Can Delta Air Lines (DAL) Stock Fly Higher After Strong Q4 Results?

Recently hitting new 52-week highs after posting strong Q4 results last Friday, investors may be wondering if it’s time to buy Delta Air Lines DAL stock for more upside.As the largest domestic airline stock by market cap ($42.01 billion), Delta’s operational and financial performance has set the company apart from many of its main competitors such as American Airlines AAL and Southwest Airlines LUV.Let’s see if higher highs are in store for Delta’s stock after achieving a record year in terms of revenue.Image Source: Zacks Investment Research Delta’s Strong Q4 Results Thanks to a strong holiday travel season, Delta reported record Q4 sales of $15.6 billion which rose 9% year over year and topped estimates of $14.98 billion. Even better, Q4 EPS of $1.85 spiked 44% from $1.28 a share in the comparative quarter and eclipsed expectations of $1.76 by 5%.Overall, Delta’s total sales spiked 6% in fiscal 2024 to a record $61.6 billion although annual earnings dipped to $6.16 per share versus EPS of $6.25 in 2023.  Image Source: Zacks Investment Research Delta’s EPS Guidance & Outlook Adding momentum to Delta’s stock was that the company expects strong travel demand to continue into 2025. Notably, Delta expects more than 19% EPS growth in FY25 with the current Zacks Consensus rising nicely in the last week to estimates of $7.43 or 20% growth.Based on Zacks estimates, Delta’s bottom line is expected to expand another 9% in FY26 to $8.13 per share. Plus, FY26 EPS estimates are up in the last week as well.Image Source: Zacks Investment ResearchThis comes as Delta’s total sales are projected to slightly dip this year to $61.37B but are forecasted to rebound and rise 6% in FY26 to $64.93B.Image Source: Zacks Investment Research DAL Performance & Valuation Comparison Continuing its sharp post-pandemic rebound, Delta’s stock has soared over +70% in the last year. This has widely outperformed the broader indexes and its aforementioned peers American and Southwest Airlines but has trailed United Airlines' UAL surge of +170%.That said, Delta’s more attractive price tag of $66 a share may appeal to long-term investors with UAL trading over $100.Image Source: Zacks Investment ResearchFurthermore, DAL still trades at just 8X forward earnings which is on par with UAL and slightly beneath their Zacks Transportation-Airline Industry average while offering a sharp discount to the S&P 500’s 21.9X.Image Source: Zacks Investment Research Bottom Line For now, Delta’s stock lands a Zacks Rank #3 (Hold) after such an extensive rally over the last year. However, it would be no surprise if a buy rating is on the way and new highs given the trend of positive EPS revisions.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks