HomeMarket NewsDelta Air Lines: Soaring Stocks Signal Potential for Higher Altitudes

Delta Air Lines: Soaring Stocks Signal Potential for Higher Altitudes

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Delta Air Lines, Inc. DAL stock initially trended upward on Wednesday, riding the waves of a better-than-expected Q1 earnings report. The company surprised with a 25% boost in earnings and a 9.39% rise in revenue.

For deeper insights, our coverage of Delta Air Lines’ Q1 earnings is right here: Delta Air Lines Sets Growth Trajectory, Prioritizes Debt Reduction After Strong Q1

From a humble $30 per share mark in October 2023, Delta stock has now catapulted to around $48 per share – a stunning climb of over 50% in less than half a year. Year-to-date, the stock has surged by an impressive 17%

For investors navigating the skies of Delta Air Lines stock, the burning question remains: can the ascent continue?

To address this, we delve into the technical chart positions and glean insights from analysts.

Technical Indicators Suggest Bullish Momentum

Diving into the numbers with Benzinga Pro

Delta Air Lines stock is comfortably above its 5-day, 20-day, and 50-day simple moving averages (SMAs). This indicates a robust bullish trend in the near to medium term, showcasing consistent price hikes in recent days and weeks, underlining buoyant momentum and investor faith.

The Moving Average Convergence/Divergence (MACD) stands strong at a bullish 1.32 level. However, with the Relative Strength Index (RSI) inching towards 69, the threshold for overbought conditions is looming, hinting at a need for caution among investors.

Analyst Sentiments Speak of Further Upside

Recent analyst ratings for Delta Air Lines stock issued in April by Susquehanna, BofA Securities, and Morgan Stanley paint an optimistic picture. Based on an average price target of $64 collectively, these analysts foresee a potential upside of 32.64% for Delta Air Lines.

Delta Air Lines holds the top position in the U.S. Global Jets ETF JETS. Notably, it commands a significant 11.86% of the JETS portfolio, and the ETF has seen an approximately 8% surge this year, largely boosted by Delta’s stellar performance.

Other key players in the JETS holdings include United Airlines Holdings UAL at 10.46%, American Airlines Group Inc AAL at 10.00%, and Southwest Airlines Co LUV at 8.80% of the JETS portfolio.

DAL Price Check: As of the latest check on Wednesday, Delta shares were down marginally at $47.22.

For further insights, check out: Assessing Delta Air Lines: Insights From 4 Financial Analysts

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