Five Airline Operators to Own Now

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

– Number of Hedge Fund Holders (as of September 30): 109
– Total Value of Hedge Fund Holdings (as of September 30): $7.32 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 20.50%

With 109 funds long the stock at the end of September, Delta Air Lines, Inc. (NYSE:DAL) is somewhat of a consensus hedge favorite. Given Delta’s forward P/E of 8.81 and the airline’s solid fourth quarter guidance of operating margin of between 16% and 18%, it’s not hard to see why the smart money loves the stock. Increased consolidation is boosting margins while stronger capital allocation discipline is ensuring that the industry doesn’t expand capacity too fast. Meanwhile low crude prices and a strong U.S. economy keep the supra-normal earnings going. Analysts have an average price target of $62.54, giving Delta more than 22% upside.

Disclosure: none