, Delta Air Lines has a score of 54, indicating a hold signal.

Conclusion and Recommendation

Based on the analysis across fundamental, technical, and alternative data perspectives, Delta Air Lines presents a mixed picture. The company shows strong year-over-year growth in key financial metrics, suggesting solid long-term potential. However, recent quarterly declines in revenue, net income, and EBITDA indicate potential short-term challenges. The low P/E ratio may point towards undervaluation, signaling a buying opportunity for value investors.

Technically, despite a recent price decline, the bullish trend supported by the SMA10 and low RSI demonstrates potential for a price recovery. Alternative data presents a mixed bag, with high employee sentiment contrasting with declining customer engagement and acquisition metrics.

Considering all these factors, the data suggests a cautious approach. For long-term investors, Delta Air Lines may offer value with its strong yearly growth and bullish trend, but short-term traders should be wary of the immediate concerns. Therefore, the recommendation would be to hold Delta Air Lines stock while monitoring for any further developments that could impact the company's performance positively or negatively.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.