Delta (DAL, $32.19) projects -90% y-o-y plunge in Q2 revenue
On Wednesday, Delta Air Lines mentioned in a regulatory filing that is anticipating second-quarter revenue to decline -90% year-over-year, on the effect of the covid-19 crisis.
The airline also mentioned in the filing that is expecting systemwide capacity to be down -85%, compared to the June 2019 quarter.
The company expects to reduce its average daily cash outflow to about $40 million by June 30, from about $100 million at March 31. By year’s end, the airline has a target of lowering cash burn to zero.
Delta said it had received $3.8 billion in funding through the Coronavirus Aid, Relief and Economic Security, or Cares, Act. Also, it had raised more than $10 billion since early March , including issuing $3.5 billion of senior secured notes due 2027, and also through two secured term loan facilities, with total net proceeds of about $4.4 billion.
DAL in Uptrend: RSI indicator stops in overbought zone for 4 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Current price $32.19 crossed the resistance line at $24.54 and is trading between $53.79 resistance and $24.54 resistance lines. Throughout the month of 05/07/20 - 06/09/20, the price experienced a +58% Uptrend. During the week of 06/02/20 - 06/09/20, the stock enjoyed a +29% Uptrend growth.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 13 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 28 of 47 cases where DAL's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 60%.
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on May 26, 2020. Traders may consider buying the ticker or exploring call options. In 54 of 79 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 68%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where DAL's MACD histogram became positive, in 28 of 43 cases, the price rose further within the following month. The odds of a continued Uptrend are 65%.
The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 30 of 45 similar backtested cases where DAL's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 67%.
The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on June 01, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 13 of 20 similar cases where DAL's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 65%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 62%. During the last month, the daily ratio of advancing to declining volumes was 1.78 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DAL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 85 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 53 (best 1 - 100 worst), indicating fairly steady price growth. DAL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 29 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 22 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.52) is normal, around the industry mean (2.06). P/E Ratio (6.35) is within average values for comparable stocks, (12.59). Projected Growth (PEG Ratio) (0.27) is also within normal values, averaging (1.63). DAL has a moderately high Dividend Yield (2.57) as compared to the industry average of (0.95). P/S Ratio (0.40) is also within normal values, averaging (0.49).
DAL's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for DAL turned positive on April 09, 2025. Looking at past instances where DAL's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DAL's RSI Indicator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 25, 2025. You may want to consider a long position or call options on DAL as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DAL advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 292 cases where DAL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 50-day moving average for DAL moved below the 200-day moving average on April 14, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DAL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DAL broke above its upper Bollinger Band on May 02, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.894) is normal, around the industry mean (2.566). P/E Ratio (7.945) is within average values for comparable stocks, (23.048). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.273). DAL has a moderately low Dividend Yield (0.012) as compared to the industry average of (0.035). P/S Ratio (0.470) is also within normal values, averaging (0.584).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DAL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a provider of scheduled air transportation for passengers, freight, and mail services
Industry Airlines