Is Delta Air Lines (DAL) an Undervalued Stock?

Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy had a strong performance in the second quarter, returning 13.31% net of fees compared to the S&P 500’s 8.74% gain. The strategy grew 20.91% over the last year, compared to a 19.59% increase for the market. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Patient Capital Opportunity Equity Strategy highlighted stocks like Delta Air Lines, Inc. (NYSE:DAL) in the second quarter 2023 investor letter. Headquartered in Atlanta, Georgia, Delta Air Lines, Inc. (NYSE:DAL) offers air transportation for passengers and cargo. On October 4, 2023, Delta Air Lines, Inc. (NYSE:DAL) stock closed at $36.06 per share. One-month return of Delta Air Lines, Inc. (NYSE:DAL) was -12.33%, and its shares gained 17.77% of their value over the last 52 weeks. Delta Air Lines, Inc. (NYSE:DAL) has a market capitalization of $23.202 billion.

Patient Capital Opportunity Equity Strategy made the following comment about Delta Air Lines, Inc. (NYSE:DAL) in its Q2 2023 investor letter:

“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors (GM) and Delta Air Lines, Inc. (NYSE:DAL). These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”

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Delta Air Lines, Inc. (NYSE:DAL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Delta Air Lines, Inc. (NYSE:DAL) at the end of second quarter which was 56 in the previous quarter.

We discussed Delta Air Lines, Inc. (NYSE:DAL) in another article and shared the list of best airline stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.