Delta Air Lines, Inc. (DAL) Leads Pack of Soaring Airline Stocks: DeNardi

If airline stocks were a gaggle of geese flying in formation through the summer sky, then Delta Air Lines, Inc. (NYSE:DAL) would be their leader, guiding them to their destination. That according to Joseph DeNardi, an analyst with Stifel Nicolaus, during an interview today on CNBC.

Delta Air Lines, Inc. (NYSE:DAL)

“You  now have five or six airlines either paying a dividend or buying back stock; that’s a huge difference between this cycle and past cycles, so I think that says a lot about how the industry has changed and we think it is suitable as an investment,” DeNardi said, speaking of the U.S airline industry as a whole.

DeNardi added that while Delta Air Lines, Inc. (NYSE:DAL) is his favore pick from the group, that he would, in fact, buy any of them, and that he sees all of them as trading at significant discounts to the S&P. In the specific case of Delta Air Lines, Inc. (NYSE:DAL), despite the stock having more than quadrupled in value over the past two years from just $9.11 on August 24, 2012, to $40.28 today, DeNardi believes the stock has a greater climb yet to undertake before it reaches its peak. He currently has a price target of $50.00 on the stock, and a ‘Buy’ rating.

Delta Air Lines, Inc. (NYSE:DAL) has undertaken several initiatives over the past few years that have greatly improved their operations. They’re in the process of retiring some of their smaller jets, replacing them with larger, higher-margin ones. Their partnership with the UK-based Virgin Atlantic in 2012 has also paid big dividends, with the two companies now ranked second in terms of market share with the prominent New York to London route. Delta Air Lines, Inc. (NYSE:DAL) has also made big strides towards setting up a profitable hub in Seattle, and gobbling up share from market leader Alaska Airlines.

U.S. airlines as a whole have experienced a banner year thus far, with industry-wide profit margins doubling in the first half of the year according to Airlines for America.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!