10 Best Economic Recovery Stocks to Buy

5. Delta Air Lines, Inc. (NYSE:DAL)

Estimated average analysts’ upside: 65.25%

Revenue CAGR last 5 years: 20.28%

Number of Hedge Fund Holders: 84

​​Delta Air Lines, Inc. (NYSE:DAL) is a major global airline that operates passenger flights and cargo across six continents. The company operates over 4,000 daily flights to more than 275 destinations, with the busiest destinations being in the US. Beyond passenger services, DAL provides cargo transport, aircraft maintenance, repair, and overhaul services, as well as vacation packages. It is well-known that travel demand increases during economic recoveries, and DAL’s large scale and diversification across geographic regions makes it well-positioned to capture any acceleration in traffic.

Delta Air Lines, Inc. (NYSE:DAL) delivered record Q4 revenue of $14.4 billion, with pretax profit of $1.6 billion and earnings per share of $1.85, marking the largest December quarter profit in the company’s history. For the full year 2024, DAL achieved a return on invested capital of 13% that doubled the rest of the industry. The company generated $3.4 billion in free cash flow, a nearly $1.5 billion improvement over 2023, which supported debt reduction and a 50% increase in the quarterly dividend.

Looking ahead to 2025, Delta Air Lines, Inc. (NYSE:DAL) expects to deliver its best financial year in history with revenue growth and margin expansion record profitability, projecting EPS growth of over 20% on a YoY basis. The company is experiencing strong demand momentum across all segments, with corporate sales growing 10% YoY and American Express remuneration up 14% YoY. Management’s strategic focus includes expanding premium offerings, with more than 85% of incremental seats in 2025 planned for premium cabins while maintaining efficient growth across high-margin premium cabins in their most profitable hubs. We expect DAL to potentially surprise on growth during a broad market acceleration and hence include it in 5^th place on our list of best economic recovery stocks to buy.