EARN25

Delta Air Lines Stock Brushes Off Upbeat Revenue Forecast

DAL still carries a more than 13% year-over-year deficit

Digital Content Manager
Jun 1, 2022 at 10:07 AM
facebook X logo linkedin


Delta Air Lines, Inc. (NYSE:DAL) is down 3.5% at $40.23 at last check, despite the company's upbeat quarterly outlook. Delta expects its second-quarter adjusted revenue to come in at pre-pandemic levels, as more customers return to travel. And though over 2,500 flights had to be canceled during the Memorial Day weekend, due to weather and Covid-19 cases among staff, the airline also lifted its operating margin outlook for the current quarter to 13%-14% -- marking upside from its initial low-end estimate. 

DAL has been choppy since a post-earning surge failed at a familiar ceiling near the $46 mark. The security was able to find its footing near the $36 level, however, while the 40-day moving average emerged as support to contain yesterday's negative price action. The equity is up 4.7% so far in 2022, but down 13.9% in the past 12 months. 

Analysts have been incredibly bullish on DAL, with all but one of the 14 in coverage calling it a "strong buy." Plus, the 12-month consensus price target of $53.94 is a 32.1% premium to current levels.

Options traders, on the other hand, have rarely been more bearish. While call volume is still outpacing put volume overall, the stock sports a 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than all other readings from the past year. 

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!