5 Best Airline Stocks To Buy Now

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

Number of Hedge Fund Holders: 49

Delta Air Lines, Inc. (NYSE:DAL) is a Georgia-based company that provides air transportation for passengers and cargo in the United States and internationally. In Q3 2022, Delta Air Lines, Inc. (NYSE:DAL) reported a revenue of $13.98 billion, up 52.8% from the prior-year quarter and beating market estimates by $360 million. For Q4 2022, the airline expects capacity to be up nearly 5% to 9% compared to Q4 2019 and earnings per share between $1 to $1.25 versus a consensus of $0.80. Delta Air Lines, Inc. (NYSE:DAL) is on track to achieve 2024 targets of an adjusted EPS of more than $7 and $4 billion of free cash flow. Delta Air Lines, Inc. (NYSE:DAL) is one of the best airline stocks to buy now. 

On October 24, Jefferies analyst Sheila Kahyaoglu raised the price target on Delta Air Lines, Inc. (NYSE:DAL) to $40 from $35 and kept a Buy rating on the shares. Delta TechOps is the biggest airline MRO provider in North America and the third largest globally, noted the analyst, who views TechOps as “a competitive advantage for Delta”. The MRO business generates about $1 billion of external sales, but adds $4 billion of production value to the airline, added the analyst, who believes the business could be valued at $10 billion on a standalone basis.

Among the hedge funds tracked by Insider Monkey, 49 funds were bullish on Delta Air Lines, Inc. (NYSE:DAL) at the end of Q2 2022, compared to 55 funds in the last quarter. Alex Snow’s Lansdowne Partners is a significant position holder in the company, with 4.6 million shares worth $132.35 million. 

Here is what Miller Value Partners specifically said about Delta Air Lines, Inc. (NYSE:DAL) in its Q3 2022 investor letter:

“Delta Air Lines, Inc. (NYSE:DAL) ($29.42) is a high-quality airline (yes, there really is such a thing!).  It didn’t issue any equity in the pandemic. It focuses on delivering a superb customer experience and has brand loyalty (including a stable revenue stream from partner American Express, growing at 20%/ year). Maybe the best evidence: it’s managed to outperform the S&P 500 over the past decade despite a horrible pandemic ending point (+13.2% vs. 11.7%1 ). It trades for 4x 2024 earnings! If it eventually trades at Southwest’s historical valuation, it implies this stock should double as well.”

You can also take a look at 15 Best Strong Buy Stocks To Invest In and Best Biotech Stocks Under $10. 

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