We recently published a list of Top 10 Beaten Down Large Cap Stocks That Can Double According To Wall Street. In this article, we are going to take a look at where Delta Air Lines, Inc. (NYSE:DAL) stands against other top beaten down large cap stocks that can double according to Wall Street.
There was a point in the early days of Donald Trump’s presidency when the stock market looked set for a bull run. Bit by bit, the market digested geopolitical issues, trade wars, and recession fears. It looked like these were temporary concerns only.
We’re now less than two months into the presidential term and every consensus trade seems to be unravelling in front of our eyes. Investors are panicking and the state of the US economy looks fragile, with recession knocking on the door.
Investors operating in capital markets do not have the luxury of getting out of the market. No matter how the market behaves, they will still be here hunting for opportunities. That’s exactly what we do as well. As the market tanks, we decided to look at beaten down stocks that could comfortably outpace the market if bought after the current sell off.
To come up with our list of 10 beaten down large cap stocks that can double according to Wall Street, we considered stocks that have a market cap of at least $10 billion, have been hammered in the past week, and have a Wall Street price target that could see the stock double from current levels.
An aerial view of a commercial aircraft taking off from a coastal hub.
Delta Air Lines, Inc. (NYSE:DAL)
Delta Air Lines, Inc. is a scheduled air transportation provider for cargo and passengers. It operates in Refinery and Airline segments. The company also offers vacation packages, aircraft maintenance and engineering support, and repair services. The stock is down nearly 22% in a week, which means it is another candidate that could easily double from here according to Wall Street estimates.
The highest price target for DAL on Wall Street is $100 with the lowest price target at $75. The stock is trading at a 33% discount to the lowest target, which implies there is ample room to grow for the stock price.
The current negativity surrounding the stock is amplified by a poor Q1 guidance which has come as a surprise to investors. The airline industry has been reaping the benefits of growing demand for air travel, but the party seems to have come to an abrupt stop. Q1 revenue growth, which was expected at 8% previously, has now been slashed to just 3.5%! The talk of recession isn’t helping the stock either.
The stock, which traded at a premium to its peers, is now available at a solid discount, which is bringing its forward valuations to more reasonable levels without any fault in the business. 2025 could still be a good year for the company as revenue from the joint venture with Korean Air starts flowing in after the successful acquisition of Asiana Airlines.
Delta is also receiving a good response from customers for its loyalty program and premium products, with the premium services revenue up 8% YoY, comfortably outpacing the main cabin revenue growth.
Overall, DAL ranks 9th on our list of top beaten down large cap stocks that can double according to Wall Street. While we acknowledge the potential of DAL as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as DAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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